Committee advances bill adding holding-company standards to meet accreditation requirements

The Senate Commerce Committee voted to send House Bill 71 to the Senate floor with a due-pass recommendation after testimony saying the measure updates Idaho law on insurance holding companies to conform with national accreditation standards.

Dean Cameron, Director of the Idaho Department of Insurance, said the changes would allow Idaho to maintain accreditation that enables Idaho regulators to be the primary regulator for domestically domiciled insurers and to avoid duplicative regulation by other states. "An accreditation means that Idaho can regulate Idaho companies, and those companies do not have to be regulated by other states," Cameron said.

Jeff Neumeier, chief administrative officer and general counsel for United Heritage (a life insurer headquartered in Meridian), told the committee that passage of HB 71 is critical to allow United Heritage to remain domiciled in Idaho. "Without accreditation, the 48 other states and the District of Columbia, where we have certificates of authority, could impose significant regulatory burdens and regulatory redundancies on our company," Neumeier said.

Director Cameron said many Idaho insurers already meet the proposed standards and that the bill helps retain insurers and reduce out-of-state regulatory overhead. The committee heard no opposition. Senator Leahy moved and Senator Ruckde seconded a motion to advance the bill; the committee voted by voice and the motion carried. House Bill 71 will proceed to the full Senate for consideration.