Title 41 — INSURANCE

41-3212. Institutions. (1) A society may create, maintain and operate, or may establish organizations to operate, not for profit institutions to further the purposes permitted in section 41-3205(1)(b), Idaho Code. Such institutions may furnish services free or at a reasonable cha…

41-3213. Reinsurance. (1) A domestic society may, by a reinsurance agreement, cede any individual risk or risks in whole or in part to an insurer (other than another fraternal benefit society) having the power to make such reinsurance and authorized to do business in this state, …

41-3214. Consolidations and mergers. (1) A domestic society may consolidate or merge with any other society by complying with the provisions of this section. It shall file with the director: (a) A certified copy of the written contract containing in full the terms and conditions …

41-3215. Conversion of fraternal benefit society into a mutual life insurance company. Any domestic fraternal benefit society may be converted and licensed as a mutual life insurance company by compliance with all the applicable requirements of section 41-2820, Idaho Code (initia…

41-3216. Benefits. (1) A society may provide the following contractual benefits in any form: (a) Death benefits; (b) Endowment benefits; (c) Annuity benefits; (d) Temporary or permanent disability benefits; (e) Hospital, medical or nursing benefits; and (f) Monument or tombstone …

41-3217. Beneficiaries. (1) The owner of a benefit contract shall have the right at all times to change the beneficiary or beneficiaries in accordance with the laws or rules of the society unless the owner waives this right by specifically requesting in writing that the beneficia…

41-3218. Benefits not attachable. No money or other benefit, charity, relief or aid to be paid, provided or rendered by any society, shall be liable to attachment, garnishment or other process, or to be seized, taken, appropriated or applied by any legal or equitable process or o…

41-3219. The benefit contract. (1) Every society authorized to do business in this state shall issue to each owner of a benefit contract a certificate specifying the amount of benefits provided thereby. The certificate, together with any riders or endorsements attached thereto, t…

41-3220. Nonforfeiture benefits, cash surrender values, certificate loans and other options. (1) For certificates issued prior to one (1) year after the effective date of this act, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan o…

41-3221. Investments. A society shall invest its funds only in such investments as are authorized by the laws of this state for the investment of assets of life insurers and subject to the limitations thereon. Any foreign or alien society permitted or seeking to do business in th…

41-3222. Funds. (1) All assets shall be held, invested and disbursed for the use and benefit of the society and no member or beneficiary shall have or acquire individual rights therein or become entitled to any apportionment on the surrender of any part thereof, except as provide…

41-3223. Taxation. Every society organized or licensed under this chapter is hereby declared to be a charitable and benevolent institution, and all of its funds shall be exempt from all and every state, county, district, municipal and school tax other than taxes on real estate an…

41-3224. Valuation. (1) Standards of valuation for certificates issued prior to one (1) year after the effective date of this act shall be those provided by the laws applicable immediately prior to the effective date of this act. (2) The minimum standards of valuation for certifi…

41-3225. Reports. Reports shall be filed in accordance with the provisions of this section. (1) Every society transacting business in this state shall annually, on or before the first day of March, unless for cause shown such time has been extended by the director, file with the …

41-3226. License. (1) No fraternal benefit society shall transact business in this state without a license therefor issued by the director. Such a license issued under this code shall continue in force for as long as the society is entitled thereto under this chapter and until su…

41-3227. Examination of societies — No adverse publications. (1) The director, or any person he may appoint, may examine any domestic, foreign or alien society transacting or applying for admission to transact business in this state in the same manner as authorized for examinatio…

41-3228. Foreign or alien society — Admission. No foreign or alien society shall transact business in this state without a license issued by the director. Any such society desiring admission to this state shall comply substantially with the requirements and limitations of this ch…

41-3229. Injunction — Liquidation — Receivership of domestic society. (1) When the director upon investigation finds that a domestic society: (a) Has exceeded its powers; (b) Has failed to comply with any provision of this chapter; (c) Is not fulfilling its contracts in good fait…

41-3230. Suspension, revocation or refusal of license of foreign or alien society. (1) When the director upon investigation finds that a foreign or alien society transacting or applying to transact business in this state: (a) Has exceeded its powers; (b) Has failed to comply with…

41-3231. Injunction. No application or petition for injunction against any domestic, foreign or alien society, or lodge thereof, shall be recognized in any court of this state unless made by the attorney general upon request of the director.

41-3232. Licensing of agents. Agents of societies shall be licensed in accordance with the provisions of chapter 10, title 41, Idaho Code. Except, that no such license shall be required as to members of societies which provide benefits in case of death or disability resulting sol…

41-3233. Unfair methods of competition and unfair and deceptive acts and practices. Every society authorized to do business in this state shall be subject to the provisions of chapter 13, title 41, Idaho Code, relating to trade practices and frauds; provided however, that nothing…

41-3234. Service of process. (1) Every society authorized to do business in this state shall appoint in writing the director and each successor in office to be its true and lawful attorney upon whom all lawful process in any action or proceeding against it shall be served, and sh…

41-3235. Fees. (1) The director shall collect in advance from fraternal benefit societies the licenses and fees, in addition to fees connected with the licenses of agents, as otherwise provided by rule. (2) The director shall transmit and report all fees so collected by him as pr…

41-3236. Penalties. (1) A person who shall knowingly or willfully make any false or fraudulent statement or representation in or relating to any application for membership or for the purpose of obtaining money from or a benefit in any society, shall be guilty of a misdemeanor and…

41-3237. Exemption of certain societies. (1) Nothing contained in this chapter shall be so construed as to affect or apply to: (a) Grand or subordinate lodges of societies, orders or associations now doing business in this state which provide benefits exclusively through local or…

41-3238. Review. All decisions and findings of the director made under the provisions of this chapter shall be subject to review by proper proceedings in any court of competent jurisdiction in this state.

