T41CH19
Title 41 > T41CH19
Sections (65)
41-1901
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1901. Scope of chapter. This chapter applies only to contracts of life insurance and annuities, other than reinsurance, group life insurance and group annuities. History: [41-1901, added 1961, ch. 330, sec. 432, p. 645.]
41-1902
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1902. Industrial life insurance defined. For the purposes of this code industrial life insurance is that form of life insurance written under policies of face amount of one thousand dollars ($1,000) or less bearing the words industrial policy imprinted on the face thereof as part of the descriptive matter, and under which premiums are payable monthly or more often. History: [41-1902, added 1961, ch. 330, sec. 433, p. 645.]
41-1903
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1903. Standard provisions required. (1) No policy of life insurance other than group, and pure endowments with or without return of premiums or of premiums and interest, shall be delivered or issued for delivery in this state unless it contains in substance all of the applicable provisions required by sections 41-1904 to 41-1915 , inclusive, of this chapter. This section shall not apply to annuity contracts nor to any provision of a life insurance policy, or contract supplemental thereto, relating to disability benefits or to additional benefits in the event of death by accident or accidental means. (2) Any of such provisions or portions thereof not applicable to single premium or term policies shall to that extent not be incorporated therein. History: [41-1903, added 1961, ch. 330, sec. 434, p. 645.]
41-1904
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1904. Grace period. There shall be a provision that a grace period of thirty (30) days, or, at the option of the insurer, of one (1) month of not less than thirty (30) days, or of four (4) weeks in the case of industrial life insurance policies the premiums for which are payable more frequently than monthly, shall be allowed within which the payment of any premium after the first policy year may be made, during which period of grace the policy shall continue in full force; the insurer may impose an interest charge not in excess of six per cent (6%) per annum for the number of days of grace elapsing before the payment of the premium, and, whether or not such interest charge is imposed, if a claim arises under the policy during such period of grace the amount of any premium due or overdue, together with interest and any deferred instalment of the annual premium, may be deducted from the policy proceeds. History: [41-1904, added 1961, ch. 330, sec. 435, p. 645.]
41-1905
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1905. Incontestability. There shall be a provision that the policy (exclusive of provisions relating to disability benefits or to additional benefits in the event of death by accident or accidental means) shall be incontestable, except for nonpayment of premiums, after it has been in force during the lifetime of the insured for a period of two (2) years from its date of issue. History: [41-1905, added 1961, ch. 330, sec. 436, p. 645.]
41-1906
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1906. Entire contract. There shall be a provision that the policy, or the policy and the application therefor if a copy of such application is endorsed upon or attached to the policy when issued, shall constitute the entire contract between the parties, and that all statements contained in such an application shall, in the absence of fraud, be deemed representations and not warranties. History: [41-1906, added 1961, ch. 330, sec. 437, p. 645.]
41-1907
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1907. Misstatement of age. There shall be a provision that if the age of the insured or of any other person whose age is considered in determining the premium or benefit has been misstated, any amount payable or benefit accruing under the policy shall be such as the premium would have purchased at the correct age or ages. History: [41-1907, added 1961, ch. 330, sec. 438, p. 645.]
41-1908
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1908. Dividends. (1) There shall be a provision in participating policies that, beginning not later than the end of the third policy year, the insurer shall annually ascertain and apportion the divisible surplus, if any, that will accrue on the policy anniversary or other dividend date specified in the policy provided the policy is in force and all premiums to that date are paid. Except as hereinafter provided, any dividend becoming payable shall at the option of the party entitled to elect such option be either: (a) Payable in cash, or (b) Applied to any one of such other dividend options as may be provided by the policy. If any such other dividend options are provided, the policy shall further state which option shall be automatically effective if such party shall not have elected some other option. If the policy specifies a period within which such other dividend option may be elected, such period shall be not less than thirty (30) days following the date on which such dividend is due and payable. The annually apportioned dividend shall be deemed to be payable in cash within the meaning of (a) above even though the policy provides that payment of such dividend is to be deferred for a specified period, provided such period does not exceed six (6) years from the date of apportionment and that interest will be added to such dividend at a specified rate. If a participating policy provides that the benefit under any paid-up nonforfeiture provision is to be participating, it may provide that any divisible surplus becoming payable or apportioned while the insurance is in force under such nonforfeiture provision shall be applied in the manner set forth in the policy. (2) In participating industrial life insurance policies, in lieu of the provision required in subsection (1) above, there shall be a provision that, beginning not later than the end of the fifth policy year, the policy shall participate annually in the divisible surplus, if any, in the manner set forth in the policy. History: [41-1908, added 1961, ch. 330, sec. 439, p. 645.]
41-1909
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1909. Policy loan. (1) There shall be a provision that after three (3) full years’ premiums have been paid and after the policy has a cash surrender value and while no premium is in default beyond the grace period for payment, the insurer will advance, on proper assignment or pledge of the policy and on the sole security thereof, an amount equal to or, at the option of the party entitled thereto, less than the loan value of the policy. A policy issued after July 1, 1975, and prior to July 1, 1982, shall contain either, but not both of the following policy loan interest rate provisions: (a) A provision that a policy loan shall bear interest at a specified rate (not exceeding eight per cent (8%) per annum); or (b) A provision that all loans under the policy, including outstanding loans, shall bear interest at a variable rate (not exceeding eight per cent (8%) per annum), specified from time to time by the insurer. The effective date of any increase in such variable rate shall be not less than one (1) year after the effective date of the establishment of the previous rate. If the interest rate is increased, the amount of such increase shall not exceed one per cent (1%) per annum. The variable rate may be decreased without restriction as to amount or frequency. With respect to policies providing for a variable rate, the insurer shall, 1. when a loan is made and when notification of interest due is furnished, give notice of the variable rate currently effective; 2. as to any loans outstanding forty (40) days before the effective date of any increase in the variable rate, give notice of any such increase at least thirty (30) days before such effective date; and 3. as to any loans made during the forty (40) days before the effective date of the increase, give notice of such increase when the loan is made. Every such notice shall be given as directed by the policy owner and any assignee as shown on the records of the insurer at its home office. (2) (a) Policies issued on or after July 1, 1982 shall provide for policy loan interest rates as follows: 1. A provision permitting a maximum interest rate of not more than eight per cent (8%) per annum; or 2. A provision permitting an adjustable maximum interest rate established from time to time by the life insurer as permitted by law. (b) The rate of interest charged on a policy loan made under subsection (2)(a)2. shall not exceed the higher of the following: 1. The published monthly average for the calendar month ending two (2) months before the date on which the rate is determined; or 2. The rate used to compute the cash surrender values under the policy during the applicable period plus one per cent (1%) per annum. (c) For purposes of this section the published monthly average means: 1. Moody’s Corporate Bond Yield Average — Monthly Average Corporates as published by Moody’s Investors Service, Inc. or any successor thereto; or 2.
41-1910
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1910. Table of instalments. In case the policy provides that the proceeds may be payable in instalments which are determinable at issue of the policy, there shall be a table showing the amounts of the guaranteed instalments. History: [41-1910, added 1961, ch. 330, sec. 441, p. 645.]
41-1911
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1911. Reinstatement. There shall be a provision that unless: (1) The policy has been surrendered for its cash surrender value, or (2) Its cash surrender value has been exhausted, or (3) The paid-up term insurance, if any, has expired, the policy will be reinstated at any time within three (3) years (or two (2) years in the case of industrial life insurance policies) from the date of premium default upon written application therefor, the production of evidence of insurability satisfactory to the insurer, the payment of all premiums in arrears with interest at a rate not exceeding eight per cent (8%) per annum compounded annually and the payment or reinstatement of any other policy indebtedness with interest at a rate not exceeding the applicable policy loan rate or rates determined in accordance with the policy’s provisions. History: [41-1911, added 1961, ch. 330, sec. 442, p. 645; am. 1993, ch. 185, sec. 1, p. 467.]
41-1912
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1912. Payment of premiums. There shall be a provision relative to the payment of premiums. History: [41-1912, added 1961, ch. 330, sec. 443, p. 645.]
41-1913
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1913. Payment of claims. There shall be a provision that when a policy shall become a claim by the death of the insured, settlement shall be made upon receipt of due proof of death and, at the insurer’s option, surrender of the policy and/or proof of the interest of the claimant. If an insurer shall specify a particular period prior to the expiration of which settlement shall be made, such period shall not exceed two (2) months from the receipt of such proofs. History: [41-1913, added 1961, ch. 330, sec. 444, p. 645.]
