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2017 Insurance Legislation Summary

(All legislation takes effect July 1, 2017 unless otherwise noted.)

Department of Insurance Legislation:

  • Regarding Risk Management and Own Risk Solvency Assessment Act (ORSA) – Title 41, Idaho Code, adding Chapter 63 - House Bill 100

    This legislation is based on the National Association of Insurance Commissioners (NAIC) Risk Management and Own Risk Solvency Assessment Model Act (#505), which followed the 2008 recession. The goal is to have insurance companies or insurance holding company groups identify enterprise-wide risks that are relevant and material and report those risks once a year to the Department of Insurance on a confidential basis. This ORSA model act will provide guidance and instructions to domiciled insurers for filing a confidential ORSA summary report with the director. It is helpful to both insurance companies and their regulator to have companies perform a regular assessment of their own risks and file that summary report with the department. This model law is required for accreditation of the Idaho Department of Insurance by the NAIC to maintain consistent, streamlined, and fair regulation of insurers.

    Presenter: Director Cameron
  • Regarding Credit for Reinsurance - Title 41, Idaho Code, Chapter 5: amending section 41-514 and adding section 41-515 -House Bill 101

    This legislation is based on the National Association of Insurance Commissioners (NAIC) Credit for Reinsurance Model Law (#785). Idaho already has some provisions from this model law in existing code setting forth conditions when ceding insurers may take credit for reinsurance. The revisions will reduce collateral requirements for non-U.S. licensed reinsurers that are licensed and domiciled in qualified jurisdictions. This in turn will make reinsurance more affordable for U.S. insurers while still maintaining necessary protections. This model law is required for accreditation of the Idaho Department of Insurance by the NAIC.

    Presenter: Director Cameron
  • Regarding NAIC Corporate Governance Model Act – Title 41, Idaho Code, adding Chapter 64 – House Bill 102

    This legislation is based on the National Association of Insurance Commissioners (NAIC) Corporate Governance Annual Disclosure Model Act (#305). In part following the 2008 recession, the NAIC worked towards the goal of having insurance companies or insurance holding company groups identify their corporate governance practices. This corporate governance model act will provide guidance and instructions to domiciled insurers for filing a confidential corporate governance annual disclosure with the Department of Insurance. This legislation will outline requirements for completing a confidential corporate governance annual disclosure and permits the department to maintain an understanding of domiciled insurer’s corporate governance framework. This model law is expected to be required for accreditation of the Idaho Department of Insurance by the NAIC.

    Presenter: Director Cameron

Other Insurance-Related Legislation:

  • Amending Idaho Code § 41-1016 - House Bill 136 – This legislation seeks to assure that inmates in a county jail are not put in a position to be pressured by other inmates to do business with certain bail agents to the exclusion of other bail agents.
  • Amending Idaho Code § 41- 1830 - House Bill 244 – This legislation adds to existing law, Title 41, Chapter 18, requiring that an individual life insurance policy include the option for the policy holder to designate an individual, in addition to themselves, to receive notification by mail 14 days prior to termination.
  • Amending various sections in Title 41, Idaho Code - Senate Bill 1040 – This legislation is referred to as the Codifier Corrections bill and updates references to other code sections, e.g. corporate code, open meetings law, etc. Changes impacting Title 41 are at pages 30-38 of S1040.
  • Amending Idaho Code § 41-1088 - Senate Bill 1049 – This legislation amends the Idaho portable electronic insurance statute, which was enacted in 2012. All states now have identical or similar statutes in place. This legislation provides that notice of consent by the consumer shall be made, either by mail or electronic means, within 30 days of the transaction rather than simultaneously. Accordingly, the result of enacting this legislation allows easier access to electronic communication between a consumer and a portable electronics insurer.
  • Amending Idaho Code § 41-3812(1)(b) - Senate Bill 1075 – This legislation clarifies the term “realized capital gains” as used in the calculation when determining whether a dividend or distribution is extraordinary or non-extraordinary.
  • Amending Idaho Code § 41-1010 and adding §§ 41-1090 to 41-1097 Senate Bill 1079 – This legislation authorizes the Department of Insurance to issue limited travel insurance producer licenses to qualified applicants who will provide travel insurance through travel retailers. The legislation requires the licensed limited lines travel insurance producer and the travel retailer to meet administrative and disclosure requirements, such as including the producer’s identification information and making certain disclosures to the consumer in the marketing materials and fulfillment packages, and requiring the producer to establish and maintain a transaction record.
  • Amending Title 41, Chapter 60 Idaho Code - Senate Bill 1081 – This legislation extends the sunset date for the Immunization Assessment Board for two years to July 1, 2019.
  • Amending Idaho Code § 41-4010 - Senate Bill 1117 – The purpose of this legislation is to make it easier to create self-funded health insurance plans. This legislation adds to the current law giving authority to the director of insurance to extend by up to 12 months the time period a self-funded plan has to meet the minimum surplus requirements. All other requirements must be met.
  • Amending primarily provisions in Title 41, Chapter 55 Idaho Code Senate Bill 1150 – This legislation amends existing law to allow for individuals with high risk medical conditions and their dependents who are enrolled in individual health benefit plans to be reinsured through the Idaho Individual High Risk Reinsurance Pool. Current pool enrollment consists only of individuals and dependents who were unable to obtain health insurance due to a health condition and who had enrolled in one of five standardized plans. These standardized plans are no longer feasible, so the bill proposes a different method to continue to utilize the pool as a reinsurance mechanism (while grandfathering coverage for current pool enrollees) that will help stabilize the individual health insurance market in Idaho, encouraging insurers to continue to offer individual health benefit plans to Idaho consumers.


2016 Insurance Legislation Summary

2015 Insurance Legislation Summary

2014 Insurance Legislation Summary

2013 Insurance Legislation Summary