2005 Idaho Code - 41-316 — DEPOSIT -- FOREIGN OR ALIEN INSURERS

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 3
                          AUTHORIZATION OF INSURERS
                           AND GENERAL REQUIREMENTS
    41-316.  DEPOSIT -- FOREIGN OR ALIEN INSURERS. (1) This section shall
apply as to all foreign and alien insurers.
    (2)  The director shall not authorize any foreign or alien insurer to
transact insurance in this state unless it makes and thereafter maintains in
trust in this state through the director for the protection of all its
policyholders or of all its policyholders and creditors, a deposit of cash or
securities eligible for deposit under section 41-803, Idaho Code, in the
amount of one million dollars ($1,000,000), except that:
    (a)  As to foreign insurers, except foreign title insurers, in lieu of
    such Idaho deposit, the director shall accept the certificate in proper
    form of the public official having supervision over insurers in the
    insurer's state of domicile that:
         (i)  A like deposit by such insurer is being maintained in public
         custody or control for the protection generally of the insurer's
         policyholders or its policyholders and creditors; and
         (ii) The insurer is a member in good standing of such state's
         insurance guaranty association or other legal entity created for the
         same purpose; or if a life or health insurer, the insurer is a member
         in good standing of such state's insurance guaranty association or
         other legal entity created for the same purpose, and such guaranty
         association does and shall provide protection for its own state's
         residents.
    (b)  As to foreign title insurers, in lieu of such Idaho deposit, the
    director shall accept the certificate or certificates in proper form from
    the public official or officials having supervision over title insurers in
    any other state or states to the effect that a like deposit or total
    deposits by such insurer, in an equal or greater amount than required in
    this section, are being maintained in public custody or control for the
    protection generally of the insurer's policyholders or its policyholders
    and creditors.
    (c)  As to alien insurers, in lieu of such deposit or part thereof in this
    state, the director shall accept evidence satisfactory to him that the
    insurer maintains within the United States by way of trust deposits with
    public depositaries, or in trust institutions acceptable to the director,
    assets available for discharge of its United States insurance obligations,
    which assets shall be in an amount not less than the outstanding
    liabilities of the insurer arising out of its insurance transactions in
    the United States together with  a surplus equal to the larger of the
    following sums:
         (i)  The largest deposit required by this code to be made by a
         foreign insurer transacting like kinds of insurance; or
         (ii) One million dollars ($1,000,000). Such surplus shall for all
         purposes under this code be deemed to be the "capital" or "surplus"
         of the insurer.
    (3)  Deposits of foreign or alien insurers in another state shall be in
cash and/or securities of substantially as high quality as those eligible for
deposit in this state under section 41-803, Idaho Code.
    (4)  All such deposits in this state are subject to the applicable
provisions of chapter 8 (administration of deposits), title 41, Idaho Code,
except that the release and return of deposits brought about by changes to
section 41-316(2), Idaho Code, effective July 1, 1987, shall not require a
hearing thereon as required under section 41-812(2), Idaho Code.
    (5)  Any foreign or alien insurer which requires that its agents maintain
a separate trust account for transactions involving that insurer shall make
and thereafter maintain in trust in this state, through the director, for the
protection of all its policyholders and agents, a deposit of cash or
securities eligible for deposit under section 41-803, Idaho Code, in the
amount of twenty percent (20%) of its gross written premiums, upon which such
insurer is subject to the premium tax of this state under section 41-402,
Idaho Code.
    (6)  A foreign or alien insurer holding a valid certificate of authority
to transact insurance in this state immediately prior to January 1, 1995,
shall have a period of two (2) years from and after that date within which to
comply with any increase in deposit requirements.