# Idaho Code § 41-3806: 41-3806 APPROVAL BY DIRECTOR — HEARINGS

> Idaho · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3806

## Section

- **Citation:** Idaho Code § 41-3806
- **Heading:** 41-3806 APPROVAL BY DIRECTOR — HEARINGS
- **Jurisdiction:** Idaho
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Idaho Code / Title 41 / Chapter 38 / Section 41-3806

## Text

41-3806. Approval by director — Hearings. (1) The director shall approve any purchase, exchange, merger or other acquisition of control referred to in section 41-3804(1), Idaho Code, or in section 41-3824, Idaho Code, unless, after a public hearing, the director finds that:

(a) After the change of control, the domestic insurer referenced in section 41-3804(1), Idaho Code, would be unable to satisfy the requirements for the issuance of a license to write the line or lines of insurance for which it is presently licensed;

(b) The effect of the purchase, exchange, merger or other acquisition of control would substantially lessen competition in the business of insurance in this state or tend to create a monopoly. In applying the competitive standard in this paragraph:

(i) The informational requirements of section 41-3808(3)(a), Idaho Code, and the standards of section 41-3808(4)(b), Idaho Code, shall apply;

(ii) The merger or other acquisition shall not be disapproved if the director finds that any of the situations meeting the criteria provided by section 41-3808(4)(c), Idaho Code, exist; and

(iii) The director may condition the approval of the merger or other acquisition on the removal of the basis of disapproval within a specified period of time;

(c) The financial condition of any acquiring party may jeopardize the financial stability of the insurer or prejudice the interest of its policyholders or, in the case of an acquisition of control, the interest of any remaining stockholders who are unaffiliated with the acquiring person;

(d) The plans or proposals of the acquiring party to liquidate the insurer, sell its assets or consolidate or merge it with any person, or to make any other material change in its business or corporate structure or management, are unfair and unreasonable to policyholders of the insurer and are not in the public interest;

(e) The competence, experience and integrity of the persons who would control the operation of the insurer are such that it would not be in the interest of policyholders and stockholders of the insurer or of the public to permit the merger or other acquisition of control; or

(f) The acquisition is likely to be hazardous or prejudicial to the insurance-buying public.

(2) The public hearing referenced in subsection (1) of this section shall be held within thirty-five (35) days after the statement required by section 41-3804(1), Idaho Code, is filed or as otherwise agreed to by the director and the person filing the statement, and at least twenty-one (21) days' notice of such hearing shall be given by the director to the person filing the statement. Not less than seven (7) days' notice of the public hearing shall be given by the person filing the statement to the insurer and to such other persons as may be designated by the director. All discovery proceedings to the extent agreed to by the parties or allowed by the director shall be concluded not later than three (3) business days prior to the commencement of the public hearing. The director shall make a determination within fifty-six (56) days after conclusion of such hearing. At the hearing, the person filing the statement, the insurer, any person to whom notice of hearing was sent, and any other person whose interest may be affected shall have the right to present evidence, examine and cross-examine witnesses, and offer oral and written arguments and shall be entitled to conduct discovery proceedings in the same manner as allowed under chapter 2, title 41, Idaho Code, and applicable rules.
rson filing the statement, the insurer, any person to whom notice of hearing was sent, and any other person whose interest may be affected shall have the right to present evidence, examine and cross-examine witnesses, and offer oral and written arguments and shall be entitled to conduct discovery proceedings in the same manner as allowed under chapter 2, title 41, Idaho Code, and applicable rules.

(3) If the proposed acquisition of control will require the approval of more than one (1) commissioner, the public hearing referenced in subsection (2) of this section may be held on a consolidated basis, upon written request to all affected commissioners by the person filing the statement referenced in section 41-3804(1), Idaho Code. Such person shall file the statement referenced in section 41-3804(1), Idaho Code, with the national association of insurance commissioners within five (5) days of making the request for a public hearing. A commissioner may opt out of a consolidated hearing and shall provide notice to the applicant of the opt-out within fourteen (14) days of the receipt of the statement referenced in section 41-3804(1), Idaho Code. A hearing conducted on a consolidated basis shall be public and shall be held within the United States before the commissioners of the states in which the affected insurers are domiciled. Such commissioners shall hear and receive evidence. A commissioner may attend such hearing in person or by telecommunication.

