Idaho Admin. Code r. 18.04.05.027 - BONDING

01. Certified Copy of Bond. The plan will submit to the Director a certified copy of the fidelity bond or equivalent coverage, as prescribed under Section 41-4014(3), Idaho Code.

02. Scope of Coverage. The fidelity bond or equivalent coverage will cover every trustee, officer, director, and employee of the plan.

03. Cancellation of Bond Requirements. The fidelity bond or equivalent coverage needs to contain language stating that it is noncancellable except upon not less than thirty (30) days advance notice in writing to the trustee and the Director. A copy of any notice cancelling a bond prescribed under Title 41, Chapter 40, Idaho Code, is to be forwarded to the Director by the surety at the same time it is forwarded to the trustee.

04. Third Party Administrator. Any party that provides any one of the following services to the plan needs to be licensed as a third party administrator:

a. Directly or indirectly underwrites;

b. Collects or handles charges or contributions; or

c. Adjusts or settles claims on members or beneficiaries of the plan.

Notes

Idaho Admin. Code r. 18.04.05.027

Effective March 31, 2022