Idaho State Statutes - Idaho Attorney Directory

(1) Every transfer made
or suffered and every obligation incurred by an insurer within one (1) year
prior to the filing of a successful petition for rehabilitation or liquidation
under this act is fraudulent as to then existing and future creditors if made
or incurred without fair consideration, or with actual intent to hinder,
delay, or defraud either existing or future creditors. A transfer made or an
obligation incurred by an insurer ordered to be rehabilitated or liquidated
under this act, which is fraudulent under the provisions of this section, may
be avoided by the receiver, except as to a person who in good faith is a
purchaser, lienor, or obligee for a present fair equivalent value, and except
that any purchaser, lienor, or obligee, who in good faith has given a
consideration less than fair for such transfer, lien, or obligation, may
retain the property, lien or obligation as security for repayment. The court
may, on due notice, order any such transfer or obligation to be preserved for
the benefit of the estate, and in that event, the receiver shall succeed to
and may enforce the rights of the purchaser, lienor, or obligee.
(2) (a) A transfer of property other than real property shall be deemed
to be made or suffered when it becomes so far perfected that no subsequent
lien obtainable by legal or equitable proceedings on a simple contract
could become superior to the rights of the transferee under the provisions
of section 41-3328(3), Idaho Code.
(b) A transfer of real property shall be deemed to be made or suffered
when it becomes so far perfected that no subsequent bona fide purchaser
from the insurer could obtain rights superior to the rights of the
transferee.
(c) A transfer which creates an equitable lien shall not be deemed to be
perfected if there are available means by which a legal lien could be
created.
(d) Any transfer not perfected prior to the filing of a petition for
liquidation shall be deemed to be made immediately before the filing of
the successful petition.
(e) The provisions of this subsection apply whether or not there are or
were creditors who might have obtained any liens or persons who might have
become bona fide purchasers.
(3) Any transaction of the insurer with a reinsurer shall be deemed
fraudulent and may be avoided by the receiver under subsection (1) of this
section if:
(a) The transaction consists of the termination, adjustment, or
settlement of a reinsurance contract in which the reinsurer is released
from any part of its duty to pay the originally specified share of losses
that had occurred prior to the time of the transaction, unless the
reinsurer gives a present fair equivalent value for the release; and
(b) Any part of the transaction took place within one (1) year prior to
the date of filing of the petition through which the receivership was
commenced.

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