2005 Idaho Code - 41-330 — IMPAIRED INSURERS -- NOTICE TO AGENTS -- PENALTY

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 3
                          AUTHORIZATION OF INSURERS
                           AND GENERAL REQUIREMENTS
    41-330.  IMPAIRED INSURERS -- NOTICE TO AGENTS -- PENALTY. (1) Upon
suspension, revocation or refusal to continue the certificate of authority of
an insurer on account of deficiency of assets (if a foreign insurer) or
failure to cure an impairment of the capital stock (if a stock insurer) or
surplus (if a mutual or reciprocal) of a domestic insurer, as provided under
section 41-326(1)(b), every officer and director of the insurer must, either
separately or jointly with one or more of the others and within four (4) days
after notice of such suspension, revocation or refusal was given to the
insurer by the director, notify by any available means every person authorized
by the insurer, as of immediately prior to such suspension, revocation or
refusal, to write business for the insurer in Idaho, immediately to cease such
writing; and each such person so notified shall immediately cease to write any
further business for the insurer in Idaho.
    (2)  Each individual made responsible for such notification under the
foregoing subsection, who fails so to notify, and every person so authorized
who, after being so notified or otherwise being informed as to such impairment
or suspension, revocation, or refusal, solicits or writes further business for
the insurer, is guilty of a felony and upon conviction shall be punished by a
fine of not exceeding ten thousand dollars ($10,000) or by imprisonment in the
Idaho state penitentiary for a term of not exceeding ten (10) years, or by
both such fine and imprisonment.
    (3)  This section does not apply to any person or persons, whomsoever, who
has been appointed as and is acting as rehabilitator or receiver of the
insurer in judicial proceedings in a court of the United States or of the
state of Idaho.