House File 2766 amends the Iowa Code to enhance the regulatory framework for reinsurance and captive insurance companies, particularly focusing on life captive reinsurance companies. The bill introduces new provisions that ensure the confidentiality of tax returns filed by these companies, stating that such returns are not subject to public inspection and prohibiting state officials from disclosing them, with violations classified as serious misdemeanors. It also updates definitions and requirements for captive insurance companies, including the introduction of new categories and adjustments to capital and surplus requirements. The legislation aims to strengthen regulatory oversight while protecting sensitive financial information.

Additionally, the bill outlines specific operational standards for life captive reinsurance companies, including requirements for obtaining a certificate of authority, maintaining a principal place of business in the state, and holding annual board meetings. It mandates that these companies submit detailed plans of operation and annual reports, including actuarial opinions on reserve adequacy. The commissioner is granted authority to examine these companies regularly and to suspend or revoke their certificates under certain conditions. The bill also clarifies that securities issued by life captive reinsurance companies will not be treated as insurance contracts, ensuring that investors are not classified as engaging in insurance business solely based on their investments. Overall, House File 2766 aims to streamline regulations and enhance the financial stability and compliance of 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
Reprinted: 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
Enrolled: 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