Idaho State Statutes - Idaho Attorney Directory

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 the
taxes for the premiums for risks which they have placed with or on behalf of
any risk retention group not chartered in this state. To the extent any agents
or brokers are not utilized, or agents or brokers that are utilized fail to
pay said premium tax, each risk retention group shall pay the tax for risks
insured within the state. Further, each risk retention group shall report to
the director all premiums paid to it for risks insured within this state.
(4) Any risk retention groups and its agents and representatives are
subject to and shall comply with the provisions of section 41-1329, Idaho Code
(unfair claim settlement practices).
(5) Any risk retention group formed in this state shall comply with and
be subject to chapter 13, title 41, Idaho Code (trade practices and frauds).
The director may issue orders enjoining prohibited practices in accordance
with section 41-213, Idaho Code, or section 41-1321, Idaho Code, or may apply
directly to the district court for Ada county, state of Idaho, for such
injunctive relief as he deems appropriate.
(6) Any risk retention group must submit to an examination by the
director of this state to allow him to determine the group's financial
condition if the director of the jurisdiction in which the group is chartered
has not initiated an examination or does not initiate an examination within
sixty (60) days after a request by the director of this state. Any such
examination shall be coordinated to avoid unjustified repetition or
duplication and shall be conducted in an expeditious manner.
(7) Any policy issued by a risk retention group shall contain in 10 point
or larger type on the front page and the declaration page, the following
notice:
NOTICE
This policy has been issued by your risk retention group. Your
risk retention group may not be subject to all of the insurance laws
and regulations of your state. State insurance insolvency guaranty
funds are not available for your risk retention group.
(8) In addition to other restrictions that may be applicable, the
following acts by a risk retention group are hereby prohibited:
(a) The solicitation or sale of insurance by a risk retention group to
any person who is not eligible for membership in such group; and
(b) The solicitation or sale of insurance by, or operation of, a risk
retention group that is in a hazardous financial condition or is
financially impaired.
(9) No risk retention group shall be allowed to do business in this state
if an insurance company is directly or indirectly a member or owner of such
risk retention group, other than in the case of a risk retention group whose
members are all insurance companies.
(10) No risk retention group may offer any insurance policy or insurance
coverage that has been declared unlawful by the Idaho supreme court or is in
conflict with chapter 5 or chapter 25, title 41, Idaho Code.
(11) A risk retention group not chartered in this state and doing business
in this state must comply with a lawful order issued in a voluntary
dissolution proceeding or in a delinquency proceeding commenced by another
state's insurance director if there has been a finding of financial impairment
after an examination pursuant to subsection (6) of this section.

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