Text: SSB02186                          Text: SSB02188
Text: SSB02100 - SSB02199               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index



Senate Study Bill 2187

Bill Text

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 than two
  1  5 five million five hundred thousand dollars capital stock fully
  1  6 paid for in cash and two million five hundred thousand dollars
  1  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 less
  1 11 than 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 than two five million five hundred
  1 24 thousand dollars 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 be
  1 29 divided 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, the
  2  6 countersignature requirement as provided in sections 515.22
  2  7 and 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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