Supreme Court Finds Retroactive Law on Dividends Unconstitutional

A law passed by the state Legislature that allowed the Idaho State Insurance Fund to retroactively exclude small policyholders from dividend payments violated the contract clause of the U.S. Constitution, the Idaho Supreme Court ruled.In a unanimous decision, the high court reversed a decision by the District Court that granted summary judgment against small business owners led by Dairy Queen who filed a class-action lawsuit challenging Idaho State Fund's dividend policy. George Parham, State Fund's general counsel, said Thursday that the decision will force the carrier to refund appro...