US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 43
                   IDAHO LIFE AND HEALTH INSURANCE GUARANTY
                               ASSOCIATION ACT
    41-4312.  PREVENTION OF INSOLVENCIES. To aid in the detection and
prevention of insurer insolvencies or impairments:
    (1)  It shall be the duty of the director:
    (a)  To notify the insurance commissioners of all the other jurisdictions
    in which the company is licensed as an insurer when he takes any of the
    following actions against a member insurer:
         (i)  Revocation of license;
         (ii)  Suspension of license;
         (iii)  Makes any formal order that such company restrict its premium
         writing, obtain additional contributions to surplus, withdraw from
         the state, reinsure all or any part of its business, or increase
         capital, surplus, or any other account for the security of
         policyholders.
    Such notice shall be mailed to all insurance commissioners within thirty
    (30) days following the action taken or the date on which such action
    occurs.
    (b)  To report to the board of directors when he has taken any of the
    actions set forth in (a) of this paragraph or has received a report from
    any other commissioner indicating that any such action has been taken in
    another state. Such report to the board of directors shall contain all
    significant details of the action taken or the report received from
    another commissioner.
    (c)  To report to the board of directors when he has reasonable cause to
    believe from any examination, whether completed or in process, of any
    member company that such company may be an impaired or insolvent insurer.
    (d)  To furnish to the board of directors the NAIC Early Warning Tests
    developed by the National Association of Insurance Commissioners, and the
    board may use the information contained therein in carrying out its duties
    and responsibilities under this section. Such report and the information
    contained therein shall be subject to disclosure according to chapter 3,
    title 9, Idaho Code, until such time as made public by the director or
    other lawful authority.
    (2)  The director may seek the advice and recommendations of the board of
directors concerning any matter affecting his duties and responsibilities
regarding the financial condition of member companies and companies seeking
admission to transact insurance business in this state.
    (3)  The board of directors may, upon majority vote, make reports and
recommendations to the director upon any matter germane to the solvency,
liquidation, rehabilitation or conservation of any member insurer or germane
to the solvency of any company seeking to do an insurance business in this
state. Such reports and recommendations shall be subject to disclosure
according to chapter 3, title 9, Idaho Code;[.]
    (4)  It shall be the duty of the board of directors, upon majority vote,
to notify the director of any information indicating any member insurer may be
an impaired or insolvent insurer.
    (5)  The board of directors may, upon majority vote, request that the
director order an examination of any member insurer which the board in good
faith believes may be an impaired or insolvent insurer. Within thirty (30)
days of the receipt of such request, the director shall begin such
examination. The examination may be conducted as a National Association of
Insurance Commissioners examination or may be conducted by such persons as the
director designates. The cost of such examination shall be paid by the
association and the examination report shall be treated as are other
examination reports. In no event shall such examination report be released to
the board of directors prior to its release to the public, but this shall not
preclude the director from complying with subsection (1) of this section. The
director shall notify the board of directors when the examination is
completed. The request for an examination shall be kept on file by the
director and shall be subject to disclosure according to chapter 3, title 9,
Idaho Code.
    (6)  The board of directors may, upon majority vote, make recommendations
to the director for the detection and prevention of insurer insolvencies.
    (7)  The board of directors shall, at the conclusion of any insurer
insolvency in which the association was obligated to pay covered claims,
prepare a report to the director containing such information as it may have in
its possession bearing on the history and causes of such insolvency. The board
shall cooperate with the boards of directors of guaranty associations in other
states in preparing a report on the history and causes for insolvency of a
particular insurer, and may adopt by reference any report prepared by such
other associations.