Regulation - Compliance

01. Wavier of Compliance. No regulatory standards are waived during the pendency of a Plan application. (4-6-23) 02. Merger or Acquisition. MHC mergers and acquisitions are subject to Director approval. If a MHC is to acquire more than fifty percent (50%) of a stock insurance company, then the applicant files a plan describing the insurer's policyholders' membership interests in the MHC. (4-6-23) 03. Annual Financial Statement. A MHC will annually file a financial statement by June 1 including: (4-6-23) a. An income statement; (4-6-23) b. A balance sheet; (4-6-23) c. A cash flow statement; (4-6-23) d. The status of any closed block formed because of the Plan; (4-6-23) IDAHO ADMINISTRATIVE CODE IDAPA 18.07.01 – Acquiring Control, Insurance Holding Department of Insurance Company Systems, & Mutual Insurance Holding Companies Section 056 Page 11 e. An asset investment plan; and (4-6-23) f. A statement disclosing any intention to pledge, borrow against, alienate, hypothecate, or otherwise encumber MHC assets. (4-6-23) 04. Subsidiary Investment Obligations. At least fifty percent (50%) of the MHC’s generally accepted accounting practices (GAAP) basis net worth will be invested in insurance company subsidiaries. (4-6-23) 05. Distributions to Policyholders. Policy credits, dividends or other distributions to a MHC’s policyholder members will be fair and equitable and are subject to Director approval and the public hearing process in Chapter 38, Title 41, Idaho Code. (4-6-23) 056. REORGANIZATION OF MUTUAL INSURER WITH MUTUAL INSURANCE HOLDING COMPANY. Domestic mutual insurance companies may merge their policyholders' interests into a MHC by filing a compliant joint application with the MHC. This also applies to foreign mutual insurance companies or a foreign health service corporation, which, if a domestic corporation, would be organized under Title 41, Chapter 28, Idaho Code. (4-6-23)