All Roll Calls
Yes: 135 • No: 1
IowaHF 276691st General Assembly (2025–2026)House
A bill for an act relating to captive insurance companies and life captive reinsurance companies, and including civil penalties. (Formerly HSB 756.) Effective date: 07/01/2026.
Sponsored By: COMMITTEE ON WAYS AND MEANS
Signed by Governor
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Bill Overview
Analyzed Economic Effects
15 provisions identified: 3 benefits, 3 costs, 9 mixed.
Captive insurers gain another risk-transfer option
Beginning July 1, 2026, captive insurers can apply for authority to accept or transfer risk through parametric contracts. Their organizational documents must allow that activity. The new option remains subject to the law's licensing requirements and exceptions.
Captive insurers lose initial registration fees
Beginning July 1, 2026, captive insurers, individual limited liability company series, and protected cells no longer pay initial registration fees. Their annual renewal fee remains $300 each. The law does not state the amount of the removed initial fee.
Lower capital requirements for protected-cell insurers
Beginning July 1, 2026, the minimum capital and surplus requirement for protected-cell captive insurers drops from $500,000 to $100,000. That is a $400,000 reduction. Each protected cell must remain a separate business entity, but it no longer has to be incorporated.
Life reinsurers face ownership and recordkeeping rules
Beginning July 1, 2026, organizing companies must report ownership interests in life captive reinsurers using the reinsurer's audited statutory surplus. Life captive reinsurers must keep original records in Iowa unless the commissioner approves an exception. Records must support financial and compliance checks and remain available until the commissioner approves destruction or another disposition. Electronic storage and reproduction are allowed.
Life reinsurers face strict business limits
Beginning July 1, 2026, licensed life captive reinsurers can reinsure only a ceding insurer's risks, not conduct other insurance business. Without advance approval, retained losses must be funded by securitization proceeds, ceding-insurer payments, letters of credit, parent guarantees, or specified investment returns. Passing assumed risks to another reinsurer needs prior approval; related contracts and business activities need operating-plan coverage or advance approval. Contract payments can go only to the ceding insurer or its receiver unless the commissioner first approves another recipient. These companies cannot join or contribute to Iowa plans, pools, associations, or guaranty or insolvency funds.
Life reinsurers need major-transaction approval
Beginning July 1, 2026, life captive reinsurers must give 30 calendar days' written notice and obtain express approval before specified major actions. These include dissolution, transferring more than 30% of assets, taking on material debt, merging, changing home jurisdictions, or ending business. Companies must submit periodic written requests before paying principal or interest on surplus notes or other debt. The commissioner cannot approve debt payments that jeopardize the company's or another person's ability to meet obligations.
Captive insurers face revised filing oversight
Beginning July 1, 2026, captive insurers need commissioner approval before filing organizational documents or amendments with the secretary of state. License applicants no longer need a certified copy of their organizational document, but the commissioner can request additional materials. Annual reports are required, with a commissioner-directed exception available during the first license year. Iowa's insurer reorganization rules apply to mergers, consolidations, conversions, mutualizations, and voluntary dissolutions, subject to the captive-law exceptions. The commissioner can adopt rules to administer the captive law, but is no longer required to do so.
Captive insurers gain more organizational choices
Beginning July 1, 2026, captive insurers can use Iowa's domestic corporation process by filing articles and paying required fees. With insurance commissioner approval, they can organize as business entities or reciprocal insurers. Reciprocal insurers must follow Iowa's reciprocal-insurer rules unless the commissioner approves an exemption in their operating plan. Captive insurance rules control when the two sets of rules conflict. Reciprocal captives need one Iowa resident on their advisory committee; captive risk retention groups previously needed five.
Captive insurers gain supervised investment flexibility
Beginning July 1, 2026, captive insurers can use commissioner-approved marketable securities for any part of their required capital and surplus. The commissioner can require more frequent financial reports when they do. For captives reporting under $5 million in total assets, the commissioner can approve up to 20% of admitted assets in a rated credit instrument. Total assets must use an approved accounting basis and be reasonably liquid, realizable, and available to meet company obligations.
