H.F. _____ Section 1. NEW SECTION . 505.36 Insurer —— withdrawal 1 requirements. 2 1. Definitions. As used in this section, unless the context 3 otherwise requires: 4 a. “Commissioner” means the commissioner of insurance. 5 b. “Insurer” means an insurance company, an affiliate of 6 an insurance company, or other legal entity authorized to 7 engage in the business of insurance in this state, including 8 a reciprocal exchange, an interinsurance exchange, and a 9 lloyd’s plan. “Insurer” does not include an eligible surplus 10 lines insurer under chapter 515I, a county mutual insurance 11 association under chapter 518, a state mutual insurance 12 association under chapter 518A, an entity offering health 13 coverage, or an entity offering accident and sickness coverage. 14 2. Exemption. This section shall not apply to a transfer of 15 business from one insurer to another insurer if the insurer to 16 whom the business is being transferred is all of the following: 17 a. Within the same insurance holding company system as the 18 insurer from whom business is being transferred. 19 b. Authorized to engage in the business of insurance in this 20 state. 21 c. Not a reciprocal or interinsurance exchange, a lloyd’s 22 plan, a state mutual insurance association, or a county mutual 23 insurance association. 24 3. Withdrawal plan required. An insurer shall file a 25 withdrawal plan with the commissioner in any of the following 26 circumstances: 27 a. The insurer intends to reduce the insurer’s total annual 28 premium volume in the state by fifty percent or more. 29 b. For an insurer whose premiums for the immediately 30 preceding year are greater than one tenth of one percent of the 31 total direct premiums written in this state by all insurers 32 for that line of business in the four most recent quarters of 33 published data on the division’s internet site, the insurer 34 intends to reduce the insurer’s total annual premium in the 35 -1- LSB 5418YC (3) 91 nls/ko 1/ 5

H.F. _____ state in a line of insurance by seventy-five percent or more. 1 c. For any line of business with annual premiums greater 2 than twenty thousand dollars, the insurer intends to reduce the 3 insurer’s total annual premium volume in the state in a line of 4 private passenger automobile insurance, homeowners insurance, 5 or dwelling property insurance by fifty percent or more. 6 4. Withdrawal plan. 7 a. A withdrawal plan filed under this section shall provide 8 for all of the following: 9 (1) The insurer fulfilling all contractual obligations. 10 (2) The insurer providing service to all policyholders and 11 claimants. 12 (3) The insurer meeting all statutory obligations, 13 including but not limited to payment of assessments to the 14 guaranty fund and participation in an assigned risk plan. 15 b. A withdrawal plan filed pursuant to this section shall, 16 at a minimum, include all of the following: 17 (1) The date on which the insurer proposes to commence 18 execution of the withdrawal plan, and the date on which 19 execution of the withdrawal plan will be completed. 20 (2) The reason for withdrawal for each line of insurance. 21 (3) Each policy form by number, and all of the following 22 information: 23 (a) The total number of policyholders. 24 (b) The total amount of premiums impacted for each line of 25 insurance. 26 (4) The total number of insurance producers impacted for 27 each line of insurance. 28 (5) A copy of the notification the insurer will provide to 29 each impacted insurance producer. 30 (6) A copy of the notification or nonrenewal the insurer 31 will provide to each impacted policyholder. 32 (7) Details regarding the insurer’s fulfillment of 33 contractual obligations to the insurer’s policyholders during 34 the withdrawal. 35 -2- LSB 5418YC (3) 91 nls/ko 2/ 5