41-1914
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1914. Beneficiary — Industrial policies. An industrial life insurance policy shall have the name of the beneficiary designated thereon with a reservation of the right to designate or change the beneficiary after the issuance of the policy. The policy may also provide that no designation or change of beneficiary shall be binding on the insurer until endorsed on the policy by the insurer, and that the insurer may refuse to endorse the name of any proposed beneficiary who does not appear to the insurer to have an insurable interest in the life of the insured. The policy may also provide that if the beneficiary designated in the policy does not make a claim under the policy or does not surrender the policy with due proof of death within the period stated in the policy, which shall not be less than thirty (30) days after the death of the insured, or if the beneficiary is the estate of the insured, or is a minor, or dies before the insured, or is not legally competent to give a valid release, then the insurer may make any payment thereunder to the executor or administrator of the insured, or to any relative of the insured by blood or legal adoption or connection by marriage, or to any person appearing to the insurer to be equitably entitled thereto by reason of having been named beneficiary, or by reason of having incurred expense for the maintenance, medical attention or burial of the insured. The policy may also include a similar provision applicable to any other payment due under the policy. History: [41-1914, added 1961, ch. 330, sec. 446, p. 645.]
41-1915
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1915. Title. There shall be a title on the policy, briefly describing the same. History: [41-1915, added 1961, ch. 330, sec. 446, p. 645.]
41-1916
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1916. Excluded or restricted coverage. A clause in any policy of life insurance providing that such policy shall be incontestable after a specified period shall preclude only a contest of the validity of the policy, and shall not preclude the assertion at any time of defenses based upon provisions in the policy which exclude or restrict coverage, whether or not such restrictions or exclusions are excepted in such clause. History: [41-1916, added 1961, ch. 330, sec. 447, p. 645.]
41-1917
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1917. Standard provisions — Annuity and pure endowment contracts. (1) No annuity or pure endowment contract, other than reversionary annuities (also called survivorship annuities) or group annuities and except as stated herein, shall be delivered or issued for delivery in this state unless it contains in substance each of the provisions specified in sections 41-1918 to 41-1923 , inclusive, of this chapter. Any of such provisions not applicable to single premium annuities or single premium pure endowment contracts shall not, to that extent, be incorporated therein. (2) This section shall not apply to contracts for deferred annuities included in, or upon the lives of beneficiaries under, life insurance policies. History: [41-1917, added 1961, ch. 330, sec. 448, p. 645.]
41-1918
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1918. Grace period — Annuities. In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, there shall be a provision that there shall be a period of grace of one month, but not less than thirty (30) days, within which any stipulated payment to the insurer falling due after the first may be made, subject at the option of the insurer to an interest charge thereon at a rate to be specified in the contract but not exceeding six per cent (6%) per annum for the number of days of grace elapsing before such payment, during which period of grace the contract shall continue in full force; but in case a claim arises under the contract on account of death prior to expiration of the period of grace before the overdue payment to the insurer or the deferred payments of the current contract year, if any, are made, the amount of such payments, with interest on any overdue payments, may be deducted from any amount payable under the contract in settlement. History: [41-1918, added 1961, ch. 330, sec. 449, p. 645.]
41-1919
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1919. Incontestability — Annuities. If any statements, other than those relating to age, sex and identity are required as a condition to issuing an annuity or pure endowment contract, other than a reversionary, survivorship, or group annuity, and subject to section 41-1921 of this chapter, there shall be a provision that the contract shall be incontestable after it has been in force during the lifetime of the person or of each of the persons as to whom such statements are required, for a period of two (2) years from its date of issue, except for nonpayment of stipulated payments to the insurer; and at the option of the insurer such contract may also except any provisions relative to benefits in the event of disability and any provisions which grant insurance specifically against death by accident or accidental means. History: [41-1919, added 1961, ch. 330, sec. 450, p. 645.]
41-1920
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1920. Entire contract — Annuities. In an annuity or pure endowment contract, other than a reversionary, survivorship, or group annuity, there shall be a provision that the contract shall constitute the entire contract between the parties or, if a copy of the application is endorsed upon or attached to the contract when issued, a provision that the contract and the application therefor shall constitute the entire contract between the parties. History: [41-1920, added 1961, ch. 330, sec. 451, p. 645.]
41-1921
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1921. Misstatement of age or sex — Annuities. In an annuity or pure endowment contract, other than a reversionary, survivorship, or group annuity, there shall be a provision that if the age or sex of the person or persons upon whose life or lives the contract is made, or of any of them, has been misstated, the amount payable or benefits accruing under the contract shall be such as the stipulated payment or payments to the insurer would have purchased according to the correct age or sex and that if the insurer shall make or has made any overpayment or overpayments on account of any such misstatement, the amount thereof with interest at the rate to be specified in the contract but not exceeding six per cent (6%) per annum, may be charged against the current or next succeeding payment or payments to be made by the insurer under the contract. History: [41-1921, added 1961, ch. 330, sec. 452, p. 645.]
41-1922
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1922. Dividends — Annuities. If an annuity or pure endowment contract, other than a reversionary, survivorship, or group annuity, is participating, there shall be a provision that the insurer shall annually ascertain and apportion any divisible surplus accruing on the contract. History: [41-1922, added 1961, ch. 330, sec. 453, p. 645.]
41-1923
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1923. Reinstatement — Annuities. In an annuity or pure endowment contract, other than a reversionary or group annuity, there shall be a provision that the contract may be reinstated at any time within one year from the default in making stipulated payments to the insurer, unless the cash surrender value has been paid, but all overdue stipulated payments and any indebtedness to the insurer on the contract shall be paid or reinstated with interest thereon at a rate to be specified in the contract but not exceeding six per cent (6%) per annum payable annually, and in cases where applicable the insurer may also include a requirement of evidence of insurability satisfactory to the insurer. History: [41-1923, added 1961, ch. 330, sec. 454, p. 645.]
41-1924
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1924. Standard provisions — Reversionary annuities. (1) Except as stated herein, no contract for a reversionary annuity shall be delivered or issued for delivery in this state unless it contains in substance each of the following provisions: (a) Any such reversionary annuity contract shall contain the provisions specified in sections 41-1918 through 41-1922 except that under section 41-1918 the insurer may at its option provide for an equitable reduction of the amount of the annuity payments in settlement of an overdue payment in lieu of providing for deduction of such payments from an amount payable upon settlement under the contract. (b) In such reversionary annuity contracts there shall be a provision that the contract may be reinstated at any time within three years from the date of default in making stipulated payments to the insurer, upon production of evidence of insurability satisfactory to the insurer, and upon condition that all overdue payments and any indebtedness to the insurer on account of the contract be paid, or, within the limits permitted by the then cash values of the contract, reinstated, with interest as to both payments and indebtedness at a rate to be specified in the contract but not exceeding six per cent (6%) per annum compounded annually. (2) This section shall not apply to group annuities or to annuities included in life insurance policies, and any of such provisions not applicable to single premium annuities shall not to that extent be incorporated therein. History: [41-1924, added 1961, ch. 330, sec. 455, p. 645.]
41-1925
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1925. Limitation of liability. (1) No policy of life insurance shall be delivered or issued for delivery in this state if it contains any of the following provisions: (a) A provision for a period shorter than that provided by statute within which an action at law or in equity may be commenced on such a policy. (b) A provision which excludes or restricts liability for death caused in a certain specified manner or occurring while the insured has a specified status, except that a policy may contain provisions excluding or restricting coverage as specified therein in the event of death under any one or more of the following circumstances: (i) Death as a result, directly or indirectly, of war, declared or undeclared, or of action by military forces, or of any act or hazard of such war or action, or of service in the military, naval, or air forces or in civilian forces auxiliary thereto, or from any cause while a member of such military, naval, or air forces of any country at war, declared or undeclared, or of any country engaged in such military action; (ii) Death as a result of aviation or any air travel or flight; (iii) Death as a result of a specified hazardous occupation or occupations; (iv) Death while the insured is a resident outside continental United States and Canada; or (v) Death within two (2) years from the date of issue of the policy as a result of suicide, while sane or insane. (2) A policy which contains any exclusion or restriction pursuant to subsection (1) of this section shall also provide that in the event of death under the circumstances to which any such exclusion or restriction is applicable, the insurer will pay an amount not less than a reserve determined according to the commissioners reserve valuation method upon the basis of the mortality table and interest rate specified in the policy for the calculation of nonforfeiture benefits (or if the policy provides for no such benefits, computed according to a mortality table and interest rate determined by the insurer and specified in the policy) with adjustment for indebtedness or dividend credit. (3) This section shall not apply to group life insurance, disability insurance, reinsurance, or annuities, or to any provision in a life insurance policy or contract supplemental thereto relating to disability benefits or to additional benefits in the event of death by accident or accidental means. (4) Nothing contained in this section shall prohibit any provision which in the opinion of the director is more favorable to the policyholder that a provision permitted by this section. History: [41-1925, added 1961, ch. 330, sec. 456, p. 645.]
