Bill Text: IA SSB3069 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to life insurance company or association investments in foreign countries other than Canada, and including applicability provisions.(See SF 2288.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2022-02-14 - Committee report approving bill, renumbered as SF 2288. [SSB3069 Detail]
Download: Iowa-2021-SSB3069-Introduced.html
Senate
Study
Bill
3069
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
SCHULTZ)
A
BILL
FOR
An
Act
relating
to
life
insurance
company
or
association
1
investments
in
foreign
countries
other
than
Canada,
and
2
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
511.8,
subsection
19,
Code
2022,
is
1
amended
by
striking
the
subsection
and
inserting
in
lieu
2
thereof
the
following:
3
19.
Other
foreign
investments.
4
a.
Investments
issued
by,
or
investment
practices
with,
a
5
counterparty
outside
of
either
the
United
States
or
Canada
of
6
substantially
the
same
type
as
those
investments
permitted
for
7
a
life
insurance
company
or
association
under
this
section,
8
subject
to
the
following
conditions:
9
(1)
The
aggregate
amount
of
foreign
investments
held
by
a
10
life
insurance
company
or
association
under
this
subsection
11
does
not
exceed
twenty
percent
of
the
life
insurance
company’s
12
or
association’s
legal
reserve.
13
(2)
The
aggregate
amount
of
foreign
investments
held
under
14
this
subsection
by
a
life
insurance
company
or
association
15
in
a
foreign
jurisdiction
that
has
a
sovereign
debt
rating
16
of
SVO
1,
as
determined
by
the
securities
valuation
office
17
of
the
national
association
of
insurance
commissioners,
18
does
not
exceed
ten
percent
of
the
life
insurance
company’s
19
or
association’s
legal
reserves,
and
for
all
other
foreign
20
jurisdictions
does
not
exceed
three
percent
of
the
life
21
insurance
company’s
or
association’s
legal
reserve.
22
b.
Investments
acquired
under
this
subsection
shall
be
23
aggregated
with
investments
of
the
same
type
made
in
a
similar
24
manner
under
any
other
subsection
of
this
section
for
purposes
25
of
determining
compliance
with
any
limitations
contained
in
any
26
other
subsection
of
this
section.
27
c.
This
subsection
shall
not
limit
or
restrict
investments
28
in
Canadian
obligations
and
securities
specifically
authorized
29
in
any
other
subsection
of
this
section.
30
d.
This
subsection
shall
not
authorize
investments
issued,
31
assumed,
or
guaranteed
by
a
foreign
government
which
has
32
engaged
in
a
consistent
pattern
of
gross
violations
of
human
33
rights.
34
e.
Eligible
investments
in
foreign
obligations
under
this
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subsection
are
limited
to
the
types
of
obligations
specifically
1
referred
to
in
this
subsection.
2
Sec.
2.
APPLICABILITY.
This
Act
applies
to
funds
invested
3
by
a
life
insurance
company
or
association
in
a
foreign
country
4
other
than
Canada
on
or
after
January
1,
2023.
5
EXPLANATION
6
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
7
the
explanation’s
substance
by
the
members
of
the
general
assembly.
8
This
bill
allows
life
insurance
companies
(company)
and
9
associations
(association)
to
make
investments
issued
by,
or
10
investment
practices
with,
a
counterparty
outside
of
either
the
11
United
States
or
Canada
of
substantially
the
same
type
as
those
12
investments
permitted
for
a
company
or
association
under
Code
13
section
511.8,
if
the
aggregate
amount
of
foreign
investments
14
held
by
the
company
or
association
does
not
exceed
20
percent
15
of
the
company’s
or
association’s
legal
reserve,
does
not
16
exceed
10
percent
of
the
company’s
or
association’s
legal
17
reserve
if
the
foreign
jurisdiction
has
a
sovereign
debt
rating
18
of
SVO
1,
and
for
all
other
foreign
jurisdictions
does
not
19
exceed
3
percent
of
the
legal
reserve.
The
investments
must
be
20
aggregated
with
investments
of
the
same
type
made
in
a
similar
21
manner
under
all
other
subsections
of
Code
section
511.8
for
22
purposes
of
determining
compliance
with
any
limitations
under
23
those
subsections.
24
Under
current
law,
companies
and
associations
may
invest
25
in
bonds
or
other
evidences
of
indebtedness,
not
to
include
26
currency,
issued,
assumed,
or
guaranteed
by
a
foreign
27
government
other
than
Canada,
or
by
a
corporation
incorporated
28
under
the
laws
of
a
foreign
government
other
than
Canada.
Such
29
governmental
obligations
must
be
valid,
legally
authorized,
30
and
issued,
and
on
the
date
of
acquisition
have
predominantly
31
investment
qualities
and
characteristics
as
provided
by
32
administrative
rule.
The
corporate
obligations
have
to
33
meet
specific
qualifications
established
for
bonds
and
other
34
evidences
of
indebtedness
issued,
assumed,
or
guaranteed
by
a
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corporation
incorporated
under
the
laws
of
the
United
States
or
1
Canada.
Such
foreign
investments
cannot
exceed
25
percent
of
2
the
legal
reserve
of
the
company
or
association.
Investments
3
in
obligations
of
a
foreign
government,
other
than
Canada,
4
the
United
Kingdom
(UK),
and
foreign
governments
rated
AAA
by
5
Standard
and
Poor’s
division
of
McGraw-Hill
companies,
inc.
6
(S&P),
or
Aaa
by
Moody’s
investors
services,
inc.
(Moody’s),
7
cannot
be
in
excess
of
2
percent
of
the
legal
reserve
in
the
8
securities
of
foreign
governments
of
any
one
foreign
nation.
9
Investments
in
obligations
of
the
UK
cannot
exceed
4
percent
10
of
the
legal
reserve.
Investments
in
obligations
of
foreign
11
governments
rated
either
AAA
by
S&P,
or
Aaa
by
Moody’s,
cannot
12
exceed
5
percent
of
the
legal
reserve.
Investments
in
a
13
corporation
incorporated
under
the
laws
of
a
foreign
government
14
other
than
Canada
cannot
exceed
2
percent
of
the
legal
reserve
15
in
the
securities
of
any
one
foreign
corporation.
16
The
bill
applies
to
funds
invested
by
a
life
insurance
17
company
or
association
in
a
foreign
country
other
than
Canada
18
on
or
after
January
1,
2023.
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