Iowa Administrative Code

chapter applies, as set forth in rule 191—112.3(521B), shall take any action or series of actions, or enter into any transaction or arrangement or series of transactions or arrangements, if the purpose of such action, transaction or arrangement or series thereof is to avoid the r…

vested in the commissioner by Iowa Code section 521J.26. [ARC 7869C, IAB 4/17/24, effective 5/22/24]

certified public accountant to immediately notify an officer and all members of the board of directors of the captive company in writing of any determination by the independent certified public accountant that the captive company has materially misstated its financial condition i…

113.11(1) Whenever the commissioner deems that the financial condition of a captive company warrants additional security, the commissioner may require the captive company to deposit, in trust for the captive company, cash, securities approved by the commissioner, or an irrevocabl…

accountant. 113.12(1) Each captive company shall require its independent certified public accountant to make all work papers prepared in the conduct of the audit of the captive company available for review by the commissioner or the commissioner’s appointed agent. The captive com…

organizational investigation or examination may be performed before an applicant captive company is licensed. Such examination or investigation shall consist of a general review of the applicant captive company’s corporate records, including articles of incorporation, charters, b…

113.14(1) A captive company authorized to do business in this state may take credit for reserves on risk ceded to a reinsurer subject to the following requirements: a. No credit shall be allowed for reinsurance where the reinsurance contract does not result in the complete transf…

broker, producer, salesman, or reinsurance intermediary for captive business without authorization of the commissioner. Application for such authorization must be on a form prescribed by the commissioner. [ARC 7869C, IAB 4/17/24, effective 5/22/24]

113.16(1) Every captive company shall report any change in its executive officers or directors to the commissioner within 30 days after a change is made, including, in its report, a biographical affidavit of any new executive officer or director. 113.16(2) No director, officer or…

113.17(1) Each captive company licensed in Iowa is required to adopt a conflict of interest statement for officers, directors, and key employees. The statement shall disclose that the individual has no outside commitments, personal or otherwise, that would divert the individual f…

shall make a tender offer for, or enter into any agreement to exchange securities for, or seek to acquire, or acquire in the open market or otherwise, any interest in a domestic captive company if, after the consummation thereof, such person would, directly or indirectly (or by c…

license of a captive company or place the same on probation on the following grounds: 113.19(1) The captive company has not commenced business according to its plan of operation within two years of being licensed; 113.19(2) The captive company has ceased to write business; 113.19…

recordkeeping, and other requirements that the commissioner deems necessary for the regulation of captive companies. [ARC 7869C, IAB 4/17/24, effective 5/22/24]

113.20(1) Any material change in a captive company’s business plan that was filed with the commissioner at the time of initial application and any subsequent amendment of the plan requires prior approval of the commissioner. 113.20(2) Any change in any other information filed wit…

113.21(1) Any person who wants to form a captive company shall make application to the commissioner for authority to conduct a captive company using the Application to Form a Captive Company. 113.21(2) One complete copy of the application, including forms, attachments, exhibits, …

191—1.1(502,505), the following definitions apply: “Captive manager” means a person who is on the Iowa approved captive management firms list and, pursuant to a written contract with a captive company, provides and coordinates services including but not limited to accounting, sta…

113.4(1) A captive company authorized in this state shall file an annual report of its financial condition with the commissioner as required by Iowa Code section 521J.7(1). The report shall be verified by oath of at least two individuals who are executive officers of the captive …

113.5(1) The commissioner may limit the net amount of risk a captive company retains for a single risk after considering the impact of the retention on the captive company’s capital and surplus. 113.5(2) The commissioner may also prescribe and demand additional capital and surplu…

113.6(1) All companies shall have an annual audit by an independent certified public accountant, approved by the commissioner, and shall file such audited financial report with the commissioner on or before June 1 for the preceding year. Financial statements furnished under this …

113.7(1) All companies shall submit an annual statement of actuarial opinion by a qualified actuary, evaluating the company’s loss reserves and loss expense reserves or life and health policy and claim reserves. The statement of actuarial opinion shall conform to the Standards of…

113.8(1) Captive companies, after becoming subject to this rule, shall within 90 days report to the commissioner in writing the name and address of the independent certified public accountant retained to conduct the annual audit set forth in this rule. 113.8(2) A certified public…

commissioner for approval to submit a consolidated annual audit in lieu of separate annual audits if the company is part of a group of entities that consolidates its annual audit. In such cases, a consolidating or combining worksheet shall be prepared with the annual audit as fol…

(one domiciled outside of the United States) must comply with to be considered as a domestic insurer of this state under port of entry authority. An alien insurer may hold this status only after compliance with all of the requirements of this chapter and approval by the commissio…

with a financial institution meeting the requirements of rule 191—32.4(508) or other financial institution approved by the commissioner. The following requirements for the account exist: 12.2(1) The minimum amount of assets to be held in trust must equal the total United States l…

conducted of the alien insurer seeking domestic insurer status. Reasonable expenses of the examination shall be paid by the insurer directly to the insurance division’s revolving fund. The commissioner may designate certain insurance regulatory or supervisory authorities, bodies,…

insurer, the surplus required shall be $5 million. If preferred supervision has not been determined to exist, the commissioner may require such additional amount of surplus as the commissioner deems appropriate.

