2005 Idaho Code - 41-341 — OPERATIONAL STANDARDS BETWEEN INSURER, ITS PARENT CORPORATION, SUBSIDIARY OR AFFILIATED PERSON

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 3
                          AUTHORIZATION OF INSURERS
                           AND GENERAL REQUIREMENTS
    41-341.  OPERATIONAL STANDARDS BETWEEN INSURER, ITS PARENT CORPORATION,
SUBSIDIARY OR AFFILIATED PERSON. (1) No insurer shall engage directly or
indirectly in any transaction or agreement with its parent corporation, or
with any subsidiary or affiliated person which shall result or tend to result
in:
    (a)  Substitution through any method of any asset of the insurer with an
asset or assets of inferior quality or lower fair market value; or
    (b)  Deception as to the true operating results of the insurer; or
    (c)  Deception as to the true financial condition of the insurer; or
    (d)  Allocation to the insurer of a proportion of the expense of combined
facilities or operations which is unfair and unfavorable to the insurer; or
    (e)  Unfair, unnecessary or excessive charges against the insurer for
services, or facilities, or supplies, or reinsurance; or
    (f)  Unfair and inadequate charges by the insurer for reinsurance,
services, facilities, or supplies furnished by the insurer to others; or
    (g)  Payment by the insurer for services, facilities, supplies, or
reinsurance not reasonably needed by the insurer.
    (2)  In all transactions between the insurer and its parent corporation,
or involving the insurer and any subsidiary or affiliated person, full
recognition shall be given to the paramount duty and obligation of the insurer
to protect the interests of policyholders, both existing and future.
    (3)  For the purposes of this section a "subsidiary" is a person of which
either the insurer and/or the parent corporation holds practical control, and
an "affiliated person" is a person controlled by any combination of the
insurer, the parent corporation, a subsidiary, or the principal stockholders
or officers or directors of any of the foregoing.