2005 Idaho Code - 22-5114 — INSURANCE -- CANCELLATION PROCEDURE -- SUSPENSION OF LICENSE -- SELF-INSURANCE

                                  TITLE  22
                         AGRICULTURE AND HORTICULTURE
                                  CHAPTER 51
                           SEED INDEMNITY FUND LAW
    22-5114.  INSURANCE -- CANCELLATION PROCEDURE -- SUSPENSION OF LICENSE --
SELF-INSURANCE. (1) Every seed buyer who has a seed facility where seed crops
are stored for withdrawal or transferred, shall maintain a "commercial
property policy" of insurance, or its equivalent, issued by a company
qualified to do business in the state in which the facility is located. The
amount of insurance shall be sufficient to cover the property loss of the
insured and such additional amounts that are: (a) greater than or equal to the
total seed buyer indebtedness and the value of seed crop stored for withdrawal
during the previous license year, or (b) estimated current calendar year seed
crop indebtedness to producers and the value of seed crop to be stored for
withdrawal. The department rules shall enumerate the perils to be covered by
the policy.
    (2)  The insurance company issuing the policy of insurance shall give
ninety (90) days' advance notice to the department by registered or certified
mail, return receipt requested, of cancellation of the policy.
    (3)  When the insurance policy of a seed buyer is canceled, the department
shall immediately suspend the license of the seed buyer, and the suspension
shall be in effect until satisfactory evidence exists that an effective policy
of insurance complying with the requirements of this chapter has been
submitted to the department.
    (4)  Seed buyers desiring to be self-insured shall apply to the department
for authorization to self-insure. Application shall be made on forms
prescribed by the department.