Iowa Administrative Code

alternative asset and reserve accounting practices for eligible derivative assets and indexed products, respectively, in order to better match asset and reserve accounting as it relates to interest crediting for indexed products and to provide for a more true and fair representat…

“Eligible derivative asset” means: 1. A call or put option derivative asset that is purchased to hedge the growth in interest credited to an indexed product as a direct result of changes in the related external index or external indices, or 2. A call or put option derivative asse…

at amortized cost, if the insurance company can demonstrate that such eligible derivative assets meet all of the following criteria for an economic hedge: 97.4(1) At inception of the hedge, or as of the date that an insurance company elects to use the accounting practices prescri…

account for indexed annuity product reserves in accordance with Iowa Code section 508.11 and with the applicable actuarial guidelines and statutory accounting principles. Based on the current guidelines, this chapter provides insurance companies with the ability to make the follo…

indexed life product reserves in accordance with the applicable actuarial guidelines and statutory accounting principles. This chapter does not provide for any adjustment to the reserve calculation methodology for indexed life products. [ARC 8061B, IAB 8/26/09, effective 9/30/09]

97.7(1) Indexed annuity products. The alternative accounting practices prescribed by this chapter must be applied to both the indexed annuity product reserves and eligible derivative assets used to hedge indexed annuity products. 97.7(2) Indexed life products. The alternative acc…

Iowa Code section 505.8.

98.10(1) The insurer required to furnish the annual audited financial report shall require the independent certified public accountant to report, in writing, within five business days to the board of directors or its audit committee any determination by the independent certified …

to the annual audited financial report, each insurer shall furnish the commissioner with a written communication as to any unremediated material weaknesses in its internal control over financial reporting noted during the audit. Such communication shall be prepared by the account…

accountants’ work papers. Work papers are the records kept by the independent certified public accountant of the procedures followed, the tests performed, the information obtained, and the conclusions reached pertinent to the accountant’s audit of the financial statements of an i…

insurers licensed in this state or to an insurer that is a SOX compliant entity or a direct or indirect wholly owned subsidiary of a SOX compliant entity. 98.13(1) The audit committee shall be directly responsible for the appointment, compensation and oversight of the work of any…

98.14(1) An insurer is exempt from the requirements of this rule if: a. The insurer has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums but excluding premiums reinsured with the Federal Crop Insurance Corporation and Fe…

documents. 98.15(1) No director or officer of an insurer shall, directly or indirectly: a. Make or cause to be made a materially false or misleading statement to an accountant in connection with any audit, review or communication required under this chapter; or b. Omit to state, …

98.16(1) Every insurer required to file an audited financial report pursuant to this chapter that has annual direct written and assumed premiums, excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of $500 million or more shall prep…

98.17(1) Upon written application of any insurer, the commissioner may grant an exemption from compliance with any and all provisions of this chapter if the commissioner finds, upon review of the application, that compliance with this chapter would constitute a financial or organ…

insurer, in connection with, and for inclusion in, the filing of the annual audited financial report, a letter stating: 1. That the accountant is independent with respect to the insurer and conforms to the standards of the accountant's profession as contained in the Code of Profe…

annual audited financial report shall be defined as the annual statement of total business on the form filed by such companies with their supervisory authority, duly audited by an independent chartered accountant. For such insurers, the letter required in rule 191—98.6(505) shall…

surveillance of the financial condition of insurers by requiring an annual audit of financial statements reporting the financial position and the results of operations of insurers by independent certified public accountants, Communication of Internal Control Related Matters Noted…

to any person or circumstance is held invalid by a court, the remainder of the chapter or the applicability of its provision to other persons or circumstances shall not be affected. [ARC 3145C, IAB 6/21/17, effective 7/26/17]

[ARC 3145C, IAB 6/21/17, effective 7/26/17] These rules are intended to implement Iowa Code section 505.8. [Filed 10/15/08, Notice 9/10/08—published 11/5/08, effective 1/1/10] [Filed ARC 3145C (Notice ARC 3033C, IAB 4/26/17), IAB 6/21/17, effective 7/26/17] [Editorial change: IAC…

definitional guidance as the terms are used within this chapter. “Accountant” or “independent certified public accountant” means an independent certified public accountant or accounting firm in good standing with the American Institute of Certified Public Accountants (AICPA) and …

financial reports and audit committee appointment. 98.4(1) All insurers shall have an annual audit by an independent certified public accountant and shall file an audited financial report with the commissioner on or before June 1 for the year ended December 31 immediately precedi…

98.5(1) The annual audited financial report shall report the financial position of the insurer as of the end of the most recent calendar year and the results of its operations, cash flows and changes in capital and surplus for the year then ended in conformity with statutory acco…

chapter to file an annual audited financial report must, within 60 days after becoming subject to such requirement, register with the commissioner in writing the name and address of the independent certified public accountant or accounting firm retained to conduct the annual audi…

