Idaho State Statutes - Idaho Attorney Directory

(1) Every service corporation shall set aside into
a "surplus fund" an amount of money equal to not less than two per cent (2%)
of all sums hereafter received by it on account of subscriber's contracts,
until such surplus fund amounts to not less than fifty thousand dollars
($50,000) if a professional service corporation or hospital service
corporation or one hundred thousand dollars ($100,000) if a combination
professional-hospital service corporation.
(2) After such minimum surplus fund is established the service
corporation may in like manner increase it to an amount nt to exceed the total
gross collections from subscribers during the seven (7) months next preceding.
(3) That portion of the surplus fund referred to in subsection (1) above,
may be used by the service corporation, by express appropriation therefrom by
action of its board of directors, solely if necessary to pay the additional
health care costs and expenses under its contracts, resulting from disease,
epidemic or catastrophic occurrences in which numerous persons were injured in
the same such occurrence.
(4) If at any time depleted below the minimum amount required under
subsection (1) above, the service corporation shall replenish the fund by a
resumption or continuance of allocations thereto from subscribers' payments,
as provided for original accumulation of the fund under subsection (1), or by
such other reasonable means as may be approved by the director.

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