(1) If the director believes that the controlling broker or any other person has not materially complied with the provisions of this chapter, or any regulation or order promulgated hereunder, after notice and opportunity to be heard, the director may order the controlling broker to cease placing business with the controlled insurer; and, if it was found that because of such material noncompliance that the controlled insurer or any policyholder thereof has suffered any loss or damage, the director may maintain a civil action or intervene in an action brought by or on behalf of the insurer or policyholder for recovery of compensatory damages for the benefit of the insurer or policyholder or other appropriate relief.
(2)  If an order for liquidation or rehabilitation of the controlled insurer has been entered pursuant to chapter 33, title 41, Idaho Code, and the receiver appointed under that order believes that the controlling broker or any other person has not materially complied with the provisions of this chapter, or any regulation or order promulgated hereunder, and the insurer suffered any loss or damage therefrom, the receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the insurer.
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Terms Used In Idaho Code 41-1706

  • Broker: means an insurance broker or brokers or any other person, firm, association or corporation, when, for any compensation, commission or other thing of value, such person, firm, association or corporation acts or aids in any manner in soliciting, negotiating or procuring the making of any insurance contract on behalf of an insured other than the person, firm, association or corporation. See Idaho Code 41-1702
  • controlled: has the meaning ascribed in section 41-3802(2), Idaho Code. See Idaho Code 41-1702
  • Controlled insurer: means a licensed insurer which is controlled, directly or indirectly, by a broker. See Idaho Code 41-1702
  • Controlling broker: means a broker who, directly or indirectly, controls an insurer. See Idaho Code 41-1702
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • insurer: means any person, firm, association or corporation duly licensed to transact a property/casualty insurance business in this state. See Idaho Code 41-1702
  • person: includes a corporation as well as a natural person;
Idaho Code 73-114
(3)  Nothing contained in this section shall affect the right of the director to impose any other penalties provided for in the insurance code.
(4)  Nothing contained in this section is intended to, or shall in any manner, alter or affect the rights of policyholders, claimants, creditors or other third parties.