Senate Bill No. 1090 Summary

• Repeals existing Chapter 43, Title 41, Idaho Code and enacts a comprehensive new Idaho Life and Health Insurance Guaranty Association Act to protect policyholders against insurer insolvency or impairment.

• Establishes the Idaho life and health insurance guaranty association as a nonprofit entity with a board of directors (5-9 members) to administer three accounts: life insurance, health insurance, and annuity accounts.

• Provides coverage limits including $300,000 in life insurance death benefits, $300,000 in health insurance claims, and $500,000 for major medical insurance, with an aggregate per-life limitation of $300,000 (or $500,000 for major medical).

• Authorizes the association to assess member insurers through Class A assessments (administrative expenses) and Class B assessments (up to 2% annually of premiums for coverage obligations) to fund protections and pay claims.

• Prohibits insurers from advertising the guaranty association in commercial sales, grants immunity to association members and directors, and applies the new law to insurers first placed under liquidation orders on or after January 1, 2011.