This bill amends various sections of the Iowa Code to establish a comprehensive regulatory framework for captive insurance companies and life captive reinsurance companies (LCRCs). It introduces new provisions that ensure tax returns filed by these companies are confidential and not subject to public inspection, with serious penalties for unauthorized disclosure. The bill expands the definition of captive companies, modifies the requirements for obtaining a certificate of authority, and emphasizes the need for organizational documents to be approved by the commissioner. Additionally, it sets minimum capital and surplus requirements, allowing for the use of marketable securities under certain conditions, and outlines the confidentiality of documents submitted by captive companies.

Furthermore, the bill specifies operational requirements for LCRCs, including the necessity for a detailed plan of operation and compliance with state insurance laws. It mandates annual and quarterly reporting, including financial disclosures and actuarial opinions, while allowing the commissioner to examine compliance and charge for examination costs. The legislation also addresses the conditions under which a certificate of authority may be suspended or revoked, and it introduces provisions for mergers and significant transactions. Overall, the bill aims to enhance regulatory oversight, protect policyholders, and maintain the integrity of the insurance market in Iowa.

Statutes affected:
Introduced: 432.1, 432.1A, 490.905, 521J.1, 521J.17, 521J.2, 521J.5, 521J.6, 521J.7, 521J.8, 521J.9, 521J.18, 521J.22, 521J.24, 521J.26