same investment requirements as are imposed upon domestic insurers under Iowa Code chapter 511 or 515. If chapter 511 is applicable, and the concept of “legal reserve” is not meaningful with regard to the insurer, then “legal reserve” shall mean admitted assets of the insurer. Th…

“Act” means the Violent Crime Control and Law Enforcement Act of 1994, Public Law 103-322, H.R. 3355; 18 U.S.C. Sections 1033 and 1034. “Applicant” means any person subject to the provisions of 18 U.S.C. Sections 1033 and 1034 who files an application for consent to engage in the…

18 U.S.C. Section 1033 and Iowa Code section 522B.16B. The Iowa insurance commissioner has jurisdiction under 18 U.S.C. Section 1033 to grant requests for consent to engage in the business of insurance. [ARC 8309B, IAB 11/18/09, effective 12/23/09; ARC 4910C, IAB 2/12/20, effecti…

insurance without the consent of the commissioner or otherwise in violation of this chapter shall be deemed to be in violation of Iowa Code section 522B.2 and is subject to the penalties provided in Iowa Code section 522B.17. [ARC 8309B, IAB 11/18/09, effective 12/23/09; ARC 4910…

13.3(1) A prohibited person shall not engage in or transact the business of insurance in the state of Iowa without the consent of the commissioner of insurance of the person’s resident state. 13.3(2) A prohibited person who is a resident of Iowa must receive a consent from the co…

application for consent as set forth in this rule. 13.4(1) Except as provided in subrule 13.4(2), a prohibited person who is, or seeks to be, employed in any capacity in the business of insurance in Iowa must complete and file an application for consent, in a format prescribed by…

13.5(1) The commissioner shall have the sole discretion to grant or deny an application for consent to engage in or transact the business of insurance. 13.5(2) Each decision of whether or not to grant consent to engage in or transact the business of insurance to a prohibited pers…

13.6(1) The commissioner must consider the following when reviewing a completed application: a. The information submitted by the applicant; b. The factors set forth in subrule 13.5(2); and c. Any mitigating or aggravating circumstances. 13.6(2) At the commissioner’s discretion, t…

issued by the commissioner shall be effective only so long as the prohibited person remains in the same or similar job position with the same or similar responsibilities to which the person attested in the initial request for consent. A material change in job responsibilities req…

13.8(1) Failure to disclose. In the event that the division determines that the prohibited person receiving the consent made materially false or misleading statements, or failed to disclose material information in the application for consent, the consent shall be suspended or rev…

evidence at a hearing regarding a request for consent is on the prohibited person. The person shall have to demonstrate by clear and convincing evidence that the person is not a threat to the public interest and public safety. [ARC 8309B, IAB 11/18/09, effective 12/23/09]

illustrations that will protect consumers and foster consumer education. These rules provide illustration formats, prescribe standards to be followed when illustrations are used, and specify the disclosures that are required in connection with illustrations. The goals of these ru…

14.10(1) In the case of a policy designated as one for which illustrations will be used, the insurer shall provide each policyowner with an annual report on the status of the policy that shall contain at least the following information: a. For universal life policies, the report …

14.11(1) The board of directors of each insurer shall appoint one or more illustration actuaries. 14.11(2) The illustration actuary shall certify that the disciplined current scale used in illustrations is in conformity with the Actuarial Standard of Practice for Compliance with …

insurer or producer that violates a requirement of these rules shall be found to have committed a violation of Iowa Code section 507B.4. [ARC 7733C, IAB 3/20/24, effective 4/24/24]

circumstance is for any reason held to be invalid by any court of law, the remainder of the rules and their application to other persons or circumstances shall not be affected. [ARC 7733C, IAB 3/20/24, effective 4/24/24]

on or after February 1, 1997. [ARC 7733C, IAB 3/20/24, effective 4/24/24] These rules are intended to implement Iowa Code chapter 507B. [Filed 10/4/96, Notice 7/3/96—published 10/23/96, effective 2/1/97] [Filed ARC 7733C (Notice ARC 7348C, IAB 1/24/24), IAB 3/20/24, effective 4/2…

under Iowa Code section 507B.4. [ARC 7733C, IAB 3/20/24, effective 4/24/24]

policies and certificates except: 1. Variable life insurance; 2. Individual and group annuity contracts; 3. Credit life insurance; or 4. Life insurance policies or certificates with initial face amounts of $10,000 or less. [ARC 7733C, IAB 3/20/24, effective 4/24/24]…

“Actuarial Standards Board” means the board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice. “Contract premium” means the gross premium that is required to be paid under a fixed premium policy, including the premium for a…

14.5(1) Each insurer marketing policies to which these rules are applicable shall notify the commissioner whether a policy form is to be marketed with or without an illustration. For policy forms filed after February 1, 1997, the illustration identification shall be made at the t…

14.6(1) An illustration used in the sale of a life insurance policy shall satisfy the applicable requirements of these rules, be clearly labeled “life insurance illustration” and contain the following basic information: a. Name of insurer; b. Name and business address of producer…

14.7(1) Format. A basic illustration shall conform with the following requirements: a. The illustration shall be labeled with the date on which it was prepared. b. Each page, including any explanatory notes or pages, shall be numbered and show its relationship to the total number…