This text of Iowa § 521J.5 (Captive companies — formation) 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.A captive company must be formed or organized as a business entity as provided under
this chapter.
2.An industrial insured captive company shall be formed or organized in one of the
following ways:
a.Incorporated as a stock insurer with the stock insurer’s capital divided into shares and
held by the stockholders.
b.Incorporated as a mutual insurer without capital stock.
c.Organized as a reciprocal insurer as permitted by the commissioner by rule.
d.Organized as a manager-managed limited liability company.
3.A captive company incorporated or organized in this state shall be incorporated or
organized by at least one incorporator or organizer who is a resident of the state.
4.The capital stock of a captive company incorporated as a stock insurer may be
authorized with no par value.
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1. A captive company must be formed or organized as a business entity as provided under
this chapter.
2. An industrial insured captive company shall be formed or organized in one of the
following ways:
a. Incorporated as a stock insurer with the stock insurer’s capital divided into shares and
held by the stockholders.
b. Incorporated as a mutual insurer without capital stock.
c. Organized as a reciprocal insurer as permitted by the commissioner by rule.
d. Organized as a manager-managed limited liability company.
3. A captive company incorporated or organized in this state shall be incorporated or
organized by at least one incorporator or organizer who is a resident of the state.
4. The capital stock of a captive company incorporated as a stock insurer may be
authorized with no par value.
5. a. Atleastonememberoftheboardofdirectorsofacaptivecompanyshallbearesident
of this state. A captive risk retention group shall have a minimum of five directors.
b. A captive company formed as a limited liability company shall have at least one
manager who is a resident of this state. A captive risk retention group formed as a limited
liability company shall not be required to have a manager who is a resident of this state;
however, the limited liability company shall maintain a board of directors of which at least
one board member shall be a resident of this state.
c. A reciprocal insurer shall have at least one member of the subscribers’ advisory
committee who is a resident of this state. A captive risk retention group formed as a
reciprocal insurer shall have a minimum of five members of the subscribers’ advisory
committee who are residents of this state.
6. a. A captive company formed as a corporation or another business entity shall have
the privileges of, and shall be subject to, state laws governing corporations or other business
entities, and the applicable provisions of this chapter.
b. In the event of a conflict between a state law governing corporations or other business
entities and this chapter, this chapter shall take precedence.
7. a. A subscribers’ agreement, or other organizational document of a captive company
7 CAPTIVE COMPANIES, §521J.7
formed as a reciprocal insurer, shall authorize a quorum of a subscribers’ advisory committee
to consist of at least one-third of the number of members on the advisory committee.
b. In addition to this chapter, a captive risk retention group shall be subject to chapter
515E. In the event of a conflict between chapter 515E and this chapter, this chapter shall
take precedence.
8. Exceptasprovidedinsection521J.11, applicableprovisionsofchapter508Bshallapply
to a merger, consolidation, conversion, mutualization, or voluntary dissolution by a captive
company.
9. a. An alien captive company must apply to the secretary of state for a certificate of
authority for the alien captive company’s branch captive company to transact business in this
state.
b. A branch captive company established under this chapter to write, in this state, only
insurance or reinsurance of the employee benefit business of the branch captive company’s
parent and affiliated companies shall be subject to the federal Employee Retirement Income
Security Act of 1974, 29 U.S.C. §1001, et seq.
c. A branch captive company shall not conduct any insurance business in this state unless
the branch captive company maintains the principal place of business for the company’s
branch operations in this state.