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Senate File 2132 - EnrolledAn Actrelating to the legal reserve requirements of life
insurance companies.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 511.8, subsection 22, paragraph i,
subparagraph (2), Code 2020, is amended to read as follows:
(2) Securities pledged as collateral for financial
instruments used in highly effective hedging transactions as
defined in the national association of insurance commissioners’
statement of statutory accounting principles no.86 or the
national association of insurance commissioners’ statement
of statutory accounting principles no.108, together with
securities pledged to a counterparty, clearing organization,
or clearinghouse on an upfront basis in the form of initial
margin, independent amount, or other securities pledged as
a precondition of entering into highly effective hedging
transactions pursuant to subparagraph (1), are not eligible
in excess of ten percent of the legal reserve of the life
insurance company or association, less any financial
instruments used in hedging transactions held in the legal
reserve under this subsection and less any securities included
under subparagraph (3).
______________________________
CHARLES SCHNEIDERPresident of the Senate______________________________
PAT GRASSLEYSpeaker of the House I hereby certify that this bill originated in the Senate and is known as Senate File 2132, Eighty-eighth General Assembly.______________________________
W. CHARLES SMITHSONSecretary of the SenateApproved _______________, 2020______________________________
KIM REYNOLDSGovernorja/rn
insurance companies.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 511.8, subsection 22, paragraph i,
subparagraph (2), Code 2020, is amended to read as follows:
(2) Securities pledged as collateral for financial
instruments used in highly effective hedging transactions as
defined in the national association of insurance commissioners’
statement of statutory accounting principles no.86 or the
national association of insurance commissioners’ statement
of statutory accounting principles no.108, together with
securities pledged to a counterparty, clearing organization,
or clearinghouse on an upfront basis in the form of initial
margin, independent amount, or other securities pledged as
a precondition of entering into highly effective hedging
transactions pursuant to subparagraph (1), are not eligible
in excess of ten percent of the legal reserve of the life
insurance company or association, less any financial
instruments used in hedging transactions held in the legal
reserve under this subsection and less any securities included
under subparagraph (3).
______________________________
CHARLES SCHNEIDERPresident of the Senate______________________________
PAT GRASSLEYSpeaker of the House I hereby certify that this bill originated in the Senate and is known as Senate File 2132, Eighty-eighth General Assembly.______________________________
W. CHARLES SMITHSONSecretary of the SenateApproved _______________, 2020______________________________
KIM REYNOLDSGovernorja/rn