H.F. _____ (8) Whether replacement coverage will be provided to a 1 policyholder and, if so, the insurer shall provide all of the 2 following: 3 (a) The insurer’s relationship with the replacing insurer. 4 (b) The underwriting requirements and rates that will be 5 used to underwrite the policyholder. 6 (9) An estimate of the percentage of the Iowa market 7 affected by withdrawal. 8 (10) Any third-party contracts that provide for continuity 9 of coverage for policyholders. 10 (11) A list of the lines of insurance that the insurer will 11 continue to offer in the state. 12 5. Commissioner approval. 13 a. Except as provided in paragraph “b” , the commissioner 14 shall approve a withdrawal plan that has been determined to 15 meet all of the following requirements: 16 (1) The withdrawal plan provides a minimum of one hundred 17 eighty calendar days’ notice to the commissioner. 18 (2) The withdrawal plan includes notice to policyholders as 19 required by chapter 515. 20 (3) The withdrawal plan complies with subsection 4. 21 b. If the commissioner finds that a withdrawal plan does 22 not comply with paragraph “a” , the commissioner may modify, 23 restrict, limit, or deny the withdrawal plan. 24 c. An insurer may request a hearing within thirty calendar 25 days of the commissioner’s decision to modify, restrict, limit, 26 or deny the insurer’s withdrawal plan. A hearing under this 27 paragraph shall be held within sixty calendar days of the 28 insurer’s request unless a later date is agreed to by the 29 insurer and the commissioner, or permitted by the commissioner 30 for good cause. 31 6. Resumption of writing insurance after withdrawal. An 32 insurer that withdraws from writing all lines of insurance 33 in the state shall not, without prior approval of the 34 commissioner, resume writing insurance in the state for a 35 -3- LSB 5418YC (3) 91 nls/ko 3/ 5

H.F. _____ minimum of five years from the date of completion of the 1 insurer’s withdrawal. 2 7. Remedies. A violation of this section shall constitute 3 an unfair method of competition and unfair or deceptive act or 4 practice under section 507B.4. 5 8. Rules. The commissioner may adopt rules pursuant 6 to chapter 17A as necessary to administer and enforce this 7 section. 8 Sec. 2. Section 507B.4, subsection 3, Code 2026, is amended 9 by adding the following new paragraph: 10 NEW PARAGRAPH . w. Improper withdrawal of an 11 insurer. Failure of an insurer to comply with section 12 505.36. As used in this paragraph, “insurer” means the same as 13 defined in section 505.36, subsection 1. 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 withdrawal requirements for insurance 18 companies, insurance company affiliates, and other entities 19 engaged in the business of insurance. 20 The bill requires an insurer, prior to withdrawing, to file 21 a withdrawal plan (plan) with the commissioner of insurance 22 (commissioner) if the insurer intends to reduce the insurer’s 23 total annual premium volume in the state by 50 percent or more, 24 intends to reduce the insurer’s total annual premium in the 25 state in a line of insurance by 75 percent or more, or intends 26 to reduce the insurer’s total annual premium volume in the 27 state in a line of private passenger automobile insurance, 28 homeowners insurance, or dwelling property insurance by 50 29 percent or more. Withdrawal requirements do not apply to a 30 transfer of business from one insurer to another insurer that 31 are both within the same insurance holding company system 32 if the insurer to whom the business is being transferred is 33 authorized to engage in the business of insurance in the 34 state, and the business is not a reciprocal or interinsurance 35 -4- LSB 5418YC (3) 91 nls/ko 4/ 5

H.F. _____ exchange, a lloyd’s plan, or a state or county mutual insurance 1 association. “Insurer” is defined in the bill. 2 If the plan meets all of the requirements as described in 3 the bill, the commissioner shall approve the plan. If the 4 commissioner finds that a plan does not meet all requirements, 5 the commissioner may modify, restrict, limit, or deny the 6 withdrawal plan. 7 An insurer may request a hearing on the commissioner’s 8 decision as described in the bill. An insurer that withdraws 9 from writing all lines of insurance in the state shall not, 10 without prior approval of the commissioner, resume writing 11 insurance in the state for a minimum of five years. A 12 violation of the withdrawal requirements constitutes an unfair 13 method of competition and unfair or deceptive act or practice. 14 The commissioner may adopt rules to administer and enforce the 15 bill. 16 -5- LSB 5418YC (3) 91 nls/ko 5/ 5