Iowa House Bill HF320

Iowa 2023-2024 Regular Session

• Introduced: 2/15/23
• Engrossed: 2/22/23
• Enrolled: 4/28/23
• Passed: 4/28/23

Caption

A bill for an act relating to group capital calculation filings by certain insurance holding company systems. (Formerly HSB 101.) Effective date: 07/01/2023.

Impact

The primary impact of HF320 on state laws is the standardization of group capital calculation filings across Iowa's insurance industry. This initiative seeks to align the state’s requirements with national standards, particularly those recommended by the National Association of Insurance Commissioners (NAIC). By clearly defining the responsibilities of insurance companies in terms of capital reporting, the bill reinforces the regulatory framework intended to promote financial health and transparency within the insurance market.

Summary

House File 320 (HF320) pertains to the regulatory framework governing group capital calculation filings by certain insurance holding company systems. The bill establishes a requirement for insurers subject to registration to submit an annual group capital calculation to the lead state commissioner of their respective insurance holding company system by June 30 each year. This filing is aimed at enhancing the oversight of insurance companies and ensuring their financial stability, safeguarding policyholders' interests.

Sentiment

The sentiment surrounding HF320 appears to be supportive, with unanimous backing during the voting process in the legislature, where it passed with a vote of 50 in favor and none against. The lack of dissent reflects a general consensus on the importance of maintaining robust regulatory measures for insurance companies, particularly in light of increasing complexities in financial management and risk assessments within the sector.

Contention

While HF320 enjoyed broad support, potential points of contention could arise around the specific implementation of the filing requirements. Stakeholders such as smaller insurance companies may express concerns regarding the administrative burden associated with the new reporting standards. Additionally, the definition of exempt insurance holding company systems could spark debates over equity and compliance fairness within the industry.