41-1926
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1926. Prohibited provisions — Industrial life insurance. No policy of industrial life insurance shall contain any of the following provisions: (1) A provision by which the insurer may deny liability under the policy for the reason that the insured has previously obtained other insurance from the same insurer. (2) A provision giving the insurer the right to declare the policy void because the insured has had any disease or ailment, whether specified or not, or because the insured has received institutional, hospital, medical or surgical treatment or attention, except a provision which gives the insurer the right to declare the policy void if the insured has, within two years prior to the issuance of the policy, received institutional, hospital, medical or surgical treatment or attention and if the insured or claimant under the policy fails to show that the condition occasioning such treatment or attention was not of a serious nature or was not material to the risk. (3) A provision giving the insurer the right to declare the policy void because the insured has been rejected for insurance, unless such right be conditioned upon a showing by the insurer that knowledge of such rejection would have led to a refusal by the insurer to make such contract. History: [41-1926, added 1961, ch. 330, sec. 457, p. 645.]
41-1927
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1927. Standard nonforfeiture law — Life insurance. (1) (a) This section shall be known as the standard nonforfeiture law for life insurance. (b) Operative date of the valuation manual means January 1 of the first calendar year that the valuation manual, as defined in section 41-612 , Idaho Code, is effective. (2) Nonforfeiture provisions: In the case of policies issued on or after the operative date of this section as defined in subsection (14) of this section, no policy of life insurance, except as set forth in subsection (13) of this section, shall be delivered or issued for delivery in this state unless it shall contain in substance the following provisions, or corresponding provisions which in the opinion of the director are at least as favorable to the defaulting or surrendering policyholder as are the minimum requirements hereinafter specified and are essentially in compliance with subsection (12) of this law: (a) That in the event of default in any premium payment, the insurer will grant, upon proper request not later than sixty (60) days after the due date of the premium in default, a paid-up nonforfeiture benefit on a plan stipulated in the policy, effective as of such due date, of such amount as may be hereinafter specified. In lieu of such stipulated paid-up nonforfeiture benefit, the insurer may substitute, upon proper request not later than sixty (60) days after the due date of the premium in default, an actuarially equivalent alternative paid-up nonforfeiture benefit which provides a greater amount or longer period of death benefits or, if applicable, a greater amount or earlier payment of endowment benefits. (b) That upon surrender of the policy within sixty (60) days after the due date of any premium payment in default after premiums have been paid for at least three (3) full years in the case of ordinary insurance, and five (5) full years in the case of industrial insurance, the insurer will pay, in lieu of any paid-up nonforfeiture benefit, a cash surrender value of such amount as may be hereinafter specified. (c) That a specified paid-up nonforfeiture benefit shall become effective as specified in the policy unless the person entitled to make such election elects another available option not later than sixty (60) days after the due date of the premium in default. (d) That if the policy shall have become paid up by completion of all premium payments, or if it is continued under any paid-up nonforfeiture benefit which became effective on or after the third policy anniversary in the case of ordinary insurance, or the fifth policy anniversary in the case of industrial insurance, the insurer will pay, upon surrender of the policy within thirty (30) days after any policy anniversary, a cash surrender value of such amount as may be hereinafter specified. (e) In the case of policies which cause, on a basis guaranteed in the policy, unscheduled changes in ben
41-1927A
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1927A. Standard nonforfeiture law for individual deferred annuities. (1) This section shall be known as the standard nonforfeiture law for individual deferred annuities. (2) This section shall not apply to any reinsurance, group annuity purchased under a retirement plan or plan of deferred compensation established or maintained by an employer (including a partnership or sole proprietorship) or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under section 408 of the Internal Revenue Code, as now or hereafter amended, premium deposit fund, variable annuity, investment annuity, immediate annuity, any deferred annuity contract after annuity payments have commenced, or reversionary annuity, nor to any contract which shall be delivered outside this state through an agent or other representative of the insurer issuing the contract. (3) In the case of contracts issued on or after the operative date of this section as defined in subsection (12) of this section, no contract of annuity, except as stated in subsection (2) of this section shall be delivered or issued for delivery in this state unless it contains in substance the following provisions, or corresponding provisions which in the opinion of the director are at least as favorable to the contractholder, upon cessation of payment of considerations under the contract. (a) That upon cessation of payment of considerations under a contract, the insurer will grant a paid-up annuity benefit on a plan stipulated in the contract of such value as is specified in subsections (5), (6), (7), (8) and (10) of this section. (b) If a contract provides for a lump sum settlement at maturity, or at any other time, that upon surrender of the contract at or prior to the commencement of any annuity payments, the insurer will pay in lieu of any paid-up annuity benefit a cash surrender benefit of such amount as is specified in subsections (5), (6), (8) and (10) of this section. The insurer shall reserve the right to defer the payment of such cash surrender benefit for a period of six (6) months after demand therefor with surrender of the contract. If the insurer defers payment of a cash surrender benefit under this section, the insurer shall pay interest at the rate specified in section 28-22-104 (2), Idaho Code, as established and in existence at the time of the surrender demand. (c) A statement of the mortality table, if any, and interest rates used in calculating any minimum paid-up annuity, cash surrender or death benefits that are guaranteed under the contract, together with sufficient information to determine the amounts of such benefits. (d) A statement that any paid-up annuity, cash surrender or death benefits that may be available under the contract are not less than the minimum benefits required by any statute of the state in which the contract is deli
41-1928
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1928. Nonforfeiture benefits — Certain interim policies. (1) Each life insurance policy issued between the effective date of this code and the operative date of section 41-1927 (standard nonforfeiture law) shall contain: (a) An automatic nonforfeiture provision, which must be either a loan, a paid-up policy, or an extended term, to which the policyholder is entitled in the event of default in a premium payment after three (3) full annual premiums shall have been paid. (b) Tables showing in figures the cash, paid-up and extended insurance options available under the policy each year upon default in premium payments, during the first twenty (20) years of the policy, or for its life if maturity is less than twenty (20) years. (c) At the insurer’s option, a provision that the insurer shall have the right to defer payment of the cash value for a period not exceeding six (6) months. (2) The value of the options referred to in subdivision (b) above, shall be equivalents based on the reserves which shall be computed according to the tables of mortality and rate of interest named in the policy, and according to a basis and method of valuation acceptable under section 41-612 (3) (standard valuation law), less a specified surrender charge, not exceeding two and one-half per cent (2 1/2%) of the amount of insurance. Provided, however, that if the benefits under the policy are calculated according to a more modern table than the American experience table of mortality, the value of any extended term insurance, with accompanying pure endowment, if any, may be calculated according to rates of mortality not exceeding one hundred thirty per cent (130%) of the rates according to such more modern table. (3) Any of the foregoing provisions or portions thereof not applicable to single premium or term policies need not to that extent be incorporated therein. This section shall not apply to industrial insurance, annuities, pure endowments with or without return premium, and policies of reinsurance. History: [41-1928, added 1961, ch. 330, sec. 459, p. 645.]
41-1929
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1929. Incontestability and limitation of liability after reinstatement. (1) A reinstated policy of life insurance or annuity contract may be contested on account of fraud or misrepresentation of facts material to the reinstatement only for the same period following reinstatement and with the same conditions and exceptions as the policy provides with respect to contestability after original issuance. (2) When any life insurance policy or annuity contract is reinstated, such reinstated policy or contract may exclude or restrict liability to the same extent that such liability could have been or was excluded or restricted when the policy or contract was originally issued, and such exclusion or restriction shall be effective from the date of reinstatement. History: [41-1929, added 1961, ch. 330, sec. 460, p. 645.]
41-1930
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1930. Policy settlements. Any life insurer shall have the power to hold under agreement the proceeds of any policy issued by it, upon such terms and restrictions as to revocation by the policyholder and control by beneficiaries, and with such exemptions from the claims of creditors of beneficiaries other than the policyholder as set forth in the policy or as agreed to in writing by the insurer and the policyholder. Upon maturity of a policy, in the event the policyholder has made no such agreement, the insurer shall have the power to hold the proceeds of the policy under an agreement with the beneficiaries. The insurer shall not be required to segregate the funds so held but may hold them as part of its general assets. History: [41-1930, added 1961, ch. 330, sec. 461, p. 645.]
