T41CH48
Title 41 > T41CH48
Sections (16)
41-4801
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4801. Short title. This chapter may be cited as the Idaho Liability Risk Retention Act. History: [41-4801, added 1987, ch. 140, sec. 1, p. 274.]
41-4802
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4802. Purpose. The purpose of this chapter is to regulate the formation and operation of risk retention groups in Idaho formed pursuant to the provisions of the federal liability risk retention act of 1986. History: [41-4802, added 1987, ch. 140, sec. 1, p. 275.]
41-4803
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4803. Definitions. As used in this chapter: (1) Director means the director of the department of insurance of this state or the director, commissioner, or superintendent of the department of insurance of any other state. (2) Completed operations liability means liability arising out of the installation, maintenance or repair of any product at a site which is not owned or controlled by: (a) Any person who performs that work; or (b) Any person who hires an independent contractor to perform that work, but shall include liability for activities which are completed or abandoned before the date of the occurrence giving rise to the liability. (3) Domicile for purposes of determining the state in which a purchasing group is domiciled means: (a) For a corporation, the state in which the purchasing groups is incorporated; or (b) For an unincorporated entity, the state of its principal place of business. (4) Hazardous financial condition means that, based on its present or reasonably anticipated financial condition, a risk retention group, although not yet financially impaired or insolvent, is unlikely to be able: (a) To meet obligations to policyholders with respect to known claims and reasonably anticipated claims; or (b) To pay other obligations in the normal course of business. (5) Insurance means primary insurance, excess insurance, reinsurance, surplus lines insurance, or any other arrangement for shifting and distributing risk which is determined to be insurance under this code. (6) Liability means legal liability for damages, including costs of defense, legal costs and fees, and other claims expenses because of injuries to other persons, damage to their property, or other damage or loss to such other persons resulting from or arising out of any business whether profit or nonprofit, trade, product, services including professional services, premises, or operations, or arising out of any activity of any state or local government, or any agency or political subdivision thereof, but does not include personal risk liability or with the exception of an employer’s legal liability with respect to its employees under the federal employers’ liability act (45 U.S.C. 51 et seq.), an employer’s liability. (7) Personal risk liability means liability for damages because of injury to any person, damage to property, or other loss or damage resulting from any person, familial, or household responsibilities or activities apart from responsibilities or activities referred to in subsection (6) of this section. (8) Plan of operation or feasibility study means an analysis which presents the expected activities and results of a risk retention group, including, at a minimum: (a) The coverages, deductibles, coverage limits and rates and rating classifications systems for each line of insurance the group would offer; (b) Historical and expected loss experience of the proposed members and national experience of similar expo
41-4804
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4804. Risk retention groups chartered in this state. (1) A risk retention group seeking to be chartered in this state must be chartered and licensed as a liability insurance company authorized by the insurance laws of this state and, except as provided elsewhere in this chapter, must comply with: (a) All of the laws, rules, regulations and requirements applicable to such insurers chartered and licensed in this state; (b) Section 41-4805 , Idaho Code, to the extent such requirements are not a limitation on laws, rules, regulations or requirements of this state. (2) Before it may offer insurance in any state, each risk retention group shall also submit for approval to the director of this state a plan of operation or feasibility study and revisions of such plan or study if the group intends to offer any additional lines of liability insurance. Immediately upon receipt of an application for charter, this state shall provide: (a) Summary information concerning the filing to the national association of insurance commissioners, including the name of the risk retention group, the identity of the initial members of the group, the identity of those individuals who organized the group or who will provide administrative services or otherwise influence or control the activities of the group; (b) The amount and nature of initial capitalization; (c) The coverages to be afforded; and (d) The states in which the group intends to operate. Providing notification to the national association of insurance commissioners is in addition to and shall not be sufficient to satisfy the requirements of section 41-4805 , Idaho Code, or any other sections of this chapter. History: [41-4804, added 1987, ch. 140, sec. 1, p. 277.]
41-4805
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4805. Risk retention groups not chartered in this state. Risk retention groups chartered in states other than this state and seeking to do business as a risk retention group in this state must observe and abide by the laws of this state as follows: (1) Before transacting any insurance business or offering any insurance policies in this state, a risk retention group shall submit to the director of this state: (a) A statement identifying the state or states in which the risk retention group is chartered and licensed as a liability insurance company, the date of chartering, the risk retention group’s principal place of business, and such other information including information concerning its membership as the director of this state may require to verify that the risk retention group is qualified as defined in subsection (11) of section 41-4803 , Idaho Code; (b) A copy of its plan of operations or feasibility study and revisions of such plan or study submitted to its state of domicile; provided, however, that the provision relating to the submission of a plan of operation or feasibility study shall not apply with respect to any line or classification of liability insurance which was defined in the product liability risk retention act of 1981 before October 27, 1986, and was offered before such date by any risk retention group which had been chartered and operating for not less than three (3) years before such date; (c) A statement of registration which designates the director as its agent for the purpose of receiving service of legal documents or process against the risk retention group. (2) Any risk retention group doing business in this state shall submit the following financial information to the director: (a) A copy of the group’s financial statement submitted to its state of domicile, which shall be certified by an independent public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American academy of actuaries or a qualified loss reserve specialist operating under criteria established by the national association of insurance commissioners; (b) A copy of each examination of the risk retention group as certified by the director or public official conducting the examination; (c) Upon request by the director, a copy of any audit performed with respect to the risk retention group; and (d) Such information as may be required to verify the group’s continuing qualification as a risk retention group as defined in subsection (11) of section 41-4803 , Idaho Code. (3) All risk retention groups operating in this state, and all premiums paid for any coverage within this state to any risk retention group, shall be subject to the same premium tax provisions, including any interest, fines, and penalties for nonpayment, as are applicable to foreign admitted insurers. To the extent any agents or brokers are utilized, they shall report and pay t
41-4806
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4806. Compulsory associations. No risk retention group shall be permitted to join or contribute financially to any insurance insolvency guaranty fund or similar mechanism in this state, nor shall any risk retention group, or its insureds, receive any benefit from any such fund for claims arising out of the operations of such risk retention group. History: [41-4806, added 1987, ch. 140, sec. 1, p. 280.]
