2005 Idaho Code - 41-1317 — FICTITIOUS GROUPS

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 13
                          TRADE PRACTICES AND FRAUDS
    41-1317.  FICTITIOUS GROUPS. (1) No insurer, whether an authorized insurer
or an unauthorized insurer, shall make available through any rating plan or
form, property, casualty or surety insurance to any firm, corporation, or
association of individuals, any preferred rate or premium based upon any
fictitious grouping of such firm, corporation, or individuals. For the
purposes of this section a "fictitious" group is one in which members of such
group do not have a common insurable interest as to the subject of the
insurance and the risk or risks insured or to be insured.
    (2)  No form or plan of insurance covering any group or combination of
persons or risks shall be written or delivered within or outside of Idaho to
cover Idaho persons or risks at any preferred rate or form other than that
offered to persons not in such group and the public generally, unless such
form, plan or policy and the rates or premiums to be charged therefor have
been submitted to and approved by the director as not in conflict with
subsection (1) above, and section 41-1405 (rate standards), Idaho Code.
    (3)  Nothing in this section shall apply to workmen's compensation, life
or disability insurance or to annuity contracts; nor to any insurer which
restricts its insurance coverages to members of a particular association or
organization with which the insurer is directly affiliated; nor to credit
unemployment insurance indemnifying a creditor for installment or other
periodic payments on indebtedness becoming due while a debtor has suffered
loss of income resulting from involuntary unemployment; nor to municipal
corporations, governmental employers or governmental entities; nor to group
casualty or liability coverage when the director has determined that an
affinity of interest legitimately exists between or among the members of the
group.