reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 97 - Accounting for Certain Derivative Instruments Used to Hedge the Growth in Interest Credited for Indexed Insurance Products and Accounting for the Indexed Insurance Products Reserve › Rule 191-97.3 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
For the purposes of this chapter, the following definitions
				  shall apply:
"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 asset that is written to
				  offset all or a portion of a call or put option derivative asset that meets the
				  criteria set forth in paragraph "1" of this definition.
Other derivative instruments, such as index futures, swaps
				  and "swaptions," that may be used to hedge the growth in interest credited to
				  indexed products as a direct result of changes in the related external index or
				  external indices are not eligible derivative assets because an amortized cost
				  for such instruments does not exist.
"External index"
means an index of publicly
				  traded securities that is published or disseminated by a source external to the
				  insurance company, such as, but not limited to, the Standard & Poor's 500
				  Composite Stock Index (the S&P 500®; Index), the Nasdaq-100 Index®,
				  the Dow Jones Industrial AverageSM, the Hang Seng
				  Index, and the Dow Jones EURO STOXX 50® Index.
"Indexed annuity products"
means fixed
				  indexed annuity contracts that:
1. Provide a minimum guaranteed interest accumulation on a
				  portion of all premium payments, and
2. Include interest crediting provisions under which interest
				  (which may be subject to caps, participation rates, spreads, terms or similar
				  limitations) is credited based upon the performance of one or more external
				  indices.
"Indexed life products "
means fixed indexed
				  life insurance policies that:
1. Provide a minimum guaranteed interest accumulation on a
				  portion of all premium payments, and
2. Include interest crediting provisions under which interest
				  (which may be subject to caps, participation rates, spreads, terms or similar
				  limitations) is credited based upon the performance of one or more external
				  indices.
"Indexed products "
means indexed annuity
				  products and indexed life products.
"Interest crediting period"
means the period
				  of time over which the performance of an external index or external indices is
				  measured for purposes of determining the amount of interest credited under an
				  indexed product.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 97 - Accounting for Certain Derivative Instruments Used to Hedge the Growth in Interest Credited for Indexed Insurance Products and Accounting for the Indexed Insurance Products Reserve › Rule 191-97.4 - Asset Accounting

Current through Register Vol. 47, No. 3, July 24, 2024
Insurance companies may elect to account for eligible
				  derivative assets at amortized cost, if the insurance company can demonstrate
				  that such eligible derivative assets meet all of the following criteria for an
				  economic hedge:
At inception of the hedge, or as of the date that an
				  insurance company elects to use the accounting practices prescribed by this
				  chapter if later, there must be formal documentation of the economic hedging
				  relationship and the insurance company's risk management objective and strategy
				  for undertaking the economic hedge, including identification of the specific
				  eligible derivative assets purchased to hedge indexed products, the nature of
				  the particular risk being hedged, and how the eligible derivative assets'
				  effectiveness will be assessed, retrospectively and prospectively, on a
				  qualitative basis.
At inception of the hedge, or as of the date that an
				  insurance company elects to use the accounting practices prescribed by this
				  chapter if later, and at the end of each quarterly reporting period thereafter,
				  the insurance company must maintain documentation that the economic hedge is
				  expected to be and continues to be highly effective as defined by the criteria
				  in 97.4(1) in achieving offsetting changes in fair value attributable to the
				  hedged risk during the period that the economic hedge is
				  designated.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 97 - Accounting for Certain Derivative Instruments Used to Hedge the Growth in Interest Credited for Indexed Insurance Products and Accounting for the Indexed Insurance Products Reserve › Rule 191-97.5 - Indexed Annuity Product Reserve Calculation Methodology

