reglab/statecodes huggingface dataset:
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507A - UNAUTHORIZED INSURERS › Section 507A.2 - Purpose.

507A.2 Purpose.
1. The purpose of this chapter is to subject certain persons and insurers to the jurisdiction of the insurance commissioner and the courts of this state in suits by or on behalf of the state and insureds or beneficiaries under insurance contracts. The general assembly hereby declares that it is a subject of concern that many residents of this state hold policies of insurance issued by persons and insurers not authorized to do insurance business in this state, thus presenting to such residents the often insuperable obstacle of asserting their legal rights under such policies in forums foreign to them under laws and rules of practice with which they are not familiar. The general assembly further declares that it is also concerned with the protection of residents of this state against acts by persons and insurers not authorized to do an insurance business in this state, by the maintenance of fair and honest insurance markets, by protecting the premium tax revenues of this state, by protecting authorized persons and insurers which are subject to regulation from unfair competition by unauthorized persons and insurers, and by protecting against the evasion of the insurance regulatory laws of this state.
2. In furtherance of such state interest, in this chapter the general assembly provides methods for substituted service of process upon such persons or insurers in any proceeding, suit or action in any court and substitute service of any notice, order, pleading, or process upon such persons or insurers in any proceeding before the commissioner of insurance to enforce or effect full compliance with the insurance and tax laws of this state. In so doing, the state exercises its powers to protect residents of this state and to define what constitutes doing an insurance business in this state, and also exercises powers and privileges available to this state by virtue of Pub. L. No. 79-15, 79th Congress of the United States, Ch. 20, 1st Sess., S. 340, 59 Stat. 33, codified at 15 U.S.C. §1011 – 1015, which declares that the business of insurance and every person engaged therein shall be subject to the laws of the several states.
[C50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §507A.2]
2006 Acts, ch 1010, §134; 2019 Acts, ch 59, §179
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507A - UNAUTHORIZED INSURERS › Section 507A.3 - Definitions — scope.

507A.3 Definitions — scope.
1. Unless otherwise indicated, “insurer” as used in this chapter includes all corporations, associations, partnerships and individuals engaged in the business of insurance. Any of the following acts in this state, effected by mail or otherwise, by an unauthorized insurer is defined to be doing an insurance business in this state:
a. The making of or proposing to make, as an insurer, an insurance contract.
b. The taking or receiving of any application for insurance.
c. The receiving or collection of any premiums, membership fees, assessments, dues or other considerations for any insurance.
d. The issuance or delivery of contracts of insurance to residents of this state or to corporations or persons authorized to do business in this state.
e. The doing of any kind of insurance business specifically recognized as constituting the doing of an insurance business within the meaning of the statutes relating to insurance.
f. The doing or proposing to do any insurance business in substance equivalent to any of the foregoing in a manner designed to evade the provisions of the insurance laws of this state.
g. Any other transactions of business relating directly to insurance in this state by an insurer.
2. The venue of an act committed by mail is at the point where the matter transmitted by mail is delivered and takes effect.
[C50, 54, 58, 62, 66, §507A.3(1); C71, 73, 75, 77, 79, 81, §507A.3; 81 Acts, ch 165, §1]
2012 Acts, ch 1023, §157; 2019 Acts, ch 59, §180
Referred to in §507A.7
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507A - UNAUTHORIZED INSURERS › Section 507A.7 - Proceedings before commissioner — indemnifying bond.

507A.7 Proceedings before commissioner — indemnifying bond.
1. Before any unauthorized person or insurer files or causes to be filed any pleading or process in an administrative proceeding before the commissioner of insurance, instituted against such person or insurer, by service made as provided in this chapter, such person or insurer shall either:
a. Deposit with the clerk of the court in which such action, suit, or proceeding is pending, or with the commissioner of insurance in administrative proceedings before the commissioner, cash or securities, or file with such clerk or commissioner a bond with good and sufficient sureties, to be approved by the clerk or commissioner in an amount to be fixed by the court or commissioner sufficient to secure the payment of any final judgment which may be rendered in such action or administrative proceeding.
b. Procure a certificate of authority to transact the business of insurance in this state.
2. The court in any action, suit, or proceeding in which service is made as provided in section 507A.6, subsections 2 and 3, or the commissioner of insurance in any administrative proceeding before the commissioner in which service is made as provided in section 507A.6, subsections 2 and 3, may in the court’s or commissioner’s discretion, order such postponement as may be necessary to afford the defendant reasonable opportunity to comply with the provisions of subsection 1 of this section and to defend such action.
3. Nothing in subsection 1 of this section shall be construed to prevent an unauthorized person or foreign or alien insurer from filing a motion to quash a writ or to set aside service thereof made in the manner provided in sections 507A.5 and 507A.6, on the ground that such unauthorized person or insurer has not done any of the acts enumerated in section 507A.3.
4. In an action against an unauthorized person or insurer upon a contract of insurance issued or delivered in this state to a resident thereof or to a corporation authorized to do business therein, if the person or insurer has failed for thirty days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract, and it appears to the court that such refusal was without reasonable cause, the court may allow to the plaintiff a reasonable attorney fee and include such fee in any judgment that may be rendered in such action. Failure of the person or insurer to defend any such action shall be deemed prima facie evidence that its failure to make payment was without reasonable cause.
[C50, 54, 58, 62, 66, §507A.4, 507A.5; C71, 73, 75, 77, 79, 81, §507A.7]
2013 Acts, ch 30, §119
Referred to in §602.8102(69)
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507A - UNAUTHORIZED INSURERS › Section 507A.8 - Order by commissioner to produce contracts.

