Title 41 — INSURANCE

41-101. Short title. This act constitutes the Idaho insurance code.

41-102. "Insurance" defined. "Insurance" is a contract whereby one undertakes to indemnify another or pay or allow a specified or ascertainable amount or benefit upon determinable risk contingencies.

41-103. "Insurer" defined. "Insurer" includes every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insurance or of annuity.

41-104. "Person" defined. "Person" includes any individual, insurer, company, association, organization, Lloyd’s insurer, society, reciprocal insurer or interinsurance exchange, partnership, syndicate, business trust, corporation and every legal entity.

41-105. "Director," "department" defined. (1) "Director" means the director of the department of insurance of this state. (2) "Department" means the department of insurance of this state.

41-106. "Domestic," "foreign," "alien" insurer defined. (1) A "domestic" insurer is one formed under the laws of this state or an insurer which has transferred its domicile pursuant to section 41-342, Idaho Code, to this state. (2) A "foreign" insurer is one formed under the laws…

41-107. "State" defined. When used in context signifying a jurisdiction other than the state of Idaho, "state" means any state, district, territory, commonwealth, or possession of the United States of America, and the Panama Canal Zone.

41-108. "Domicile" defined. The "domicile" of an insurer means: (1) As to Canadian insurers, Canada and the province in which the insurer’s head office is located. (2) As to other alien insurers authorized to transact insurance in one or more states, as provided in section 41-340…

41-109. "Principal office" defined. "Principal office" means: (1) As to Canadian insurers, the office in Canada from which the general affairs of the insurer are directed or managed; (2) As to other alien insurers authorized to transact insurance in one or more states, the office…

41-110. "Authorized," "unauthorized" insurer defined. (1) An "authorized" insurer is one duly authorized by a subsisting certificate of authority issued by the director to transact insurance in this state. (2) An "unauthorized" insurer is one not so authorized.

41-111. "Certificate of authority," "license" defined. (1) A "certificate of authority" is one issued by the director evidencing the authority of an insurer to transact insurance in this state. (2) A "license" is authority granted by the director pursuant to this code authorizing…

41-112. "Transacting insurance" defined. "Transacting insurance" includes any of the following: (1) Solicitation and inducement. (2) Preliminary negotiations. (3) Effectuation of a contract of insurance. (4) Transaction of matters subsequent to effectuation of a contract of insur…

41-113. Compliance required — Public interest. (1) No person shall transact a business of insurance in Idaho, or relative to a subject of insurance resident, located or to be performed in Idaho, without complying with the applicable provisions of this code. (2) The business of in…

41-114. Application of code as to particular types of insurers. No provision of chapter 1, title 41, Idaho Code, shall apply with respect to: (1) County mutual insurers (as identified in chapter 31, title 41, Idaho Code), except as stated in chapter 31, title 41, Idaho Code (Coun…

41-114A. Service contracts. (1) The term "service contract," as used in this section, means a contract or agreement for a separately stated consideration for a specific duration to perform the repair, replacement or maintenance of property or to reimburse, in whole or in part, th…

41-114B. Legal service expense plans. (1) The term "legal service expense plan," as used in this section, means a contract or agreement for a stated consideration between a plan administrator and a member or group of members, whereby the member pays the administrator, in advance …

41-115. Particular provisions prevail. Provisions of this code relative to a particular kind of insurance or a particular type of insurer or to a particular matter shall prevail over provisions relating to insurance in general or insurers in general or to such matter in general.

41-116. Captions not to affect meaning. The scope and meaning of any provision of this code shall not be limited or otherwise affected by the caption or heading of any chapter, section or provision.

41-117. General penalty. Each violation of this code for which a greater penalty is not provided by another provision of this code or by other applicable laws of this state, shall in addition to any applicable prescribed denial, suspension, or revocation of certificate of authori…

41-117A. Penalty for transacting insurance without proper licensing. The director may impose an administrative penalty not to exceed fifteen thousand dollars ($15,000), for deposit in the general account of the state of Idaho, upon any person who transacts insurance of any kind o…

41-118. "Chapter" defined. As used in this code and except as otherwise required by context, "chapter" means a particular numbered chapter of this code as indicated by context.

41-119. Applicability of code under unrepealed laws. Any laws of Idaho, other than this code, remaining in force after the effective date of this code which refer to certain provisions of law repealed under section 809 of this act, shall be deemed to refer to those provisions of …

41-120. Charitable gift annuities. (1) As used in this section: (a) "Charitable gift annuity" means a transfer of cash or other property by a donor to a charitable organization in return for an annuity payable over one (1) or two (2) lives, under which the actuarial value of the …

41-121. EXEMPTION OF HEALTH CARE SHARING MINISTRIES FROM THE INSURANCE CODE. (1) A health care sharing ministry shall not be considered to be engaging in the business of insurance for purposes of this title. (2) As used in this section, "health care sharing ministry" means a fait…

41-201. Department of insurance. There is hereby created the department of insurance of the state of Idaho. The department shall, for the purposes of section 20, article IV, of the Constitution of the state of Idaho, be an executive department of the state government. The departm…

41-202. Director — Appointment — Term — Qualifications. (1) The director of the department of insurance shall be the chief executive officer of the department of insurance. (2) The director shall be appointed by the governor and shall hold office for a term of four (4) years, sub…

41-203. Terms construed. Wherever the words "commissioner of insurance" or "insurance commissioner" appear in title 41, Idaho Code, or elsewhere in the Idaho Code, they shall be understood and construed to mean the director of the department of insurance.