Current through Register Vol. 47, No. 3, July 24, 2024
Insurance companies account for indexed annuity product
				  reserves in accordance with Iowa Code section
				  50811. 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 following adjustment to their indexed annuity product
				  reserves:
Insurance companies determine indexed annuity product
				  reserve calculations based on the Actuarial Guideline XXXV reserve, assuming
				  the market value of the eligible derivative assets associated with the current
				  interest crediting period is zero, regardless of the observable market for such
				  eligible derivative assets.
At the conclusion of each interest crediting period,
				  interest credited to an indexed annuity product is reflected in the reserve as
				  realized, based on the actual performance of the relevant external index or
				  external indices.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 97 - Accounting for Certain Derivative Instruments Used to Hedge the Growth in Interest Credited for Indexed Insurance Products and Accounting for the Indexed Insurance Products Reserve › Rule 191-97.6 - Indexed Life Product Reserve Calculation Methodology

Current through Register Vol. 47, No. 3, July 24, 2024
Insurance companies account for 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.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 97 - Accounting for Certain Derivative Instruments Used to Hedge the Growth in Interest Credited for Indexed Insurance Products and Accounting for the Indexed Insurance Products Reserve › Rule 191-97.7 - Other Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
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.
Indexed life products. The alternative accounting practices
				  prescribed by this chapter must be applied only to eligible derivative assets
				  used to hedge indexed life products. This chapter shall not impact the
				  calculation of indexed life product reserves.
If an insurance company elects to use the alternative
				  accounting practices prescribed by this chapter, it shall report quarterly to
				  the company regulation bureau of the Iowa insurance division, for analysis
				  purposes, the market value of its eligible derivative assets and what the
				  Actuarial Guideline XXXV reserves would be using market value of such eligible
				  derivative assets.
Application of this chapter is not mandatory. An insurance
				  company that elects to use the alternative accounting practices prescribed by
				  this chapter may not elect to change its accounting practices back to those
				  that would apply in the absence of this chapter without the prior approval of
				  the Iowa insurance commissioner
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 98 - Annual Financial Reporting Requirements › Rule 191-98.2 - Purpose

Current through Register Vol. 47, No. 3, July 24, 2024
The purpose of this chapter is to improve the Iowa insurance
				  division's 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 in an Audit, and
				  Management's Report of Internal Control Over Financial Reporting.
(1) Every insurer (as defined in rule
				191-98.3(505)) shall be subject to this chapter. Insurers having direct
				premiums written in this state of less than $1 million in any calendar year and
				less than 1,000 policyholders or certificate holders of direct written policies
				nationwide at the end of the calendar year shall be exempt from this chapter
				for such year (unless the commissioner makes a specific finding that compliance
				is necessary for the commissioner to carry out statutory responsibilities),
				except that insurers having assumed premiums pursuant to contracts or treaties
				of reinsurance of $ 1 million or more will not be so exempt.
(2) Foreign or alien insurers filing the
				audited financial report in another state, pursuant to that state's requirement
				for filing of audited financial reports, which has been found by the
				commissioner to be substantially similar to the requirements herein, are exempt
				from rules
				191-984.
				(505) through
				191-9812.
				(505) and
				191-9818.
				(505) if:
a. A copy of the audited financial
				report, Communication of Internal Control Related Matters Noted in an Audit,
				and the letter to the insurer with the accountant's qualifications that are
				filed with such other state are filed with the commissioner in accordance with
				the filing dates specified in rules
				191-984.
				(505),
				191-9811.
				(505), and
				191-9818.
				(505), respectively (Canadian insurers may submit accountants' reports as filed
				with the Office of the Superintendent of Financial Institutions
				Canada).
b. A copy of any
				Notification of Adverse Financial Condition Report filed with such other state
				is filed with the commissioner within the time specified in rule
				191-9810.
				(505).
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 98 - Annual Financial Reporting Requirements › Rule 191-98.4 - General Requirements Related to Filing and Extensions for Filing of Annual Audited Financial Reports and Audit Committee Appointment

