The bill amends the Idaho Life and Health Insurance Guaranty Association Act, introducing significant changes to coverage provisions, definitions, and the assessment process for member insurers. Notably, it establishes new exclusions for structured settlement annuities, particularly affecting individuals who have transferred their rights through structured settlement factoring transactions. Coverage will not be extended to payees or beneficiaries eligible under another state's association, emphasizing that the chapter primarily serves Idaho residents, with limited provisions for non-residents. Additionally, the definitions section is updated to exclude self-funded health care plans and clarify the term "member insurer," while ensuring that exclusions related to interest limitations do not apply to long-term care or other health insurance benefits.

Further, the bill revises the assessment framework for member insurers, categorizing assessments into Class A for administrative expenses and Class B for obligations tied to impaired or insolvent insurers. It grants the board of directors discretion in determining Class A assessment amounts and introduces specific guidelines for Class B assessments, particularly concerning long-term care insurance. The bill also outlines criteria for defining a "principal place of business" and clarifies the definition of a "resident" in relation to contractual obligations. To support insurers' financial stability, it includes provisions for the abatement or deferral of assessments if necessary. The bill is scheduled to take effect on July 1, 2025, following an emergency declaration.

Statutes affected:
Bill Text: 41-4303, 41-4305, 41-4309