23 February 2024news

Iowa to tweak captive regulations

Iowa’s Insurance Division is proposing to adopt a new Chapter 113, “Captive Companies,” in the Iowa Administrative Code.

This rulemaking is proposed under the authority provided in Iowa Code section 521J.26 and implements, in whole or in part, Iowa Code section 521J.26.

The proposed chapter establishes rules and procedures for implementation and administration of captive companies. The purpose of the proposed chapter is to set forth the financial, reporting, recordkeeping, and other requirements that the Iowa Insurance Commissioner deems necessary for the regulation of captive companies.

The captive company program will incur costs associated with captive companies over the next five years in terms of personnel and implementation costs. The introduction of captive companies to the state of Iowa and the tax on premiums of captive insurance will increase General Fund revenue; however, the amount cannot be determined. The Division anticipates that there will be an annual request for additional staffing and resources necessary to fully implement the program.

The Division believes that Iowa Code chapter 521J and the proposed rulemaking will have a moderate impact on private sector jobs and employment opportunities within the insurance industry.

Any interested person may submit written or oral comments concerning this proposed rulemaking. Written or oral comments in response to this rulemaking must be received by the Division no later than 4:30 p.m. on March 20, 2024. There will also be a number of public hearings on March 20.

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