1.As used in this section unless the context otherwise requires:
a.“Affiliated company” means a domestic life insurance company that is a directly or
indirectly wholly owned subsidiary of the same parent.
b.“Parent”meansapersonasdefinedinsection521A.1whodirectlyorindirectlythrough
one or more intermediaries wholly owns the organizing life insurance company.
c.“Risks” means risks associated with the life insurance policies and contracts written by
thecedingdomesticlifeinsurancecompanyorassumedbythecedingdomesticlifeinsurance
company from an affiliated company, which were written by the affiliated company and for
which the ceding domestic life insurance company holds direct statutory reserves for those
policies and contracts as required by section 508.36.
2.
a.A domestic life insurance
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1. As used in this section unless the context otherwise requires:
a. “Affiliated company” means a domestic life insurance company that is a directly or
indirectly wholly owned subsidiary of the same parent.
b. “Parent”meansapersonasdefinedinsection521A.1whodirectlyorindirectlythrough
one or more intermediaries wholly owns the organizing life insurance company.
c. “Risks” means risks associated with the life insurance policies and contracts written by
thecedingdomesticlifeinsurancecompanyorassumedbythecedingdomesticlifeinsurance
company from an affiliated company, which were written by the affiliated company and for
which the ceding domestic life insurance company holds direct statutory reserves for those
policies and contracts as required by section 508.36.
2. a. A domestic life insurance company organized pursuant to the provisions of this
chapter may organize a domestic limited purpose subsidiary life insurance company
pursuant to the provisions of this chapter that is wholly owned by the organizing life
insurance company. The limited purpose subsidiary life insurance company may reinsure
risks of the organizing life insurance company, reinsure risks of affiliated companies, and
access alternative forms of financing.
b. A limited purpose subsidiary life insurance company shall submit a plan of operation
to the commissioner, and the commissioner shall approve the plan of operation with such
amendments as the commissioner requires, before the limited purpose subsidiary life
insurance company assumes any risks under a reinsurance contract. The plan of operation
and any records, books, documents, reports, or other information that the commissioner
requires a limited purpose subsidiary life insurance company to produce or disclose pursuant
to rules adopted under subsection 6 or pursuant to an order of the commissioner shall be
treated the same as information obtained by or disclosed to the commissioner pursuant to
section 521A.6 and the commissioner shall have the powers enumerated in section 521A.6
as to that insurer.
3. The organizing life insurance company may invest funds from its surplus in a limited
purpose subsidiary life insurance company organized pursuant to this section.
4. The organizing life insurance company’s officers and directors may serve as officers
and directors of a limited purpose subsidiary life insurance company organized pursuant to
this section.
5. A limited purpose subsidiary life insurance company organized pursuant to this section
shall be deemed to be licensed to transact the business of reinsurance for the purposes of
section 521B.102, subsection 1, but may only reinsure risks of its organizing life insurance
company and of affiliated companies. A limited purpose subsidiary life insurance company
organized pursuant to this section may, upon approval of the commissioner, purchase
reinsurance to cede the reinsurance risks assumed by the limited purpose subsidiary life
insurance company.
6. The commissioner shall adopt rules pursuant to chapter 17A concerning limited
purpose subsidiary life insurance companies, including but not limited to the organization,
plans of operation, capital requirements including risk-based capital requirements,
reserves, authorized investments, reinsurance assumed, material transaction restrictions
§508.33A, LIFE INSURANCE COMPANIES 12
and requirements, dividends and distributions, operations, and the conditions, forms, and
approval of financing of limited purpose subsidiary life insurance companies organized
pursuant to this section.
7. Admitted assets of a limited purpose subsidiary life insurance company shall include
assets approved by the commissioner which shall be deemed to be, and reported as, admitted
assets of the limited purpose subsidiary life insurance company.
8. The provisions of sections 508.5 and 511.8, section 521.2, subsection 4, sections 521A.4
and 521A.5, and chapter 521E shall not be applicable to a limited purpose subsidiary life
insurance company organized pursuant to this section.
9. A limited purpose subsidiary life insurance company shall not be organized pursuant
to this section prior to the effective date of rules adopted by the commissioner regulating
the organization and operation of limited purpose subsidiary life insurance companies as
provided in subsection 6.