2017-2018 DOI Rulemaking Activity
2016-2017 DOI Rulemaking Activity
The following describes rulemaking activity for submission before the Legislative Session 2018.
Rule Pertaining to Insurance Policy Titles - Docket Number 18-0102-1701
The body of this rule consists of one sentence barring the approval of any life insurance policy bearing a name which is
misleading or confusing. Such policies are already prohibited by section 41-1813, Idaho Code. IDAPA 18.01.02 is not
necessary for the effectuation of Idaho insurance code as it does not add anything of value in understanding or effectuating
section 41-1813, Idaho Code or other provisions of Idaho insurance code. This rulemaking seeks to repeal this rule.
Rule Pertaining to Filing of Life Policy Forms- Docket Number 18-0108-1701
The rule, which was adopted in 1962, calls for life policy forms to be submitted to the Department “in duplicate”;
policy forms have long been submitted electronically through the System for Electronic Rate and Form Filings (SERFF).
IDAPA 18.01.08 is not necessary for the effectuation of Idaho insurance code. The substantive-type provisions of this
rule may be unnecessary. Also, other provisions apply to policies per Idaho Code § 41-1927. This rulemaking may seek to
repeal this rule.
Rule Pertaining to Cancellation of, or Refusal to Renew Automobile Insurance Policies - Docket Number 18-0120-1701
Idaho Code § 41-2502 requires that insurers offer uninsured and underinsured auto coverage to Idaho consumers and also
provides that a consumer can reject such coverage in writing when the policy is first purchased. Subsection (3) of this
section also provides that the insurer provide a statement approved by the Director of the Department of Insurance explaining
both types of coverage and the types of underinsured coverage that might be available in Idaho. The department fulfilled
this directive initially by publishing Bulletin 08-08. Recently there has been discussion
about whether consumers are adequately protected under the status quo. In 2017, there were three bills (H0163, S1048, and
S1078) that considered proposing amendments to Idaho Code §§ 41-2502 or 41-2503 (the latter section containing definitions).
Legislators suggested that the Director meet with industry to consider alternatives that might better serve Idahoans.
Rule Pertaining to Sale of Insurance by Vending Machines- Docket Number 18-0122-1701
This rule dates back to 1979 and is outdated. It is not currently monitored by the DOI, no licenses currently exist, nor
are any expected. The fee for vending machine licenses is not addressed or included in the Department's general fee rule,
IDAPA 18.01.44. Internet options have replaced this mode of accessibility for the public, along with provisions on credit
cards for purchasing travel insurance. Recent legislative change (S1079, effective 7/1/17) removes retail licensing
requirements. This rulemaking seeks to repeal this rule.
Rule Pertaining to Title Insurance and Title Insurance Agents and Escrow Officers- Docket Number 18-0125-1701
We expect to amend language to make title insurance policy cancellation fees permissive rather than mandatory because
there are various scenarios where it seems inappropriate to charge a cancellation fee, and title insurance agents would
not charge cancellation fees but for the rule.
Rule Pertaining to Individual Disability and Group Supplemental Disability Insurance Minimum Standards - Docket Number 18-0130-1701
Current wording of the preexisting condition definition is ambiguous and may suggest to insurers that the preexisting
condition definition does not apply to all policies subject to this rule; clarification will improve understanding of
what the Department will allow when reviewing filings of policies other than health benefit plans. Allowing for return
of premium to covered persons for specified disease and limited benefit policies will benefit consumers who do not
receive benefits from such policies. Allowing for named medical conditions to be excluded in disability income policies
will result in more consumers being able to enroll in disability income policies – with a specific condition excluded –
rather than being unable to enroll in any disability income policy due to medical underwriting. Updating links and contact
information will benefit insurers, consumers and any other persons affected by or interested in this rule.
Rule Pertaining to Guidelines Respecting the Use of Claim Forms for Disability Insurance Claims - Docket Number 18-0135-1701
This rule requires insurers to furnish, to hospitals and certain other service providers, a six month supply of paper
forms for the filing of claims. Since the rule was adopted in 1980, the vast majority of claims are submitted
electronically, and it is no longer necessary for providers to have a six-month supply of paper forms on hand at all times.
