House Business Committee approves introduction of RS 31911 to amend Life and Health Insurance Guarantee Association rules

Representative Jeff Ehlers (R‑Meridian) introduced RS 31911 to the House Business Committee on Jan. 21, 2025, a draft change to the Life and Health Insurance Guarantee Association law that would narrow who the association protects and add administrative flexibility.

The bill draft would exclude factoring companies that buy life insurance policies from coverage, Ehlers said, noting the association “was designed to help the original policyholder.” He told the committee the draft also would add certain Affordable Care Act‑era co‑operatives to the association’s membership and allow the association to roll back interest rates charged by insolvent companies to market or standard rates. Finally, the draft would let the association’s board, rather than the Legislature, adjust a cap on member assessment fees.

"Sometimes they sell off their policies and these factoring companies or investors buy them almost speculatively. And so the act is not to cover the speculative investors; it's to cover the original policy maker," Representative Jeff Ehlers said while describing the draft’s purpose.

Committee members did not request extended debate on the draft. Representative Cannon moved to introduce RS 31911; the motion was approved by voice vote and the clerk will issue a bill number if the RS is filed for formal introduction.

The committee’s action at this meeting was to approve introduction only; additional testimony and technical questions were noted as likely at the formal hearing if the RS is filed. Ehlers said industry experts would attend a subsequent hearing to address technical details.

Proponents and opponents were not recorded in extended public testimony at this meeting. No formal final policy action (passage of a bill) occurred at this session — the committee simply approved introduction of the RS and will consider the measure further if it is filed for hearing.