(4) In connection with a change of control of a domestic insurer, any determination by the director that the person acquiring control of the insurer shall be required to maintain or restore the capital of the insurer to the level required by the laws and regulations of this state shall be made not later than sixty (60) days after the date of notification of the change in control submitted pursuant to section 41-3804(1)(a) of this chapter. Failure of the director to provide a determination within the prescribed time shall not negate the application of capital requirements otherwise required by title 41, Idaho Code, but may affect the time within which such requirements must be met.

(5) The director may retain at the acquiring person's expense any attorneys, actuaries, accountants and other experts not otherwise a part of the director's staff as may be reasonably necessary to assist the director in reviewing the proposed acquisition of control. The director may require the acquiring party to post a bond in an amount not to exceed twenty-five thousand dollars ($25,000) as security for payment of such expenses.

(6) The provisions of this section shall not apply to any offer, request, invitation, agreement or acquisition that the director by order shall exempt as not having been made or entered into for the purpose and not having the effect of changing or influencing the control of a domestic insurer, or as otherwise not anticipated by this section.

(7) The following shall be violations of this section:

(a) The failure to file any statement, amendment or other material required to be filed pursuant to the provisions of section 41-3804(1) or (2), Idaho Code; or
ving been made or entered into for the purpose and not having the effect of changing or influencing the control of a domestic insurer, or as otherwise not anticipated by this section.

(7) The following shall be violations of this section:

(a) The failure to file any statement, amendment or other material required to be filed pursuant to the provisions of section 41-3804(1) or (2), Idaho Code; or

(b) The effectuation or any attempt to effectuate an acquisition of control of, divestiture of, or merger with a domestic insurer unless the director has given prior approval.

(8) The district courts of the state of Idaho are hereby vested with jurisdiction over every person not resident, domiciled or authorized to do business in this state who files a statement with the director under the provisions of section 41-3804, Idaho Code, and over all actions involving such person arising out of violations of this section, and each such person shall be deemed to have performed acts equivalent to and constituting an appointment by the person of the director to be his true and lawful attorney upon whom may be served all lawful process in any action, suit or proceeding arising out of violations of this section. Copies of all lawful process shall be served on the director and transmitted by registered or certified mail by the director to the person at his last known address.

History:

[41-3806, added 2013, ch. 266, sec. 2, p. 657.]

## Nearby sections

- [Idaho Code § 41-3801 41-3801 PURPOSE.](https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3801.md)
- [Idaho Code § 41-3802 41-3802 DEFINITIONS.](https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3802.md)
- [Idaho Code § 41-3803 41-3803 SUBSIDIARIES OF INSURERS.](https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3803.md)
- [Idaho Code § 41-3804 41-3804 ACQUISITION OF CONTROL OF CONTROLLING INTEREST WITH DOMESTIC INSURER — ACQUISITION OF MERGER OR DIVESTITURE OF CONTROLLING INTEREST WITH DOMESTIC INSURER.](https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3804.md)
- [Idaho Code § 41-3805 41-3805 TENDER OFFER MATERIAL.](https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3805.md)
- [Idaho Code § 41-3806 41-3806 APPROVAL BY DIRECTOR — HEARINGS.](https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3806.md)
- [Idaho Code § 41-3807 41-3807 MAILING — PAYMENT OF EXPENSES.](https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3807.md)
- [Idaho Code § 41-3808 41-3808 ACQUISITIONS INVOLVING INSURERS NOT OTHERWISE COVERED.](https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3808.md)
- [Idaho Code § 41-3809 41-3809 REGISTRATION OF HOLDING COMPANY SYSTEM INSURERS.](https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3809.md)
- [Idaho Code § 41-3809A 41-3809A GROUP CAPITAL CALCULATION REPORTING.](https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3809A.md)
- [Idaho Code § 41-3810 41-3810 STANDARDS AND MANAGEMENT OF AN INSURER WITHIN AN INSURANCE HOLDING COMPANY SYSTEM.](https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3810.md)
- [Idaho Code § 41-3811 41-3811 ADEQUACY OF SURPLUS.](https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3811.md)
- [Idaho Code § 41-3812 41-3812 DIVIDENDS AND OTHER DISTRIBUTIONS.](https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3812.md)
- [Idaho Code § 41-3813 41-3813 MANAGEMENT OF DOMESTIC INSURERS SUBJECT TO REGISTRATION.](https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3813.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_ID_T41_C38_S41-3806. Check the current official text before relying on it. Not legal advice.