IDAPA 18.01.35 is not necessary for the effectuation of Idaho insurance code as it reflects outmoded practices. This
rulemaking seeks to repeal this rule.
Rule Pertaining to Rebates and Illegal Inducements to Obtaining Title Insurance Business - Docket Number 18-0156-1701
We expect to potentially revise definition of “things of value” at Subsection 010.05 and revise provisions 4.l. and 9
of Exhibit 1, requiring cancellation fees because there are various scenarios where it seems inappropriate to charge a
cancellation fee, and title insurance agents would not charge cancellation fees but for the rule. Amending this rule
will likely cease to require the collection of cancellation fees from a consumer who makes an initial order but then
cancels a title policy order in certain circumstances.
Rule to Implement the Individual Health Insurance Availability Act Plan Design - Docket Number 18-0173-1701
This rule provides specifics for the plan design of five individual health plans to be offered through the Idaho
Individual High Risk Reinsurance Pool, per Chapter 55, Title 41, Idaho Code. Revisions to this chapter, effective
7/1/2017, have eliminated the requirement and the need to design specific products for the Pool, which, going forward,
will likely function as a reinsurance mechanism for individuals with certain health conditions enrolled in major
medical individual health insurance plans available market-wide. IDAPA 18.01.73 is no longer necessary for the
effectuation of Idaho insurance code as Chapter 55, Title 41, Idaho Code no longer provides for individuals to be
enrolled in unique high risk pool plans. The approximately 50 individuals grandfathered into these plans prior to the
2017 legislation will be renewed into these plans, if they desire, without modification to plan design. Therefore,
rules for design of these plans are obsolete as no new such plans will be created. This rulemaking seeks to repeal
Rule Pertaining to Credit for Reinsurance - Docket Number 18-0175-1701
Revise and update IDAPA 18.01.75 to include NAIC Credit for Reinsurance Model Regulation #786 provisions supporting the
modernization of reinsurance regulation. This anticipated rulemaking will set forth rules and procedural requirements
necessary to carry out the provisions of Idaho Code § 41-515.
Rule pertaining to Corporate Governance - Docket Number 18-0181-1701
The addition of a new rule following the enactment of Title 41 Chapter 64 will provide insurers with more detailed
procedures for submitting the required Corporate Governance Annual Disclosure (CGAD) filing and would include the
contents that are deemed necessary by the Director of Insurance to carry out the provisions of Chapter 64.
2015-2016 DOI Rulemaking Activity
The following describes rulemaking activity for submission before the Legislative Session 2017.
Rules Pertaining to Producers Handling of Fiduciary Funds - Docket Number 18.01.10
The existing rule is amended concerning bail to provide deposit rules for cash collateral similar to
that of other funds that insurance producers receive from clients, namely, to treat cash collateral as fiduciary funds.
Restrictions on Discretionary Clauses in Health Insurance Contracts - Docket Number 18.01.29
The Department of Insurance has withdrawn rulemaking Docket No. 18-0129-1601.
Rule to Implement the Privacy of Consumer Financial Information - Docket Number 18.01.48
This rule confers a benefit upon insurers and producers (licensees of the DOI) by providing language
relieving them from having to send their customers an annual privacy notice where they comply with other requirements concerning
any disclosure of personally identifiable financial information and only in situations where the licensee's practices and policies
regarding disclosure have not changed since the last notice sent to their customer. The rule also
confers a benefit upon consumers relieving them from receiving duplicative annual notices, such that only new or changed notices
will be received.
Adoption of the International Fire Code - Docket Number 18.01.50
The existing rule is amended to adopt the 2015 International Fire Code to match the
anticipated adoption of the 2015 International Building Code by the Division of Building Safety.
