House
Study
Bill
652
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
LUNDGREN)
A
BILL
FOR
An
Act
relating
to
the
reorganization
of
county
and
state
1
mutual
insurance
associations.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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H.F.
_____
Section
1.
Section
515G.1,
subsection
5,
Code
2024,
is
1
amended
to
read
as
follows:
2
5.
“Mutual
insurer”
means
a
domestic
mutual
property
and
3
casualty
insurance
company
organized
and
licensed
under
chapter
4
515
,
518,
or
518A
.
5
Sec.
2.
NEW
SECTION
.
518.4A
Reorganization.
6
A
county
mutual
insurance
association
may
reorganize
by
7
forming
a
mutual
insurance
holding
company
pursuant
to
section
8
521A.14,
and
the
reorganized
stock
insurer
shall
continue
to
be
9
regulated
pursuant
to
this
chapter.
10
Sec.
3.
NEW
SECTION
.
518A.1B
Reorganization.
11
A
state
mutual
insurance
association
may
reorganize
by
12
forming
a
mutual
insurance
holding
company
pursuant
to
section
13
521A.14,
and
the
reorganized
stock
insurer
shall
continue
to
be
14
regulated
pursuant
to
this
chapter.
15
Sec.
4.
Section
521A.14,
subsection
1,
paragraph
a,
Code
16
2024,
is
amended
to
read
as
follows:
17
a.
A
domestic
mutual
insurance
company,
including
18
but
not
limited
to
a
county
mutual
insurance
association
19
organized
under
chapter
518
or
a
state
mutual
insurance
20
association
organized
under
chapter
518A,
upon
approval
of
the
21
commissioner,
may
reorganize
by
forming
an
insurance
holding
22
company
based
upon
a
mutual
plan
and
continuing
the
corporate
23
existence
of
the
reorganizing
insurance
company
as
a
stock
24
insurance
company.
The
commissioner,
after
a
public
hearing
25
as
provided
in
section
521A.3,
subsection
4
,
paragraph
“b”
,
if
26
satisfied
that
the
interests
of
the
policyholders
are
properly
27
protected
and
that
the
plan
of
reorganization
is
fair
and
28
equitable
to
the
policyholders,
may
approve
the
proposed
plan
29
of
reorganization
and
may
require
as
a
condition
of
approval
30
such
modifications
of
the
proposed
plan
of
reorganization
31
as
the
commissioner
finds
necessary
for
the
protection
of
32
the
policyholders’
interests.
The
commissioner
may
retain
33
consultants
as
provided
in
section
521A.3,
subsection
4
,
34
paragraph
“d”
.
A
reorganization
pursuant
to
this
section
35
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_____
is
subject
to
section
521A.3,
subsections
1,
2,
and
3
.
The
1
commissioner
shall
retain
jurisdiction
over
a
mutual
insurance
2
holding
company
organized
pursuant
to
this
section
to
assure
3
that
policyholder
interests
are
protected.
4
EXPLANATION
5
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
6
the
explanation’s
substance
by
the
members
of
the
general
assembly.
7
This
bill
relates
to
the
reorganization
of
county
and
state
8
mutual
insurance
associations.
9
The
bill
expands
the
current
definition
of
a
mutual
insurer
10
to
include
a
domestic
mutual
property
and
casualty
insurance
11
company
organized
and
licensed
under
Code
chapter
518
or
Code
12
chapter
518A.
13
The
bill
authorizes
a
county
mutual
insurance
association
14
or
state
mutual
insurance
association
to
reorganize
by
forming
15
a
mutual
insurance
holding
company
pursuant
to
Code
section
16
521A.14,
and
the
reorganized
stock
insurer
shall
continue
to
be
17
regulated
pursuant
to
Code
chapter
518,
or
Code
chapter
518A,
18
respectively.
19
The
bill
authorizes
a
county
or
state
mutual
insurance
20
association
organized
under
Code
chapter
518
or
Code
chapter
21
518A,
in
addition
to
a
domestic
mutual
insurance
company
under
22
current
law,
to
reorganize,
upon
approval
of
the
commissioner,
23
by
forming
an
insurance
holding
company
pursuant
to
the
24
requirements
of
Code
section
521A.14.
25
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