Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 99 - Limited Purpose Subsidiary Life Insurance Companies › Rule 191-99.3 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
For purposes of this chapter, the following definitions shall
				  apply:
"Affiliated companies"
means domestic life
				  insurance companies that are directly or indirectly wholly owned subsidiaries
				  of the same parent.
"Ceding insurer"
means a domestic life
				  insurance company that is an affiliated company of an LPS and that cedes risk
				  to the LPS pursuant to a reinsurance contract.
"Commissioner"
means the Iowa insurance
				  commissioner.
"Guaranty of a parent"
means an agreement to
				  pay specified obligations of the LPS by a parent of the LPS approved by the
				  commissioner that is not a ceding insurer and the guarantor has sufficient
				  equity, less the equity of all ceding insurers that are subsidiaries of the
				  guarantor, to satisfy the agreement during the life of the guaranty.
"Insurance securitization"
or
"securitization"
means a transaction or a group of related
				  transactions, which may include capital market offerings, that are effected
				  through related risk transfer instruments and facilitating administrative
				  agreements where all or part of the result of such transactions is used to fund
				  the LPS's obligations under a reinsurance contract with a ceding insurer and by
				  which proceeds are:
1. Obtained by an
				LPS, directly or indirectly, through the issuance of securities by the LPS or
				any other person; or
2. Provided
				through one or more letters of credit or other assets for the benefit of the
				LPS, which the commissioner authorizes the LPS to treat as admitted assets for
				purposes of the LPS's annual statement; where all or any part of such proceeds,
				letters of credit, or assets, as applicable, is used to fund the LPS's
				obligations under a reinsurance contract with a ceding insurer. The terms
				"insurance securitization" and "securitization" do not include the issuance of
				a letter of credit for the benefit of the commissioner to satisfy all or part
				of the LPS's capital and surplus requirements under this chapter.
"Insurer,"
for purposes of this chapter,
				  means a domestic life insurance company organized under Iowa Code chapter
				  508.
"letters of credit"
means clean,
				  unconditional, irrevocable letters of credit issued or confirmed by a qualified
				  United States financial institution as defined in Iowa Code section 52IB.
				  103(2)
"c."
"IPS"
means a limited purpose subsidiary
				  life insurance company organized pursuant to Iowa Code section
				  508.33A
				  that is wholly owned by the organizing life insurance company and that is
				  issued a certificate of authority by the commissioner pursuant to this
				  chapter.
"IPS security"
means:
1. A security issued by an LPS; or
2. A security issued by a third party, the
				proceeds of which are obtained directly or indirectly by an LPS.
"Management"
means the board of directors,
				  managing board, or other individual or individuals vested with overall
				  responsibility for the management of the affairs of the LPS, including but not
				  limited to officers or other agents elected or appointed to act on behalf of
				  the LPS.
"Material"
means a transaction or series of
				  transactions involving amounts equal to or exceeding 3 percent of the LPS's
				  admitted assets less any letters of credit and intangible assets included as an
				  admitted asset of the LPS.
"Organizational document"
means an LPS's
				  articles of incorporation and bylaws.
"Organizing life insurance company"
means
				  the domestic life insurance company that organizes the LPS pursuant to Iowa
				  Code section
				  508.33A.
"Parent"
means a person as defined in Iowa
				  Code section 521 A. 1 that directly or indirectly through one or more
				  intermediaries wholly owns an LPS.
"Reinsurance contract"
means a contract
				  between an LPS and a ceding insurer pursuant to which the LPS agrees to provide
				  reinsurance to the ceding insurer for risks.
"Risk"
means risks associated with life
				  insurance policies and contracts written by the ceding insurer or assumed by
				  the ceding insurer from an affiliated company which were written by the
				  affiliated company and for which the ceding insurer holds direct statutory
				  reserves for those policies and contracts required by Iowa Code section
				  508.36.
"Risk-based capital instructions"
means the
				  instructions included in the risk-based capital report as adopted by the
				  National Association of Insurance Commissioners, as such risk-based capital
				  instructions may be amended by the National Association of Insurance
				  Commissioners from time to time in accordance with the procedures adopted by
				  the National Association of Insurance Commissioners.
"Security"
means the same as defined in Iowa
				  Code section
				  502.102 and shall
				  also include any form of debt obligation, surplus note, derivative, or other
				  financial instrument that the commissioner designates as a "security" for
				  purposes of this chapter.
"Subsidiary"
means the same as defined in
				  Iowa Code section 521 A. 1(9).
"Surplus note"
means an unsecured
				  subordinated debt obligation possessing characteristics consistent with
				  paragraph 3 of the National Association of Insurance Commissioners (NAIC)
				  Statement of Statutory Accounting Principles No. 41, as amended from time to
				  time and as modified or supplemented by rule or order of the
				  commissioner.