Title 41 — INSURANCE

41-2605. Certificate as evidence of authority to be sole surety. The certificate of authority of a surety insurer, issued as provided under this code, shall be evidence of the authority of the insurer to become and to be accepted as sole surety on all private bonds and contracts,…

41-2606. Premiums on bonds — Allowance as expense costs — Limit as to amount. (1) Any assignee, receiver, trustee, committee, guardian, curator, executor, administrator or other fiduciary required as such by law or the order of any court or judge to give bond or undertaking, may …

41-2607. Bond premiums as part of costs in actions and proceedings. In all actions and proceedings a party entitled to recover disbursements therein shall be allowed and may tax and recover such sum paid a surety insurer authorized under the laws of this state to do so for execut…

41-2608. Deposit for protection of surety. It shall be lawful for any party of whom a bond, undertaking or other obligation is required to agree with his surety or sureties for the deposit of any or all moneys and assets for which such surety or sureties are or may be held respon…

41-2609. Release of surety on certain official bonds. (1) The surety or the representative of any surety, upon the bond of any trustee, committee, guardian, assignee, receiver, executor or administrator, or other fiduciary, may apply by petition to the court wherein such bond is …

41-2610. Estoppel to deny corporate power. Any insurer giving any bond or recognizance referred to in sections 41-2604 through 41-2608 shall be estopped, in any proceeding to enforce the liability which it has assumed to incur, to deny its corporate power to execute such instrume…

41-2611. Deduction of bond premium from wages of employees. No firm, individual, railroad or other corporation doing business within this state shall collect or retain from the wages of the persons in their employ the cost of any guaranty or security furnished the said firm, indi…

41-2612. Release of surety on bond of licensee or permittee. (1) The surety or the representative of any surety upon any bond given on behalf or for the use and benefit of any person, firm, copartnership, association or corporation as a licensee or permittee under any law of the …

41-2613. Surety companies authorized to become surety under arrest bond certificate — Certificate as cash bail. (A) Right of qualified surety company to become surety with respect to guaranteed arrest bond certificates. (1) Any domestic or foreign surety company which has qualifi…

41-2701. Scope of chapter. This chapter applies only as to title insurance, as defined in section 41-508.

41-2702. Countersignature of policies. A title insurer shall not issue a policy of title insurance or guaranteed certificate of title or other guaranty of title covering any property located within Idaho unless countersigned by a person, partnership, corporation or agency owning …

41-2703. Other provisions especially applicable. The following other provisions of this code are, among other provisions, especially applicable as to title insurers: (1) Insuring powers, sections 41-312(3) and 41-508. (2) Capital funds required, section 41-313. (3) Deposit of tit…

41-2704. Application of act — Business of title insurance. The provisions of chapter 27, title 41, Idaho Code, shall apply to all title insurance companies, title insurance rating organizations, title insurance agents, applicants for title insurance, policyholders and to all pers…

41-2705. Supervision — Policy forms — Premiums. (1) The business of title insurance shall operate in Idaho under the control and supervision of the director of the department of insurance as to the premium rates for basic classifications of policy and underwriting contracts in re…

41-2706. Title insurance rates — Justification. Title insurance premium rates for the basic classification of policies and underwriting contracts shall be those filed by a title insurer or a title insurance rating organization with justification and approved by order of the direc…

41-2707. Filing of title insurance rates — Hearings. (1) Pursuant to such regulations as the director of the department of insurance may adopt, every title insurer or rating organization shall file with the director of the department of insurance its schedule of rates, basic clas…

41-2708. Determination of insurability — Prohibited risks — Rebates. (1) Insurability. No title insurance on real property in the state of Idaho shall be issued unless and until the title insurer or its agent: (a) Owns or leases, separately or jointly with another, tract indexes …

41-2709. Personal or controlled insurance. (1) Personal or controlled insurance means a policy of title insurance where the insured or one (1) of the insureds under such policy is, or the loss thereunder is payable to: (a) the title insurer issuing such policy or to any person or…

41-2710. Requirements for agents. (1) A title insurance agent is a person owning or leasing separately or with another licensed agent a complete set of tract indexes and abstract records of each county for which policies are written and authorized in writing by a title insurer to…

41-2711. Requirements for title insurance related business — Bonds. An escrow officer is an officer or an employee of a title insurance agent whose duties include any of the following: handling escrows, settlements, closings, and funds related thereto, except there are not to be …

41-2712. Title insurance rating organization. (1) Finding. There are at the present time more than twelve (12) title insurers to which this chapter applies. Reasonable competition exists among said insurers with respect to classes of insurance written on titles. Said title insure…

41-2713. Administration — Examination costs. In the exercise of the powers of the director of the department of insurance to supervise and regulate title insurers, title insurance agents and title insurance rating organizations as provided in this chapter, as well as the powers o…

41-2714. closing or settlement protection. (1) A title insurer may issue closing or settlement protection to a buyer, borrower or lender that is a party to a transaction in which a title insurance policy will be issued. The closing or settlement protection shall be on a form file…

41-2801. Scope of chapter. This chapter shall apply only to domestic stock insurers and domestic mutual insurers, except that sections 41-2849 (nonassessable policies, mutual insurers), 41-2872 (health care provider contracts) and 41-2873, Idaho Code, (best price — most favored n…

41-2802. "Stock" insurer — "Mutual" insurer — Definitions. A "stock" insurer is as defined in section 41-301. A "mutual" insurer is as defined in section 41-302.

