US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 43
                   IDAHO LIFE AND HEALTH INSURANCE GUARANTY
                               ASSOCIATION ACT
    41-4303.  APPLICATION OF CHAPTER. (1) This chapter shall apply to direct
life insurance policies, contractual obligations of managed care plans to
members of such plans only, disability insurance policies, annuity contracts,
and contracts supplemental to life and disability insurance policies, annuity
contracts, and contracts supplemental to life and disability insurance
policies and annuity contracts issued by persons licensed to transact
insurance in this state at any time. Covered policies shall include annuities
owned by a trust for a money purchase pension plan, profit sharing plan,
401(k) thrift plan or any other defined contribution plan, and annuities owned
by a custodian of an individual retirement account.
    (2)  This chapter shall not apply to:
    (a)  That portion or part of a variable life insurance or variable annuity
    contract not guaranteed by an insurer;
    (b)  That portion or part of any policy or contract under which the risk
    is borne by the policyholder;
    (c)  Any policy or contract or part thereof assumed by the impaired or
    insolvent insurer under a contract of reinsurance, other than reinsurance
    for which assumption certificates have been issued;
    (d)  Any such policy or contract issued by a reciprocal insurer, mutual
    benefit association, fraternal benefit society, hospital and medical
    service corporation, limited managed care plan, or self-funded health care
    plan;
    (e)  Any unallocated annuity contract, including an annuity owned by a
    defined benefit pension plan or trust;
    (f)  A portion of a policy or contract to the extent that the rate of
    interest on which it is based, or the interest rate, crediting rate or
    similar factor determined by use of an index or other external reference
    stated in the policy or contract employed in calculating returns or
    exchanges in value:
         (i)   Averaged over the period of four (4) years prior to the date on
         which the member insurer becomes an impaired or insolvent insurer
         under this chapter, whichever is earlier, exceeds the rate of
         interest determined by subtracting two (2) percentage points from
         Moody's Corporate Bond Yield Average averaged for that same four (4)
         year period or for such lesser period if the policy or contract was
         issued less than four (4) years before the member insurer becomes an
         impaired or insolvent insurer under this chapter, whichever is
         earlier; and
         (ii)  On and after the date on which the member insurer becomes an
         impaired or insolvent insurer under this chapter, whichever is
         earlier, exceeds the rate of interest determined by subtracting three
         (3) percentage points from Moody's Corporate Bond Yield Average as
         most recently available.
         (iii) For purposes of this section, "Moody's Corporate Bond Yield
         Average" means the monthly average corporates as published by Moody's
         Investors Service, Inc., or any successor thereto; or
    (g)  An obligation that does not arise under the express written terms of
    the policy or contract issued by the insurer to the contract owner or
    policyowner, including without limitation:
         (i)   Claims based on marketing materials;
         (ii)  Claims based on side letters, riders or other documents that
         were issued by the insurer without meeting applicable policy form
         filing or approval requirements;
         (iii) Misrepresentations of or regarding policy benefits;
         (iv)  Extra-contractual claims; or
         (v)   A claim for penalties or consequential or incidental damages.