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 new subsections in Sections 432.1 and 432.1A, which ensure that tax returns filed by these entities are confidential and not subject to public inspection, with serious misdemeanor penalties for unauthorized disclosure. The bill also expands definitions related to captive companies, modifies requirements for organizational documents and financial conditions, and emphasizes the confidentiality of submitted documents. Additionally, it mandates that captive companies file annual reports detailing their financial conditions and introduces provisions for the approval of dividend payments and actuarial opinions regarding reserves.

Furthermore, the bill outlines operational requirements for LCRCs, including the necessity of obtaining a certificate of authority, maintaining a principal place of business in Iowa, and adhering to minimum capital and surplus requirements of at least $5 million. It establishes reporting obligations for financial disclosures and allows the commissioner to examine compliance and financial affairs of these companies. The legislation also clarifies that securities issued by LCRCs will not be classified as insurance contracts, thereby exempting investors from being considered as engaging in insurance business. Overall, the bill aims to modernize the regulatory landscape for captive insurance entities while ensuring financial stability and protecting 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