Current through Register Vol. 47, No. 3, July 24, 2024
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
				  preceding. The commissioner may require an insurer to file an audited financial
				  report earlier than June 1 with 90 days' advance notice to the insurer
Extensions of the June 1 filing date may be granted by the
				  commissioner for 30-day periods upon showing by the insurer and its independent
				  certified public accountant the reasons for requesting such extension and
				  determination by the commissioner of good cause for an extension. The request
				  for extension must be submitted in writing not less than ten days prior to the
				  due date in sufficient detail to permit the commissioner to make an informed
				  decision with respect to the requested extension.
If an extension is granted in accordance with the provisions
				  of rule 98.4(505), a similar extension of 30 days is granted to the filing of
				  Management's Report of Internal Control Over Financial Reporting.
Every insurer required to file an annual audited financial
				  report pursuant to this chapter shall designate a group of individuals who
				  shall constitute its audit committee. The audit committee of an entity that
				  controls an insurer may be deemed to be the insurer's audit committee for
				  purposes of this chapter at the election of the controlling
				  person.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 98 - Annual Financial Reporting Requirements › Rule 191-98.5 - Contents of Annual Audited Financial Report

Current through Register Vol. 47, No. 3, July 24, 2024
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 accounting
				  practices prescribed, or otherwise permitted, by the division of insurance of
				  the state of domicile.
The annual audited financial report shall include the
				  following:
a. Report of independent
				certified public accountant.
b.
				Balance sheet reporting admitted assets, liabilities, capital and
				surplus.
c. Statement of
				operations.
d. Statement of cash
				flow.
e. Statement of changes in
				capital and surplus.
f. Notes to
				financial statements. These notes shall be those required by the appropriate
				National Association of Insurance Commissioners (NAIC) Annual Statement
				Instructions and the NAIC Accounting Practices and Procedures Manual. The notes
				shall include a reconciliation of differences, if any, between the audited
				statutory financial statements and the annual statement filed pursuant to Iowa
				Code sections
				50811. and
				51563., with a
				written description of the nature of these differences.
g. The financial statements included in the
				audited financial report shall be prepared in a form and using language and
				groupings substantially the same as the relevant sections of the annual
				statement of the insurer filed with the commissioner, and the financial
				statement shall be comparative, presenting the amounts as of December 31 of the
				current year and the amounts as of the immediately preceding December 31.
				However, in the first year in which an insurer is required to file an audited
				financial report, the comparative data may be omitted.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 98 - Annual Financial Reporting Requirements › Rule 191-98.8 - Consolidated or Combined Audits

Current through Register Vol. 47, No. 3, July 24, 2024
An insurer may make written application to the 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 solvency and integrity of the insurer's
				  reserves and such insurer cedes all of its direct and assumed business to the
				  pool. In such cases, a columnar consolidating or combining worksheet shall be
				  filed with the report as follows:
1.
				Amounts shown on the consolidated or combined audited financial report shall be
				shown on the worksheet.
2. Amounts
				for each insurer subject to this rule shall be stated separately.
3. Noninsurance operations may be shown on
				the worksheet on a combined or individual basis.
4. Explanations of consolidating and
				eliminating entries shall be included.
5. A reconciliation shall be included of any
				differences between the amounts shown in the individual insurer columns of the
				worksheet and comparable amounts shown on the annual statements of the
				insurers.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 98 - Annual Financial Reporting Requirements › Rule 191-98.9 - Scope of Audit and Report of Independent Certified Public Accountant

Current through Register Vol. 47, No. 3, July 24, 2024
Financial statements furnished pursuant to rule
				  191-985.
				  (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 the Professional Standards of the AICPA, Consideration of Internal Control
				  in a Financial Statement Audit, the independent certified public accountant
				  should obtain an understanding of internal control sufficient to plan the
				  audit. To the extent required by AU Section 319, for those insurers required to
				  file a Management's Report of Internal Control Over Financial Reporting
				  pursuant to rule
				  191-9816.
				  (505), the independent certified public accountant should consider (as that
				  term is defined in Statement on Auditing Standards (SAS) No. 102, Defining
				  Professional Requirements in Statements on Auditing Standards or its
				  replacement) the most recently available report in planning and performing the
				  audit of the statutory financial statements. Consideration shall be given to
				  the procedures illustrated in the Financial Condition Examiners Handbook
				  promulgated by the NAIC as the independent certified public accountant deems
				  necessary.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 98 - Annual Financial Reporting Requirements › Rule 191-98.10 - Notification of Adverse Financial Condition

