US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 36
                        INSURANCE GUARANTY ASSOCIATION
    41-3605.  DEFINITIONS. As used in this act:
    (1)  "Account" means the account created by section 41-3606, Idaho Code.
    (2)  "Affiliate" means a person who directly, or indirectly, through one
(1) or more intermediaries controls, is controlled by, or is under common
control with an insolvent insurer on December 31 of the year next preceding
the date the insurer becomes an insolvent insurer.
    (3)  "Association" means the Idaho insurance guaranty association created
under section 41-3606, Idaho Code.
    (4)  "Claimant" means any insured making a first party claim or any person
instituting a liability claim, provided that no person who is an affiliate of
the insolvent insurer may be a claimant.
    (5)  "Director" means the director of the department of insurance of this
state.
    (6)  "Control" means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of a person,
whether through the ownership of voting securities, by contract other than a
commercial contract for goods or nonmanagement services, or otherwise, unless
the power is the result of an official position with or corporate office held
by the person. Control shall be presumed to exist if any person, directly or
indirectly, owns, controls, holds with the power to vote, or holds proxies
representing, ten percent (10%) or more of the voting securities of any other
person. This presumption may be rebutted by a showing that control does not
exist in fact.
    (7)  "Covered claim" means an unpaid claim, including one for unearned
premiums submitted by a claimant, which arises out of and is within the
coverage and is subject to the applicable limits of an insurance policy to
which this act applies issued by an insurer, if such insurer becomes an
insolvent insurer after the effective date of this act and:
    (a)  The claimant or insured is a resident of this state at the time of
    the insured event, provided that for entities other than an individual,
    the residence of a claimant, insured, or policyholder is the state in
    which its principal place of business is located at the time of the
    insured event; or
    (b)  The claim is a first party claim for damage to property with a
    permanent location in this state.
    "Covered claim" shall not include any amount awarded as punitive or
exemplary damages; any amount sought as a return of premium under any
retrospective rating plan; any first party claims by an insured which is an
affiliate of the insolvent insurer; or any amount due any reinsurer, insurer,
insurance pool, or underwriting association, as subrogation recoveries,
reinsurance recoveries, contribution, indemnification or otherwise. No claim
for any amount due any reinsurer, insurer, insurance pool or underwriting
association may be asserted against a person insured under a policy issued by
an insolvent insurer other than to the extent such claim exceeds the
association obligation limitations set forth in section 41-3608, Idaho Code.
    (8)  "Insolvent insurer" means an insurer holding a certificate of
authority issued by the director to transact insurance in this state either at
the time the policy was issued or when the insured event occurred and against
whom a final order of liquidation has been entered after the effective date of
this act with a finding of insolvency by a court of competent jurisdiction in
the insurer's state of domicile.
    (9)  "Member insurer" means any person who:
    (a)  Writes any kind of insurance to which this act applies under section
    41-3603, Idaho Code, including the exchange of reciprocal or
    interinsurance contracts; and
    (b)  Is licensed to transact insurance in this state, except assessable
    mutual companies. An insurer shall cease to be a member insurer effective
    on the day following the termination or expiration of its license to
    transact the kinds of insurance to which this act applies, however, the
    insurer shall remain liable as a member insurer for any and all
    obligations, including obligations for assessments levied prior to the
    termination or expiration of the insurer's license and assessments levied
    after the termination or expiration, which relate to any insurer which
    becomes an insolvent insurer prior to the termination or expiration of the
    insurer's license.
    (10) "Net direct written premiums" means direct gross premiums written in
this state on insurance policies to which this act applies, less return
premiums thereon and dividends paid or credited to policyholders on such
direct business. "Net direct written premiums" does not include premiums on
contracts between insurers or reinsurers.
    (11) "Ocean marine insurance" includes any form of insurance, regardless
of the name, label or marketing designation of the insurance policy, which
insures against maritime perils or risks and other related perils or risks,
which are usually insured against by traditional marine insurance, such as
hull and machinery, marine builders risk, and marine protection and indemnity.
Such perils and risks insured against include, without limitation, loss,
damage, expense or legal liability of the insured for loss, damage or expense
arising out of or incident to ownership, operation, chartering, maintenance,
use, repair or construction of any vessel, craft or instrumentality in use in
ocean or inland waterways for commercial purposes, including liability of the
insured for personal injury, illness or death or for loss or damage to the
property of the insured or another person.
    (12) "Person" means any individual, corporation, partnership, association
or voluntary organization.
    (13) "Warranty insurance" includes a contract under which one (1) other
than a manufacturer, builder, seller or lessor of the subject property
undertakes to perform or provide, for a fixed term and consideration, repair
or replacement service or indemnification therefor for the operational or
structural failure of specified real or personal property or property
components. Warranty insurance includes, but is not limited to, automobile
guaranty insurance.