Text: SF02396 Text: SF02398 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 SENATE FILE 2397 1 2 1 3 AN ACT 1 4 RELATING TO THE OPERATION AND REGULATION OF CERTAIN 1 5 INSURANCE COMPANIES, MISCELLANEOUS PROVISIONS RELATING 1 6 TO SMALL GROUP HEALTH CARE COVERAGE, THE ABILITY OF 1 7 CERTAIN INSURERS TO BRING AN ACTION IN CERTAIN 1 8 INSTANCES, AND THE ELIMINATION OF COUNTERSIGNING 1 9 RESIDENT AGENT PROVISIONS. 1 10 1 11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 12 1 13 Section 1. NEW SECTION. 432.13 STATUTE OF LIMITATIONS. 1 14 Within five years after the tax return is filed or within 1 15 five years after the tax return became due, whichever is 1 16 later, the commissioner of insurance shall examine the return 1 17 and determine the tax. An assessment or a claim for credit 1 18 must be made within five calendar years after the annual tax 1 19 filing is made. For a five-year period preceding the current 1 20 calendar year, a company may apply for a credit, or the 1 21 commissioner may make an assessment, as appropriate. The 1 22 period of examination and determination of the correct amount 1 23 of tax is unlimited in the case of a false or fraudulent 1 24 return made with the intent to evade tax or in the case of a 1 25 failure to file a return. 1 26 Sec. 2. Section 507C.32, Code 1997, is amended to read as 1 27 follows: 1 28 507C.32 REINSURER'S LIABILITY. 1 29 1. Notwithstanding a provision in the reinsurance contract 1 30 or other agreement, the amount recoverable by the liquidator 1 31 from reinsurers shall not be reduced as a result of 1 32 delinquency proceedings. Payment made directly to an insured 1 33 or other creditor shall not diminish the reinsurer's 1 34 obligation to the insurer's estate except whenthe reinsurance1 35contract provided for direct coverage of a named insured and2 1the payment was made in discharge of that obligationeither of 2 2 the following applies: 2 3 a. The contract or other written agreement specifically 2 4 provides for another payee of the reinsurance in the event of 2 5 the insolvency of the ceding insurer. 2 6 b. The assuming insurer, with the consent of the direct 2 7 insured, has assumed the policy obligations of the ceding 2 8 insurer as direct obligations of the assuming insurer to the 2 9 payees under the policies and in substitution for the 2 10 obligations of the ceding insurer to the payees. 2 11 Sec. 3. Section 508.5, subsection 1, Code 1997, is amended 2 12 to read as follows: 2 13 1. A stock life insurance company shall not be authorized 2 14 to transact business under this chapter with less thantwo2 15 five millionfive hundred thousanddollarscapital stock fully2 16paid for in cash and two million five hundred thousand dollars2 17 of capital and surplus paid in cash or invested as provided by 2 18 law. A stock life insurance company shall not increase its 2 19 capital stock unless the amount of the increase is fully paid 2 20 in cash.The stock shall be divided into shares of not less2 21than one dollar par value each.A stock life insurance 2 22 company authorized to do business in Iowa that undergoes a 2 23 change of control as defined under chapter 521A shall maintain 2 24 the minimum capital and surplus requirements mandated by this 2 25 section. 2 26 Sec. 4. NEW SECTION. 508.31A FUNDING AGREEMENTS. 2 27 1. A life insurance company organized under this chapter 2 28 may issue funding agreements. The issuance of a funding 2 29 agreement under this section is deemed to be doing insurance 2 30 business. For purposes of this section, "funding agreement" 2 31 means an agreement for an insurer to accept and accumulate 2 32 funds and to make one or more payments at future dates in 2 33 amounts that are not based on mortality or morbidity 2 34 contingencies. A funding agreement does not constitute life 2 35 insurance, an annuity, or other insurance authorized by 3 1 section 508.29, and does not constitute a security as defined 3 2 in section 502.102. 3 3 2. a. Funding agreements may be issued to the following: 3 4 (1) A person authorized by a state or foreign country to 3 5 engage in an insurance business or a subsidiary of such 3 6 business. 3 7 (2) A person for the purpose of funding any of the 3 8 following: 3 9 (a) Benefits under an employee benefit plan as defined in 3 10 the federal Employee Retirement Income Security Act of 1974, 3 11 29 U.S.C. } 1001 et seq., maintained in the United States or 3 12 in a foreign country. 3 13 (b) Activities of an organization exempt from taxation 3 14 pursuant to section 501c of the Internal Revenue Code, or any 3 15 similar organization in any foreign country. 3 16 (c) A program of the United States government, another 3 17 state government or political subdivision of such state, or of 3 18 a foreign country, or any agency or instrumentality of any 3 19 such government, political subdivision, or foreign country. 3 20 (d) An agreement providing for periodic payments in 3 21 satisfaction of a claim. 3 22 (e) A program of an institution which has assets in excess 3 23 of twenty-five million dollars. 3 24 b. A funding agreement shall be for a total amount of not 3 25 less than one million dollars. 