Current through Register Vol. 47, No. 3, July 24, 2024
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 public accountant that
				  the insurer has materially misstated its financial condition as reported to the
				  commissioner as of the balance sheet date currently under audit or that the
				  insurer does not meet the applicable minimum capital and surplus requirements
				  of Iowa Code sections
				  5085.,
				  50810.,
				  5158.,
				  51510.
				  and
				  51512(5).
				  as of that date. An insurer who has received a report pursuant to this rule
				  shall forward a copy of the report to the commissioner within five business
				  days of receipt of such report and shall provide the independent certified
				  public accountant making the report with evidence of the report being furnished
				  to the commissioner If the independent certified public accountant fails to
				  receive such evidence within the required five-business-day period, the
				  independent certified public accountant shall furnish to the commissioner a
				  copy of its report within the next five business days.
No independent certified public accountant shall be liable
				  in any manner to any person for any statement made in connection with subrule
				  98.10(1) if such statement is made in good faith in compliance with this
				  rule.
If the accountant, subsequent to the date of the audited
				  financial report filed pursuant to this chapter, becomes aware of facts which
				  might have affected this report, the insurance division notes the obligation of
				  the accountant to take such action as prescribed in Volume I, AU Section 561 of
				  the Professional Standards of the AICPA.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 98 - Annual Financial Reporting Requirements › Rule 191-98.11 - Communication of Internal Control Related Matters Noted in an Audit

Current through Register Vol. 47, No. 3, July 24, 2024
In addition 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
				  accountant within 60 days after the filing of the annual audited financial
				  report, and shall contain a description of any unremediated material weakness
				  (as the term "material weakness" is defined by Statement on Auditing Standard
				  60, Communication of Internal Control Related Matters Noted in an Audit, or its
				  replacement) as of December 31 immediately preceding (so as to coincide with
				  the audited financial report discussed in rule 98.4(505)) in the insurer's
				  internal control over financial reporting noted by the accountant during the
				  course of the audit of the financial statements. If no unremediated material
				  weaknesses were noted, the communication should so state. The insurer is
				  required to provide a description of remedial actions taken or proposed to
				  correct unremediated material weaknesses, if the actions are not described in
				  the accountant's communication.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 98 - Annual Financial Reporting Requirements › Rule 191-98.12 - Definition, Availability and Maintenance of Independent Certified Public Accountants' Work Papers

Current through Register Vol. 47, No. 3, July 24, 2024
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 insurer Work papers, accordingly, may
				  include audit planning documentation, work programs, analyses, memoranda,
				  letters of confirmation and representation, abstracts of company documents, and
				  schedules or commentaries prepared or obtained by the independent certified
				  public accountant in the course of the accountant's audit of the financial
				  statements of an insurer and which support the accountant's opinion.
Every insurer required to file an audited financial report
				  pursuant to this chapter shall require the accountant to make available for
				  review by insurance division examiners all work papers prepared in the conduct
				  of the accountant's audit and any communications between the accountant and the
				  insurer that are related to the audit at the offices of the insurer, at the
				  insurance division, or at any other reasonable place designated by the
				  commissioner The insurer shall require that the accountant retain the audit
				  work papers and communications until the insurance division has filed a report
				  on examination covering the period of the audit but no longer than seven years
				  from the date of the audit report.
In the conduct of the aforementioned periodic review by the
				  insurance division examiners, it shall be agreed that photocopies of pertinent
				  audit work papers may be made and retained by the division. Such reviews by the
				  division examiners shall be considered investigations, and all work papers and
				  communications obtained during the course of such investigations shall be
				  afforded the same confidentiality as other examination work papers generated by
				  the division.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 98 - Annual Financial Reporting Requirements › Rule 191-98.14 - Internal Audit Function Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
(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 Federal Flood Program, of less than
				$500 million; and
b. If the insurer
				is a member of a group of insurers, the group 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 Federal Flood Program, of less than $1 billion.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 98 - Annual Financial Reporting Requirements › Rule 191-98.15 - Conduct of Insurer in Connection With the Preparation of Required Reports and Documents

