HB 430 Summary

• Repeals existing Chapter 9, Title 41, Idaho Code and creates comprehensive new regulatory framework for insurance administrators (third party administrators or TPAs) handling life, annuity, and health insurance.

• Requires written agreements between administrators and insurers specifying duties and functions; establishes fiduciary requirements for premium collection and claims payment with funds held in insured financial institutions.

• Mandates home state licensing for administrators and nonresident licensing for out-of-state operators; applicants must submit organizational documents, financial statements showing positive net worth, business plans, and NAIC biographical affidavits for key personnel.

• Establishes licensing requirements including annual audited financial statements, advertising approval by insurers and director, prohibition of performance-based compensation tied to claims savings, and surety bond requirements ($100,000 minimum) for self-funded plan administrators.

• Provides grounds for license denial, suspension, or revocation including unsound financial condition, failure to pay judgments, violations of insurance law, misconduct, criminal convictions, and suspension in other states; requires reporting of administrative actions and criminal prosecutions within 30 days.