3 26 c. An amount under a funding agreement shall not be 3 27 guaranteed or credited except upon reasonable assumptions as 3 28 to investment income and expenses and on a basis equitable to 3 29 all holders of funding agreements of a given class. Such 3 30 funding agreements shall not provide for payments to or by the 3 31 insurer based on mortality or morbidity contingencies. 3 32 d. Amounts paid to the insurer pursuant to a funding 3 33 agreement, and proceeds applied under optional modes of 3 34 settlement, may be allocated by the insurer to one or more 3 35 separate accounts pursuant to section 508A.1. 4 1 3. A funding agreement is a class 3 claim under section 4 2 507C.42, subsection 3. 4 3 4. The commissioner may adopt rules to implement funding 4 4 agreements. 4 5 Sec. 5. Section 508A.1, unnumbered paragraph 1, Code 1997, 4 6 is amended to read as follows: 4 7 A domestic life insurance company organized under chapter 4 8 508 may establish one or more separate accounts, and may 4 9 allocatetheretoto such accounts amounts, including without 4 10 limitation proceeds applied under optional modes of settlement 4 11 or under dividend options, to provide for life insurance or 4 12 annuities, and benefits incidentaltheretoto such life 4 13 insurance or annuities, payable in fixed or variable amounts 4 14 or both, and may hold and accumulate funds pursuant to funding 4 15 agreements, subject to the following: 4 16 Sec. 6. Section 508C.3, subsection 3, Code 1997, is 4 17 amended by adding the following new paragraph: 4 18 NEW PARAGRAPH. i. A funding agreement under section 4 19 508.31A. 4 20 Sec. 7. Section 508C.5, subsection 13, Code 1997, is 4 21 amended to read as follows: 4 22 13. "Unallocated annuity contract" means a guaranteed 4 23 investment contract, deposit administration contract, 4 24unallocated funding agreement,or any other annuity contract 4 25 which is not issued to and owned by an individual, except to 4 26 the extent of any annuity benefits guaranteed to an individual 4 27 by an insurer under such a contract or certificate. 4 28 Sec. 8. Section 513B.2, subsection 8, Code Supplement 4 29 1997, is amended by adding the following new paragraph: 4 30 NEW PARAGRAPH. l. A short-term limited duration policy. 4 31 Sec. 9. Section 515.8, subsection 1, Code 1997, is amended 4 32 to read as follows: 4 33 1. An insurance company other than a life insurance 4 34 company shall not be incorporated to transact business upon 4 35 the stock plan with less thantwofive millionfive hundred5 1thousanddollars of capital and surplus, the entire amount of 5 2 which shall be fully paid up in cash and invested as provided 5 3 by law. An insurance company other than a life insurance 5 4 company shall not increase its capital stock unless the amount 5 5 of the increase is fully paid up in cash.The stock shall be5 6divided into shares of not less than one dollar each.An 5 7 insurance company authorized to do business in Iowa that 5 8 undergoes a change of control as defined under chapter 521A 5 9 shall maintain the minimum capital and surplus requirements 5 10 mandated by this section. 5 11 Sec. 10. NEW SECTION. 515A.15B APPLICANTS UNABLE TO 5 12 PROCURE INSURANCE THROUGH ORDINARY METHODS. 5 13 An agreement among licensed insurers to offer workers' 5 14 compensation insurance for applicants unable to procure 5 15 workers' compensation insurance through ordinary methods shall 5 16 be administered by a rating organization licensed under this 5 17 chapter. 5 18 Sec. 11. Section 515E.7, Code 1997, is amended to read as 5 19 follows: 5 20 515E.7 PURCHASING GROUPS EXEMPTIONS. 5 21 A purchasing group which meets the criteria established 5 22 under the federal Act is exempt from any law of this state 5 23 relating to the creation of groups for the purchase of 5 24 insurance, the prohibition of group purchasing,the5 25countersignature requirement as provided in sections 515.225 26and 515.52,or any law that would discriminate against a 5 27 purchasing group or its members. An insurer is exempt from 5 28 any law of this state which prohibits providing, or offering 5 29 to provide, to a purchasing group or its members advantages 5 30 based on their loss and expense experience not afforded to 5 31 other persons with respect to rates, policy forms, coverages, 5 32 or other matters. A purchasing group is subject to all other 5 33 applicable laws. 5 34 Sec. 12. NEW SECTION. 516A.5 TOLLING OF STATUTE. 5 35 Commencement of an action by an insured under a provision 6 1 included in an automobile liability or motor vehicle liability 6 2 insurance policy pursuant to section 516A.1 tolls the statute 6 3 of limitations for purposes of the insurer's subrogated cause 6 4 of action against a party, as defined in section 668.2. 6 5 Section 668.8 is also applicable to an action commenced as 6 6 described in this section. 6 7 Sec. 13. Sections 515.10, 515.22, 515.52 through 515.61, 6 8 and 515E.6, Code 1997, are repealed. 6 9 6 10 6 11 6 12 MARY E. KRAMER 6 13 President of the Senate 6 14 6 15 6 16 6 17 RON J. CORBETT 6 18 Speaker of the House 6 19 6 20 I hereby certify that this bill originated in the Senate and 6 21 is known as Senate File 2397, Seventy-seventh General Assembly. 6 22 6 23 6 24 6 25 MARY PAT GUNDERSON 6 26 Secretary of the Senate 6 27 Approved , 1998 6 28 6 29 6 30 6 31 TERRY E. BRANSTAD 6 32 Governor
Text: SF02396 Text: SF02398 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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