Current through Register Vol. 47, No. 3, July 24, 2024
(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, or cause another person to
				omit to state, any material fact necessary in order to make statements made, in
				light of the circumstances under which the statements were made, not misleading
				to an accountant in connection with any audit, review or communication required
				under this chapter.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 98 - Annual Financial Reporting Requirements › Rule 191-98.17 - Exemptions

Current through Register Vol. 47, No. 3, July 24, 2024
(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 organizational hardship upon the insurer. An
				exemption may be granted at any time and from time to time for a specified
				period or periods. Within ten days from a denial of an insurer's written
				request for an exemption from this chapter, the insurer may request in writing
				a hearing on its application for an exemption. The hearing shall be held in
				accordance with 191-Chapter 3.
(2)
				If an insurer or group of insurers that is exempt from the requirements of rule
				191-9814.
				(505) no longer qualifies for that exemption, the insurer or group of insurers
				shall have one year after the year the threshold is exceeded to comply with the
				requirements of this chapter.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 98 - Annual Financial Reporting Requirements › Rule 191-98.18 - Letter to Insurer With Accountant's Qualifications

Current through Register Vol. 47, No. 3, July 24, 2024
The accountant shall furnish the 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 Professional Ethics and
				pronouncements of the AICPA and the rules of professional conduct of the Iowa
				accountancy examining board, or similar code.
2. The background and experience in general,
				and the experience in audits of insurers of the staff assigned to the
				engagement and whether each is an independent certified public accountant.
				Nothing within this chapter shall be construed as prohibiting the accountant
				from utilizing such staff as is deemed appropriate where use is consistent with
				the standards prescribed by generally accepted auditing standards.
3. That the accountant understands the annual
				audited financial report and the opinion thereon will be filed in compliance
				with this chapter and that the commissioner will be relying on this information
				in the monitoring and regulation of the financial position of
				insurers.
4. That the accountant
				consents to the requirements of rule
				191-9819.
				(505) and that the accountant consents and agrees to make available for review
				by the commissioner, or a designee or appointed agent, the work papers, as
				defined in rule 191-98.12(505).
5.
				A representation that the accountant is properly licensed by an appropriate
				state licensing authority and is a member in good standing in the
				AICPA.
6. A representation that the
				accountant is in compliance with the requirements of rule
				191-987.
				(505).
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 98 - Annual Financial Reporting Requirements › Rule 191-98.19 - Severability Provision

Current through Register Vol. 47, No. 3, July 24, 2024
If any rule or portion of a rule of this chapter or its
				  applicability 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.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 99 - Limited Purpose Subsidiary Life Insurance Companies › Rule 191-99.1 - Authority

Current through Register Vol. 47, No. 3, July 24, 2024
This chapter is promulgated by the commissioner of insurance
				  pursuant to Iowa Code sections
				  505.8
				  and
				  508.33A.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 99 - Limited Purpose Subsidiary Life Insurance Companies › Rule 191-99.2 - Purpose

Current through Register Vol. 47, No. 3, July 24, 2024
The purpose of this chapter is to authorize the establishment
				  of domestic 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 capital through
				  securitizations and other transactions.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 99 - Limited Purpose Subsidiary Life Insurance Companies › Rule 191-99.4 - Formation of Lps

Current through Register Vol. 47, No. 3, July 24, 2024
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.
An LPS's organizational documents shall provide that the LPS
				  shall always be wholly owned by the organizing life insurance company and that
				  the LPS's stock shall be issued only to the organizing life insurance
				  company.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 99 - Limited Purpose Subsidiary Life Insurance Companies › Rule 191-99.5 - Certificate of Authority