41-1931
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1931. Indebtedness deducted from proceeds. In determining the amount due under any life insurance policy heretofore or hereafter issued, deduction may be made of: (1) Any unpaid premiums or instalments thereof for the current policy year due under the terms of the policy, and of (2) The amount of principal and accrued interest of any policy loan or other indebtedness against the policy then remaining unpaid. History: [41-1931, added 1961, ch. 330, sec. 462, p. 645.]
41-1932
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1932. Participating and nonparticipating policies — Right to issue. A life insurer may issue policies on either the participating basis or the nonparticipating basis, or on both bases, if the right or absence of right of participation is reasonably related to the premium charged and the insurer is otherwise not in violation of sections 41-1313 (unfair discrimination–life insurance, annuities, and disability insurance) or 41-1314 (rebates, illegal inducements). History: [41-1932, added 1961, ch. 330, sec. 463, p. 645.]
41-1933
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1933. Participating and nonparticipating policies — Accounting. (1) A life insurer issuing both participating and nonparticipating policies shall maintain a system of accounting which segregates the participating from the nonparticipating business and clearly shows the profits and losses upon each such category of business. The insurer’s annual statement as filed with the director under section 41-335 shall provide such information with respect to such categories as is called for in connection therewith. (2) For the purposes of such accounting the insurer shall make a reasonable allocation as between the respective such categories of the expenses of such general operations or functions as are jointly shared. Any allocation of expense as between the respective categories shall be made upon a reasonable basis, to the end that each category shall bear a just portion of joint expense involved in the administration of the business of such category. (3) No policy hereafter shall provide for, and no life insurer or representative shall hereafter knowingly offer or promise payment, credit, or distribution of participating dividends , earnings , profits or savings , by whatever name called, to participating policies out of such profits, earnings or savings on nonparticipating policies. This provision shall not be deemed to restrict the generality of section 41-1314 (rebates, illegal inducements). History: [41-1933, added 1961, ch. 330, sec. 464, p. 645.]
41-1934
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1934. Prohibited policy plans. (1) No life insurer shall hereafter deliver or issue for delivery in this state: (a) As part of or in combination with any life insurance, endowment or annuity contract, any agreement or plan, additional to the rights, dividends, and benefits arising out of any such contract, which provides for the accumulation of profits over a period of years and for payment of all or any part of such accumulated profits only to members or policyholders of a designated group or class who continue as members or policyholders until the end of a specified or ascertainable period of years. (b) Any individual life insurance policy which provides that on the death of anyone other than a beneficiary or a person insured thereunder, the owner or beneficiary of the policy shall receive the payment or granting of anything of value. (c) Any registered policy; that is, any policy purporting to be registered or otherwise specially recorded, with any agency of the state of Idaho, or of any other state or with any bank, trust company, escrow company, or other institution other than the insurer; or purporting that any reserves, assets or deposits are held, or will be so held, for the special benefit or protection of the holder of such policy, by or through any such agency or institution. (d) Any policy or contract under which any part of the premium or of funds or values arising from the policy or contract or from investment of reserves, or from mortality savings, lapses or surrenders, in excess of the normal reserves or amounts required to pay death, endowment, and nonforfeiture benefits in respective amounts as specified in or pursuant to the policy or contract, are on a basis not involving insurance or life contingency features, (i) to be placed in special funds or segregated accounts or specially designated places or (ii) to be invested in specially designated investments or types thereof, and the funds or earnings thereon to be divided among the holders of such policies or contracts, or their beneficiaries or assignees. This subdivision (d) does not apply as to variable life insurance or variable annuity contracts issued under section 41-1936 , Idaho Code. (e) Any profit sharing, charter, coupon or founders policy. (f) For the purposes of subdivision (e) above, a profit sharing policy is: (i) A life insurance policy which by its terms expressly provides that the policyholder will participate in the distribution of earnings or surplus other than earnings or surplus attributable, by reasonable and nondiscriminatory standards, to the participating policies of the insurer and allocated to the policyholder on reasonable and nondiscriminatory standards; or (ii) A life insurance policy the provisions of which, through sales material or oral presentations, are interpreted by the insurer to prospective policyholders as entitling the policyholder to the benefits described in
41-1935
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1935. Life insurance and annuities — Twenty day free examination. (1) Every life insurance policy to which the provisions of section 41-1927 , Idaho Code, apply and every annuity contract shall contain a provision therein or in a separate rider attached thereto when delivered, stating in substance that the person to whom the life insurance policy or annuity contract is issued shall be permitted to return the life insurance policy or annuity within twenty (20) days of its delivery to such person, and to have a refund of the premium paid if after examination of the policy the purchaser is not satisfied with it for any reason. The provision shall be set forth in the policy or contract under appropriate caption, and if not so printed on the face page of the policy or contract adequate notice of the provision shall be printed or stamped conspicuously on the face page. (2) The policy or contract may be so returned to the insurer at its home or branch office or to the agent through whom it was applied for, and thereupon shall be void as from the beginning and as if the policy or contract had not been issued. History: [41-1935, added 1992, ch. 162, sec. 1, p. 518.]
41-1936
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1936. Separate accounts — Operation and management. (1) A domestic life insurer may, by or pursuant to resolution of its board of directors, establish one or more separate accounts, and may allocate thereto amounts to provide for life insurance or annuities (and benefits incidental thereto), payable in fixed or in variable amounts or in both. (2) The amounts allocated to each such account and accumulations thereon may be invested as provided in section 41-734 of this act (special investments of separate account funds). (3) The income, if any, and gains and losses, realized or unrealized, from assets allocated to a separate account shall be credited to or charged against the account without regard to other income, gains or losses of the insurer. (4) Unless otherwise approved by the director, assets allocated to a separate account shall be valued at their market value on the date of valuation, or if there is no readily available market, then as provided under the terms of the contract or the rules or other written agreement applicable to such separate account; except, that unless otherwise approved by the director, a portion of the assets of such separate account equal to the insurer’s reserve liability with regard to the guaranteed benefits and funds, if any, referred to in section 41-734 , Idaho Code, (special investments of separate account funds), shall be valued in accordance with the rules otherwise applicable to the insurer’s assets. (5) Amounts allocated to a separate account in the exercise of the power granted by this section shall be owned by the insurer, and the insurer shall not be, nor hold itself out to be, a trustee with respect to such amounts. If and to the extent so provided under the applicable contracts, that portion of the assets of any such separate account equal to the reserves and other contract liabilities with respect to such account shall not be chargeable with liabilities arising out of any other business the insurer may conduct. (6) No sale, exchange or other transfer of assets may be made by an insurer between any of its separate accounts or between any other investment account and one or more of its separate accounts unless, in case of a transfer into a separate account, such transfer is made solely to establish the account or to support the operation of the contracts with respect to the separate account to which the transfer is made, and unless such transfer, whether into or from a separate account, is made (a) by a transfer of cash, or (b) by a transfer of securities having a readily determinable market value, provided that such transfer of securities is approved by the director. The director may approve other transfers among such accounts if, in his opinion, such transfers would not be inequitable. (7) To the extent that the insurer deems it necessary to comply with any applicable federal or state laws, the insurer, with respect to any
41-1937
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1937. Variable contracts — Statement of essential features. (1) Any variable contract providing benefits payable in variable amounts delivered or issued for delivery in this state shall contain a statement of the essential features of the procedures to be followed by the insurer in determining the dollar amount of such variable benefits. Any such contract under which the benefits vary to reflect investment experience, including a group contract and any certificate in evidence of variable benefits issued thereunder, shall state that such dollar amount will so vary and shall contain on its first page a statement to the effect that the benefits thereunder are on a variable basis. (2) Variable annuity contracts delivered or issued for delivery in this state may include as an incidental benefit provision for payment on death during the deferred period of an amount not in excess of the greater of the sum of the premiums or stipulated payments paid under the contract or the value of the contract at time of death. Any such provision shall not be deemed to be life insurance and shall not be subject to the provisions of this code governing life insurance contracts. A provision for any other benefit on death during the deferred period shall be subject to such life insurance provisions. History: [I.C., sec. 41-1937, as added by 1969, ch. 214, sec. 52, p. 625; am. 1971, ch. 272, sec. 3, p. 1078.]
