The bill amends the Idaho Life and Health Insurance Guaranty Association Act by introducing new exclusions for coverage under structured settlement annuities, particularly for individuals who have transferred their rights through a structured settlement factoring transaction. It clarifies that coverage will not be provided to payees or beneficiaries eligible for coverage from another state's association and emphasizes that the chapter primarily aims to provide coverage to Idaho residents, with limited provisions for non-residents under specific conditions. Additionally, the definitions section is updated to exclude self-funded health care plans and clarify the types of insurance policies covered by the act, while also establishing new limitations on the benefits that the association may cover.

Furthermore, the bill revises the assessment process for member insurers, categorizing assessments into Class A and Class B, with Class A focused on administrative expenses and Class B addressing the needs of impaired or insolvent insurers. It allows the board of directors to determine Class A assessment amounts at their discretion and introduces a new provision for Class B assessments related to long-term care insurance. The bill also outlines the process for member insurers to protest assessments, requiring full payment while stating grounds for protest, and establishes a timeline for responses and appeals. Provisions for the abatement or deferral of assessments are included to protect insurers' financial stability, with the changes set to take effect on July 1, 2025.

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