§ 508.9

508.9 Mutual companies — conditions. 1. Level premium and natural premium life insurance companies organized under the laws of this state upon the mutual plan shall, before issuing policies, have actual applicationson at least two hundred and fifty lives for an average amount of one thousand dollars each.A list of the applications giving the name, age, residence, amount of insurance, and annualpremium of each applicant shall be filed with the commissioner of insurance, and a depositmade with the commissioner of an amount equal to three-fifths of the whole annual premiumon the applications, in cash or the securities required by section 508.5. In addition, a depositof cash or securities of the character provided by law for the investment of funds for lifeinsurance companies in the sum of five million dollars shall be made with the commissioner,which shall constitute a security fund for the protection of policyholders. The contributionto the security fund shall not give to contributors to the fund or to other persons any votingor other power in the management of the affairs of the company.

tection of policyholders. The contributionto the security fund shall not give to contributors to the fund or to other persons any votingor other power in the management of the affairs of the company. The security fund may berepaid to the contributors to the security fund with interest at six percent from the date ofcontribution, at any time, in whole or in part, if the repayment does not reduce the surplusof the company below the amount of five million dollars and then only if consent in writingfor the repayment is obtained from the commissioner of insurance. Upon compliance withthis section, the commissioner shall issue to the mutual company the certificate prescribedin this chapter. A mutual insurance company authorized to do business in Iowa that undergoes a change of control as defined in chapter 521A shall maintain the minimumsurplus requirement mandated by this section. 2. Notwithstanding subsection 1, a mutual insurance company authorized to transact business under this chapter shall comply with the minimum surplus requirements of thissection or chapter 521E, whichever is greater.

ng subsection 1, a mutual insurance company authorized to transact business under this chapter shall comply with the minimum surplus requirements of thissection or chapter 521E, whichever is greater. [C73, §1163; C97, §1770; C24, 27, 31, 35, 39, §8651; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §508.9] 90 Acts, ch 1234, §6; 92 Acts, ch 1162, §4; 95 Acts, ch 185, §8; 96 Acts, ch 1046, §2 Sat Dec 23 00:40:29 2023 Iowa Code 2024, Section 508.9 (17, 0)