Bill > H0038

This bill amends the Idaho Life and Health Insurance Guaranty Association Act to update several key provisions related to insurance coverage and assessments. The bill makes significant changes to the scope of coverage, including new exclusions for certain types of insurance and structured settlement annuities, particularly those involved in factoring transactions. It clarifies the circumstances under which the guaranty association will provide coverage to residents and non-residents, expanding protections while also setting clear limitations. The bill modifies assessment rules for member insurers, including adjusting how class A and class B assessments are calculated and implemented. Notably, it removes a previous cap on non-pro rata assessments and provides more flexibility to the association's board of directors in determining assessment amounts and methodologies. The bill also updates definitions related to insurance terms and expands exclusions for what qualifies as a "member insurer." The changes aim to provide more precise guidelines for insurance coverage, assessment procedures, and the association's responsibilities in protecting policyholders when insurers become impaired or insolvent. The bill will take effect on July 1, 2025, with an emergency clause emphasizing the immediate importance of these updates to the state's insurance regulations.

Business and Industry

Business Committee (H)

https://legislature.idaho.gov/sessioninfo/2025/legislation/H0038/