House File 2490 - Enrolled
House File 2490
AN ACT
RELATING TO THE REORGANIZATION OF COUNTY AND STATE MUTUAL
INSURANCE ASSOCIATIONS, NONRENEWAL NOTICES FOR AUTOMOBILE
INSURANCE, AND NONRENEWAL NOTICES BY COUNTY AND STATE
MUTUAL INSURANCE ASSOCIATIONS, AND INCLUDING EFFECTIVE DATE
PROVISIONS.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 515D.7, subsection 1, Code 2024, is
2 amended to read as follows:
3
4 1. Notwithstanding the provisions of sections 515.125, and
515.128, 515.129B, and 515.129C, an insurer shall not fail to
5 renew a policy except by notice to the insured as provided
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6 in this chapter. A notice of intention not to renew shall
7 not be effective unless mailed or delivered by the insurer
8 to the named insured at least thirty calendar days prior to
9 the expiration date of the policy. A post office department
10 certificate of mailing to the named insured at the address
11 shown in the policy shall be proof of receipt of such mailing.
12 Unless the reason accompanies the notice of intent not to
13 renew, the notice shall state that, upon written request of
14 the named insured, mailed or delivered to the insurer not less
15 than thirty calendar days prior to the expiration date of the
16 policy, the insurer will state the reason for nonrenewal.
17 Sec. 2. Section 515D.7, Code 2024, is amended by adding the
18 following new subsection:
19 NEW SUBSECTION. 1A. Notwithstanding the provisions of
20 sections 515.129B and 515.129C, an insurer shall not fail to
21 renew a policy except by notice to the insured as provided
22 in this chapter. A notice of intention not to renew shall
23 not be effective unless mailed or delivered by the insurer
24 to the named insured at least sixty calendar days prior to
25 the expiration date of the policy. A post office department
26 certificate of mailing to the named insured at the address
27 shown in the policy shall be proof of receipt of such mailing.
28 Unless the reason accompanies the notice of intent not to
29 renew, the notice shall state that, upon written request of the
30 named insured, mailed or delivered to the insurer not less than
31 sixty calendar days prior to the expiration date of the policy,
32 the insurer will state the reason for nonrenewal.
33 Sec. 3. Section 515G.1, subsection 5, Code 2024, is amended
34 to read as follows:
35 5. “Mutual insurer” means a domestic mutual property and
1 casualty insurance company organized and licensed under chapter
2 515, 518, or 518A.
3 Sec. 4. Section 518.23, subsection 3, Code 2024, is amended
4 to read as follows:
5 3. Nonrenewal by association. A notice of intention not
6 to renew is not effective unless mailed or delivered by the
7 insurer to the named insured at least thirty sixty days prior
8 to the expiration date of the policy. If the reason does not
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9 accompany the notice of nonrenewal, the association, upon
10 receipt of a timely request by the named insured, shall provide
11 the reason for the nonrenewal in writing.
12 Sec. 5. Section 518A.29, subsection 3, Code 2024, is amended
13 to read as follows:
14 3. Nonrenewal by association. A notice of intention not
15 to renew is not effective unless mailed or delivered by the
16 insurer to the named insured at least thirty sixty days prior
17 to the expiration date of the policy. If the reason does not
18 accompany the notice of nonrenewal, the association, upon
19 receipt of a timely request by the named insured, shall provide
20 in writing the reason for the nonrenewal.
21 Sec. 6. Section 521A.14, subsection 1, paragraph a, Code
22 2024, is amended to read as follows:
23 a. For purposes of this section, “domestic mutual insurance
24 company” includes a company qualified and licensed in this
25 state pursuant to chapters 518 and 518A. A domestic mutual
26 insurance company, upon approval of the commissioner, may
27 reorganize by forming an insurance holding company based upon
28 a mutual plan and continuing the corporate existence of the
29 reorganizing insurance company as a stock insurance company.
30 The commissioner, after a public hearing as provided in section
31 521A.3, subsection 4, paragraph “b”, if satisfied that the
32 interests of the policyholders are properly protected and
33 that the plan of reorganization is fair and equitable to the
34 policyholders, may approve the proposed plan of reorganization
35 and may require as a condition of approval such modifications
1 of the proposed plan of reorganization as the commissioner
2 finds necessary for the protection of the policyholders’
3 interests. The commissioner may retain consultants as
4 provided in section 521A.3, subsection 4, paragraph “d”. A
5 reorganization pursuant to this section is subject to section
6 521A.3, subsections 1, 2, and 3. The commissioner shall retain
7 jurisdiction over a mutual insurance holding company organized
8 pursuant to this section to assure that policyholder interests
9 are protected.
10 Sec. 7. EFFECTIVE DATE. The following take effect January
11 1, 2025:
12 1. The sections of this Act amending section 515D.7.
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13 2. The section of this Act amending section 518.23.
14 3. The section of this Act amending section 518A.29.
______________________________ ______________________________
PAT GRASSLEY AMY SINCLAIR
Speaker of the House President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2490, Ninetieth General Assembly.
______________________________
MEGHAN NELSON
Chief Clerk of the House
Approved _______________, 2024 ______________________________
KIM REYNOLDS
Governor


Statutes affected:
Introduced: 515G.1, 521A.14
Enrolled: 515D.7, 515.125, 515.129B, 518.23, 518A.29, 521A.14