41-1938
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1938. Variable contracts — Authority of insurer to issue. No insurer shall deliver or issue for delivery in this state contracts authorized under section 41-1936 , Idaho Code, unless it is authorized or organized to do a life insurance or annuity business in this state, and the director is satisfied that its condition or method of operation in connection with the issuance of such contracts will not render its operation hazardous to the public or its policyholders in this state. In this connection, the director shall consider among other things: (1) The history and financial condition of the insurer; (2) The character, responsibility and fitness of the officers and directors of the insurer; and (3) The law and regulation under which the insurer is authorized in the state of domicile to issue variable contracts. History: [41-1938, added 1969, ch. 214, sec. 53, p. 625; am. 1999, ch. 95, sec. 1, p. 297.]
41-1939
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1939. Variable contracts — Regulation thereof. (1) Notwithstanding any other provision of law, the director shall have sole and exclusive authority to regulate the issuance and sale of variable contracts and to provide for licensing of persons selling such contracts, and to issue such reasonable rules and regulations as may be appropriate to carry out the purposes and provisions of this section. (2) The reserve liability for variable contracts shall be established in accordance with actuarial procedures that recognize the variable nature of the benefits provided and any mortality guarantees. (3) The director, by regulation, may require that any individual variable contract, delivered or issued for delivery in this state, shall contain provisions as to policy loans, payment of premiums, payment of claims, indebtedness and nonforfeiture benefits appropriate to a variable contract. History: [I.C., sec. 41-1939, as added by 1969, ch. 214, sec. 54, p. 625.]
41-1940
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1940. annuity consumer protections act. (1) Sections 41-1940 through 41-1943 , Idaho Code, shall be known and may be cited as the Annuity Consumer Protections Act. (2) As used in the annuity consumer protections act: (a) Annuity means an annuity that is an insurance product under state law that is individually solicited, whether classified as an individual or group annuity. (b) Best interest obligations means that a producer, when making a recommendation of an annuity, shall act in the best interest of the consumer under the circumstances known at the time the recommendation is made without placing the producer’s or the insurer’s financial interest ahead of the consumer’s interest. (c) Cash compensation means any discount, concession, fee, service fee, commission, sales charge, loan, override, or cash benefit received by a producer in connection with the recommendation or sale of an annuity from an insurer, intermediary, or directly from the consumer. (d) Consumer profile information means information that is reasonably appropriate to determine whether a recommendation addresses the consumer’s financial situation, insurance needs, and financial objectives, including, at a minimum, the following: (i) Age; (ii) Annual income; (iii) Financial situation and needs, including debts and other obligations; (iv) Financial experience; (v) Insurance needs; (vi) Financial objectives; (vii) Intended use of the annuity; (viii) Financial time horizon; (ix) Existing assets or financial products, including investment, annuity, and insurance holdings; (x) Liquidity needs; (xi) Liquid net worth; (xii) Risk tolerance, including but not limited to willingness to accept non-guaranteed elements in the annuity; (xiii) Financial resources used to fund the annuity; and (xiv) Tax status. (e) Continuing education provider or CE provider means an individual or entity approved by the department to offer continuing education courses. (f) Contract owner means the owner named in the annuity contract or the certificate holder in the case of a group annuity contract. (g) Determinable elements means elements that are derived from processes or methods that are guaranteed at issue and that are not subject to company discretion, but where the values or amounts cannot be determined until some point after issue. These elements may include the premiums, credited interest rates (including any bonus), benefits, values, noninterest-based credits, charges, or elements of formulas used to determine any of these. An element is considered determinable only if it is calculated from underlying determinable elements or from both determinable and guaranteed elements. (h) FINRA means the financial industry regulatory authority or succeeding agency. (i) Generic name means a short title descriptive of the annuity contract being applied for or illustrated, such as single premium deferred annuity. (j) Guaranteed elements mean
41-1940A
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1940A. ANNUITY CONSUMER PROTECTIONS — SUITABILITY DUTIES. (1) This section through section 41-1940E , Idaho Code, shall apply to any sale or recommendation of an annuity. (a) The purpose of these sections is to require producers, as defined in the annuity consumer protections act, to act in the best interest of the consumer when making a recommendation of an annuity and to require insurers to establish and maintain a system to supervise recommendations so that the insurance needs and financial objectives of consumers at the time of the transaction are effectively addressed. (b) Nothing in the annuity consumer protections act shall be construed to subject a producer to civil liability under the best interest standard of care outlined in this section or under standards governing the conduct of a fiduciary or a fiduciary relationship. (2) Unless otherwise specifically included, this section through section 41-1940E , Idaho Code, shall not apply to transactions involving: (a) Contracts excluded by section 41-1940 (3), Idaho Code; or (b) Direct response solicitations where there is no recommendation based on information collected from the consumer pursuant to this section. (3) Best interest obligations. A producer, when making a recommendation of an annuity, shall act in the best interest of the consumer under the circumstances known at the time the recommendation is made without placing the producer’s or the insurer’s financial interest ahead of the consumer’s interest. A producer has acted in the best interest of the consumer if he has satisfied the following obligations regarding care, disclosure, conflict of interest, and documentation: (a) Care obligation. The producer, in making a recommendation, shall exercise reasonable diligence, care, and skill to: (i) Know the consumer’s financial situation, insurance needs, and financial objectives; (ii) Understand the available recommendation options after making a reasonable inquiry into options available to the producer; (iii) Have a reasonable basis to believe the recommended option effectively addresses the consumer’s financial situation, insurance needs, and financial objectives over the life of the product, as evaluated in light of the consumer profile information; and (iv) Communicate the basis or bases of the recommendation. (b) The requirements under paragraph (a) of this subsection include making reasonable efforts to obtain consumer profile information from the consumer prior to the recommendation of an annuity. (c) The requirements under paragraph (a) of this subsection require a producer to consider the types of products the producer is authorized and licensed to recommend or sell that address the consumer’s financial situation, insurance needs, and financial objectives. This does not require analysis or consideration of any products outside the authority and license of the producer or other possible alternative pr
41-1940B
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1940B. ANNUITY CONSUMER PROTECTION — SUPERVISION SYSTEM. (1) Except as permitted under section 41-1940A (8), Idaho Code, an insurer may not issue an annuity recommended to a consumer unless there is a reasonable basis to believe the annuity would effectively address the particular consumer’s financial situation, insurance needs, and financial objectives based on the consumer’s consumer profile information. (2) An insurer shall establish and maintain a supervision system that is reasonably designed to achieve the insurer’s and its producers’ compliance with the annuity consumer protections act, including but not limited to the following: (a) The insurer shall establish and maintain reasonable procedures to inform its producers of the requirements of the annuity consumer protections act and shall incorporate the requirements of such act into relevant producer training manuals; (b) The insurer shall establish and maintain standards for producer product training and shall establish and maintain reasonable procedures to require its producers to comply with the requirements of section 41-1940C , Idaho Code; (c) The insurer shall provide product-specific training and training materials that explain all material features of its annuity products to its producers; (d) The insurer shall establish and maintain procedures for the review of each recommendation prior to issuance of an annuity that are designed to ensure there is a reasonable basis to determine that the recommended annuity would effectively address the particular consumer’s financial situation, insurance needs, and financial objectives. Such review procedures may apply a screening system for the purpose of identifying selected transactions for additional review and may be accomplished electronically or through other means, including but not limited to physical review. Such an electronic or other system may be designed to require additional review only of those transactions identified for additional review by the selection criteria; (e) The insurer shall establish and maintain reasonable procedures to detect recommendations that are not in compliance with section 41-1940A , Idaho Code. This may include but is not limited to confirmation of the consumer’s consumer profile information, systematic customer surveys, producer and consumer interviews, confirmation letters, producer statements or attestations, and programs of internal monitoring. Nothing in this paragraph prevents an insurer from complying with this paragraph by applying sampling procedures or by confirming the consumer profile information or other required information under that section after issuance or delivery of the annuity; (f) The insurer shall establish and maintain reasonable procedures to assess, prior to or upon issuance or delivery of an annuity, whether a producer has provided to the consumer the information required to be provided under the annu
41-1940C
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1940C. ANNUITY CONSUMER PROTECTION — PRODUCER TRAINING. (1) A producer shall not solicit the sale of an annuity product unless the producer has adequate knowledge of the product to recommend the annuity and the producer is in compliance with the insurer’s standards for product training. A producer may rely on insurer-provided product-specific training standards and materials to comply with this subsection. (2) A producer who engages in the sale of annuity products shall complete a onetime four (4) credit training course approved by the department and provided by the department-approved education provider. Individuals who obtain a life insurance line of authority on or after July 1, 2021, may not engage in the sale of annuities until the annuity training course required under this section has been completed. (a) The minimum length of the training required under this subsection shall be sufficient to qualify for at least four (4) continuing education credits but may be longer. (b) The training required under this subsection shall include information on the following topics: (i) The types of annuities and various classifications of annuities; (ii) Identification of the parties to an annuity; (iii) How product-specific annuity contract features affect consumers; (iv) The application of income taxation of qualified and nonqualified annuities; (v) The primary uses of annuities; and (vi) Appropriate standard of conduct, sales practices, replacement, and disclosure requirements. (c) Providers of courses intended to comply with this subsection shall cover all topics listed in the prescribed outline and shall not present any marketing information or provide training on sales techniques or provide specific information about a particular insurer’s products. Additional topics may be offered in conjunction with and in addition to the required outline. (d) A provider of an annuity training course intended to comply with this subsection shall register as a continuing education provider in this state and comply with the rules and guidelines applicable to producer continuing education courses as set forth by the department. (e) A producer who has completed an annuity training course approved by the department of insurance prior to July 1, 2021, shall, within six (6) months after July 1, 2021, complete either: (i) A new four (4) credit training course approved by the department of insurance after July 1, 2021; or (ii) An additional onetime one (1) credit training course approved by the department and provided by the department-approved education provider on appropriate sales practices, replacement, and disclosure requirements under the annuity consumer protections act. (f) Providers of annuity training shall comply with the reporting requirements and shall issue certificates of completion as set forth by the department. (g) The satisfaction of the training requirements of another state t
41-1940D
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1940D. ANNUITY CONSUMER PROTECTION — COMPLIANCE MITIGATION. An insurer is responsible for compliance with the annuity consumer protections act. If a violation occurs, either because of the action or inaction of the insurer or its producer, the director may order: (1) An insurer to take reasonably appropriate corrective action for any consumer harmed by a failure to comply with this regulation by the insurer, by an entity contracted to perform the insurer’s supervisory duties, or by the producer; (2) A general agency, an independent agency, or the producer to take reasonably appropriate corrective action for any consumer harmed by the producer’s violation of this regulation; and (3) Appropriate penalties and sanctions. History: [41-1940D, added 2021, ch. 41, sec. 6, p. 120.]