Current through Register Vol. 47, No. 3, July 24, 2024
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.
Application for certificate of authority.
Before receiving a certificate of authority, an LPS shall do all of the
				  following:
a. File with the
				commissioner a copy of its plan of operation.
b. File with the commissioner an affidavit of
				its president, a vice president, the treasurer, or the chief financial officer
				that includes all of the following statements, to the best of such person's
				knowledge and belief, after reasonable inquiry:
(1) The proposed organization and operation
				of the LPS comply with all applicable provisions of this chapter
(2) The LPS's investment policy reflects and
				takes into account the liquidity of assets and the reasonable preservation,
				administration, and management of such assets with respect to the risks
				associated with the reinsurance contract.
(3) Any reinsurance contract and any
				arrangement for securing the LPS's obligations under such reinsurance contract,
				including but not limited to any agreements or other documentation to implement
				such arrangement, comply with the provisions of this chapter
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 99 - Limited Purpose Subsidiary Life Insurance Companies › Rule 191-99.6 - Capital and Surplus

Current through Register Vol. 47, No. 3, July 24, 2024
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.
The commissioner may prescribe additional tangible capital
				  and surplus based upon the type, volume, and nature of reinsurance business
				  transacted.
Minimum capital and surplus required by subrule 99.6(1)
				  shall be in the form of cash or other securities that are investment grade at
				  the time of acquisition and acceptable to the commissioner
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 99 - Limited Purpose Subsidiary Life Insurance Companies › Rule 191-99.7 - Plan of Operation

Current through Register Vol. 47, No. 3, July 24, 2024
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 transactions or arrangements.
b. The source and form of the LPS's capital
				and surplus.
c. The investment
				policy of the LPS.
d. Pro forma
				balance sheets and income statements illustrating one or more adverse case
				scenarios, as determined under criteria required by the commissioner, for the
				performance of the LPS under all reinsurance contracts.
e. Risk-based capital requirements, which, at
				a minimum, shall require the LPS to maintain risk-based capital equal to the
				product of two and one-half and the number determined under the life risk-based
				capital formula in accordance with the risk-based capital
				instructions.
f. Notice and
				reporting of material transactions.
g. Policies for payments of dividends and
				other distributions to the organizing life insurance company.
h. Copies of all contracts between the LPS
				and affiliated companies.
Any change in the LPS's plan of operation shall require prior
				  approval of the commissioner
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 99 - Limited Purpose Subsidiary Life Insurance Companies › Rule 191-99.8 - Dividends and Distributions

Current through Register Vol. 47, No. 3, July 24, 2024
An LPS may pay dividends and distributions that do 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 jeopardize the ability of the LPS to
				  fulfill the LPS's obligations. The LPS shall give the commissioner 30 days'
				  prior notice of any dividend or distribution. The notice shall include the
				  amount of the dividend or distribution and a certification signed by an officer
				  of the LPS stating that the dividend or distribution would not jeopardize the
				  ability of the LPS to fulfill the LPS's obligations.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 99 - Limited Purpose Subsidiary Life Insurance Companies › Rule 191-99.9 - Reports and Notifications

