§ 515e-3a

515E.3A Foreign risk retention group may become domestic. 1. A risk retention group that is organized under the laws of any other state for the purpose of writing insurance, as authorized by this chapter, may redomesticate to this state by doingall of the following: a. Complying with section 490.905.b. Complying with all of the requirements of law relative to the organization and licensing of a domestic risk retention group and the capital and surplus requirement setforth in subsection 4. c. Designating its principal place of business in this state.2. A risk retention group that meets the requirements of subsection 1 shall be entitled to a certificate of its corporate existence and a license to transact business in this state, and besubject in all respects to the authority and jurisdiction of this state. 3. The certificate of authority, producer appointments and licenses, rates, and other items which are in existence at the time a risk retention group transfers its corporate domicile tothis state pursuant to this section shall continue in full force and effect upon such transfer. Forpurposes of existing authorizations and all other corporate purposes, the risk retention groupis

e tothis state pursuant to this section shall continue in full force and effect upon such transfer. Forpurposes of existing authorizations and all other corporate purposes, the risk retention groupis deemed to be the same entity as it was prior to the transfer of its domicile. All outstandingpolicies of any transferring risk retention group shall remain in full force and effect. 4. A risk retention group redomesticating to this state pursuant to this chapter shall comply with the minimum capital and surplus requirements of chapter 521E or five milliondollars, whichever is greater. If the risk retention group’s prior domestic regulator allowedthe use of letters of credit to meet that regulator’s surplus requirements, the risk retentiongroup may continue to use the letters of credit to meet this state’s minimum surplusrequirements for up to five years from the date of redomestication in this state. The riskretention group shall eliminate a minimum of twenty percent of the letters of credit beingused each year based upon the aggregate amount of letters of credit being used to meetsurplus requirements at the time of redomestication in this state. 5.

wenty percent of the letters of credit beingused each year based upon the aggregate amount of letters of credit being used to meetsurplus requirements at the time of redomestication in this state. 5. Letters of credit used by a risk retention group to meet surplus requirements shall be clean, irrevocable, and unconditionally issued or confirmed by a qualified United Statesfinancial institution as defined in section 521B.104, subsection 2. The beneficiary of eachletter of credit being used shall be the commissioner. 6. If a risk retention group redomesticating to this state fails to comply with the provisions of this section, the commissioner shall take action as prescribed in chapter 507C. 7. The commissioner shall adopt rules pursuant to chapter 17A to implement this section.2006 Acts, ch 1117, §72; 2013 Acts, ch 39, §10, 11; 2021 Acts, ch 165, §228, 230 Sat Dec 23 00:48:39 2023 Iowa Code 2024, Section 515E.3A (20, 0)