41-1940E
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1940E. ANNUITY CONSUMER PROTECTION — RECORDKEEPING. (1) Insurers, general agents, independent agencies, and producers shall maintain or be able to make available to the director records of the information collected from the consumer, disclosures made to the consumer including summaries of oral disclosures, and other information used in making the recommendations that were the basis for insurance transactions for five (5) years after the natural life of the contract. An insurer is permitted but shall not be required to maintain documentation on behalf of a producer. (2) Records required to be maintained by the annuity consumer protections act may be maintained in paper, photographic, micro-process, magnetic, mechanical, or electronic media or by any process that accurately reproduces the actual document. History: [41-1940E, added 2021, ch. 41, sec. 7, p. 120.]
41-1941
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1941. annuity consumer protections — disclosures. (1) The provisions of this section shall apply to all group and individual annuity contracts and certificates except: (a) Registered or nonregistered variable annuities or other registered products; (b) Immediate and deferred annuities that contain no non-guaranteed elements; and (c) Contracts excluded by section 41-1940 (3), Idaho Code. (2) If the application for an annuity contract is taken in a face-to-face meeting, the applicant, at or before the time of application and at the time of contract delivery, shall be given both the disclosure document and the buyer’s guide in the form prescribed by the director. The disclosure document shall be dated and signed by the prospective annuity owner and producer and the company shall maintain a signed copy for a period of five (5) years after the natural life of the contract. (3) If the application for an annuity contract is taken by means other than in a face-to-face meeting, the applicant shall be sent both the disclosure document and the buyer’s guide at the time of application and at the time of contract delivery. The producer and the company shall maintain a signed copy of the disclosure document for a period of five (5) years after the natural life of the contract. (4) A solicitation for an annuity contract provided in other than a face-to-face meeting shall include a statement that the proposed applicant may contact the insurer for a free annuity buyer’s guide. (5) At a minimum, the following information shall be included in the disclosure document required to be provided under this section in a form or forms prescribed by the director or substantially similar to such form or forms: (a) The generic name of the contract, the company product name, if different, the form number and the fact that it is an annuity; (b) The insurer’s name and address; (c) A description of the contract and its benefits, emphasizing its long-term nature and including the following examples where appropriate: (i) The guaranteed, non-guaranteed and determinable elements of the contract, their limitations, if any, and an explanation of how they operate; (ii) An explanation of the initial crediting rate, specifying any bonus or introductory portion, the duration of the rate and the fact that rates may change from time to time and are not guaranteed; (iii) The periodic income options both on a guaranteed and non-guaranteed basis; (iv) Any value reductions caused by withdrawals from or surrender of the contract; (v) How values in the contract can be accessed; (vi) The death benefit, if available, and how it will be calculated; (vii) A summary of the federal tax status of the contract and any penalties applicable on withdrawal of values from the contract; and (viii) The impact of any rider, such as a long-term care rider. (d) The specific dollar amount or percentage charges and fees shall be listed wi
41-1942
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1942. advertisement of interest-indexed annuities. No issuer of interest-indexed annuity contracts shall advertise interest-indexed annuity contracts, regardless of the advertising medium, without prior approval of such advertisement from the director. For purposes of this section, interest-indexed annuity means a type of annuity whose credited interest is linked to an external reference at any time during the term of the contract and shall include contracts, application forms where written application is required and is to be made a part of the contract, printed riders, endorsements, and renewal certificates. History: [41-1942, added 2020, ch. 290, sec. 2, p. 839; am. 2021, ch. 41, sec. 9, p. 123.]
41-1943
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1943. standards for policy provisions for annuities. No annuity shall be delivered or issued for delivery in this state that contains: (1) Surrender charges that persist past ten (10) years from the time of deposit; or (2) Surrender charges that exceed ten percent (10%) in the first year and decrease one percent (1%) per year in subsequent years. History: [41-1943, added 2020, ch. 290, sec. 3, p. 840.]
41-1950
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1950. Short Title and Scope. (1) Sections 41-1950 through 41-1965 , Idaho Code, may be cited as the Life Settlements Act. (2) Nothing contained herein is intended to abrogate or conflict with the Idaho uniform securities act contained in chapter 14, title 30 , Idaho Code, or supersede the duty of persons to comply with that or any other applicable law. Given the combined interest and regulation of life settlements by the department and the department of finance, the director and the director of the department of finance should cooperate in the exercise of discretionary acts and enforcement of the applicable laws within their respective authority and responsibility. (3) Unless clearly inapplicable, other provisions and chapters of title 41 , Idaho Code, apply to licensees and persons subject to sections 41-1950 through 41-1965 , Idaho Code, including, but not limited to, chapters 1 through 5, 10, 13, 18 and 19, title 41 , Idaho Code. Specifically, section 41-220 , Idaho Code, applies to licensees under sections 41-1950 through 41-1965 , Idaho Code. History: [41-1950, added 2009, ch. 69, sec. 1, p. 192.]