Dormant life reinsurers get temporary relief
Beginning July 1, 2026, Iowa-based life captive reinsurers can apply for a five-year dormancy certificate that cannot be renewed. During dormancy, they must keep $25,000 in unimpaired paid-in capital and surplus and are exempt from the specified premium-tax provision. They must file annual financial-condition reports within 90 calendar days after fiscal year-end. A $1,000 annual dormancy tax is due March 1 after any calendar year in which they held the certificate. The commissioner can examine them annually, must revoke certificates for violations, and must approve surrender before policies are issued and business resumes.
Insurer filings get privacy with exceptions
Beginning July 1, 2026, captive and life captive submissions generally remain confidential without advance written company consent. Captive annual financial reports are public unless commissioner rules provide otherwise. Life captive information can be disclosed through qualifying court proceedings or protected sharing with public officials. Captive premium tax returns stay private, with limited sharing under agreements with specified federal or state officials. Willful or reckless publication by current or former state officers or employees is a serious misdemeanor and requires dismissal or discharge.
Life reinsurers gain assets with safeguards
Beginning July 1, 2026, life captive reinsurers can count securitization proceeds, ceding-insurer payments, letters of credit, parent guarantees, and approved assets toward regulatory assets. Before reducing previously approved amounts, the commissioner must give 30 calendar days' notice and a chance to fix problems; national insurance accounting rules provide an exception. The commissioner selects Iowa's statutory investment rules or a cash-and-investment-grade standard; up to 10% of assets can be lower-rated, subject to exclusions. Investment programs must consider safety, returns, stability, liquidity, and diversification. Loans and investments need operating-plan permission or prior written approval and approved documentation; minimum capital and surplus cannot be lent.
Life reinsurers get licensing with fees
Beginning July 1, 2026, life captive reinsurers have a licensing path for viable, lawful plans that do not endanger ceding insurers. They pay a nonrefundable $2,500 application fee, possible outside-expert costs, and $2,500 for each annual renewal. Companies need an Iowa principal office, an annual Iowa board meeting, an Iowa-resident director, a registered agent, and approved articles and bylaws. Application changes must be reported within 30 calendar days; after a material change, business must wait for approval of supporting documents. Names cannot match or be confused with registered Iowa businesses, and companies need not join a rating organization.
Reinsurance securities gain exemptions and disclosures
Beginning July 1, 2026, securities issued by life captive reinsurers are not regulated as insurance or reinsurance contracts. Holding or investing in them alone does not make someone an insurance business in Iowa. Specified participants also avoid insurance-producer or broker status solely for related securitization underwriting work. Issuers must tell prospective investors whether all or part of the proceeds will fund obligations to the ceding insurer.
Moving captive insurers gain tax deferrals
Beginning July 1, 2026, foreign or alien captives moving their home jurisdiction to Iowa owe Iowa premium tax only on premiums paid after the move. They can elect to forgo payment for the move year or the next calendar year. Surrendering the Iowa license or moving elsewhere within five years makes that tax immediately due, plus 10% per year from its original due date. This treatment does not apply to tax years beginning January 1, 2030, or later.
Sponsors & Cosponsors
Sponsor
COMMITTEE ON WAYS AND MEANS
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 4/21/2026
Passed Senate
Yes: 44 • No: 0
House vote • 4/20/2026
Passed House
Yes: 91 • No: 1
Actions Timeline
Fiscal note.
5/27/2026legislatureSigned by Governor.
5/15/2026HouseReported correctly enrolled, signed by Speaker and President, and sent to Governor.
5/6/2026HouseMessage from Senate.
4/21/2026HouseImmediate message.
4/21/2026SenatePassed Senate, yeas 44, nays 0.
4/21/2026SenateSubstituted for SF 2499.
4/21/2026SenateRead first time, attached to SF 2499.
4/21/2026SenateMessage from House.
4/21/2026SenateImmediate message.
4/20/2026HousePassed House, yeas 91, nays 1.
4/20/2026HouseAmendment H-8379 adopted.
4/20/2026HouseAmendment H-8379 filed.
4/16/2026HouseFiscal note.
4/16/2026legislatureIntroduced, placed on Ways and Means calendar.
4/13/2026House
Bill Text
As Introduced
Enrolled
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