Under what scenario can an insurer transact insurance in Idaho without a certificate of authority?

Transacting insurance in Idaho without a certificate of authority is permissible in specific circumstances, particularly when it comes to the settlement of claims under existing policies. This allowance is grounded in the principle that insurers are still responsible for the obligations they have established with policyholders, and they must honor these agreements even if they do not possess a certificate of authority to operate in the state.

In the context of the selected answer, an insurer that is settling claims under existing policies is merely fulfilling its contractual obligations to its policyholders. This activity does not constitute a new insurance transaction but is rather part of the ongoing relationship that already exists. Thus, the insurer can engage in this practice without needing to be authorized by the state, as it is strictly handling claims related to previously issued policies.

In contrast, other scenarios presented do not align with this provision. Policies marketed online may involve new sales, which typically require regulatory oversight and a certificate of authority. Insurers that operate in multiple states may still need to be licensed in each individual state to conduct business, as each state has its own regulatory requirements. Lastly, cooperation with a local brokerage to sell new policies or conduct transactions would also necessitate proper licensing unless it falls under certain exemptions, which is typically not the case.