This text of Iowa § 521J.22 (Dormant captive companies) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
1.As used in this section, “dormant captive company” means a captive company, other
than a captive risk retention group, that meets all of the following:
a.The captive company has ceased transacting the business of insurance, including the
issuance of insurance policies.
b.The captive company does not have any remaining liabilities associated with its
insurance business transactions or insurance policies issued prior to the captive company’s
filing of an application for a certificate of dormancy under subsection 2.
2.Any captive company that is domiciled in this state and that complies with this section
may apply to the commissioner for a certificate of dormancy. A certificate of dormancy shall
be subject to expiration five calendar years from the date that the certificate is issued, a
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1. As used in this section, “dormant captive company” means a captive company, other
than a captive risk retention group, that meets all of the following:
a. The captive company has ceased transacting the business of insurance, including the
issuance of insurance policies.
b. The captive company does not have any remaining liabilities associated with its
insurance business transactions or insurance policies issued prior to the captive company’s
filing of an application for a certificate of dormancy under subsection 2.
2. Any captive company that is domiciled in this state and that complies with this section
may apply to the commissioner for a certificate of dormancy. A certificate of dormancy shall
be subject to expiration five calendar years from the date that the certificate is issued, and
the commissioner shall not renew a certificate of dormancy.
3. a. A captive company that has been issued a certificate of dormancy shall comply with
all of the following:
(1) The dormant captive company shall possess and maintain unimpaired, paid-in capital
and surplus of not less than twenty-five thousand dollars.
(2) Within ninety calendar days of the dormant captive company’s fiscal year end, the
company shall annually submit to the commissioner a report on the company’s financial
condition, verifiedbyoathoftwoofthecompany’sexecutiveofficers, intheformandmanner
as established by the commissioner by rule.
(3) The dormant captive company shall pay an annual one thousand dollar dormancy tax,
due on or before March 1, if for any portion of the immediately preceding calendar year the
captive company held a certificate of dormancy. Each series of members and each protected
cell shall be considered separate for purposes of paying the annual dormancy tax under a
certificate of dormancy. A dormant captive company is not otherwise liable for any annual
renewal as provided in section 521J.2, subsection 4, paragraph “b”.
b. A dormant captive insurance company that has been issued a certificate of dormancy
shall not be subject to or liable for the payment of tax under section 432.1A from the date the
certificate of dormancy is issued through the date the certificate of dormancy expires.
4. A dormant captive company shall be subject to examination under section 521J.8
for any year in which the company does not qualify as a dormant captive company. In the
commissioner’s discretion, a dormant captive company shall be subject to examination
under section 521J.8 for any year in which the dormant captive company qualifies as a
dormant captive company.
5. Prior to a dormant captive company issuing an insurance policy, the dormant captive
company shall apply to the commissioner for approval to surrender the company’s certificate
of dormancy and to resume conducting the business of insurance.
§521J.22, CAPTIVE COMPANIES 16
6. A dormant captive company’s certificate of dormancy shall be revoked if the company
violates this section.