House
File
2490
-
Introduced
HOUSE
FILE
2490
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
HSB
652)
A
BILL
FOR
An
Act
relating
to
the
reorganization
of
county
and
state
1
mutual
insurance
associations.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
6252HV
(3)
90
nls/ko
H.F.
2490
Section
1.
Section
515G.1,
subsection
5,
Code
2024,
is
1
amended
to
read
as
follows:
2
5.
“Mutual
insurer”
means
a
domestic
mutual
property
and
3
casualty
insurance
company
organized
and
licensed
under
chapter
4
515
,
518,
or
518A
.
5
Sec.
2.
Section
521A.14,
subsection
1,
paragraph
a,
Code
6
2024,
is
amended
to
read
as
follows:
7
a.
For
purposes
of
this
section,
“domestic
mutual
insurance
8
company”
includes
a
company
qualified
and
licensed
in
this
9
state
pursuant
to
chapters
518
and
518A.
A
domestic
mutual
10
insurance
company,
upon
approval
of
the
commissioner,
may
11
reorganize
by
forming
an
insurance
holding
company
based
upon
12
a
mutual
plan
and
continuing
the
corporate
existence
of
the
13
reorganizing
insurance
company
as
a
stock
insurance
company.
14
The
commissioner,
after
a
public
hearing
as
provided
in
section
15
521A.3,
subsection
4
,
paragraph
“b”
,
if
satisfied
that
the
16
interests
of
the
policyholders
are
properly
protected
and
17
that
the
plan
of
reorganization
is
fair
and
equitable
to
the
18
policyholders,
may
approve
the
proposed
plan
of
reorganization
19
and
may
require
as
a
condition
of
approval
such
modifications
20
of
the
proposed
plan
of
reorganization
as
the
commissioner
21
finds
necessary
for
the
protection
of
the
policyholders’
22
interests.
The
commissioner
may
retain
consultants
as
23
provided
in
section
521A.3,
subsection
4
,
paragraph
“d”
.
A
24
reorganization
pursuant
to
this
section
is
subject
to
section
25
521A.3,
subsections
1,
2,
and
3
.
The
commissioner
shall
retain
26
jurisdiction
over
a
mutual
insurance
holding
company
organized
27
pursuant
to
this
section
to
assure
that
policyholder
interests
28
are
protected.
29
EXPLANATION
30
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
31
the
explanation’s
substance
by
the
members
of
the
general
assembly.
32
This
bill
relates
to
the
reorganization
of
county
and
state
33
mutual
insurance
associations.
34
The
bill
expands
the
current
definition
of
a
mutual
insurer
35
-1-
LSB
6252HV
(3)
90
nls/ko
1/
2
H.F.
2490
to
include
a
domestic
mutual
property
and
casualty
insurance
1
company
organized
and
licensed
under
Code
chapter
518
or
Code
2
chapter
518A.
3
Under
the
bill,
a
domestic
mutual
insurance
company,
defined
4
as
a
company
qualified
and
licensed
in
the
state
pursuant
to
5
Code
chapters
518
and
518A,
may
reorganize,
upon
approval
of
6
the
commissioner,
by
forming
an
insurance
holding
company
7
pursuant
to
the
requirements
of
Code
section
521A.14.
8
-2-
LSB
6252HV
(3)
90
nls/ko
2/
2