Senate Study Bill 3134 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON BROWN) A BILL FOR An Act relating to the names of reorganized mutual insurance 1 companies. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6273XC (1) 90 nls/ko

S.F. _____ Section 1. Section 521A.14, subsection 1, paragraph a, Code 1 2024, is amended to read as follows: 2 a. A domestic mutual insurance company, upon approval 3 of the commissioner, may reorganize by forming an insurance 4 holding company based upon a mutual plan and continuing the 5 corporate existence of the reorganizing insurance company as 6 a stock insurance company. The reorganized insurance company 7 may continue to use the word “mutual” in the company’s name 8 provided that the company’s name also includes the words “stock 9 insurer”, or the abbreviation “SI”. The commissioner, after 10 a public hearing as provided in section 521A.3, subsection 11 4 , paragraph “b” , if satisfied that the interests of the 12 policyholders are properly protected and that the plan of 13 reorganization is fair and equitable to the policyholders, may 14 approve the proposed plan of reorganization and may require 15 as a condition of approval such modifications of the proposed 16 plan of reorganization as the commissioner finds necessary 17 for the protection of the policyholders’ interests. The 18 commissioner may retain consultants as provided in section 19 521A.3, subsection 4 , paragraph “d” . A reorganization pursuant 20 to this section is subject to section 521A.3, subsections 1, 21 2, and 3 . The commissioner shall retain jurisdiction over a 22 mutual insurance holding company organized pursuant to this 23 section to assure that policyholder interests are protected. 24 Sec. 2. Section 521A.14, subsection 2, paragraph a, Code 25 2024, is amended to read as follows: 26 a. A domestic mutual insurance company, upon the approval of 27 the commissioner, may reorganize by merging its policyholders’ 28 membership interests into a mutual insurance holding company 29 formed pursuant to subsection 1 and continuing the corporate 30 existence of the reorganizing insurance company as a stock 31 insurance company subsidiary of the mutual insurance holding 32 company. The reorganized insurance company may continue to 33 use the word “mutual” in the company’s name provided that the 34 company’s name also includes the words “stock insurer”, or the 35 -1- LSB 6273XC (1) 90 nls/ko 1/ 2

S.F. _____ abbreviation “SI”. The commissioner, after a public hearing 1 as provided in section 521A.3, subsection 4 , paragraph “b” , if 2 satisfied that the interests of the policyholders are properly 3 protected and that the merger is fair and equitable to the 4 policyholders, may approve the proposed merger and may require 5 as a condition of approval such modifications of the proposed 6 merger as the commissioner finds necessary for the protection 7 of the policyholders’ interests. The commissioner may retain 8 consultants as provided in section 521A.3, subsection 4 , 9 paragraph “d” . A merger pursuant to this section is subject 10 to section 521A.3, subsections 1, 2, and 3 . The commissioner 11 shall retain jurisdiction over the mutual insurance holding 12 company organized pursuant to this section to assure that 13 policyholder interests are protected. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill relates to the naming requirements for reorganized 18 insurance companies. 19 A domestic mutual insurance company that reorganizes by 20 forming an insurance holding company may continue to use the 21 word “mutual” in its name provided that its name also includes 22 the words “stock insurer”, or the abbreviation “SI”. 23 A domestic mutual insurance company that reorganizes by 24 merging its policyholders’ membership interests into a mutual 25 insurance holding company may continue to use the word “mutual” 26 in its name provided that its name also includes the words 27 “stock insurer”, or the abbreviation “SI”. 28 -2- LSB 6273XC (1) 90 nls/ko 2/ 2