Text: SSB02186 Text: SSB02188 Text: SSB02100 - SSB02199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 508.5, subsection 1, Code 1997, is 1 2 amended to read as follows: 1 3 1. A stock life insurance company shall not be authorized 1 4 to transact business under this chapter with less thantwo1 5 five millionfive hundred thousanddollarscapital stock fully1 6paid for in cash and two million five hundred thousand dollars1 7 of capital and surplus paid in cash or invested as provided by 1 8 law. A stock life insurance company shall not increase its 1 9 capital stock unless the amount of the increase is fully paid 1 10 in cash.The stock shall be divided into shares of not less1 11than one dollar par value each.A stock life insurance 1 12 company authorized to do business in Iowa that undergoes a 1 13 change of control as defined under chapter 521A shall maintain 1 14 the minimum capital and surplus requirements mandated by this 1 15 section. 1 16 Sec. 2. Section 513B.2, subsection 8, Code Supplement 1 17 1997, is amended by adding the following new paragraph: 1 18 NEW PARAGRAPH. l. A short-term limited duration policy. 1 19 Sec. 3. Section 515.8, subsection 1, Code 1997, is amended 1 20 to read as follows: 1 21 1. An insurance company other than a life insurance 1 22 company shall not be incorporated to transact business upon 1 23 the stock plan with less thantwofive millionfive hundred1 24thousanddollars of capital and surplus, the entire amount of 1 25 which shall be fully paid up in cash and invested as provided 1 26 by law. An insurance company other than a life insurance 1 27 company shall not increase its capital stock unless the amount 1 28 of the increase is fully paid up in cash.The stock shall be1 29divided into shares of not less than one dollar each.An 1 30 insurance company authorized to do business in Iowa that 1 31 undergoes a change of control as defined under chapter 521A 1 32 shall maintain the minimum capital and surplus requirements 1 33 mandated by this section. 1 34 Sec. 4. Section 515E.7, Code 1997, is amended to read as 1 35 follows: 2 1 515E.7 PURCHASING GROUPS EXEMPTIONS. 2 2 A purchasing group which meets the criteria established 2 3 under the federal Act is exempt from any law of this state 2 4 relating to the creation of groups for the purchase of 2 5 insurance, the prohibition of group purchasing,the2 6countersignature requirement as provided in sections 515.222 7and 515.52,or any law that would discriminate against a 2 8 purchasing group or its members. An insurer is exempt from 2 9 any law of this state which prohibits providing, or offering 2 10 to provide, to a purchasing group or its members advantages 2 11 based on their loss and expense experience not afforded to 2 12 other persons with respect to rates, policy forms, coverages, 2 13 or other matters. A purchasing group is subject to all other 2 14 applicable laws. 2 15 Sec. 5. Sections 515.10, 515.22, 515.52 through 515.61, 2 16 and 515E.6, Code 1997, are repealed. 2 17 EXPLANATION 2 18 This bill amends provisions relating to the operation of 2 19 insurance companies. 2 20 Code section 508.5 is amended to provide that a stock life 2 21 insurance company must have $5,000,000 in capital and surplus 2 22 paid in cash or invested as permitted. Currently, such 2 23 company must have $2,500,000 capital stock fully paid for in 2 24 cash and $2,500,000 of surplus paid in cash or invested as 2 25 permitted. 2 26 Code section 513B.2 is amended to include a short-term 2 27 limited duration policy in the definition of creditable 2 28 coverage for purposes of small group health coverage. 2 29 Code section 515.8 is amended to provide that a stock 2 30 insurance company, other than a stock life insurance company, 2 31 must have $5,000,000 in capital and surplus paid in cash or 2 32 invested as permitted. Currently, that section provides that 2 33 such company must have $2,500,000 capital stock fully paid for 2 34 in cash. 2 35 Code section 515E.7 is amended to conform to the repeals of 3 1 section 515.22 and sections 515.52 through 515.61 by this 3 2 bill. 3 3 Code section 515.10, providing that in addition to the 3 4 required paid-up capital required in Code section 515.8, an 3 5 insurance company other than a life insurance company must 3 6 have $2,500,000 of surplus paid in cash or invested as 3 7 permitted, is repealed. 3 8 Code sections 515.22, 515.52 through 515.61, and 515E.6, 3 9 relating to the participation, compensation, and duties of a 3 10 resident countersigning agent required to be utilized by an 3 11 insurance company issuing a policy or contract of insurance in 3 12 this state, are repealed. 3 13 LSB 3654DP 77 3 14 mj/sc/14
Text: SSB02186 Text: SSB02188 Text: SSB02100 - SSB02199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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