This bill establishes new withdrawal requirements for insurance companies, their affiliates, and other entities engaged in the insurance business in Iowa. It mandates that insurers must file a withdrawal plan with the commissioner of insurance if they intend to significantly reduce their total annual premium volume in the state—specifically by 50% or more, or by 75% or more for certain lines of insurance. The bill outlines exemptions for transfers of business within the same insurance holding company system, provided the receiving insurer is authorized and not classified as a reciprocal or interinsurance exchange, a Lloyd's plan, or a mutual insurance association.

The withdrawal plan must include detailed information such as the proposed timeline for withdrawal, reasons for withdrawal, and notifications to policyholders and insurance producers. The commissioner is tasked with reviewing these plans and can approve, modify, or deny them based on compliance with specified requirements. Additionally, insurers that withdraw from writing all lines of insurance in Iowa cannot resume operations for at least five years without prior approval. Violations of these withdrawal requirements are classified as unfair competition or deceptive practices, and the commissioner is empowered to adopt necessary rules for enforcement.

Statutes affected:
Introduced: 507B.4