Amends existing law to revise provisions of the Idaho Life and Health Insurance Guaranty Association Act.

This legislation updates the Life and Health Insurance Guaranty Association Act, first enacted by the Idaho Legislature in 1977, to ensure that consumers—not insurance companies—are protected when an insurer becomes insolvent. This legislation amends current law in four ways: first, it clarifies that "factoring companies" and "factored transactions" are not eligible for coverage under the Act. Second, it adjusts coverage determinations for high-risk long-term care or other health insurance policies with above-average interest rates to align with standard interest rates when an insurance company becomes insolvent. Third, it requires health insurance CO-OPs created under the Affordable Care Act to become members of the Idaho Life and Health Insurance Guaranty Association. Finally, it removes the annual $300 cap on association membership fees. In 2018, the National Association of Insurance Commissioners (NAIC) recommended states adopt best practices and national standards to better protect consumers. While Idaho has already implemented many of these recommendations, this legislation incorporates the final changes to better align with these recommended standards.