Committee gives House Bill 38 due pass to expand guaranty association membership and clarify protections

Representative Jeff Ehlers, R‑Meridian, asked the House Business Committee on Feb. 7 to send House Bill 38 to the House floor with a due pass recommendation. Ehlers described four changes to the Life and Health Insurance Guaranty Association included in the bill.

"This is related to the Life and Health Insurance Guarantee Association," Ehlers said, describing the association as the policyholder equivalent of the FDIC for banks. He said the bill would (1) clarify that the association’s intent is to protect original policyholders rather than speculative buyers such as factoring companies; (2) clarify interest‑rate rollback authority that can reduce rates offered by riskier companies to industry standard levels; (3) include co‑ops created under the Affordable Care Act — noting one Montana co‑op still does business in Idaho — and (4) remove the statutory cap on association membership fees so the association can raise fees to cover operating costs.

Bruce Spencer, an attorney and lobbyist representing Mountain Health Co‑op, testified in support of including co‑ops in the guaranty association. "The co‑op writes insurance for 11,215 folks here in Idaho and we do feel it's appropriate and important that we join the guarantee association," Spencer said.

Representative Maher moved to send House Bill 38 to the floor with a due pass recommendation; the committee approved the motion by voice vote. No members of the public opposed the bill at the hearing and the chair closed the public‑hearing portion after Mr. Spencer spoke.

Ehlers told the committee he would welcome further questions and testimony at subsequent hearings; committee members did not record a roll‑call tally when they approved the due‑pass motion.