507C.1 Short title — construction — purpose. 1. This chapter shall be cited as the “Insurers Supervision, Rehabilitation, and Liquidation Act”. 2. This chapter shall not be interpreted to limit the powers granted the commissioner by any other law. 3. This chapter shall be liberally construed to effect the purpose stated in subsection 4. 4. […]
507C.10 Seizure order. 1. With respect to a domestic insurer the commissioner may file in the district court a petition alleging all of the following: a. That there exist grounds that would justify a court order for a formal delinquency proceeding against an insurer under this chapter. b. That the interests of policyholders, creditors, or […]
507C.11 Confidentiality of hearings. Notwithstanding chapter 22, in all administrative proceedings pursuant to sections 507C.9 and 507C.10 all orders, records, and documents pertaining to or a part of the record of the proceedings are confidential except as is necessary to obtain compliance with a proceeding. However, the records may be released if either of the […]
507C.12 Grounds for rehabilitation. 1. The commissioner may petition the district court for an order to rehabilitate a domestic insurer or an alien insurer domiciled in this state on any of the following grounds: a. The insurer is in a condition that the further transaction of business would be financially hazardous to its policyholders, creditors, […]
507C.13 Rehabilitation orders. 1. An order to rehabilitate the business of a domestic insurer or an alien insurer domiciled in this state shall appoint the commissioner as the rehabilitator. The order shall direct the rehabilitator to take possession of the assets of the insurer, and to administer them under the general supervision of the court. […]
507C.14 Powers and duties of rehabilitator. 1. The commissioner as rehabilitator may appoint one or more special deputies. The special deputies shall have the powers and responsibilities of the rehabilitator granted under this section. The commissioner may employ counsel, clerks, and assistants as necessary. The compensation of the special deputy, counsel, clerks, and assistants and […]
507C.15 Actions by and against rehabilitator. 1. A court in this state, before which an action or proceeding in which the insurer is a party or is obligated to defend a party is pending when a rehabilitation order against the insurer is entered, shall stay the action or proceeding for ninety days and any additional […]
507C.16 Termination of rehabilitation. 1. Whenever the commissioner determines that further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public, or would be futile, the commissioner may petition the district court for an order of liquidation. A petition under this subsection shall have the same effect […]
507C.17 Grounds for liquidation. The commissioner may petition the district court for an order directing the commissioner to liquidate a domestic insurer or an alien insurer domiciled in this state on any of the following grounds: 1. Any ground for an order of rehabilitation specified in section 507C.12 whether or not there has been a […]
507C.17A Rehabilitation or liquidation of certain covered domestic insurers. 1. The provisions of this section apply in accordance with Tit. II of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. No. 111-203, 12 U.S.C. §5301 et seq., with respect to a domestic insurer that is a covered financial company, as that […]
507C.18 Liquidation orders. 1. An order to liquidate the business of a domestic insurer shall appoint the commissioner as liquidator and shall direct the liquidator to immediately take possession of the assets of the insurer and to administer them under the general supervision of the court. The liquidator is vested with the title to the […]
507C.19 Continuance of coverage. 1. Except for life or health insurance or annuities, policies in effect at the time of issuance of an order of liquidation shall continue in force only for the lesser of: a. A period of thirty days from the date of entry of the liquidation orders. b. The expiration of the […]
507C.2 Definitions. As used in this chapter, unless the context otherwise requires: 1. “Affiliate” of or “affiliated” with a specific person, means a person that directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified. 2. “Ancillary state” means a state other than […]
507C.20 Dissolution or sale of insurer. The commissioner may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in this state at the time the commissioner applies for a liquidation order. The court shall order dissolution of the corporation upon petition by […]
507C.20A Redomestication of foreign insurer. The commissioner may petition the court for an ancillary receivership or for an order redomesticating a foreign insurer which is the subject of a liquidation or other delinquency order in a reciprocal state. Only the corporate charter and rights to the licenses under such charter shall be redomesticated to Iowa. […]
507C.21 Powers of liquidator. 1. The liquidator may: a. Appoint a special deputy to act for the liquidator under this chapter, and determine the special deputy’s reasonable compensation. The special deputy shall have all powers of the liquidator granted by this section. The special deputy shall serve at the pleasure of the liquidator. b. Hire […]
507C.22 Notice to creditors and others. 1. Unless the court otherwise directs, the liquidator shall give notice of the liquidation order as soon as possible by doing all of the following: a. By first class mail and either by telegram or telephone to the insurance commissioner of each jurisdiction in which the insurer is doing […]
507C.23 Duties of agents. 1. A person, who receives notice in the form prescribed in section 507C.22 that an insurer which the person represents as an agent is the subject of a liquidation order, shall within fifteen days of the notice give notice to each policyholder or other person named in a policy issued through […]
507C.24 Actions by and against liquidator. 1. After the issuance of an order appointing a liquidator of a domestic insurer or of an alien insurer domiciled in this state, action at law or equity shall not be brought against the insurer or liquidator in this state or elsewhere, nor shall existing actions be maintained or […]
507C.25 Collection and list of assets. 1. As soon as practicable after the liquidation order but not later than one hundred twenty days thereafter, the liquidator shall prepare in duplicate a list of the insurer’s assets. The list shall be amended or supplemented as the liquidator may determine. One copy shall be filed in the […]
