HSB 544 (LSB 5519YC (3) 87)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON COWNIE)

A BILL FOR

An Act relating to the maximum value of life insurance companies’ and life insurance associations’ investments in CM3 classified mezzanine loans as a percentage of such company’s or association’s legal reserve. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 511.8, subsection 9, paragraph h, subparagraph (3), subparagraph division (a), Code 2018, is amended to read as follows:
   (a)  The value of a company’s or association’s total investments qualified under this paragraph “h” in mezzanine real estate loans classified as CM3 in accordance with the national association of insurance commissioners’ rating methodology or an equivalent or successor rating at the time of purchase shall not exceed two three percent of the legal reserve.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the maximum value of a life insurance company’s and life insurance association’s investments in CM3 classified mezzanine loans as a percentage of such company’s or association’s legal reserve. The current maximum value of such investments is 2 percent of a company’s or association’s legal reserve. The bill increases the maximum value to 3 percent of such company’s or association’s legal reserve.