US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 43
                   IDAHO LIFE AND HEALTH INSURANCE GUARANTY
                               ASSOCIATION ACT
    41-4314.  MISCELLANEOUS PROVISIONS. (1) Nothing in this act shall be
construed to reduce the liability for unpaid assessments of the insureds on an
impaired or insolvent insurer operating under a plan with assessment
liability.
    (2)  Records shall be kept of all negotiations and meetings in which the
association or its representatives are involved to discuss the activities of
the association in carrying out its powers and duties under section 41-4308,
Idaho Code.  Records of such negotiations or meetings shall be made public
only upon the termination of a liquidation, rehabilitation, or conservation
proceeding involving the impaired or insolvent insurer, upon the termination
of the impairment or insolvency of the insurer, or upon the order of a court
of competent jurisdiction.  Nothing in this subsection shall limit the duty of
the association to render a report of its activities under section 41-4315,
Idaho Code.
    (3)  For the purpose of carrying out its obligations under this act, the
association shall be deemed to be a creditor of the impaired or insolvent
insurer to the extent of assets attributable to covered policies reduced by
any amounts to which the association is entitled as subrogee pursuant to
subsection (8) of section 41-4308, Idaho Code.  Assets of the impaired or
insolvent insurer attributable to covered policies shall be used to continue
all covered policies and pay all contractual obligations of the impaired or
insolvent insurer as required by this act.  Assets attributable to covered
policies, as used in this subsection, is that proportion of the assets which
the reserves that should have been established for such policies bear to the
reserves that should have been established for all policies of insurance
written by the impaired or insolvent insurer.
    (4)  (a)  Prior to the termination of any liquidation, rehabilitation, or
    conservation proceeding, the court may take into consideration the
    contributions of the respective parties, including the association, the
    shareholders and policyowners of the insolvent insurer, and any other
    party with a bona fide interest, in making an equitable distribution of
    the ownership rights of such insolvent insurer.  In such a determination
    consideration shall be given to the welfare of the policyholders of the
    continuing or successor insurer.
    (b)  No distribution to stockholders, if any, of an impaired or insolvent
    insurer shall be made until and unless the total amount of valid claims of
    the association for funds expended in carrying out its powers and duties
    under section 41-4308, Idaho Code, with respect to such insurer have been
    fully recovered by the association.
    (5)  (a)  If an order for liquidation or rehabilitation of an insurer
    domiciled in this state has been entered, the receiver appointed under
    such order shall have a right to recover on behalf of the insurer, from
    any affiliate that controlled it, the amount of distributions, other than
    stock dividends paid by the insurer on its capital stock, made at any time
    during the five (5) years preceding the petition for liquidation or
    rehabilitation subject to the limitations of paragraphs (b) to (d) of this
    subsection.
    (b)  No such dividend shall be recoverable if the insurer shows that when
    paid the distribution was lawful and reasonable, and that the insurer did
    not know and could not reasonably have known that the distribution might
    adversely affect the ability of the insurer to fulfill its contractual
    obligations.
    (c)  Any person who was an affiliate that controlled the insurer at the
    time the distributions were paid shall be liable up to the amount of
    distributions he received. Any person who was an affiliate that controlled
    the insurer at the time the distributions were declared, shall be liable
    up to the amount of distributions he would have received if they had been
    paid immediately. If two (2) persons are liable with respect to the same
    distributions, they shall be jointly and severally liable.
    (d)  The maximum amount recoverable under this subsection shall be the
    amount needed in excess of all other available assets of the insolvent
    insurer to pay the contractual obligations of the insolvent insurer.
    (e)  If any person liable under paragraph (c) of this subsection is
    insolvent, all its affiliates that controlled it at the time the dividend
    was paid, shall be jointly and severally liable for any resulting
    deficiency in the amount recovered from the insolvent affiliate.