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2014 Insurance Legislation Summary

(All legislation takes effect July 1, 2014 unless otherwise noted)

Department of Insurance Legislation:

  • Amending Title 41, Chapter 54, Idaho Code - House Bill 358 This legislation amends Title 41, Chapter 54, Idaho Code, dealing with Risk Based Capital (RBC) to align Idaho law with NAIC Model RBC Laws. Specifically, it revises definitions to include fraternal benefit societies and hospital and professional service corporations licensed by the Director of the Department of Insurance as entities subject to the RBC report filing requirement. It broadens the scope of the existing early warning trigger for a life insurance company and newly added health organization to file an RBC plan with the Director when there is a negative trend. The legislation also clarifies the confidential nature and privacy protection of RBC reports and related information filed with the Director by insurance companies and other entities. (Effective January 1, 2015.)

Other Insurance-Related Legislation:

  • Amending Idaho Code § 41-6105 - House Bill 475 This bill requires that the Idaho Health Insurance Exchange (Your Health Idaho) allow anonymous shopping and not require identifying information until the customer is ready to submit an application for purchase. It also provides that the exchange application process contain a warning regarding potential repayment of premium reductions to the Internal Revenue Service if income information was underestimated.

  • Amending Idaho Code § 19-854 - House Bill 512 This legislation provides that participation in the Idaho Health Insurance Exchange (Your Health Idaho) does not result in a presumption of indigency in regard to the Public Defender System.

  • Repealing Idaho Code sections in Titles 41 and 72 - Senate Bill 1244 This legislation repeals a number of historical sections of the Idaho Code dealing with the State Insurance Fund, including Idaho Code § 41-1618. This allows the State Insurance Fund to operate as an insurance company as was intended in significant 1998 amendments.

  • Amending Idaho Code § 72-301 and adding new § 72-301A - Senate Bill 1252 This legislation identifies the acceptable securities to be deposited and maintained in a custodial account where an employer may become self-insured with the approval of the Industrial Commission. It also creates a fund and mechanism to handle security deposits made per Idaho Code § 72-301 retained to secure any future workers’ compensation claims of a liquidated insurance carrier. This legislation also creates a new section to address an alternate method of demonstrating security for workers’ compensation payment for employers that have a cost-reimbursement contract with the federal government.

  • Amending Idaho Code § 41-3608 - Senate Bill 1269 This legislation provides an option to the Department of Insurance to authorize the Idaho Insurance Guaranty Association to provide claims handling services for “run-off insurers” as defined in the bill.

  • Adding new Idaho Code § 6-1014 - Senate Bill 1355 This legislation recognizes that the Affordable Care Act sets forth quality metrics and permits those metrics to be used for reimbursement purposes but clarifies that measures created by the Affordable Care Act and by insurers cannot be used to establish the standard of care in any community in Idaho. It affirms current law that such standards are established in Idaho, as they always have been, and that a health care practitioner can be held liable to a patient if he or she fails to meet the standard of care in the community in which the care is provided.

  • Affecting Idaho Code § 49-1210 - Senate Bill 1348 In 2003, the legislature passed S1010, which amended Idaho Code § 49-1210 and removed a requirement that the Department of Transportation link proof of financial responsibility records to vehicle registration records rather than to just the driver records. The intention then was to reinstate the requirement in 2009. In the 2009 legislative session, the deadline was extended to June 30, 2014, with a requirement for annual reporting to transportation committees of the legislature on progress. As the system improvements are still not able to do the cross-reference, this bill effects a further extension until June 30, 2017, or until the system is certified as operational, whichever occurs first.

Note: These brief summaries are not intended to fully explain, interpret or analyze the referenced legislation. These summaries are intended solely as a reference to legislation changes affecting the business of insurance that may be of interest to the public. Persons with an interest in any of the items noted above should review the actual bills.