Idaho Labor Codes 72-301

(1)By insuring and keeping insured with a policy of workmen's compensation insurance as defined by section 41-506(d), Idaho Code, the payment of compensation with any surety authorized by the director of the department of insurance to transact such insurance, provided, that every public employer shall insure its liability for payment of compensation with the state insurance fund unless such fund shall refuse to accept the risk when the application for insurance is made; or

(2)An employer may become self-insured by obtaining the approval of the industrial commission, and by depositing and maintaining with the commission security satisfactory to the commission securing the payment by said employer of compensation according to the terms of this law. Such security may consist of a surety bond or guaranty contract with any company authorized to transact surety insurance in Idaho. The commission shall adopt rules and regulations governing the qualifications of self-insured employers, the nature and amount of security to be deposited with the commission, and the conditions under which an employer may continue to be self-insured.

No surety shall be permitted to transact workmen's compensation insurance covering the liability of employers under this law unless it shall have been authorized to do business under the laws of this state and until it shall have received the approval of the commission. To the end that the workmen secured under this act shall be adequately protected, the commission shall require such sureties to deposit and maintain with the treasurer of the state money or bonds of the United States or of this state, or interest-paying bonds when they are at or above par, or any other state of the United States or the District of Columbia, or the bonds of any county or municipal corporation of this or any other state of the United States or the District of Columbia in an amount equal to the total amounts of all outstanding and unpaid compensation awards against such surety. In lieu of such money or bonds the commission may allow or require such surety to file or maintain with the treasurer of the state a surety bond of some company or companies authorized to do business in this state for and in the amounts equaling the total unpaid compensation awards against such surety. The approval by the commission of any surety or self-insured employer may be withdrawn if it shall appear to the commission that workmen secured thereby under this law are not fully protected.