SSB 3083 (LSB 5288XD (2) 90)

SENATE/HOUSE FILE _____

BY  (PROPOSED DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES BILL)

A BILL FOR

An Act relating to reinsurance requirements for county and state mutual insurance associations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 518.17, subsection 1, Code 2024, is amended to read as follows:
   1.  A county mutual insurance association may reinsure a part or all of its coverages written pursuant to this chapter with an association operating under this chapter, or with any other association or company licensed in this state that is in compliance with chapter 521B and authorized to write the kinds of insurance enumerated in section 518.11.
    Sec. 2.  Section 518A.44, subsection 1, Code 2024, is amended to read as follows:
   1.  A state mutual insurance association may reinsure a part or all of its coverages written pursuant to this chapter with an association operating under this chapter, or with any other association or company licensed in this state that is in compliance with chapter 521B and authorized to write the kinds of insurance enumerated in section 518A.1.
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 reinsurance requirements for county and state mutual insurers.
   Under current law, a county mutual insurance association (county association) may reinsure its coverages written under Code chapter 518 with any association or company (company) licensed in the state and authorized to write insurance enumerated in Code section 518.11. A state mutual insurance association (state association) may insure its coverages written under Code chapter 518A with any company licensed in the state and authorized to write insurance enumerated in Code section 518A.1.
   Under the bill, a county association and a state association may reinsure coverages with a company that is in compliance with Code chapter 521B, rather than one licensed in the state.