98.7(1) The commissioner shall not recognize any person or firm as a qualified independent certified public accountant that: a. Is not in good standing with the AICPA and in all states in which the accountant is licensed to practice, or, for a Canadian or British company, is not …

commissioner for approval to file audited consolidated or combined financial statements in lieu of separate annual audited financial statements if the insurer is part of a group of insurance companies which utilizes a pooling or 100 percent reinsurance agreement that affects the …

statements furnished pursuant to rule 191—98.5(505) shall be examined by the independent certified public accountant. The audit of the insurer’s financial statements shall be conducted in accordance with generally accepted auditing standards. In accordance with AU Section 319 of …

Iowa Code sections 505.8 and 508.33A. [ARC 9229B, IAB 11/17/10, effective 12/22/10; ARC 5515C, IAB 3/10/21, effective 4/14/21]

99.10(1) Notice of material transactions. An LPS shall not take any of the following actions unless the LPS provides the commissioner at least 30 days’ prior written notice and the commissioner expressly approves the action: a. The dissolution of the LPS. b. Any sale, exchange, l…

99.11(1) Administration of assets. The investment program developed by an LPS shall take into account the safety of the company’s assets, investment yield and return, stability in the value of the investment, and liquidity necessary to meet the company’s expected business needs a…

reinsurance contract. An investor in such a security or a holder of such a security shall not be considered to be transacting the business of insurance in this state solely by reason of having an interest in the security. The underwriter’s placement or selling agents and their pa…

99.13(1) An LPS may reinsure, pursuant to a reinsurance contract, only the risks of a ceding insurer. 99.13(2) Unless otherwise approved in advance by the commissioner, an LPS may not assume or retain exposure to reinsurance losses for its own account that are not funded by one o…

certificate of authority pursuant to subrule 99.5(2) and thereafter by March 1 of each year that an LPS is in operation and is ceded new business from a ceding insurer, a senior actuarial officer of each ceding insurer shall file with the commissioner a certification that the ced…

[ARC 9229B, IAB 11/17/10, effective 12/22/10] These rules are intended to implement Iowa Code sections 505.8 and 508.33A. [Filed ARC 9229B (Notice ARC 9080B, IAB 9/22/10), IAB 11/17/10, effective 12/22/10] [Filed ARC 5515C (Notice ARC 5389C, IAB 1/13/21), IAB 3/10/21, effective 4…

limited purpose subsidiary life insurance companies that are wholly owned by domestic insurers authorized to transact the business of insurance pursuant to Iowa Code chapter 508 and that may issue securities and otherwise access financial markets and alternative sources of capita…

“Affiliated companies” means domestic life insurance companies that are directly or indirectly wholly owned subsidiaries of the same parent. “Ceding insurer” means a domestic life insurance company that is an affiliated company of an LPS and that cedes risk to the LPS pursuant to…

99.4(1) An LPS’s organizational documents shall limit the LPS’s authority to transact the business of reinsurance to reinsure only the risks of a ceding insurer and shall state that the LPS shall not otherwise engage in the business of insurance. 99.4(2) An LPS’s organizational d…

99.5(1) Certificate of authority required. No LPS shall do any reinsurance business in this state unless it obtains from the commissioner a certificate of authority pursuant to this rule. 99.5(2) Application for certificate of authority. Before receiving a certificate of authorit…

99.6(1) An LPS shall not be issued a certificate of authority unless it possesses and thereafter maintains unimpaired paid-in capital and surplus of not less than $2.5 million. 99.6(2) The commissioner may prescribe additional tangible capital and surplus based upon the type, vol…

99.7(1) An LPS shall have a plan of operation approved by its board of directors. The plan of operation shall include all of the following: a. A complete description of all reinsurance transactions, reinsurance security arrangements, securitizations, and any other material transa…

not decrease the capital of the LPS below the minimum capital and surplus amount designated by the commissioner pursuant to rule 191—99.6(505,508), provided, however, that no dividend or distribution may be declared or paid by an LPS if such dividend or distribution would jeopard…

99.9(1) Notice of securitizations. An LPS shall provide the commissioner with a copy of a complete set of executed documentation of an insurance securitization no later than 45 days after the closing on the transactions for such securitization. 99.9(2) Notice of material change t…

accountancy examining board, architectural examining board, engineering and land surveying examining board, interior design examining board, landscape architectural examining board, real estate appraiser examining board, and real estate commission of the department of inspections…

individual board’s rules, abandoned applications are deemed withdrawn. An application is abandoned if the applicant has not accessed or modified the application through the electronic licensing database within the preceding six months. [ARC 8085C, IAB 7/10/24, effective 8/14/24] …

Code chapter 17A and section 10A.103 and apply to all matters before the professional licensing boards. No rule shall, in any way, relieve a person affected by or subject to these rules, or any person affected by or subject to the rules promulgated by the various boards from any …

“Administrator” means the director of the department of inspections, appeals, and licensing. “Board” means an examining board or commission within the department of inspections, appeals, and licensing. “Department” means the department of inspections, appeals, and licensing. “Lic…

coordinate the administrative support for the following boards: 1.4(1) The engineering and land surveying examining board is a seven-member board appointed by the governor and confirmed by the senate. The board administers Iowa Code chapter 542B, Professional Engineers and Land S…