HF 2490 (LSB 6252HV (3) 90)

HOUSE FILE 2490

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO HSB 652)

A BILL FOR

An Act relating to the reorganization of county and state mutual insurance associations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 515G.1, subsection 5, Code 2024, is amended to read as follows:
   5.  “Mutual insurer” means a domestic mutual property and casualty insurance company organized and licensed under chapter 515, 518, or 518A.
    Sec. 2.  Section 521A.14, subsection 1, paragraph a, Code 2024, is amended to read as follows:
   a.  For purposes of this section, “domestic mutual insurance company” includes a company qualified and licensed in this state pursuant to chapters 518 and 518A.  A domestic mutual insurance company, upon approval of the commissioner, may reorganize by forming an insurance holding company based upon a mutual plan and continuing the corporate existence of the reorganizing insurance company as a stock insurance company. The commissioner, after a public hearing as provided in section 521A.3, subsection 4, paragraph “b”, if satisfied that the interests of the policyholders are properly protected and that the plan of reorganization is fair and equitable to the policyholders, may approve the proposed plan of reorganization and may require as a condition of approval such modifications of the proposed plan of reorganization as the commissioner finds necessary for the protection of the policyholders’ interests. The commissioner may retain consultants as provided in section 521A.3, subsection 4, paragraph “d”. A reorganization pursuant to this section is subject to section 521A.3, subsections 1, 2, and 3. The commissioner shall retain jurisdiction over a mutual insurance holding company organized pursuant to this section to assure that policyholder interests are protected.
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 reorganization of county and state mutual insurance associations.
   The bill expands the current definition of a mutual insurer to include a domestic mutual property and casualty insurance company organized and licensed under Code chapter 518 or Code chapter 518A.
   Under the bill, a domestic mutual insurance company, defined as a company qualified and licensed in the state pursuant to Code chapters 518 and 518A, may reorganize, upon approval of the commissioner, by forming an insurance holding company pursuant to the requirements of Code section 521A.14.