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). It introduces provisions that protect the confidentiality of tax returns filed by these companies, making them exempt from public inspection and imposing penalties for unauthorized disclosure. The bill clarifies definitions and requirements for different types of captive companies, including pure captive companies and protected cell captive companies, while specifically excluding life captive reinsurance companies from certain definitions. Additionally, it updates capital and surplus requirements, allowing for more flexibility in meeting these requirements, including the use of marketable securities.

Furthermore, the bill mandates that captive companies file annual reports detailing their financial condition and outlines the approval process for investment requirements by the commissioner. It establishes new sections regarding redomestication premium tax credits for foreign or alien captive companies relocating to Iowa, and it emphasizes the importance of actuarial oversight for LCRCs. The legislation also includes provisions for the suspension or revocation of a life captive reinsurance company's certificate of authority under specific conditions, ensuring regulatory compliance and financial stability within the industry. Overall, the bill aims to streamline the regulatory process for captive insurance entities while enhancing transparency and accountability.

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