41-3239. Other provisions applicable. (1) Except as herein provided, societies shall be governed by this chapter and shall be exempt from all other provisions of the insurance laws of this state, not only in governmental relations with this state, but for every other purpose, and…

41-3301. Construction and purpose. (1) This act shall be cited as the "Idaho Insurers Supervision, Rehabilitation, and Liquidation Act." (2) This act shall not be interpreted to limit the powers granted the director by other provisions of the law. (3) This act shall be liberally …

41-3302. Persons covered. The proceedings authorized by this act may be applied to: (1) All insurers who are doing, or have done, an insurance business in this state, and against whom claims arising from that business may exist now or in the future. (2) All insurers who purport t…

41-3303. Definitions. For the purposes of this act: (1) "Ancillary state" means any state other than a domiciliary state. (2) "Director" means the director of the department of insurance of this state. (3) "Creditor" is a person having any claim, whether matured or unmatured, liq…

41-3304. Jurisdiction and venue. (1) No delinquency proceeding shall be commenced under this chapter by anyone other than the director of this state and no court shall have jurisdiction to entertain, hear or determine any proceeding commenced by any other person. (2) No court of …

41-3305. Injunctions and orders. (1) Any receiver appointed in a proceeding under this act, may at any time apply for and any court of general jurisdiction may grant, such restraining orders, preliminary and permanent injunctions, and other orders as may be deemed necessary and p…

41-3306. Cooperations of officers, owners, and employees. (1) Any officer, manager, director, trustee, owner, employee, or agent of any insurer, or any other persons with authority over or in charge of any segment of the insurer’s affairs, shall cooperate with the director in any…

41-3307. Bonds. In any proceeding under this act, the director and his deputies shall be responsible on their official bonds for the faithful performance of their duties. If the court deems it desirable for the protection of the assets, it may at any time require an additional bo…

41-3308. Continuation of delinquency proceedings. Every proceeding heretofore commenced under the laws in effect before the enactment of this act shall be deemed to have commenced under this act for the purpose of conducting the proceeding henceforth, except that in the discretio…

41-3309. Director’s summary orders and supervision proceedings. (1) Whenever the director has reasonable cause to believe, and determines, after a hearing held under subsection 5 of this section, that any domestic insurer has committed or engaged in, or is about to commit or enga…

41-3310. Court’s seizure order. (1) The director may file in the district court of this state a petition alleging, with respect to a domestic insurer: (a) That any grounds exist that would justify a court order for a formal delinquency proceeding against an insurer under this act…

41-3311. Hearings. In all proceedings and judicial reviews thereof under sections 41-3309 and 41-3310, Idaho Code, all records of the insurer, other documents, and all insurance department files and court records and papers, so far as they pertain to or are a part of the record o…

41-3312. Grounds for rehabilitation. The director may apply by petition to the district court for an order authorizing him to rehabilitate a domestic insurer or an alien insurer domiciled in this state on any one (1) or more of the following grounds: (1) The insurer is in such co…

41-3313. Rehabilitation orders. (1) An order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this state, shall appoint the director and his successors in office the rehabilitator, and shall direct the rehabilitator forthwith to take possession…

41-3314. Powers and duties of the rehabilitator. (1) The director as rehabilitator may appoint one or more special deputies, who shall have all the powers and responsibilities of the rehabilitator granted under the provisions of this section, and the director may employ such coun…

41-3315. Actions by and against rehabilitator. (1) Any court in this state before which any action or proceeding in which the insurer is a party or is obligated to defend a party is pending when a rehabilitation order against the insurer is entered shall stay the action or procee…

41-3316. Termination of rehabilitation. (1) Whenever the director believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public, or would be futile, the director may petition the district court for an…

41-3317. Grounds for liquidation. The director may petition the district court for an order directing him to liquidate a domestic insurer or an alien insurer domiciled in this state on the basis: (1) Of any ground for an order of rehabilitation as specified in section 41-3312, Id…

41-3318. Liquidation orders. (1) An order to liquidate the business of a domestic insurer shall appoint the director and his successors in office liquidator and shall direct the liquidator forthwith to take possession of the assets of the insurer and to administer them under the …

41-3319. Continuance of coverage. (1) All policies, other than life or health insurance or annuities, in effect at the time of issuance of an order of liquidation shall continue in force only for the lesser of: (a) A period of thirty (30) days from the date of entry of the liquid…

41-3320. Insurer — Dissolution. The director may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in this state at the time he applies for a liquidation order. The court shall order dissolutio…

41-3321. Powers of liquidator. (1) The liquidator shall have the power: (a) To appoint a special deputy to act for him under this act, and to determine his reasonable compensation. The special deputy shall have all powers of the liquidator granted by this section. The special dep…

41-3322. Notice to creditors and others. (1) Unless the court otherwise directs, the liquidator shall give or cause to be given notice of the liquidation order as soon as possible: (a) By first class mail and either by telegram or telephone to the insurance director of each juris…