US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 43
                   IDAHO LIFE AND HEALTH INSURANCE GUARANTY
                               ASSOCIATION ACT
    41-4309.  ASSESSMENTS. (1) For the purpose of providing the funds
necessary to carry out the powers and duties of the association, the board of
directors shall assess the member insurers, separately for each account, at
such time and for such amounts as the board finds necessary. Assessments shall
be due not less than thirty (30) days after prior written notice to the member
insurers and shall accrue interest at eight percent (8%) per annum on and
after the due date.
    (2)  There shall be two (2) classes of assessments, as follows:
    (a)  Class A assessments shall be authorized and called for the purpose of
    meeting administrative costs and other general expenses. Class A
    assessments may be authorized and called whether or not they are related
    to a particular impaired or insolvent insurer.
    (b)  Class B assessments shall be authorized and called to the extent
    necessary to carry out the powers and duties of the association under
    section 41-4308, Idaho Code, with regard to an impaired or insolvent
    insurer.
    (3)  (a) The amount of any class A assessment shall be determined by the
    board and may be authorized and called on a non pro rata basis. Such
    assessment may be credited against future class B assessments. The amount
    of a class B assessment shall be allocated for assessment purposes among
    the accounts pursuant to an allocation formula which may be based on the
    premiums or reserves of the impaired or insolvent insurer or any other
    standard deemed by the board in its sole discretion as being fair and
    reasonable under the circumstances.
    (b)  Class B assessments against member insurers for each account shall be
    in the proportion that the premiums received on business in this state by
    each assessed member insurer on policies covered by each account for the
    calendar year preceding the assessments bears to such premiums received on
    business in this state for the calendar year preceding the assessment by
    all assessed member insurers.
    (c)  Assessments for funds to meet the requirements of the association
    with respect to an impaired or insolvent insurer shall not be made until
    necessary to implement the purposes of this chapter. Classification of
    assessments under subsection (2) of this section and computation of
    assessments under this subsection shall be made with a reasonable degree
    of accuracy, recognizing that exact determinations may not always be
    possible.
    (d)  Notwithstanding any other provision of this section, a managed care
    organization shall not be subject to a class B assessment for any
    domestic, foreign or alien insurer that is declared insolvent by any court
    prior to July 1, 2000.
    (4)  The association may abate or defer, in whole or in part, the
assessment of a member insurer if, in the opinion of the board, payment of the
assessment would endanger the ability of the member insurer to fulfill its
contractual obligations. In the event an assessment against a member insurer
is abated, or deferred in whole or in part, the amount by which such
assessment is abated or deferred may be assessed against the other member
insurers in a manner consistent with the basis for assessments set forth in
this section. Once the conditions that caused a deferral have been removed or
rectified, the member insurer shall pay all assessments that were deferred
pursuant to a repayment plan approved by the association.
    (5)  The total of all class B assessments authorized by the association
with respect to a member insurer for each account shall not in one (1)
calendar year exceed two percent (2%) of such insurer's premiums received in
this state during the calendar year preceding the assessment on the policies
covered by the account. If the maximum assessment, together with the other
assets of the association in an account, does not provide in any one year in
an account an amount sufficient to carry out the responsibilities of the
association, the necessary additional funds shall be assessed as soon
thereafter as permitted by this chapter.
    (6)  The board may, by an equitable method as established in the plan of
operation, refund to member insurers, in proportion to the contribution of
each insurer to that account, the amount by which the assets of the account
exceed the amount the board finds is necessary to carry out during the coming
year the obligations of the association with regard to that account, including
assets accruing from net realized gains and income from investments. A
reasonable amount may be retained in any account to provide funds for the
continuing expenses of the association and for future losses.
    (7)  It shall be proper for any member insurer, in determining its premium
rates and policyowner dividends as to any kind of insurance within the scope
of this chapter, to consider the amount reasonably necessary to meet its
assessment obligations under this chapter.
    (8)  The association shall issue to each insurer paying an assessment
under this chapter, other than a class A assessment, a certificate of
contribution, in a form prescribed by the director, for the amount of the
assessment so paid. All outstanding certificates shall be of equal dignity and
priority without reference to amounts or dates of issue. A certificate of
contribution may be shown by the insurer in its financial statement as an
asset in such form and for such amount, if any, and period of time as the
director may approve.