Idaho State Statutes - Idaho Attorney Directory

ADMINISTRATIVE PENALTY -- SUSPENSION OR REVOCATION OF CERTIFICATE
OF AUTHORITY -- DISCRETIONARY AND SPECIAL GROUNDS. (1) The director may, in
his discretion, impose an administrative penalty not to exceed five thousand
dollars ($5,000), for deposit in the general fund of the state of Idaho, or
refuse to continue or suspend or revoke an insurer's certificate of authority
if he finds after a hearing thereon that the insurer has violated or failed to
comply with any lawful order of the director, or any provision of this code
other than those for which suspension or revocation is mandatory.
(2) The director shall suspend or revoke an insurer's certificate of
authority on any of the following grounds if he finds after a hearing thereon
that the insurer:
(a) Is in unsound condition, or in such condition or using such methods
and practices in the conduct of its business, as to render its further
transaction of insurance in this state hazardous or injurious to its
policyholders or to the public.
(b) Has failed, after written request therefor by the director, to remove
or discharge an officer or director who has been convicted of any crime
involving fraud, dishonesty, or like moral turpitude.
(c) With such frequency as to indicate its general business practice in
this state, has without just cause refused to pay claims arising under
coverages provided by its policies, whether the claim is in favor of an
insured or is in favor of a third person with respect to the liability of an
insured to such third person, or, with like frequency, without just cause
compels insureds or claimants to accept less than the amount due them or to
employ attorneys or to bring suit against the insurer or such an insured to
obtain full payment or settlement of such claims.
(d) Is affiliated with and under the same general management, or
interlocking directorate, or ownership as another insurer which transacts
direct insurance in this state without having a certificate of authority
therefor, except as permitted under this code.
(e) Refuses to be examined, or if its directors, officers, employees, or
representatives refuse to submit to examination relative to its affairs, or to
produce its accounts, records, and files for examination by the director when
required, or refuse to perform any legal obligation relative to the
examination.
(f) Has failed to pay any final judgment rendered against it in this
state upon any policy, bond, recognizance, or undertaking issued or guaranteed
by it, within thirty (30) days after the judgment became final, or within
thirty (30) days after time for taking an appeal has expired, or within thirty
(30) days after dismissal of an appeal before final determination, whichever
date is the later.
(3) The director may, in his discretion and without advance notice or a
hearing thereon, immediately suspend the certificate of authority of any
insurer as to which proceedings for receivership, conservatorship,
rehabilitation, or other delinquency proceedings, have been commenced in any
state by the public insurance supervisory official of such state.

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