Iowa insurance companies will have new corporate governance disclosure requirements to abide by next year as part of legislation signed this week by Gov. Terry Branstad.

The legislation, House File 455, is based on a model bill approved last summer by the National Association of Insurance Commissioners’  Financial Condition Committee.

Iowa Insurance Commissioner Nick Gerhart said the legislation is “really part of a broader modernization effort to bring state-based legislation what it needs to be post-financial crisis.”

Currently, the Iowa Insurance Division oversees companies’ risk management procedures through its examination process, but there is not a reporting requirement, he said. Insurers that fail to meet the annual reporting deadline will be subject to a penalty of up to $5,000.

Information provided to the state agency will be protected by strict confidentiality measures. Iowa is the first state to enact legislation based on the model act, though a number of other states are considering bills, an NAIC official said.

Administrative rules for the legislation must now be written, and the first deadline for insurers’ reports will be June 1, 2016.