41-4807
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4807. Counter signatures not required. A policy of insurance issued to a risk retention group or any member of that group shall not be required to be countersigned as otherwise provided in sections 41-337 and 41-338 , Idaho Code. History: [41-4807, added 1987, ch. 140, sec. 1, p. 280; am. 2005, ch. 75, sec. 3, p. 255.]
41-4808
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4808. Purchasing groups — Exemption from certain laws relating to the group purchase of insurance. Any purchasing group meeting the criteria established under the provisions of the federal liability risk retention act of 1986 shall be exempt from any law of this state relating to the creation of groups for the purchase of insurance, prohibition of group purchasing, or any law that would discriminate against a purchasing group or its members. In addition, an insurer shall be exempt from any law of this state which prohibits providing, or offering to provide to a purchasing group or its members advantages based on their loss and expense experience not afforded to other persons with respect to rates, policy forms, coverages or other matters. A purchasing group shall be subject to all other applicable laws of this state. History: [41-4808, added 1987, ch. 140, sec. 1, p. 280.]
41-4809
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4809. Notice and registration requirements of purchasing groups. (1) A purchasing group which intends to do business in this state shall furnish notice to the director which shall: (a) Identify the state in which the group is domiciled; (b) Specify the lines and classifications of liability insurance which the purchasing group intends to purchase; (c) Identify the insurance company from which the group intends to purchase its insurance and the domicile of such company; (d) Identify the principal place of business of the group; and (e) Provide such other information as may be required by the director to verify that the purchasing group is qualified as defined in subsection (10) of section 41-4803 , Idaho Code. (2) The purchasing group shall register with and designate the director as its agent for the purpose of receiving service of legal documents or process, except that such requirements shall not apply in the case of a purchasing group: (a) Which was domiciled before April 1, 1986, and is domiciled on and after October 27, 1986, in any state of the United States; (b) Which before October 27, 1986, purchased insurance from an insurance carrier licensed in any state and since October 27, 1986, purchased its insurance from an insurance carrier licensed in any state; (c) Which was a purchasing group under the requirements of the product liability risk retention act of 1981 before October 27, 1986; and (d) Which does not purchase insurance that was not authorized for purposes of an exemption under that act, as in effect before October 27, 1986. History: [41-4809, added 1987, ch. 140, sec. 1, p. 280.]
41-4810
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4810. Restrictions on insurance purchased by purchasing groups. A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state, nor from an insurer not admitted in the state in which the purchasing group is located, unless the purchase is effected through a licensed agent or broker acting pursuant to the surplus lines laws and regulations of such state. History: [41-4810, added 1987, ch. 140, sec. 1, p. 281.]
41-4811
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4811. Administrative and procedural authority regarding risk retention groups and purchasing groups. The director is authorized to make use of any of the powers established under this code to enforce the laws of this state so long as those powers are not specifically preempted by the product liability risk retention act of 1981, as amended by the risk retention amendments of 1986. This includes, but is not limited to, the director’s administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders and impose penalties. With regard to any investigation, administrative proceedings, or litigation, the director may rely on the procedural law and regulations of the state. The injunctive authority of the director in regard to risk retention groups is restricted by the requirement that any injunction be issued by a court of competent jurisdiction. History: [41-4811, added 1987, ch. 140, sec. 1, p. 281.]
41-4812
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4812. Penalties. A risk retention group which violates any provision of this chapter will be subject to fines and penalties applicable to licensed insurers generally, including revocation of its license and/or the right to do business in this state. History: [41-4812, added 1987, ch. 140, sec. 1, p. 281.]
41-4813
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4813. Duty of agents or brokers to obtain license. Any person acting, or offering to act, as an agent or broker for a risk retention group or purchasing group, which solicits members, sells insurance coverage, purchases coverage for its members located within the state or otherwise does business in this state shall, before commencing any such activity, obtain a license from the director. History: [41-4813, added 1987, ch. 140, sec. 1, p. 281.]
41-4814
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4814. Binding effect of orders issued in U.S. district courts. An order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance, or operating in any state, or in all states or in any territory or possession of the United States, upon a finding that such a group is in a hazardous financial condition shall be enforceable in the courts of the state. History: [41-4814, added 1987, ch. 140, sec. 1, p. 282.]
41-4815
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4815. Rules and regulations. The director may establish and from time to time amend such rules relating to risk retention groups as may be necessary or desirable to carry out the provisions of this chapter. History: [41-4815, added 1987, ch. 140, sec. 1, p. 282.]
41-4816
TITLE 41 INSURANCE CHAPTER 48 RISK RETENTION GROUPS 41-4816. Purchasing group taxation. Premium taxes and taxes on premiums paid for coverage of risks resident or located in this state by a purchasing group or any members of the purchasing group shall be: (1) Imposed at the same rate and subject to the same interest, fines and penalties as that applicable to premium taxes and taxes on premiums paid for similar coverage from a similar insurance source by other insureds; and (2) Paid first by such insurance source, and if not by such source by the agent or broker for the purchasing group, and if not by such agent or broker then by the purchasing group, and if not by such purchasing group then by each of its members. History: [41-4816, added 1990, ch. 348, sec. 1, p. 937.]