Current through Register Vol. 47, No. 3, July 24, 2024
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.
Notice of material change to financial
				  condition.
In the event of any material change in the financial
				  condition or management of an LPS, the LPS shall notify the commissioner in
				  writing within two business days of any such change.
Reports on reserves.
An LPS shall file
				  annually with the commissioner an actuarial opinion, in compliance with
				  191-534.
				  (508), on reserves for all risks assumed by the LPS pursuant to its reinsurance
				  contracts provided by an internal actuary and may discount its reserves in
				  accordance with that actuarial opinion, subject to approval by the commissioner
				  An LPS shall file biennially an opinion of a qualified independent actuary
				  acceptable to the commissioner concerning the methods and assumptions used to
				  set reserves.
Risk-based capital reports.
An LPS shall
				  file annually with the commissioner a report of the LPS's risk-based capital
				  level as of the end of the calendar year immediately preceding containing the
				  information required by the risk-based capital instructions.
Foreclosure on collateral
An LPS shall
				  notify the commissioner immediately of any action by a ceding insurer or any
				  other person to foreclose on or otherwise take possession of collateral
				  provided by the LPS to secure any obligation of the LPS.
Filing reports with the National Association of
				  Insurance Commissioners.
Notwithstanding
				  191-53.
				  (507,508,515),
				  191-526.
				  (508,515), or any other rule, an LPS shall not be required to file any report,
				  notice, or other document with the National Association of Insurance
				  Commissioners unless required by the commissioner
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 99 - Limited Purpose Subsidiary Life Insurance Companies › Rule 191-99.10 - Material Transactions

Current through Register Vol. 47, No. 3, July 24, 2024
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, lease, mortgage, assignment, pledge or other transfer or
				granting of a security interest in over 30 percent of the assets of the
				LPS.
c. Any incurrence of material
				indebtedness by the LPS.
d. Any
				making of a material loan or other material extension of credit by the
				LPS.
e. Any material payment out of
				capital and surplus other than dividends or distributions paid in accordance
				with rule 191-99.8 (505,508).
f.Any
				merger or consolidation to which the LPS is a constituent party.
g. Any transfer to or redomestication in any
				jurisdiction by the LPS.
h. The
				termination of all or any part of an LPS's business.
This subrule shall not apply when an LPS takes any action
				  described in paragraph
"b "
or
"e "
in
				  accordance with the LPS's plan of operation.
Prior approval of certain payments.
An LPS
				  shall submit for prior approval of the commissioner periodic written requests
				  for authorization to make payments of interest on and repayments of principal
				  of surplus notes and other debt obligations issued by the LPS, provided that
				  the commissioner shall not approve such payment if the commissioner determines
				  that such payment would jeopardize the ability of the LPS or any other person
				  to fulfill the person's respective obligations.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 99 - Limited Purpose Subsidiary Life Insurance Companies › Rule 191-99.12 - Securities

Current through Register Vol. 47, No. 3, July 24, 2024
An LPS security shall not be subject to regulation as an
				  insurance or 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 partners,
				  commissioners, officers, members, managers, employees, agents, representatives,
				  and advisors involved in an insurance securitization by an LPS shall not be
				  considered to be insurance producers or brokers or to be conducting business as
				  an insurance or reinsurance company or as an insurance agency, brokerage,
				  intermediary, advisory, or consulting business solely by virtue of their
				  underwriting activities in connection with such
				  securitization.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 99 - Limited Purpose Subsidiary Life Insurance Companies › Rule 191-99.13 - Permitted Reinsurance

Current through Register Vol. 47, No. 3, July 24, 2024
An LPS may reinsure, pursuant to a reinsurance contract,
				  only the risks of a ceding insurer.
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 or more of the following:
a. Proceeds from a securitization.
b. Premium and other amounts payable by the
				ceding insurer to the LPS pursuant to the reinsurance contract.
c. Letters of credit.
d. Guaranties of a parent.
e. Any return on investment of the items in
				paragraph
"a "
or
"b "
of this subrule.
An LPS may cede risks assumed through a reinsurance contract
				  to one or more reinsurers through the purchase of reinsurance, subject to the
				  prior approval of the commissioner.
An LPS may enter into contracts and conduct other commercial
				  activities related or incidental to and necessary to fulfill the purposes of a
				  reinsurance contract, an insurance securitization, and this chapter, provided
				  such contracts and activities are included in the LPS's plan of operation or
				  are otherwise approved in advance by the commissioner Such contracts and
				  activities may include but are not limited to: entering into reinsurance
				  contracts; issuing LPS securities; complying with the terms of these contracts
				  or securities; entering into trust, guaranteed investment contract, swap, or
				  other derivative, tax, administration, services reimbursement, or fiscal agent
				  transactions; complying with trust indenture, reinsurance, or retrocession; or
				  entering into other agreements necessary or incidental to effect a reinsurance
				  contract or an insurance securitization in compliance with this chapter and the
				  LPS's plan of operation.
Unless otherwise approved in advance by the commissioner, a
				  reinsurance contract shall not contain any provision for payment by the LPS in
				  discharge of its obligations under the reinsurance contract to any person other
				  than the ceding insurer or any receiver of the ceding insurer.
Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 99 - Limited Purpose Subsidiary Life Insurance Companies › Rule 191-99.14 - Certification of Actuarial Officer