Rule to Implement the NAIC Medicare Supplement Insurance Minimum Standards Model Act - Docket Number 18.01.54
- The existing rule is amended to require all Medicare Supplement (aka Medigap) carriers to offer coverage to pre-65 Medicare eligible individuals; clarifies the requirement to account for interest in projections; requires experience and rate increases to be pooled among all plans offered by a company; and clarifies rating/underwriting factors that can be used and when (e.g. smoking and pre-65).
Rebates and Illegal Inducements to Obtaining Title Insurance Business Rules - Docket Number 18.01.56
This rule concerns rebates and illegal inducements in title insurance and provides limits on what items of value may be
provided to producers of title business. Changes in technology have increased efficiencies of operations for title agents such that
items of value can be produced much more quickly, easily, and therefore inexpensively. Additionally, some of the limitations in the
rule have not been changed in many years. The rulemaking made the following changes:
- Subsection 012.02 (Listing Packages) – permits photos to be included in allowed materials if no additional
charge is required; paper delivery would have commensurate charge.
- Subsection 012.03 (Additional Information That May Be Provided) – permits last deed of record.
- Subsection 013.01 (Advertisement) – eliminated the quarterly publication requirement; amended to permit
advertising in annual trade association publications.
- Subsection 014.01 (Self-Promotional Items) – increased amount spent on self-promotion items from $10 to
$25/item and from $50 to $200/year in cumulative value.
- Subsection 014.03 (Educational Programs) – increased the expenditure from $10 to $20 per person. Also
changed “solely regarding title and escrow.” The intent is to expand the programs which may be offered
while maintaining the integrity of the topics as being “related” to title and escrow.
- Section 017 (Escrow Closing Charges and Premium Rates) – removed the reference to Section 41-2706,
Idaho Code, which is improper following a legislative change in 2011.
2014-2015 DOI Rulemaking Activity
The following describes rulemaking activity for submission before the Legislative Session 2016, and published
in the Idaho Administrative Bulletin Volume 15-7, July 1, 2015.
Rules Pertaining to Self-Funded Employee Health Care Plans
This rulemaking seeks to amend Rule 27 to conform to code changes made during 2013, provide additional clarity,
and remove some duplicative language unnecessary to the rule that reiterates the code.
18.01.27 – Notice Of RuleMaking - Adoption of Pending Rule.
Rules Pertaining to Schedule of Fees, Licenses and Miscellaneous Charges
This rulemaking seeks to amend IDAPA 18.01.44.030 to add a licensing/renewal fee for public adjusters of $80
(eighty dollars); seeks to amend 18.01.44.020.03 to clarify that registration of self-funded student health
plans is subject to the licensing/renewal $500 (five-hundred dollars) fee just like self-funded employer plans,
and may seek to amend the 18.01.04.030.02 regarding the $60 (sixty dollars) fee an applicant for a producer or
adjuster license pays to take an examination.18.01.44
18.01.44 – Notice Of RuleMaking - Adoption of Pending Fee Rule.
Rules Pertaining to Long-Term Care Insurance Minimum Standards
The long-term care rule (IDAPA 18.01.60.017) currently references inflation protection but does not clearly
establish a minimum amount applicable to long-term care partnership policies. Qualifying long-term care
partnership policies allow consumers who buy them to qualify for Medicaid asset disregard. For long-term care
partnership policies, the Department has applied a minimum 5% annual inflation protection, or alternatively,
benefit guarantees of not less than the annual change in the Consumer Price Index by Bulletin 06-07. The
department expects to pursue rulemaking to modify minimum inflation protection applicable to long term care
partnership policies, which should promote more purchases of them. The rulemaking may also impact inflation
protection for non-partnership policies.
18.01.60 – Notice Of RuleMaking - Adoption of Pending Rule.
2013-2014 DOI Rulemaking Activity
The following describes rulemaking activity effective April 11, 2015 (adjournment of the legislature) unless otherwise noted.
Rules Pertaining to Recognition of New Annuity Mortality Tables for Use in Determining Reserve Liabilities for Annuities and Pure Endowment Contracts.
This rulemaking amends Rule 46 to adopt NAIC 2012 individual annuity reserve table (2012 IAR) per NAIC model 821 for annuities issued January 1, 2015, and later.
