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House panel backs bill to align Idaho insurance rules with national standards
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Summary
The House Business Committee voted to send House Bill 71 to the floor after testimony that the measure will preserve Idaho’s insurance accreditation and make it easier for Idaho‑domiciled insurers to operate across state lines.
The House Business Committee voted Feb. 13 to send House Bill 71 to the floor with a “do pass” recommendation after testimony from the Idaho Department of Insurance and the state’s only domiciled life insurer.
Proponents told the committee the bill adopts group capital calculation provisions consistent with the National Association of Insurance Commissioners (NAIC), which the department says is necessary to keep Idaho companies and jobs in the state and to maintain the department’s accreditation.
Representative Brent Crane, R‑Nampa, introduced the bill and said it renews a longstanding practice that allows the Idaho Department of Insurance to participate in the NAIC and “allows for uniform standards and certifications so that insurance companies that do business within the State of Idaho…have the ability to go directly to our insurance commissioner.”
Dean Cameron, director of the Idaho Department of Insurance, told the committee the act focuses on holding companies and the group capital calculation for holding companies, and that most other states have adopted similar provisions. “This is a critically important bill to keeping insurance companies in Idaho,” Cameron said, adding that without comparable law some companies could consider moving out of state.
Jeff Neumeier, chief administrative officer and general counsel for United Heritage Insurance in Meridian, said United Heritage is the only life insurer domiciled in Idaho and that accreditation and recognition of Idaho’s regulatory authority are critical to avoiding duplicative regulatory burdens in other states where the company is licensed. He noted a letter of support from the American Council of Life Insurers had been provided to the committee.
Committee discussion included questions about liquidity and stress tests that the bill contemplates; Director Cameron said states already run solvency checks and the bill aligns Idaho’s approach with widely adopted state standards. There was no public opposition during testimony.
A motion to send House Bill 71 to the floor with a “do pass” recommendation was made on the floor of the committee and carried by voice vote.
The bill will next be scheduled for consideration by the full House. No floor date was announced during the committee meeting.