Current through Register Vol. 47, No. 3, July 24, 2024
At the time an LPS files an application for a 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 ceding insurer's transactions with an LPS
				  are not being used to gain an unfair advantage in the pricing of the ceding
				  insurer's products. A ceding insurer shall not be deemed to have an unfair
				  advantage if the pricing of the policies and contracts reinsured by the LPS
				  reflects, at the time those policies and contracts were issued, a reasonable
				  long-term estimate of the cost to the ceding insurer of an alternative
				  third-party transaction and utilizes current pricing assumptions. The ceding
				  insurer shall keep documentation between examinations that sets forth how a
				  senior actuarial officer arrived at the conclusions in the
				  certification.
Iowa Administrative Code › Agency 191 - Insurance Division › Regulated Industries › Chapter 100 - Sales of Cemetery Merchandise, Funeral Merchandise and Funeral Services › Rule 191-100.1 - Purpose

Current through Register Vol. 47, No. 3, July 24, 2024
This chapter is promulgated to implement and administer Iowa
				  Code chapter 523 A, which regulates the sale of cemetery merchandise, funeral
				  merchandise, funeral services and any combination of those
				  items.
Iowa Administrative Code › Agency 191 - Insurance Division › Regulated Industries › Chapter 100 - Sales of Cemetery Merchandise, Funeral Merchandise and Funeral Services › Rule 191-100.2 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
The definitions in Iowa Code chapter 523A are incorporated by
				  this reference. In addition, the following definitions shall apply to this
				  chapter:
"Active license"
means a license that is in
				  effect and in good standing.
"Commissioner"
means the Iowa insurance
				  commissioner or staff of the Iowa insurance division as designated by the
				  commissioner.
"Commissioner's website"
means the website
				  of the Iowa insurance division,
www.iid.iowa.gov
.
"Continuing education"
means planned,
				  organized learning acts designed to maintain, improve, or expand a licensed
				  person's knowledge and to maintain and improve the safety and welfare of the
				  public.
"Credit"
means at least 50 minutes spent by
				  a licensed person in actual attendance at and in completion of an approved
				  continuing education activity.
"Insurance"
means life insurance policies
				  and annuity contracts, except where the context indicates otherwise.
"License"
means an authorization to act
				  issued by the commissioner, authorizing a person to act as preneed seller or a
				  sales agent.
"Licensedperson"
means any person who holds
				  a preneed seller or sales agent license pursuant to Iowa Code chapter 523A,
				  including any person who holds an active or restricted license.
"Merchandise or services"
means cemetery
				  merchandise, funeral merchandise, funeral services, or a combination thereof,
				  as defined in Iowa Code section
				  523A.102, unless the
				  context clearly indicates otherwise.
"Person"
means an individual; corporation;
				  business trust; estate; trust; partnership; limited liability company;
				  association; cooperative; joint venture; government; governmental subdivision,
				  agency, or instrumentality; public corporation; or any other legal or
				  commercial entity.
"Purchase agreement"
means an agreement to
				  furnish merchandise or services when performance or delivery may be more than
				  120 days following the initial payment on the account.
"Restricted license"
means an active license
				  that has been placed on restricted status by the commissioner.
"Sales log"
means a record of each sale of a
				  purchase agreement.