US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 8
                          ADMINISTRATION OF DEPOSITS
    41-804.  CUSTODIAL ARRANGEMENTS FOR DEPOSITS. (1) All deposits of insurers
made in this state under this code shall be made through the director.
    (2)  The deposits shall be made with and held by the trust department of
an established bank located in Idaho, approved by the director for the
purpose, and under custodial arrangements likewise approved by him. All such
custodial arrangements shall comply in substance with the requirements of this
code as to the amount, purposes, maintenance, initial amounts, release and
withdrawal of such a deposit, and as to the rights of the insurer therein.
    (3)  The securities qualified for deposit under this chapter may be
deposited with a clearing corporation or held in the federal reserve
book-entry system. Securities deposited with a clearing corporation or held in
the federal reserve book-entry system and used to meet the deposit
requirements set forth in this chapter shall be under the control of the
director of the department of insurance and shall not be withdrawn by the
insurer without the approval of the director. Any insurer holding securities
in such manner shall provide evidence satisfactory to the director, issued by
its custodian or member bank through which such insurer has deposited such
securities in a clearing corporation or through which such securities are held
in the federal reserve book-entry system, respectively, in order to establish
that the securities are actually recorded in an account in the name of the
custodian or other direct participant or member bank, and that the records of
the custodian, other participant or member bank reflect that such  securities
are held subject to the order of the director. Definitions contained in
section 41-2870, Idaho Code, shall apply to this subsection (3).
    (4)  The cost of any such custodial arrangements shall be borne by the
insurer. The state of Idaho shall have no responsibility for the safekeeping
of the deposit.