41-2803. Applicability of general corporation statutes. (1) The applicable statutes of this state relating to the powers and procedures of domestic private corporations formed for profit shall apply to domestic stock insurers and to domestic mutual insurers, except where in confl…

41-2804. Incorporation. (1) This section applies to stock and mutual insurers hereafter incorporated in this state. (2) Incorporators. Seven (7) or more individuals who are citizens of this state may incorporate a stock insurer; ten (10) or more of such individuals may incorporat…

41-2805. Filing of articles. (1) The incorporators shall submit the executed articles of incorporation of a proposed stock or mutual insurer in triplicate to the director for review. If the director finds the articles to be in compliance with this code he shall deliver an origina…

41-2809. Investigation of proposed organization. Upon application of a new insurer for a certificate of authority, the director of the department of insurance shall promptly make an investigation of: (1) The character, reputation, financial standing and purposes of the organizers…

41-2818. Qualification for initial certificate of authority — Stock insurers. A newly formed domestic stock insurer shall be entitled to a certificate of authority only when its entire authorized capital stock has been subscribed for and paid for in full, and it has fulfilled the…

41-2820. Initial qualifications — Domestic mutuals. When newly organized, a domestic mutual insurer may be authorized to transact any one of the kinds of insurance defined in sections 41-502 through 41-506, Idaho Code, if it has otherwise complied with the provisions of title 41,…

41-2822. Applications for insurance in formation of mutual insurer. (1) Upon receipt of the director’s approval of the bond or deposit as provided in section 41-2821, Idaho Code, the proposed domestic mutual insurer may commence solicitation of such requisite applications for ins…

41-2823. Formation of mutuals — Trust deposit of premiums — Issuance of policies. (1) All sums collected by a domestic mutual corporation as premiums or fees on qualifying applications for insurance therein shall be deposited in trust in a bank or trust company in this state unde…

41-2824. Formation of mutuals — Failure to qualify. If the proposed domestic mutual insurer fails to complete its organization and to secure its original certificate of authority within one (1) year from and after date of its certificate of incorporation, the corporation shall tr…

41-2825. Additional kinds of insurance — Mutuals. A domestic mutual insurer, after being authorized to transact one (1) kind of insurance, may be authorized to transact such additional kinds of insurance as are permitted under section 41-312, Idaho Code, while otherwise in compli…

41-2826. Amendment of articles of incorporation — Stock insurers. (1) A domestic stock insurer may amend its articles of incorporation or bylaws for any lawful purpose through procedures prescribed by the statutes of this state as to business corporations in general, and by compl…

41-2827. Amendment of articles of incorporation — Mutual insurer. (1) A domestic mutual insurer heretofore or hereafter formed may amend its articles of incorporation for any lawful purpose by affirmative vote of a majority of those of its members present or represented by proxy …

41-2828. Insurance business exclusive. A domestic insurer heretofore or hereafter formed shall not have corporate power to engage, and shall not directly or indirectly engage, in any business other than the insurance business and in business activities reasonably and necessarily …

41-2829. Membership in mutuals. (1) Each policyholder of a domestic mutual insurer, other than of a reinsurance contract, is a member of the insurer during the period of the insurance with all rights and obligations of such membership, and the policy shall so specify. (2) Any per…

41-2830. By-laws of mutual. (1) A domestic mutual insurer shall have by-laws for the government of its affairs. The insurer’s initial board of directors shall adopt original by-laws, subject to the approval of the insurer’s members at the next meeting of members. (2) The by-laws …

41-2831. Rights of mutual members in general. (1) A domestic mutual insurer is owned by and shall be operated in the interest of its members. (2) With respect to the management, records and affairs of the insurer, a member of a mutual insurer shall have the same character of righ…

41-2832. Meetings of members of mutual insurer. (1) Meetings of members of a domestic mutual insurer shall be held in the city or town of its registered office in this state, except as may otherwise be provided in the insurer’s by-laws with the director’s approval. (2) Each such …

41-2833. Special meetings of members of mutual insurer. (1) A special meeting of the members of a mutual insurer may be held for any lawful purpose. The meeting shall be called by the corporate secretary pursuant to request of the insurer’s president or of its board of directors,…

41-2834. Voting rights of mutual members. (1) Each member of a mutual insurer is entitled to one (1) vote upon each matter coming to a vote at meetings of members. (2) A member shall have the right to vote in person or by his written proxy filed with the corporate secretary not l…

41-2835. Directors. (1) The affairs of every domestic insurer shall be managed by a board of directors consisting of not less than five (5) directors or more than twenty-five (25) directors. (2) Directors shall be elected by the members or stockholders of a domestic insurer at th…

41-2836. Notice of change of directors or officers. An insurer shall promptly give the director written notice of any change of personnel among its directors or principal officers.

41-2837. Prohibited pecuniary interest of officials. (1) Any officer or director, or any member of any committee or an employee of a domestic insurer who is charged with the duty of investing or handling the insurer’s funds shall not deposit or invest such funds except in the ins…

41-2838. Management and exclusive agency contracts. (1) No domestic insurer shall hereafter make any contract whereby any person is granted or is to enjoy in fact the management of the insurer to the substantial exclusion of its board of directors or to have the controlling or pr…

41-2839. Home office — Records — Assets — Penalty for unlawful removal. (1) Except as provided in subsection (5) of this section, every domestic insurer shall have and maintain its principal place of business and home office in this state, and shall keep therein accurate and comp…

41-2840. Vouchers for expenditures. (1) No insurer shall make any disbursement of twenty-five dollars ($25) or more, unless evidenced by a voucher or other document correctly describing the consideration for the payment and supported by a check or receipt endorsed or signed by or…