41-1951
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1951. Definitions. In sections 41-1950 through 41-1965 , Idaho Code: (1) Advertising means any written, electronic or printed communication or any communication by means of recorded telephone messages or transmitted on radio, television, the internet or similar communications media, including film strips, motion pictures and videos, published, disseminated, circulated or placed directly before the public, in this state, for the purpose of creating an interest in or inducing a person to sell, assign, devise, bequest or transfer the death benefit or ownership of a life insurance policy pursuant to a life settlement contract. (2) Business of life settlements means an activity involved in, but not limited to, the offering to enter into, soliciting, negotiating, procuring or effectuating a life settlement contract. The transaction of the business of life settlements is within the scope of the transaction of the business of insurance as provided in section 41-112 , Idaho Code. (3) Chronically ill means: (a) Being unable to perform at least two (2) activities of daily living such as eating, toileting, transferring, bathing, dressing or continence; or (b) Requiring substantial supervision to protect the individual from threats to health and safety due to severe cognitive impairment. (4) Financing entity means an underwriter, placement agent, lender, purchaser of securities, purchaser of a policy or certificate from a life settlement provider, credit enhancer or any entity that has a direct ownership in a policy or certificate that is the subject of a life settlement contract, but: (a) Whose principal activity related to the transaction is providing funds to effect the life settlement or purchase of one (1) or more settled policies; and (b) Who has an agreement in writing with one (1) or more licensed life settlement providers to finance the acquisition of life settlement contracts. Financing entity does not include a nonaccredited investor. An accredited investor is defined by rule 501 of regulation D, 17 CFR 230.501(a). (5) Life insurance producer means any person licensed in this state as a resident or nonresident insurance producer who has received qualification or authority for life insurance coverage or a life line of coverage pursuant to section 41-1008 , Idaho Code. (6) Life settlement broker or broker means a person who, working exclusively on behalf of an owner and for a fee, commission or other valuable consideration, offers or attempts to negotiate life settlement contracts between an owner and one (1) or more life settlement providers or one (1) or more life settlement brokers. Notwithstanding the manner in which the life settlement broker is compensated, a life settlement broker is deemed to represent only the owner, and not the insurer or the life settlement provider, and owes a fiduciary duty to the owner to act according to the owner’s instructions and in the b
41-1952
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1952. License Requirement. (1) A person shall not act as a life settlement provider or life settlement broker where the owner of the life insurance policy is a resident of this state without first obtaining a license from the director as a life insurance producer under chapter 10, title 41 , Idaho Code, and complying with the additional requirements set forth in sections 41-1950 through 41-1965 , Idaho Code. (2) Not later than ten (10) days from the first day of operating as a life settlement broker or provider, and thereafter upon renewal of the life insurance producer license, the life insurance producer shall notify the director that he or she is acting as a life settlement broker or provider on a form prescribed by the director, and shall pay any applicable fee to be determined by the director specified by rule pursuant to section 41-401 , Idaho Code. Notification shall include an acknowledgment by the life insurance producer that he or she will operate as a life settlement broker in accordance with sections 41-1950 through 41-1965 , Idaho Code. (3) The insurer that issued the policy being settled shall not be responsible for any act or omission of a life settlement broker or life settlement provider arising out of or in connection with the life settlement transaction, unless the insurer receives compensation for the placement of a life settlement contract from the life settlement provider or life settlement broker in connection with the life settlement contract. History: [41-1952, added 2009, ch. 69, sec. 1, p. 196.]
41-1953
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1953. Filing of Life settlement Contracts and Disclosure Statements. A person shall not use a life settlement contract form or provide to an owner a disclosure statement form in this state unless first filed with the director accompanied by a certification that the form is in compliance with sections 41-1950 through 41-1965 , Idaho Code. The director may disapprove a life settlement contract form or disclosure statement form if, in the director’s opinion, the contract or provisions contained therein fail to meet the requirements of sections 41-1950 through 41-1965 , Idaho Code, or are unreasonable, contrary to the interests of the public, or otherwise misleading or unfair to the owner. At the director’s discretion, the director may require the submission of advertising material. History: [41-1953, added 2009, ch. 69, sec. 1, p. 197.]
41-1954
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1954. Reporting Requirements and Privacy. (1) Each life settlement provider shall file with the director, on or before March 1 of each year, an annual statement containing such information on a form prescribed by the director or as prescribed by rule. Such information shall be limited to only those transactions where the owner is a resident of this state. (2) Except as otherwise allowed or required by law, a life settlement provider, life settlement broker, insurance company, insurance producer, information bureau, rating agency or company, or any other person with actual knowledge of an insured’s identity, shall not disclose that identity as an insured, or the insured’s financial or medical information to any other person unless the disclosure is: (a) Necessary to effect a life settlement between the owner and a life settlement provider and the owner and insured have provided prior written consent to the disclosure; (b) Provided in response to an investigation or examination by the director or any other governmental officer or agency; (c) A term of or condition to the transfer of a policy by one (1) life settlement provider to another life settlement provider; (d) Necessary to permit a financing entity, related provider trust or special purpose entity to finance the purchase of policies by a life settlement provider and the owner and insured have provided prior written consent to the disclosure; (e) Necessary to allow the life settlement provider or life settlement broker or their authorized representatives to make contacts for the purpose of determining health status; (f) Required to purchase stop loss coverage or financial guaranty insurance; or (g) Permitted by any other provision of applicable law. History: [41-1954, added 2009, ch. 69, sec. 1, p. 197.]
41-1955
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1955. Examination and Records. (1) A person required to be licensed by sections 41-1950 through 41-1965 , Idaho Code, is subject to examination as authorized in chapter 2, title 41 , Idaho Code, and shall for five (5) years retain copies of all: (a) Proposed, offered and executed contracts, purchase agreements, underwriting documents, policy forms, executed disclosure statements and applications from the date of the proposal, offer or execution of the contract or purchase agreement, whichever is later; (b) All checks, drafts or other evidence and documentation related to the payment, transfer, deposit or release of funds from the date of the transaction; and (c) All other records and documents related to the requirements of sections 41-1950 through 41-1965 , Idaho Code. (2) The provisions of this section does not relieve a person of the obligation to produce these documents to the director after the retention period has expired if the person has retained the documents. (3) Records required to be retained by this section must be legible and complete and in accordance with section 28-50-107 , Idaho Code, and may be retained in paper, photograph, microprocess, magnetic, mechanical, or electronic media, or by any process that accurately reproduces or forms a durable medium for the reproduction of a record. History: [41-1955, added 2009, ch. 69, sec. 1, p. 197.]
41-1956
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1956. Disclosure to Owner Upon Application. With each application for a life settlement contract, a life settlement provider or life settlement broker shall provide the owner with at least the following disclosures no later than the time the application for the life settlement contract is signed by all parties. The disclosures shall be provided in a separate document that is signed by the owner and the life settlement provider or life settlement broker, and shall provide the following information: (1) There are possible alternatives to life settlement contracts including any accelerated death benefits or policy loans offered under the owner’s life insurance policy. (2) That a life settlement broker represents exclusively the owner, and not the insurer or the life settlement provider, and owes a fiduciary duty to the owner, including a duty to act according to the owner’s instructions and in the best interest of the owner. (3) Some or all of the proceeds of the life settlement may be taxable under federal and state law, and assistance should be sought from a professional tax advisor. (4) Proceeds of the life settlement could be subject to the claims of creditors. (5) Receipt of the proceeds of a life settlement may adversely affect the owner’s eligibility for medicaid or other government benefits or entitlements, and advice should be obtained from the appropriate government agencies. (6) The owner has the right to rescind a life settlement contract within twenty (20) days of the date it is executed by all parties. Rescission, if exercised by the owner, is effective only if both notice of the rescission is given, and the owner repays all proceeds and any premiums, loans and loan interest paid on account of the life settlement contract within the rescission period. If the insured dies during the rescission period, the life settlement contract shall be deemed to have been rescinded, subject to repayment by the owner or the owner’s estate of all life settlement proceeds and any premiums, loans and loan interest. (7) Funds will be sent to the owner within three (3) business days after the life settlement provider has received the insurer or group administrator’s written acknowledgment that ownership of the policy or interest in the certificate has been transferred and the beneficiary has been designated. (8) Entering into a life settlement contract may cause other rights or benefits, including conversion rights and waiver of premium benefits that may exist under the policy or certificate, to be forfeited by the owner. Assistance should be sought from a financial adviser. (9) Disclosure to an owner shall include distribution of a brochure describing the process of life settlements. The national association of insurance commissioners (NAIC) form for the brochure shall be used unless another form is developed or approved by the director. (10) The disclosure document shall conta
41-1957
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1957. Disclosure to Owner By Provider Upon Settlement Contract. A life settlement provider shall provide the owner with at least the following disclosures prior to the time the owner signs the life settlement contract. The disclosures shall be conspicuously displayed in the life settlement contract or in a separate document signed by the owner and shall provide the following information: (1) The affiliation, if any, between the life settlement provider and the issuer of the insurance policy to be settled; (2) The name, business address and telephone number of the life settlement provider; (3) If an insurance policy to be settled has been issued as a joint policy or involves family riders or any coverage of a life other than the insured under the policy to be settled, the possible loss of coverage on the other lives under the policy and shall be advised to consult with his or her insurance producer or the insurer issuing the policy for advice on the proposed life settlement; (4) The dollar amount of the current death benefit payable under the policy or certificate. If known, the life settlement provider shall also disclose the availability of any additional guaranteed insurance benefits, the dollar amount of any accidental death and dismemberment benefits under the policy or certificate and the extent to which the owner’s interest in those benefits will be transferred as a result of the life settlement contract; and (5) The name, business address and telephone number of the independent third party escrow agent, and the fact that the owner may inspect or receive copies of the relevant escrow or trust agreements or documents. History: [41-1957, added 2009, ch. 69, sec. 1, p. 199.]
