§ 41-3809 — REGISTRATION OF HOLDING COMPANY SYSTEM INSURERS

(1)(a) Every insurer authorized to do business in this state and that is a member of an insurance holding company system shall register with the director, except a foreign insurer subject to registration requirements and standards adopted by statute or regulation in the jurisdiction of its domicile, which are substantially similar to those contained in this section and in:
(i) Sections 41-3810 (1), 41-3811 and 41-3812, Idaho Code; and
(ii) The provisions of section 41-3810 (2), Idaho Code, or a provision such as the following: each registered insurer shall keep current the information required to be disclosed in its registration statement by reporting all material changes or additions within fifteen (15) days after the end of the month in which it learns of each change or addition.
(b) Any insurer that is subject to registration under this section shall register within fifteen (15) days after it becomes subject to registration, and annually thereafter for the year ending December 31 immediately preceding, on the due date provided for filing of audited financial reports, or, if the insurer is not subject to filing of audited financial reports, on June 1, unless the director, for good cause shown, extends the time for registration, and then within the extended time. The director may require any insurer authorized to do business in the state that is a member of an insurance holding company system and that is not subject to registration under this section to furnish a copy of the registration statement, the summary specified in subsection (3) of this section or other information filed by the insurance company with the insurance regulatory authority of its domiciliary jurisdiction. Upon request of the insurer or of the insurance regulatory authority of another jurisdiction in which the insurer is authorized to transact insurance, the director at the insurer’s expense shall furnish a copy of the registration statement or other information filed by a domestic insurer with the director pursuant to this chapter.
(2) Every insurer subject to registration under this chapter shall file the registration statement with the director on a form and in a manner prescribed by the director. The registration statement shall contain the following current information:
(a) The capital structure, general financial condition, ownership and management of the insurer and any person controlling the insurer;
(b) The identity and relationship of every member of the insurance holding company system;
(c) The following agreements in force and transactions currently outstanding or that have occurred during the last calendar year between the insurer and its affiliates:
(i) Loans, other investments or purchases, sales or exchanges of securities of the affiliates by the insurer or of the insurer by its affiliates;
(ii) Purchases, sales or exchange of assets;
(iii) Transactions not in the ordinary course of business;
(iv) Guarantees or undertakings for the benefit of an affiliate that result in an actual contingent exposure of the insurer’s assets to liability, other than insurance contracts entered into in the ordinary course of the insurer’s business;
(v) All management agreements, service contracts and all cost-sharing arrangements;
(vi) Reinsurance agreements;
(vii) Dividends and other distributions to shareholders; and
(viii) Consolidated tax allocation agreements.
(d) Any pledge of the insurer’s stock, including stock of any subsidiary or controlling affiliate, for a loan made to any member of the insurance holding company system;
(e) If requested by the director, the insurer shall provide to the director financial statements of or within an insurance holding company system, including all affiliates. Financial statements may include, but are not limited to, annual audited financial statements filed with the United States securities and exchange commission (SEC) pursuant to the securities act of 1933, as amended, or the securities exchange act of 1934, as amended. An insurer required to file financial statements pursuant to this section may satisfy the request by providing the director with the most recently filed parent corporation financial statements that have been filed with the SEC;
(f) Other matters concerning transactions between registered insurers and any affiliates as may be included from time to time in any registration forms adopted or approved by the director;
(g) Certification that the insurer’s board of directors is responsible for and oversees corporate governance and internal controls and that the insurer’s officers or senior management have approved, implemented and continue to maintain and monitor corporate governance and internal control procedures; and
(h) Any other information required by the director by statute or rule.
(3) All registration statements shall contain a summary outlining all items constituting changes from the prior registration statement.
(4) No information need be disclosed on the registration statement filed pursuant to subsection (2) of this section if the information is not material for the purposes of this section. Unless the director by rule or order provides otherwise, sales, purchases, exchanges, loans or extensions of credit, investments or guarantees involving one-half of one percent (.5%) or less of an insurer’s admitted assets as of the December 31 of the year immediately preceding shall not be deemed material for purposes of this chapter.
(5) Subject to section 41-3810, Idaho Code, each registered insurer shall report to the director all dividends and other distributions to shareholders within fifteen (15) business days following the declaration thereof.
(6) Any person within an insurance holding company system subject to registration shall be required to provide complete and accurate information to an insurer, where the information is reasonably necessary to enable the insurer to comply with the provisions of this chapter.
(7) The director shall terminate the registration of any insurer that demonstrates that it no longer is a member of an insurance holding company system.
(8) The director may require or allow two (2) or more affiliated insurers subject to registration to file a consolidated registration statement.
(9) The director may allow any insurer that is authorized to do business in this state and that is part of an insurance holding company system to register on behalf of any affiliated insurer that is required to register under subsection (1) of this section and to comply with all filing requirements under this chapter.
