The bill amends various sections of the Iowa Code to enhance the regulatory framework for captive insurance companies and life captive reinsurance companies (LCRCs). It introduces new provisions that ensure tax returns filed by captive companies are confidential and not subject to public inspection, with violations leading to serious misdemeanors and potential dismissal from state employment. The bill expands the definition of captive companies, modifies requirements for obtaining a certificate of authority, and clarifies operational standards, including capital and surplus requirements. Notably, it reduces the minimum capital and surplus requirements for protected cell captive companies from $500,000 to $100,000 and allows the use of marketable securities to meet these requirements.

Additionally, the legislation establishes specific operational guidelines for LCRCs, including the requirement to maintain a principal place of business in Iowa and submit comprehensive operational plans for approval. It mandates regular reporting on financial conditions, risk-based capital levels, and internal controls, while granting the commissioner authority to examine compliance and financial affairs. The bill also outlines conditions for suspending or revoking a certificate of authority, ensuring that LCRCs only reinsure risks from their organizing insurers and maintain adequate capital reserves. Overall, the bill aims to streamline regulations while ensuring adequate oversight and confidentiality for captive insurance entities 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