Bill Text: IA SF2132 | 2019-2020 | 88th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act relating to the legal reserve requirements of life insurance companies. (Formerly SSB 3003.) Effective date: 07/01/2020.
Spectrum: Committee Bill
Status: (Passed) 2020-03-12 - Signed by Governor. S.J. 615. [SF2132 Detail]
Download: Iowa-2019-SF2132-Introduced.html
Bill Title: A bill for an act relating to the legal reserve requirements of life insurance companies. (Formerly SSB 3003.) Effective date: 07/01/2020.
Spectrum: Committee Bill
Status: (Passed) 2020-03-12 - Signed by Governor. S.J. 615. [SF2132 Detail]
Download: Iowa-2019-SF2132-Introduced.html
Senate
File
2132
-
Introduced
SENATE
FILE
2132
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
SSB
3003)
A
BILL
FOR
An
Act
relating
to
the
legal
reserve
requirements
of
life
1
insurance
companies.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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S.F.
2132
Section
1.
Section
511.8,
subsection
22,
paragraph
i,
1
subparagraph
(2),
Code
2020,
is
amended
to
read
as
follows:
2
(2)
Securities
pledged
as
collateral
for
financial
3
instruments
used
in
highly
effective
hedging
transactions
as
4
defined
in
the
national
association
of
insurance
commissioners’
5
statement
of
statutory
accounting
principles
no.
86
or
the
6
national
association
of
insurance
commissioners’
statement
7
of
statutory
accounting
principles
no.
108
,
together
with
8
securities
pledged
to
a
counterparty,
clearing
organization,
9
or
clearinghouse
on
an
upfront
basis
in
the
form
of
initial
10
margin,
independent
amount,
or
other
securities
pledged
as
11
a
precondition
of
entering
into
highly
effective
hedging
12
transactions
pursuant
to
subparagraph
(1),
are
not
eligible
13
in
excess
of
ten
percent
of
the
legal
reserve
of
the
life
14
insurance
company
or
association,
less
any
financial
15
instruments
used
in
hedging
transactions
held
in
the
legal
16
reserve
under
this
subsection
and
less
any
securities
included
17
under
subparagraph
(3).
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
Life
insurance
companies
may
invest
in,
among
other
things,
22
certain
financial
instruments
used
in
hedging
transactions
23
to
satisfy
their
legal
reserve
requirements.
A
maximum
of
24
10
percent
of
a
life
insurance
company’s
legal
reserve
may
25
be
held
in
the
form
of
securities
pledged
as
collateral
in
26
highly
effective
hedging
transactions.
Currently,
the
term
27
“highly
effective
hedging
transaction”
is
defined
in
Code
28
section
511.8
by
reference
to
the
definition
contained
in
the
29
national
association
of
insurance
commissioners’
statement
of
30
statutory
accounting
principles
no.
86.
This
bill
modifies
31
the
definition
of
“highly
effective
hedging
transaction”
32
to
also
include
the
definition
of
highly
effective
hedging
33
transaction
contained
in
the
national
association
of
insurance
34
commissioners’
statement
of
statutory
account
principles
no.
35
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