18.01.46 – Notice of Rulemaking – Adoption of Pending Rule and Adoption of Temporary Rule
18.01.46 – Text of Final Rule.
Rules Pertaining to Continuing Education
This rulemaking requires resident adjusters and those adjusters with Idaho as the home state as well as resident/home state public adjusters to meet continuing education requirements, and that the specifics of Rule 53, such as the approval of courses by the CE Committee, will apply.
18.01.53 – Notice of Rulemaking – Adoption of Pending Rule
18.01.53 – Text of Final Rule.
Rules Pertaining to Change in the Schedule of Fees, Licenses and Miscellaneous Charges
This rulemaking sought to:
- provide clarity concerning the required fee for self-funded student health plans that register with the Department;
- make a technical correction to delete surplus language;
- provide for the same licensure fee for public adjusters as exists for adjusters, namely, $80; and
- change the fee for examinations for producer and adjuster license applicants from a flat $60 to an amount not to exceed $80.
2012-2013 DOI Rulemaking Activity
The following describes rulemaking activity effective March 30, 2014 (adjournment of the legislature).
Rules Pertaining To Bail Agents
This rulemaking deletes sections 18.01.04.016.02 and 18.01.04.016.3 from
Rule 18.01.04 to conform the rule to the interpretation of Idaho Code 41-1042 consistent with the
Idaho Supreme Court’s ruling in Two Jinn v. Idaho Department of Insurance, 154 Idaho 1, 293 P.3d
18.01.04 – Notice of Pending Rule.
18.01.04 – Text of Final Rule.
Rules Pertaining to the Idaho Insurance Holding Company System Regulatory Act
This rulemaking updates the existing
rule consistent with changes made to title 41, chapter 38, Idaho Code during the 2013 legislative
session in House Bill 197 affecting insurance holding company systems. Changes include, but are
not limited to, setting forth the elements of the new filing requirements for a new Form F –
Enterprise Risk Report.
18.01.23 – Notice of Pending Rule.
18.01.23 – Text of Final Rule.
Adoption of The International Fire Code
To revise language in IDAPA 18.01.50 to adopt the 2012 edition of the
International Fire Code. This adoption includes revisions made to previous editions of the
International Fire Code. This rule brings the adopted edition of the International Fire Code
current with the edition of the Building Code adopted by the Legislature in 2013.
18.01.50 – Notice of Pending Rule
18.01.50 – Text of Final Rule
The following Department of Insurance rules became final and effective upon
adjournment of the legislature, April 4, 2013:
18.01.09 – Suitability in Annuity Transactions. Prior rule was repealed, and new
rule added based on 2010 NAIC Model Rule; requires the producer or insurer to
have reasonable grounds to believe an annuity is suitable based on specific
information of the consumer prior to making a recommendation to the consumer;
also requires producers engaged in the sale of annuity products to complete a
one-time, four-credit training course.
18.01.19 – Insurance Rates and Credit Rating. Clarifies when and how an
insurer’s use of consumer credit information will be deemed to be improper and
in violation of Idaho Code, and permits insurers to use a neutral credit factor
or score against which to measure compliance with Idaho Code, both at initial
rating and upon renewal.
18.01.44 – Schedule of Fees, Licenses and Miscellaneous Charges. At original
license application, a vendor of portable electronics insurance engaged in
portable electronics transactions at more than ten locations in Idaho, the fee
is $1000. For a vendor engaged in portable electronics transactions at ten or
fewer locations, the fee is $100. At renewal, a vendor of portable electronics
insurance engaged in portable electronics transactions at more than ten
locations, the renewal fee is $500. A vendor engaged in portable electronics
transactions at ten or few locations pays a renewal fee of $100. Fingerprint
processing fees are increased up to, but may not exceed, $80.
18.01.56 – Rebates and Illegal Inducements to Obtaining Title Insurance
Business. Language added to permit title agents to provide attorneys and
appraisers plat maps and copies of CCRs without charge.