In March of this year, the U.S. House of Representatives passed Idaho HB 420 with a unanimous vote. Insurance administrators must still file a $100,000 Idaho surety bond before they can be licensed. When filing their annual financial statements, however, insurance administrators in Idaho now have the option of submitting unaudited reports as long as they file an additional surety bond. The law went into effect on July 1, 2012, and reads as follows:
“In lieu of submitting an audited financial statement, and upon written application by an administrator and good cause shown, the director may grant a hardship exemption from filing audited financial statements and allow the submission of unaudited financial statements…If unaudited financial statements are submitted, the administrator must secure and maintain a surety bond…for the greater of ten percent (10%) of funds handled for the benefit of Idaho residents or twenty thousand dollars ($20,000).”
HB 420’s statement of purpose explained that the intention was to “provide a balanced approach for the Department [of Insurance] to review financial solvency of administrators and applicants for an administrator’s home state license, while reducing costs of regulatory compliance for small businesses.”
If you’re an insurance professional who needs a surety bond in Idaho, SuretyBonds.com can help. With years of experience helping insurance professionals with various financial backgrounds get the bonds they need, we can help you get bonded as quickly and easily as possible. To apply for your bond, contact a surety specialist at SuretyBonds.com online or by phone at 1 (800) 308-4358.