41-1958
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1958. Disclosure to Owner By Broker Upon Settlement Contract. A life settlement broker shall provide the owner with at least the following disclosures prior to the time the owner signs the life settlement contract. The disclosures shall be conspicuously displayed in the life settlement contract or in a separate document signed by the owner and provide the following information: (1) The name, business address and telephone number of the life settlement broker; (2) A full, complete and accurate description of all offers, counteroffers, acceptances and rejections relating to the proposed life settlement contract; (3) A written disclosure of any affiliations or contractual arrangements between the life settlement broker and any person making an offer in connection with the proposed life settlement contracts; (4) The amount and method of calculating the broker’s compensation, which term compensation includes anything of value to be paid or given to a life settlement broker for the placement of a policy; and (5) Where any portion of the life settlement broker’s compensation is taken from a proposed life settlement offer, the total amount of the life settlement offer and the percentage of the life settlement offer comprised by the life settlement broker’s compensation. History: [41-1958, added 2009, ch. 69, sec. 1, p. 199.]
41-1959
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1959. Notice of Change by Provider. If the life settlement provider transfers ownership or changes the beneficiary of the insurance policy, the provider shall communicate in writing the change in ownership or beneficiary to the insured within twenty (20) days after the change. History: [41-1959, added 2009, ch. 69, sec. 1, p. 200.]
41-1960
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1960. General Rules. (1) A life settlement provider entering into a life settlement contract shall first obtain: (a) If the owner is the insured, a written statement from a licensed attending physician that the owner is of sound mind and under no constraint or undue influence to enter into a life settlement contract; and (b) A document in which the insured consents to the release of his or her medical records to a licensed life settlement provider, life settlement broker and the insurance company that issued the life insurance policy covering the life of the insured. (2) Within twenty (20) days after an owner executes documents necessary to transfer any rights under an insurance policy or within twenty (20) days of entering any agreement, option, promise or any other form of understanding, expressed or implied, to settle the policy, the life settlement provider shall give written notice to the insurer that issued that insurance policy that the policy has or will become a settled policy. The notice shall be accompanied by the documents required by subsection (3) of this section. (3) The life settlement provider shall deliver: (a) A copy of the medical release required under subsection (1)(b) of this section; (b) A copy of the owner’s application for the life settlement contract; (c) The notice required under subsection (2) of this section; and (d) A request for verification of coverage to the insurer that issued the life policy that is the subject of the life transaction. The NAIC’s form for verification of coverage shall be used unless another form is developed and approved by the director. (4) The insurer shall respond to a request for verification of coverage submitted on an approved form by a life settlement provider or life settlement broker within thirty (30) calendar days of the date the request is received and shall indicate whether, based on the medical evidence and documents provided, the insurer intends to pursue an investigation at that time regarding the validity of the insurance contract or possible fraud. The insurer shall accept a request for verification of coverage made on an NAIC form or any other form approved by the director. The insurer shall accept an original or facsimile or electronic copy of such request and any accompanying authorization signed by the owner. Failure by the insurer to meet its obligations under this subsection shall be a violation of section 41-1964 , Idaho Code. (5) Prior to or at the time of execution of the life settlement contract, the life settlement provider shall obtain a witnessed document in which the owner consents to the life settlement contract, represents that the owner has a full and complete understanding of the life settlement contract, that he or she has a full and complete understanding of the benefits of the life insurance policy, acknowledges that he or she is entering into the life settlement contract freel
41-1961
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1961. Permitted Life Settlements and Supporting Documentation. (1) It is a violation of the provisions of sections 41-1950 through 41-1965 , Idaho Code, for any person to enter into a life settlement contract at any time prior to the issuance of a policy which is the subject of a life settlement contract or within a two (2) year period commencing with the date of issuance of the insurance policy or certificate unless the owner certifies to the life settlement provider that one (1) or more of the following conditions have been met within the two (2) year period: (a) The policy was issued upon the owner’s exercise of conversion rights arising out of a group or individual policy, provided the total of the time covered under the conversion policy plus the time covered under the prior policy is at least twenty-four (24) months. The time covered under a group policy shall be calculated without regard to any change in insurance carriers, provided the coverage has been continuous and under the same group sponsorship; (b) As part of the certification, the owner submits independent evidence to the life settlement provider that one (1) or more of the following conditions have been met within the two (2) year period: (i) The owner or insured is terminally or chronically ill; (ii) The owner’s spouse dies; (iii) The owner divorces his or her spouse; (iv) The owner retires from full-time employment; (v) The owner becomes physically or mentally disabled and a physician determines that the disability prevents the owner from maintaining full-time employment; or (vi) A final order, judgment or decree is entered by a court of competent jurisdiction on the application of a creditor or the owner, adjudicating the owner bankrupt or insolvent, or approving a petition seeking reorganization of the owner or appointing a receiver, trustee or liquidator to all or a substantial part of the owner’s assets. (2) Copies of the independent evidence described in subsection (1)(b) of this section and documents required in section 41-1960 (1) through (5), Idaho Code, shall be submitted to the insurer when the life settlement provider or other party entering into a life settlement contract with an owner submits a request to the insurer for verification of coverage. The copies shall be accompanied by a letter of attestation from the life settlement provider that the copies are true and correct copies of the documents received by the life settlement provider. (3) If the life settlement provider submits to the insurer a copy of the owner or insured’s certification described in and the independent evidence required by subsection (1)(b) of this section when the provider submits a request to the insurer to effect the transfer of the policy or certificate to the life settlement provider, the copy shall be deemed to conclusively establish that the life settlement contract satisfies the requirements of this section
41-1962
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1962. Prohibited Practices and Conflicts of Interest. (1) It is a violation of the provisions of sections 41-1950 through 41-1965 , Idaho Code, for any person to engage in any act that constitutes or promotes a STOLI regarding any resident of this state. (2) With respect to any life settlement contract or insurance policy, no life settlement broker knowingly shall solicit an offer from, effectuate a life settlement with or make a sale to any life settlement provider, life settlement purchaser, financing entity or related provider trust that is an affiliate of such life settlement broker unless such relationship is first disclosed to the owner. (3) With respect to any life settlement contract or insurance policy, no life settlement provider knowingly shall enter into a life settlement contract with an owner, if, in connection with such life settlement contract, anything of value will be paid to a life settlement broker that is an affiliate of such life settlement provider or any investor, financing entity or related provider trust that is involved in such life settlement contract unless such relationship is first disclosed to the owner. (4) No person shall enter into a premium finance agreement with any other person or affiliate thereof pursuant to which such person shall receive any proceeds, fees or other consideration, directly or indirectly, from the policy or owner of the policy or any other person with respect to the premium finance agreement or any life settlement contract or other transaction related to such policy that are in addition to the amounts required to pay the principal, interest and service charges related to policy premiums pursuant to the premium finance agreement or subsequent sale of such agreement; provided further that any payments, charges, fees or other amounts in addition to the amounts required to pay the principal, interest and service charges related to policy premiums paid under the premium finance agreement shall be remitted to the original owner of the policy or to his or her estate if he or she is not living at the time of the determination of overpayment. (5) In the solicitation, application or issuance of a life insurance policy, no person shall employ any device, scheme or artifice that would result in a violation of section 41-1804 , Idaho Code. (6) No life settlement provider shall enter into a life settlement contract unless the life settlement promotional, advertising and marketing materials, as may be prescribed by rule, have been filed with the director. In no event shall any marketing materials expressly reference that the insurance is free for any period of time. The inclusion of any reference in the marketing materials that would cause an owner to reasonably believe that the insurance is free for any period of time shall be considered a violation of the provisions of sections 41-1950 through 41-1965 , Idaho Code. (7) No lif
41-1963
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1963. Advertising for Life Settlements. No person required to be licensed pursuant to sections 41-1950 through 41-1965 , Idaho Code, shall engage in any false or misleading advertising, solicitation, or practice. In no case shall a life settlement broker or provider directly or indirectly market, advertise, solicit or otherwise promote the purchase of a new policy with the primary emphasis on settling the policy or use the words free, no cost or words of similar import in the marketing, advertising, soliciting, or otherwise promoting of the purchase of a policy. History: [41-1963, added 2009, ch. 69, sec. 1, p. 204.]
41-1964
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1964. Penalty — Unfair Trade Practices. A violation of the provisions of sections 41-1950 through 41-1965 , Idaho Code, shall be considered an unfair trade practice under chapter 13, title 41 , Idaho Code, subject to the penalties contained in that chapter. History: [41-1964, added 2009, ch. 69, sec. 1, p. 204.]
41-1965
TITLE 41 INSURANCE CHAPTER 19 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS 41-1965. Authority to Promulgate Rules. The director shall have the authority to promulgate rules implementing the provisions of sections 41-1950 through 41-1964 , Idaho Code. History: [41-1965, added 2009, ch. 69, sec. 1, p. 204.]