House Study Bill 652 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON LUNDGREN) 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 6252YC (2) 90 nls/ko

H.F. _____ 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. NEW SECTION . 518.4A Reorganization. 6 A county mutual insurance association may reorganize by 7 forming a mutual insurance holding company pursuant to section 8 521A.14, and the reorganized stock insurer shall continue to be 9 regulated pursuant to this chapter. 10 Sec. 3. NEW SECTION . 518A.1B Reorganization. 11 A state mutual insurance association may reorganize by 12 forming a mutual insurance holding company pursuant to section 13 521A.14, and the reorganized stock insurer shall continue to be 14 regulated pursuant to this chapter. 15 Sec. 4. Section 521A.14, subsection 1, paragraph a, Code 16 2024, is amended to read as follows: 17 a. A domestic mutual insurance company, including 18 but not limited to a county mutual insurance association 19 organized under chapter 518 or a state mutual insurance 20 association organized under chapter 518A, upon approval of the 21 commissioner, may reorganize by forming an insurance holding 22 company based upon a mutual plan and continuing the corporate 23 existence of the reorganizing insurance company as a stock 24 insurance company. The commissioner, after a public hearing 25 as provided in section 521A.3, subsection 4 , paragraph “b” , if 26 satisfied that the interests of the policyholders are properly 27 protected and that the plan of reorganization is fair and 28 equitable to the policyholders, may approve the proposed plan 29 of reorganization and may require as a condition of approval 30 such modifications of the proposed plan of reorganization 31 as the commissioner finds necessary for the protection of 32 the policyholders’ interests. The commissioner may retain 33 consultants as provided in section 521A.3, subsection 4 , 34 paragraph “d” . A reorganization pursuant to this section 35 -1- LSB 6252YC (2) 90 nls/ko 1/ 2

H.F. _____ is subject to section 521A.3, subsections 1, 2, and 3 . The 1 commissioner shall retain jurisdiction over a mutual insurance 2 holding company organized pursuant to this section to assure 3 that policyholder interests are protected. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 This bill relates to the reorganization of county and state 8 mutual insurance associations. 9 The bill expands the current definition of a mutual insurer 10 to include a domestic mutual property and casualty insurance 11 company organized and licensed under Code chapter 518 or Code 12 chapter 518A. 13 The bill authorizes a county mutual insurance association 14 or state mutual insurance association to reorganize by forming 15 a mutual insurance holding company pursuant to Code section 16 521A.14, and the reorganized stock insurer shall continue to be 17 regulated pursuant to Code chapter 518, or Code chapter 518A, 18 respectively. 19 The bill authorizes a county or state mutual insurance 20 association organized under Code chapter 518 or Code chapter 21 518A, in addition to a domestic mutual insurance company under 22 current law, to reorganize, upon approval of the commissioner, 23 by forming an insurance holding company pursuant to the 24 requirements of Code section 521A.14. 25 -2- LSB 6252YC (2) 90 nls/ko 2/ 2