Basic steps required to form a Captive Insurance Company in Iowa

In Iowa, we try to make the process as smooth as possible by being responsive, consistent, and transparent. 

Pre-Application

  1.  Contact the Iowa Captive Insurance Director, Jeff Wilson, to discuss your proposal and key issues that may affect your application and licensing process.  You may email him at [email protected] or call him at (515) 654-6651.
  2. Select an approved captive manager from the Iowa approved captive service providers list.
  3. In preparing for incorporation or organization in Iowa, advice from a local attorney may be beneficial.  Organizational documents (e.g., articles) must be submitted to [email protected] and approved by the Iowa Insurance Division (“IID”).  Do not file with the Secretary of State—we will file (with the Commissioner Certificate of Approval attached) after the Application has been submitted.  In selecting an entity name, keep in mind that a captive company cannot adopt a name that is the same, deceptively similar, or likely to be confused with or mistaken for any other existing business name already registered in Iowa.  The state does not allow the use of fictitious names.

Application

The Application to Form a Captive Company.

Submit the Application and following documents with original ink signatures on hard copy documents or with authenticated electronic, scanned, or photocopied signatures that comply with Iowa Code sections 554D.103(8) and 554D.111 (such as DocuSign or Adobe). Please email us at [email protected] to request a secure ShareFile link, and documents mailed or delivered should go to:

IID – Captive Insurance
1963 Bell Avenue, Suite 100
Des Moines, IA  50315

These documents (and checks mentioned below) should be submitted with the Application:

  • Biographical affidavits of captive directors and officers
  • Organization documents (e.g., articles) as pre-approved by the IID (wet ink signature only so that IID can file with SOS)
  • Bylaws or operating agreement, as applicable
  • Actuarial feasibility study
  • Financial condition statements
  • Detailed business plan
  • Policy forms and reinsurance agreements
  • Parent financials if a pure captive

Along with a $200 check payable to the Iowa Insurance Division for the registration fee for the Application, please submit the organizational documents (e.g., articles) with original ink signature on hard copy mailed/delivered to our office along with a second check made payable to the Iowa Secretary of State (we will provide you with the specific dollar amount as it varies depending on the type of filing).  The IID will file the organizational documents with the SOS.

Post-Application

Once the organizational documents are approved by the SOS, the captive company will submit the following (wet ink or authenticated as indicated in previously):

  • Signed Consent to Service of Process (UCAA Form 12) and certified resolution of adoption of page 4 of Form 12
  • Certified resolution that bylaws (or operating agreement, as applicable) have been adopted
  • Certified resolution of adoption of conflict of interest satisfying Iowa Admin. Code 191—113.17(1), and resolution language.
  • Irrevocable letter of credit (if used), which must follow the template language.
  • Statement under oath of an officer of the business entity showing the entity’s financial condition, and statement language.

The captive company should place sufficient capital as agreed upon in the captive and provide evidence of deposit to the IID.

Please be aware that upon completion of the IID’s independent actuarial feasibility review, the applicant will be invoiced for the cost of this service from the IID.

Issuance of Certificate of Authority

The Iowa Insurance Division will notify you when the Certificate of Authority from the Commissioner has been approved.

Additional Application Information for Protected Cell Captives:

  • Each protected cell shall be incorporated and have a distinct name or designation that must include the words “protected cell”.
  • A business plan that demonstrates how the applicant will account for and report the loss and expense experience and of each protected cell.
  • A statement acknowledging that all financial records of the protected cell captive company and all financial records pertaining to any protected cells shall be made available for inspection or examination upon request.
  • A copy of each participant contract.
  • Affirmation that expenses will be allocated to each protected cell in a fair and equitable manner.

Additional Application Information for Risk Retention Groups:

  • Analysis of compliance with reinsurance as contained in Iowa Regulation 191—113.14(4).
  • Corporate governance requirements including, but not limited to:
    • Affirmation of independence of board of directors
    • Board approved governance standards
    • Code of business conduct and ethics