ID S1075

Amends Idaho Code Section 41-3812 to revise provisions governing dividend and distribution payments by domestic insurers to shareholders.

Requires domestic insurers to notify the director and wait 30 days before paying extraordinary dividends or distributions, unless the director approves or disapproves within that period.

Defines extraordinary dividends or distributions as those whose fair market value combined with other distributions in the preceding 12 months exceeds the lesser of 10% of policyholders' surplus or the insurer's net gain/income, excluding capital gains or losses.

Allows non-life insurers to carry forward net income from the previous two calendar years (less dividends already paid) when determining whether a dividend is extraordinary.

Requires domestic insurers that are members of holding company systems to notify the director within 5 business days of declaring nonextraordinary dividends and at least 10 days before payment.