Legislative Update - 2005 Session
HB 111 - Amends Idaho Code § 41-5510 to revise eligibility requirements for coverage under health insurance plans reinsured by Idaho’s Individual High Risk Reinsurance Pool. The changes clarify that “federally eligible individuals,” as defined by federal law, are eligible for coverage under High Risk Pool plans, and that eligibility for coverage under COBRA will not render a person ineligible for coverage under a High Risk Pool plan.
HB 112 - Amends existing law (Sections 41-2918 and 41-2926) to delete obsolete requirements applicable to domestic reciprocal insurers that exclusively insure members who are governmental entities.
HB 113 - Amends Idaho Code § 41-1024 to require that fiduciary funds received or collected by an insurance producer (agent or broker) be held separately in a trust account and treated as trust funds. Note: The Department will be adopting rules to implement this law.
HB 114 – Adds a new code section (41-1325) requiring that insurance producers who borrow money, securities or anything of value from clients or customers must document the loan arrangement in writing.
HB 115 - Amends existing law relating to insurance fraud (Sections 41-291, 41-292 and 41-295) to clarify and revise the definition for "authorized agencies" for fraud reporting purposes, to clarify the handling of restitution payments received by the Department, and to make several technical corrections and clarifications.
HB 116 - Amends Idaho Code § 41-335 to repeal a requirement that insurers attach affidavits to their annual statements certifying compliance with countersignature requirements.
HB 117 – Adds a new code section (41-1940) requiring that persons selling annuities to senior citizens have some reasonable basis for believing that the annuity is a suitable product for the senior citizen. Note: The Department will be adopting rules to implement this law.
HB 118 - Repeals and amends a number of insurance code sections relating to administrative hearings to bring about greater consistency with the requirements for hearings set forth in the Idaho Administrative Procedures Act and related rules.
HB 119 - Repeals and amends insurance code provisions relating to the Department’s enforcement powers.
HB 120 – Creates a new chapter (Chapter 57, Title 41) adopting the “Interstate Insurance Product Regulation Compact.” This Compact will create a multi-state commission that will establish uniform regulatory standards for life insurance, annuities, disability income insurance and long term care insurance. The commission will also be responsible for reviewing and approving these products for compacting states. The goal is to create greater efficiency in regulating these types of insurance products, and to allow insurers to sell standardized products in multiple states without having to seek individual approvals from each state.
HCR 13 - Legislature rejected, at the request of the Department, pending changes to the Department’s rule relating to rebates and illegal inducements to obtain title insurance business. The existing rule remains in effect.
Other Insurance Related Legislation Enacted in 2005:
HB 89 - Amends Idaho Code § 41-5602, which sets forth standards for prompt payment of health insurance claims, to clarify time periods applicable to notification requirements for paper (45 days) and electronic (30 days) claims.
HB 90 - Amends Idaho Code § 41-2005 to increase the maximum amount of coverage that can be written under a group policy of credit life insurance from seventy-five thousand dollars to one hundred fifty thousand dollars.
HB 96 – Establishes Idaho Code § 67-3012 and the National Crime Prevention and Privacy Compact where Idaho joins 21 other states in cooperation with the FBI to make fingerprint and criminal history records checks more complete and accurate. Oversight provided by a board and a compact officer with the ISP is the principal contact. No direct insurance impact.
HB 130 aa – Amends Idaho Code § 9-335 related to public records and specifically investigatory records to provide that a person or that person’s insurer involved in a motor vehicle collision shall be entitled to an unaltered copy of the motor vehicle collision report.
HB 136 - Amends Idaho Code § 41-2401 to provide that proof of mailing of a notice of cancellation of a fire insurance policy, or of the intention not to renew, or of reasons for cancellation or nonrenewal to the named insured at his address is sufficient proof that notice was provided the insured.
HB 159 - Repeals former guaranty title and trust act at Chapter 9, Title 30, Idaho Code, and replaces with Idaho Escrow Act. Persons engaged in the business of providing escrow services (who are not otherwise title agents and regulated by the Dept. of Insurance or otherwise exempt) must be licensed and regulated by the Dept. of Finance.
HB 160aa - Amends Idaho Code § 41-2401 to provide that commercial standard fire insurance policies may exclude coverage for loss from fire or other covered perils caused directly or indirectly by terrorism, and defines what constitutes “terrorism.”
HB 161 - Amends Idaho Code § 41-1218 to remove language that provided for mandatory revocation of a surplus lines broker’s license by the director for certain acts. The repealed language was in conflict with another section of the same chapter relating to administrative powers of the Director over surplus lines brokers.
HB 162 - Amends Idaho Code §§ 41-3608 and 41-3616 to provide the Idaho Insurance Guaranty Association discretion to retain and reuse excess funds to avoid subsequent assessments, rather than immediately returning the excess to member insurers.
HB 331 – Amends Idaho Code § 72-803 to provide that physician fees in workers compensation cases shall be set using relative value units set by the current year resource based relative value system (RBRVS) multiplied by conversion factors to be established in rulemaking. (While the law is effective 7/1/05, the conversion factors shall be established by 1/1/06 and effective 4/1/06.)
SB 1104 – A new section is enacted, Idaho Code 6-2402, that enables volunteer fire departments to charge for services not to exceed the recommended amounts of charges that the State Fire Marshal is directed to establish and publish.
SB 1030 - Amends Section 41-4303 and 41-4309 of the Idaho Life and Health Insurance Guaranty Association Act to limit the rate of interest the Guaranty Association is obligated to pay on policies of an insolvent insurer, and to clarify that the Association is not obligated to pay claims outside the express written terms of contracts issued by the insolvent insurer. Also makes several changes to the powers of the Association relating to assessments and refunds.
SB 1198 - Amends Chapters 52 and 55 of Title 41, Idaho Code, to allow the Idaho Individual High Risk Reinsurance Pool Board of Directors to create a health savings account compatible health benefit plan that will be available to individuals who qualify for coverage through the High Risk Reinsurance Pool.
The full text of these bills can be viewed online at:
