Idaho's insurance law is Idaho Code Title 41, with the Department of Insurance's rules in IDAPA 18. Key chapters:

• 41-10: producer licensing.
• 41-13: trade practices.
• 41-12: surplus lines.
• 41-2: the director's powers.

These notes cover the rules the Idaho state questions draw on.

About the exam

Idaho's licensing exams are given by Pearson VUE. Each line of authority is its own test with a general section and an Idaho section, and the passing score is not published.

Unscored pretest questions are added to each exam. Idaho has no combined Life & Health or Property & Casualty exam.

Exam rules:

• A candidate who passes one section and fails the other retakes only the failed section (Pearson VUE Idaho handbook).
• Someone who fails or misses the exam must reapply and pay again (Idaho Code 41-1006(3)).
• The license application must reach the Department within 180 days of passing, or it is denied (Idaho Code 41-1006(4)).
• No prelicensing education is required.
• Applicants must be at least 18 and submit fingerprints for an FBI background check (Idaho Code 41-1007). Fingerprinting is scheduled through Pearson VUE, and applications go through NIPR.
• The variable life and variable annuity line requires no exam, but the applicant needs a FINRA CRD number.
• A producer holding both property and casualty lines doesn't test separately for surety.

The regulator

• The Department of Insurance is headed by a director. The director is appointed by the governor for a four-year term and may be removed earlier by the governor (Idaho Code 41-202). Any reference in the Code to the "commissioner" means the director (Idaho Code 41-203).
• The director must be a qualified Idaho elector with at least five years of insurance or similar professional experience.
• Powers (Idaho Code 41-210, 41-211):
  • The director enforces Title 41 with the powers it expressly grants or reasonably implies.
  • The director makes rules, but no rule may extend or conflict with a statute.
• Orders are effective only if in writing and signed (Idaho Code 41-212). Mailed service is complete when the order is deposited in the mail.
• Hearings:
  • A demanded hearing must be held within 30 days. Failing to hold it counts as a denial of the relief sought (Idaho Code 41-232).
  • Notice of a hearing is given at least 14 days ahead (Idaho Code 41-235).
• Examinations: every licensed insurer at least once every five years (Idaho Code 41-219). Producer records may be examined as often as the director thinks advisable (Idaho Code 41-220).
• Inquiries: anyone receiving a written inquiry from the director must promptly furnish the information (Idaho Code 41-247).
• Enforcement (Idaho Code 41-213): cease and desist orders, license orders, administrative penalties and court actions. Criminal matters go to the attorney general or county attorney.
• General penalty (Idaho Code 41-117): an administrative penalty of up to $1,000 for an individual or $5,000 for any other person. On conviction, a fine of up to $1,000, up to six months in jail, or both.
• Unlicensed activity can bring a penalty of up to $15,000 (Idaho Code 41-117A).

Insurer basics

• An insurer needs a certificate of authority (Idaho Code 41-305). Surplus lines coverage and reinsurance are exceptions. A certificate is for insurers; a license is for producers and others (Idaho Code 41-111).
• Domestic = formed in Idaho; foreign = formed in another U.S. jurisdiction; alien = formed outside the U.S. (Idaho Code 41-106).
• Stock, mutual (no capital stock, policyholders elect the board), reciprocal (subscribers act through an attorney in fact) and fraternal benefit societies (lodge system, ritualistic work, representative government) are the main forms.
• Countersignature: policies on Idaho risks are written through resident licensed agents who countersign them. Life, disability, title and some other lines are exempt (Idaho Code 41-337, 41-338).

Producer licensing (chapter 41-10)

Lines of authority (Idaho Code 41-1008):

• life;
• disability (Idaho's name for accident and health, including disability income);
• property;
• casualty;
• variable life and variable annuity;
• personal lines.

Basic rules:

• A license itself creates no authority to represent an insurer (Idaho Code 41-1003).
• Insurers may write business only through licensed producers (Idaho Code 41-1022).
• Fee-based advice: only licensed producers may give insurance advice for a fee. Attorneys, CPAs, actuaries, expert witnesses and investment advisers are exempt (Idaho Code 41-1004(2)).

Notices:

• Change of address: within 30 days (Idaho Code 41-1008(6)).
• Assumed name: report it to the director before using it (Idaho Code 41-1014).
• Moving to Idaho: apply within 90 days; no exam for lines already held (Idaho Code 41-1012).
• Leaving Idaho: file the change and the new state's certification within 30 days (Idaho Code 41-1009(3)).

Nonresidents are licensed on a reciprocal basis and appoint the director as agent for service of process (Idaho Code 41-1009, 41-1010).

Temporary license: up to 180 days without an exam (Idaho Code 41-1015), for:

• the surviving spouse or representative of a producer who dies or becomes disabled;
• the designee of a producer entering military service.

A temporary license may also be issued while the FBI report is pending (Idaho Code 41-1011).

Records: at least five years after the transaction (Idaho Code 41-1036). They include binder details and disclosures.

Reporting:

• administrative actions within 30 days of final disposition;
• criminal prosecutions within 30 days of the initial pretrial hearing (Idaho Code 41-1021).

License renewal, CE and inactive status

CE: 24 hours every two years, including at least 3 ethics hours, completed by the renewal date (IDAPA 18.06.04.012; Idaho Code 41-1013).

• Credit is given in full hours of at least 50 minutes.
• Courses may not be repeated in the same period.
• Exam-prep, motivation and selling-skills courses don't count.
• Self-study requires a score of 70% or better.
• Adjuster courses can count for at most 4 hours.

Expiration and late CE:

• A renewal is complete only with the fee and the CE statement. Otherwise the license expires at midnight on the expiration date.
• Late CE can be cured within 90 days with a penalty of $100 (1–30 days late), $200 (31–60) or $300 (61–90). After 90 days, the producer must retest (Idaho Code 41-1013(7)).

Lapsed license: may be reinstated within 12 months without an exam by paying double the unpaid renewal fee (Idaho Code 41-1008(3)).

Inactive status (Idaho Code 41-1028):

• No insurance may be transacted and no CE is required.
• Commissions on business written while active can still be received.
• Reactivation needs 20 hours of CE from the past 12 months, or retesting.

Nonresident CE: meeting home-state CE satisfies Idaho if the home state reciprocates.

Appointments and commissions

• A producer may not act for an insurer until appointed (Idaho Code 41-1018). An appointment is not a licensing prerequisite.
• Appointment filing:
  • The insurer files the appointment within 15 days.
  • The Department verifies eligibility within 30 days and notifies the insurer within 5 days if the producer is ineligible.
• Terminations (Idaho Code 41-1019):
  • The insurer notifies the director within 30 days of the termination, for cause or not.
  • It mails the producer a copy within 15 days.
  • The producer may file comments within 30 days.
• Commissions go only to licensed persons. Renewal commissions may go to someone licensed at the time of sale (Idaho Code 41-1017).
• Producer fees: a retail producer may charge a fee only after giving a written statement of services and fees that the consumer signs (Idaho Code 41-1030). Wholesale fees are itemized on the policy.
• The policy premium includes policy, inspection and service fees (Idaho Code 41-1803).

Premium funds

• Funds a producer receives are trust funds held in a fiduciary capacity. They go in a separate, federally insured account (Idaho Code 41-1024; IDAPA 18.06.02.016).
• Diverting or converting fiduciary funds is a felony (Idaho Code 41-1024(3)).
• Checks payable to an insurer are remitted within the contract period, or 14 days if the contract is silent.
• Cash is deposited within 7 days, or 3 business days if over $2,000 (IDAPA 18.06.02.014).
• Borrowing from a client requires a written, signed loan agreement, with records kept until the loan is repaid (Idaho Code 41-1325).

Discipline

Grounds (Idaho Code 41-1016) include:

• false application statements;
• misappropriation;
• forgery;
• using notes on the exam;
• failing to pay state income tax or child support.

Penalties: up to $1,000, suspension for up to 12 months, revocation or refusal. Losing one Title 41 license automatically affects all of them (Idaho Code 41-1026).