(10) The provisions of this section shall not apply to any insurer, information or transaction if and to the extent that the director by rule or order shall exempt the same from the provisions of this section. In considering whether to issue an exemption, the director may consider the following:
(a) The size of the insurer and all affiliates;
(b) The structure of ownership within the insurance holding company system;
(c) The nature and amounts of transactions within the insurance holding company system;
(d) The nature and complexity of the business of the insurer and affiliates; and
(e) Any other factors the director deems appropriate.
Prior to issuing an exemption, the director shall notify all other insurance regulators where the insurer or its affiliates hold a certificate of authority.
(11) Any person may file with the director a disclaimer of affiliation with any authorized insurer, or such a disclaimer may be filed by the insurer or any member of an insurance holding company system. The disclaimer shall fully disclose all material relationships and bases for affiliation between the person and the insurer as well as the basis for disclaiming the affiliation. A disclaimer of affiliation shall be deemed to have been granted unless the director, within thirty (30) days following receipt of a complete disclaimer, notifies the filing party that the disclaimer is disallowed. In the event of disallowance, the disclaiming party may request an administrative hearing pursuant to chapter 2, title 41, Idaho Code, which shall be granted. The disclaiming party shall be relieved of its duty to register under this section if approval of the disclaimer has been granted by the director, or if the disclaimer is deemed to have been approved.
(12) The ultimate controlling person of every insurer subject to registration shall also file an annual enterprise risk report. The report shall, to the best of the ultimate controlling person’s knowledge and belief, identify the material risks within the insurance holding company system that could pose enterprise risk to the insurer. The report shall be filed with the lead state director of the insurance holding company system as determined by the procedures within the financial analysis handbook adopted by the national association of insurance commissioners (NAIC).
(13)(a) Except as provided in this subsection, the ultimate controlling person of every insurer subject to registration shall concurrently file with the registration an annual group capital calculation in accordance with the NAIC group capital calculation instructions. The lead state director may allow a controlling person that is not the ultimate controlling person to file the group capital calculation. The following insurance holding company systems shall be exempt from filing the group capital calculation:
(i) An insurance holding company system that has only one (1) insurer within its holding company structure, that only writes business in its domestic state, and that assumes no business from any other insurer;
(ii) An insurance holding company system that is required to perform a group capital calculation specified by the United States federal reserve board. If the calculation from the federal reserve board under the terms of information sharing agreements cannot be shared with the lead state director, the insurance holding company system is not exempt from the group capital calculation filing;
(iii) An insurance holding company system whose non-United States group-wide supervisor is located within a reciprocal jurisdiction as described in section 41-515 (2)(f)(i)1., Idaho Code, that recognizes the United States state regulatory approach to group supervision and group capital; and
(iv) An insurance holding company system:
1. That provides information to the lead state that meets the requirements for accreditation under the NAIC financial standards and accreditation program, either directly or indirectly through the group-wide supervisor, who has determined such information is satisfactory to allow the lead state to comply with the provisions of section 41-3815A, Idaho Code; and
2. Whose non-United States group-wide supervisor that is not in a reciprocal jurisdiction recognizes and accepts, as specified by the director in regulation, the group capital calculation as the worldwide group capital assessment for United States insurance groups who operate in that jurisdiction.
(b) The exemptions described in paragraphs (a)(iii) and (iv) of this subsection shall not prevent the lead state director from requiring the group capital calculation for United States operations of any non-United States-based insurance holding company system when it is deemed appropriate for prudential oversight and solvency monitoring purposes or for ensuring the competitiveness of the insurance marketplace.
(c) The lead state director may exempt the ultimate controlling person from filing the annual group capital calculation or accept a limited group capital filing as specified by the lead state director.
(d) If an insurance holding company system no longer meets the requirements for an exemption, the insurance holding company system shall file the group capital calculation at the next annual filing date unless the lead state director grants an extension.
(14) The ultimate controlling person of every insurer subject to registration who is also scoped into the NAIC liquidity stress test framework shall file the results of a specific year’s liquidity stress test. The filing shall be made to the lead state director of the insurance holding company system.
(a) The NAIC liquidity stress test framework shall include scope criteria applicable to a specific data year. Insurers meeting at least one (1) threshold of the scope criteria shall be considered scoped into the NAIC liquidity stress test framework for the specified data year unless the lead state director determines the insurer should not be scoped into the framework for that data year.
(b) The performance of, and filing of the results from, a specific year’s liquidity stress test shall comply with the instructions and templates of the NAIC liquidity stress test framework.
(15) The failure to file a registration statement or any summary of the registration statement or enterprise risk filing required in this section within the time specified for filing shall be a violation of the provisions of this section.

Legislative History

[41-3809, added 2013, ch. 266, sec. 2, p. 663; am. 2025, ch. 62, sec. 2, p. 288.]