41-204. Director’s oath and bond. At the time of taking office the director shall take an oath of office, and give bond in favor of the state of Idaho in the time, form and manner prescribed in chapter 8, title 59, Idaho Code. The oath shall be filed with the secretary of state.

41-205. Official seal. (1) The director shall have an official seal, in the form and design as so in use immediately prior to the effective date of this code. (2) The director shall issue under his official seal all certificates, other than licenses of agents, brokers, adjusters,…

41-206. Divisions and employees. (1) The department shall be organized into such divisions and such other units as may be administratively established in order to efficiently administer the department. Each division shall be headed by a division administrator who shall be appoint…

41-207. Delegation of powers. (1) The director may delegate to his deputy, assistant, counsel, actuary, examiner or employee, the exercise or discharge in the director’s name of any power, duty, or function, whether ministerial, discretionary or of whatever character, vested in o…

41-208. Prohibited interests, rewards. (1) The director or any deputy, actuary, examiner, assistant or employee of the director shall not be a director, officer, or employee of any insurer or be financially interested in the business of any insurer, except as a policyholder or cl…

41-209. Professional services. (1) Upon a domestic insurer’s written request to the director, the director may authorize an examiner, actuary, or other insurance technician appointed or employed by the director, to render to the insurer such professional or technical services as …

41-210. General powers, duties. (1) The director shall enforce the provisions of this code, and shall execute the duties imposed upon him by this code. (2) The director shall have the powers and authority expressly conferred upon him by or reasonably implied from the provisions o…

41-211. Rules. (1) The director may make reasonable rules necessary for or as an aid to the effectuation of any provision of this code. No such rule shall extend, modify, or conflict with any law of this state or the reasonable implications thereof. (2) Any such rule affecting pe…

41-212. Orders, notices. (1) Orders and notices of the director shall be effective only when in writing signed by him or by his authority. (2) Every such order shall state its effective date, and shall concisely state: (a) Its intent or purpose. (b) The grounds on which based. (c…

41-213. Enforcement. (1) The director may institute such suits or other lawful proceedings as he may deem necessary for the enforcement of any provision of title 41, Idaho Code. If the director believes that any person has engaged in or is about to engage in any act or practice c…

41-214. Records — Reproduction — Destruction. (1) The director shall preserve in permanent form records of his proceedings and hearings and including a concise statement of the results of any investigations or examinations of insurers, and shall file such records in the departmen…

41-215. Use of reproductions and certified copies as evidence. (1) Photographs or microphotographs in the form of film or prints of documents and records made under section 41-214(3) shall have the same force and effect as the originals thereof, and duly certified or authenticate…

41-216. Director’s annual report. As early after July 1 as is consistent with full and accurate preparation the director annually shall transmit to the governor a report of his official transactions containing with respect to the calendar year next preceding: (1) A list of all au…

41-217. Publications authorized. The director shall publish, by printing or other suitable form of reproduction: (1) Pamphlet or booklet copies of the insurance laws of this state; (2) The director’s annual report; (3) Such copies of results of investigations or examinations of i…

41-218. Publications — Sale. (1) The director shall fix a price at not less than cost of distribution and printing or other reproduction, to be paid by persons requesting copies of the insurance laws and such other publications referred to in section 41-217 as he deems proper to …

41-219. Examination of insurers. (1) For the purpose of determining its financial condition, ability to fulfill and manner of fulfillment of its obligations, the nature of its operations, and compliance with the law, the director shall examine the affairs, transactions, accounts,…

41-220. Examination of agents, brokers, consultants, managers, adjusters, promoters. For the purpose of ascertaining compliance with law, and in addition to any right of examination otherwise provided, the director may as often as he deems advisable examine the accounts, records,…

41-221. Place of examination. (1) The examination may be conducted by the director or his accredited examiners at the offices wherever located of the person being examined and at such other places as may be required for determination of matters under examination. (2) In the case …

41-222. Examination cooperation with other states. As far as practical the director shall conduct the examination of a foreign or alien insurer in cooperation with the insurance supervisory officials of other states in which the insurer transacts business, and for the purpose the…

41-223. Conduct of examination — Access to records — Correction of accounts — Removal of records. (1) Upon determining that an examination should be conducted, the director or the director’s designee shall issue an examination warrant appointing one (1) or more examiners to perfo…

41-224. Examination — Appraisal of asset. (1) If the director deems it necessary to value any asset involved in such an examination, he may make written request of the person being examined to appoint one or more appraisers who by reason of education, experience or special traini…

41-225. Obstruction of examination — Penalty. Any individual who wilfully obstructs the director or his examiner in the conduct of any examination authorized by this chapter shall be guilty of a misdemeanor and upon conviction shall be punished as provided in section 41-117 (gene…

41-226. Examiners — Qualifications. For the conduct of or assistance in examinations under this chapter the director shall appoint as examiners only individuals who by reason of education, experience, or special training are competent to perform the duties and fulfill the respons…