§ 521j-4

521J.4 Minimum capital and surplus requirements. 1. The commissioner shall not issue a certificate of authority to a captive company unless the captive company possesses and maintains unimpaired paid-in capital and surplus thatmeets the following requirements: a. Is not less than two hundred fifty thousand dollars for a pure captive company.b. Is not less than five hundred thousand dollars for an industrial insured captive company, including a captive risk retention group. c. Is an amount as determined by the commissioner after giving due consideration to the captive company’s business plan, feasibility study, and pro forma documents, including, fora special purpose captive company, the nature of the risks to be insured. d. Is not less than five hundred thousand dollars for a protected cell captive company. If, however, the protected cell captive company does not assume any risks, the risks insured bythe protected cells are homogenous, and there are not more than ten cells, the commissionermay reduce the amount to an amount not less than two hundred fifty thousand dollars. e. Is not less than the applicable amount of capital and surplus required in paragraphs 'a' through 'd', as

ssionermay reduce the amount to an amount not less than two hundred fifty thousand dollars. e. Is not less than the applicable amount of capital and surplus required in paragraphs 'a' through 'd', as determined based upon the organizational form of the alien captive company,for a branch captive company. The minimum capital and surplus shall be jointly held by thecommissioner and the branch captive company in a bank of the federal reserve system asapproved by the commissioner by rule. f. Is not less than fifty percent of the capital required for that type of captive company for a captive reinsurance company. 2. The commissioner may require additional capital and surplus for a captive company under subsection 1 based upon the type, volume, and nature of the insurance businesstransacted by the captive company. 3. The capital and surplus required under subsection 1 and subsection 2, if applicable, shall be in the form of cash, cash equivalent, or an irrevocable letter of credit on a form asprescribed by the commissioner by rule and as issued by a bank chartered by the state ofIowa, a member bank of the federal reserve system, or a bank chartered by another state ifapproved by the

orm asprescribed by the commissioner by rule and as issued by a bank chartered by the state ofIowa, a member bank of the federal reserve system, or a bank chartered by another state ifapproved by the commissioner. 2023 Acts, ch 107, §7Referred to in §521J.6, 521J.9, 521J.13, 521J.19NEW section Sat Dec 23 00:53:36 2023 Iowa Code 2024, Section 521J.4 (0, 0)