Rating: –1
Bill Summary:
H0038 revises and expands the Idaho Life and Health Insurance Guaranty Association Act, which protects policyholders when insurers become insolvent. The bill updates definitions of covered persons, refines coverage exclusions, and clarifies when benefits are available—especially in multi-state contexts. It also reinforces the Guaranty Association’s authority to assess insurers for the costs of providing this coverage and adjusts allocation formulas for administrative and insolvency-related expenses. The legislation preserves existing benefit caps and aims to modernize interstate coordination and reduce litigation risks. It includes an emergency clause and takes effect July 1, 2025.
Reason for Rating:
Although well-intentioned, this bill expands the authority of a permanent, state-mandated financial safety net funded by compulsory assessments on private insurance companies. These assessments function as de facto regulatory taxes enforced by statute, conflicting with the Idaho Republican Party Platform’s opposition to government-imposed financial burdens and unelected regulatory structures. H0038 also broadens eligibility criteria and reinforces the authority of a quasi-governmental body without direct voter accountability or sunset provisions. As such, it represents an expansion of regulatory power and fiscal exposure that is inconsistent with the Platform’s principles of limited, accountable government and free-market solutions.