2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 515 - INSURANCE OTHER THAN LIFE
515.12 - MUTUAL COMPANIES -- CONDITIONS.

        515.12  MUTUAL COMPANIES -- CONDITIONS.
         No mutual company shall issue policies or transact any business of
      insurance unless it shall hold a certificate of authority from the
      commissioner of insurance authorizing the transaction of such
      business, which certificate of authority shall not be issued until
      and unless the company shall comply with the following conditions:
         1.  It shall hold bona fide applications for insurance upon which
      it shall issue simultaneously, or it shall have in force, at least
      two hundred policies issued to at least two hundred members for the
      same kind of insurance upon not less than two hundred separate risks,
      each within the maximum single risk described herein; provided that
      not more than one hundred members shall be required for employer's
      liability and workers' compensation insurance.
         2.  The maximum single risk shall not exceed twenty percent of the
      admitted assets, or three times the average risk, or one percent of
      the insurance in force, whichever is the greater, any reinsurance
      taking effect simultaneously with the policy being deducted in
      determining such maximum single risk.
         3.  It shall have collected a premium upon each application, which
      premium shall be held in cash or securities in which insurance
      companies are authorized to invest, which shall be equal, in case of
      fire insurance, to not less than twice the maximum single risk
      assumed subject to one fire nor less than ten thousand dollars; and
      in any other kind of insurance, to not less than five times the
      maximum single risk assumed; and, in case of employer's liability and
      workers' compensation insurance, to not less than fifty thousand
      dollars.
         4.  For the purpose of transacting employer's liability and
      workers' compensation insurance, the applications shall cover not
      less than one thousand five hundred employees, each such employee
      being considered a separate risk for determining the maximum single
      risk.
         5.  The mutual company shall have in cash or in securities in
      which insurance companies are authorized to invest, surplus in an
      amount not less than five million dollars.  The surplus so required
      may be advanced in accordance with section 515.19.  A mutual company
      authorized to do business in Iowa that undergoes a change of control
      as defined under chapter 521A shall maintain the minimum surplus
      requirements mandated by this section.
         However, the surplus requirements do not apply to a company which
      establishes and maintains a guaranty fund as provided by section
      515.20.  

         Section History: Early Form

         [C73, § 1124; C97, § 1692; C24, 27, 31, 35, 39, § 8906; C46,
      50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 515.12] 

         Section History: Recent Form

         90 Acts, ch 1234, §36; 95 Acts, ch 185, §21
         Referred to in § 515.12A, 515.13