SF 2183 (LSB 5458XS (2) 85)

SENATE FILE 2183

BY  HATCH and McCOY

A BILL FOR

An Act relating to the excess reserves of certain companies or corporations issuing individual and group health insurance policies or medical service contracts in this state.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  505.20  Excess reserves.
   1.  The commissioner shall identify any insurance company or nonprofit health service corporation doing business in this state that issues more than eighty percent of all individual health insurance policies or hospital or medical service contracts issued in this state and that issues more than sixty percent of all small group health insurance policies or hospital or medical service contracts issued in this state. 
   2.  For such an insurance company or nonprofit health service corporation so identified, the commissioner shall make a determination of financial reserves necessary for the company or corporation to meet its obligations under its policies or contracts issued in this state.
   3.  If the commissioner determines that such a company or corporation has reserves in excess of those necessary to meet its policy or contractual obligations, the commissioner may order the company or corporation to distribute the excess to its policyholders or contract subscribers. 
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill requires the commissioner of insurance to identify any insurance company or nonprofit health service corporation in this state that issues more than 80 percent of all individual health insurance policies or hospital or medical service contracts in this state and that issues more than 60 percent of all small group health insurance policies or hospital or medical service contracts in this state. For such a company or corporation, the commissioner is required to make a determination of financial reserves necessary for the company or corporation to meet its obligations under its policies or contracts issued in this state. The bill authorizes the commissioner to order the company or corporation to distribute any excess reserves to its policyholders or contract subscribers.