Waiting periods:

• A denied applicant waits one year before reapplying.
• After revocation, the wait is one to five years, as set in the order, or one year if the order doesn't say.

Unfair trade practices (chapter 41-13)

• Misrepresentation (Idaho Code 41-1303), including calling a policy shares of stock.
• Twisting through misrepresentation or incomplete comparisons (Idaho Code 41-1305).
• False advertising (Idaho Code 41-1304), defamation of an insurer (Idaho Code 41-1308), boycott, coercion and intimidation (Idaho Code 41-1309), and false financial statements (Idaho Code 41-1306).
• Lender coercion: a lender may not require insurance through a particular agent or insurer. It may reasonably approve the insurer chosen, and may place coverage if the borrower doesn't provide it 30 days before expiration (Idaho Code 41-1310, 41-1312).
• Unfair discrimination, including the use of genetic information in health coverage (Idaho Code 41-1313).
• Rebating is prohibited (Idaho Code 41-1314). Giving it and knowingly accepting it are both violations.
  • Allowed: prizes, goods or merchandise worth up to $200 per person in a calendar year.
  • Also allowed: reduced rates on payroll-deduction or bank-draft plans that reflect real savings (Idaho Code 41-1315).
• Premium charges: no collecting premium for coverage not provided, and no charging more than the policy premium (Idaho Code 41-1323).
• Military sales: dishonest or predatory sales to service members are banned (Idaho Code 41-1302(2)).
• Privacy: licensees may not disclose nonpublic personal information contrary to the Gramm-Leach-Bliley Act (Idaho Code 41-1334).
• Practices not specifically listed can still be charged as unfair after a hearing (Idaho Code 41-1321).

Claims rules

• Unfair claim practices (Idaho Code 41-1329) include:
  • refusing to pay without a reasonable investigation;
  • lowball offers that force litigation;
  • failing to explain a denial;
  • using one part of a claim as leverage on another. Penalties run up to $10,000 plus action against the insurer's certificate (Idaho Code 41-1329A).
• Attorney fees: an insurer that doesn't pay within 30 days of proof of loss (60 days for UM/UIM) can owe the insured's attorney fees in a later suit (Idaho Code 41-1839).
• Advance payments are not an admission of liability and are credited against any later settlement (Idaho Code 41-1840).
• Repairs: authorized auto repairs are paid within 20 days of the itemized bill (Idaho Code 41-1328).

Fraud

• Insurance fraud (Idaho Code 41-293) includes:
  • knowingly presenting false claim information with intent to defraud;
  • a producer taking premium knowing coverage won't be placed;
  • misstating payroll for workers' comp.
• Penalty: up to 15 years in prison, a fine up to $15,000, or both, plus restitution.
• Insurer reporting: suspected fraudulent claims are reported to the director within 60 days (Idaho Code 41-290).

Guaranty associations

No one may use either association as a sales inducement (Idaho Code 41-4319).

Surplus lines (chapter 41-12)

• Coverage is placed through a licensed surplus line broker who belongs to the approved surplus line association, after a diligent search of authorized insurers (Idaho Code 41-1214).
• Coverage may not be exported just to get a lower rate.
• A broker needs two years of producer experience in the lines (Idaho Code 41-1223).
• The tax is 1.5%, due by March 1 (Idaho Code 41-1229).

Property and casualty cancellation notices (commercial lines)

Commercial lines notices are governed by Idaho Code 41-1842, which changes on January 1, 2027.

A total premium increase of more than 10% needs 30 days' notice (Idaho Code 41-1842(5)).

Common exam traps

• Idaho's regulator is a director, appointed by the governor for four years, not an elected commissioner.
• CE is 24 hours with 3 ethics every two years. Late CE costs $100/$200/$300 within 90 days.
• Appointments are filed within 15 days; terminations are reported within 30 days.
• The gift limit is $200 per calendar year.
• Producer records are kept 5 years.
• License applications must follow the exam within 180 days.
• Idaho has no general controlled-business rule to memorize.