§ 514.23 — Mutualization plan

Iowa § 514.23

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 514: NONPROFIT HEALTH SERVICE CORPORATIONS

Text

1. A corporation organized under chapter 504, Code 1989, or current chapter 504, and
governed by this chapter, may become a mutual insurer under a plan which is approved by
the commissioner of insurance. The plan shall state whether the insurer will be organized as
a for-profit corporation pursuant to chapter 490 or 491 or a nonprofit corporation pursuant

to chapter 504. Upon consummation of the plan, the corporation shall fully comply with
the requirements of the law that apply to a mutual insurance company. If the insurer is
to be organized under chapter 504, then at least seventy-five percent of the initial board of
directors of the mutual insurer so formed shall be policyholders who are also nonproviders
of health care. All directors comprising this initial board of directors shall be selected by an
independent committee appointed by the state commissioner of insurance. This independent
committee shall consist of seven to eleven persons who are current policyholders, who are
nonprovidersofhealthcare,andwhoarenotdirectorsofacorporationsubjecttothischapter.
For purposes of this subsection, a “nonprovider of health care” is an individual who is not any
of the following:
a. A “provider” as defined in section 514B.1, subsection 7.
b. A person who has material financial or fiduciary interest in the delivery of health care
services or a related industry.
c. An employee of an institution which provides health care services.
d. A spouse or a member of the immediate family of a person described in paragraphs “a”
through “c”.
2. A corporation organized under chapter 504, Code 1989, or current chapter 504, and
governedbythischapter,whichbecomesamutualinsurerunderthissectionshallcontinueas
a mutual insurer to be governed by the provisions of section 514.7 and shall also be governed
by section 509.3, subsection 1, paragraph “f”.