There are several ongoing requirements associated with an Iowa domiciled captive insurance company. Following is a list of many of these items. Please refer to Iowa Code Chapter 521J and Iowa Administrative Rules 191-113 for complete requirements.
Formation Requirements:
- The captive company’s board of directors, board of managing members, or a reciprocal insurer’s subscribers’ advisory committee must hold at least one annual meeting in Iowa. However, not all board members must be “in the state” to conduct the board meeting. The resident Iowans on the board of directors (or managing members or advisory committee member) could initiate the board meeting in Iowa and the remaining board members could join by telephone or other electronic means (e.g., Teams, Zoom, etc.) provided the following language (or substantially similar language) appears in the bylaw or organizational documents:
- Conduct of the Meeting. All directors, to the extent possible, shall personally attend regular and special meetings of the board. However, any director may participate in any regular or special meeting by any means of communication by which all directors participating may simultaneously hear each other during the meeting. A director participating in a meeting by this means is deemed to be present in person. At all meetings of the board, the President, or in his or her absence, the person designated by the majority vote of the directors present at such meeting shall preside.
- The captive company must maintain its principal place of business in the state. This includes branch captive companies.
- A captive company shall maintain the captive company’s original books, records, documents, accounts vouchers, and agreements in this state and make them available for examination and inspection by the commissioner as requested. The captive company may store and reproduce the books, records, documents, accounts vouchers, and agreements electronically.
- The captive company must designate a registered agent to accept service of process, file the name and contact information and any subsequent changes regarding the registered agent with the commissioner. In addition, they must agree that the commissioner may act as an agent of the captive company with respect to any action or proceeding and may be served pursuant to section 505.30.
- A captive domiciled in Iowa shall be incorporated or organized by at least one incorporator or organizer who is an Iowa resident.
- At least one member of the board of directors of a captive company shall be an Iowa resident. A captive risk retention group shall have a minimum of five directors who are Iowa residents.
- A captive formed as a limited liability company, other than a risk retention group, shall have at least one manager who is an Iowa resident. A risk retention group, formed as a limited liability company, shall maintain a board of directors of which at least one board member shall be a resident of Iowa.
- A reciprocal insurer shall have at least one member of the subscribers’ advisory committee who is an Iowa resident.