The bill amends various sections of the Iowa Code to establish a comprehensive regulatory framework for captive insurance companies and life captive reinsurance companies (LCRCs). Key provisions include the introduction of confidentiality protections for tax returns filed by captive companies, making them exempt from public inspection and imposing serious misdemeanor penalties for unauthorized disclosures. The bill clarifies definitions and requirements for different types of captive companies, such as pure captive companies and protected cell captive companies, while specifying that LCRCs are excluded from certain definitions. Additionally, it updates the requirements for obtaining a certificate of authority, including the need for approval of organizational documents and detailed financial plans, and modifies capital and surplus requirements for protected cell captive companies.

Furthermore, the bill outlines operational standards for LCRCs, mandating annual reporting on risk-based capital levels, compensation disclosures, and actuarial opinions on reserves. It establishes minimum capital requirements of at least five million dollars for LCRCs and allows for the use of marketable securities to meet these requirements. The bill also streamlines the process for obtaining a certificate of authority by reducing certain reporting requirements and clarifying operational frameworks, including investment strategies and the conditions under which LCRCs can operate. Overall, the legislation aims to modernize the regulatory landscape for captive insurance entities in Iowa, ensuring compliance, financial stability, and protection of sensitive information.

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