507A.8 Order by commissioner to produce contracts.
1. Whenever the commissioner of insurance has reason to believe that insurance has been effectuated by or for any person in this state with an unauthorized insurer the commissioner shall in writing order such person to produce for examination all insurance contracts and other documents evidencing insurance with both authorized and unauthorized insurers and to disclose to the commissioner the amount of insurance, name and address of each insurer, gross amount of premium paid or to be paid and the name and address of the person or persons assisting or aiding in the solicitation, negotiation, or effectuation of such insurance.
2. Every person investigating or adjusting any loss or claim on a subject of insurance in this state shall immediately report to the commissioner every insurance policy or contract which has been entered into by any insurer not authorized to transact such insurance in this state.
3. Every person who, for thirty days after receipt of written order pursuant to subsection 1 of this section, neglects to comply with the requirements of such order or who willfully makes a disclosure that is untrue, deceptive, or misleading shall forfeit fifty dollars.
[C71, 73, 75, 77, 79, 81, §507A.8]
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507A - UNAUTHORIZED INSURERS › Section 507A.9 - Premium tax on unauthorized insurers.

507A.9 Premium tax on unauthorized insurers.
1. For all premiums collected during the calendar year, except premiums on lawfully procured surplus lines insurance, every unauthorized insurer shall pay to the commissioner of insurance before March 1, next succeeding the calendar year in which the insurance was so effectuated, continued, or renewed a premium tax on gross premiums charged for such insurance on subjects resident, located, or to be performed in this state equal to the applicable percent, as provided in section 432.1. Such insurance whether procured through negotiation or an application, in whole or in part occurring or made within or outside of this state, or for which premiums in whole or in part are remitted directly or indirectly from within or outside of this state, shall be deemed to be insurance procured or continued in this state. The term “premium” includes all premiums, membership fees, assessments, dues, and any other consideration for insurance. If the tax prescribed by this section is not paid within the time stated, the tax shall be increased by a penalty of twenty-five percent and by the amount of an additional penalty computed at the rate of one percent per month or any part thereof from the date such payment was due to the date paid.
2. If the policy covers risks or exposures only partly in the state, the tax payable shall be computed on the portions of the premium which are properly allocable to the risks or exposures located in the state. In determining the amount of premiums taxable in this state, all premiums written, procured, or received in this state and all premiums on policies negotiated in this state shall be deemed written on property or risks located or resident in this state, except such premiums as are properly allocated or apportioned and reported as taxable premiums of any other state or states.
3. The attorney general, upon request of the commissioner of insurance, shall proceed in the courts of this state or any other state or in any federal court or agency to recover such tax not paid within the time prescribed in this section.
[C71, 73, 75, 77, 79, 81, §507A.9]
2006 Acts, ch 1117, §22
Referred to in §515I.10, 515I.11
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507B - INSURANCE TRADE PRACTICES › Section 507B.1 - Declaration of purpose.

507B.1 Declaration of purpose.
The purpose of this chapter is to regulate trade practices in the business of insurance in accordance with the intent of Congress as expressed in the Act of Congress of March 9, 1945, Pub. L. No. 79-15, 59 Stat. 33, codified at 15 U.S.C. §1011 – 1015, by defining, or providing for the determination of, all such practices in this state which constitute unfair methods of competition or unfair or deceptive acts or practices and by prohibiting the trade practices so defined or determined.
[C58, 62, 66, 71, 73, 75, 77, 79, 81, §507B.1]
2006 Acts, ch 1010, §135
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507B - INSURANCE TRADE PRACTICES › Section 507B.2 - Definitions.

507B.2 Definitions.
When used in this chapter:
1. “Person” shall mean any individual, corporation, association, partnership, reciprocal exchange, interinsurer, fraternal beneficiary association, and any other legal entity engaged in the business of insurance, including insurance producers and adjusters. “Person” shall also mean any corporation operating under the provisions of chapter 514 and any benevolent association as defined and operated under chapter 512A. For purposes of this chapter, corporations operating under the provisions of chapter 514 and chapter 512A shall be deemed to be engaged in the business of insurance.
2. “Commissioner” shall mean the commissioner of insurance of this state.
3. “Insurance policy” or “insurance contract” shall mean any contract of insurance, indemnity, subscription, membership, suretyship, or annuity issued, proposed for issuance, or intended for issuance by any person.
[C58, 62, 66, 71, 73, 75, 77, 79, 81, §507B.2]
2004 Acts, ch 1110, §20
Referred to in §507B.7
See also §87.24
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507B - INSURANCE TRADE PRACTICES › Section 507B.3 - Unfair competition or unfair and deceptive acts or practices prohibited.

507B.3 Unfair competition or unfair and deceptive acts or practices prohibited.
A person shall not engage in this state in any trade practice which is defined in this chapter as, or determined pursuant to section 507B.6 to be, an unfair method of competition, or an unfair or deceptive act or practice in the business of insurance.
1. A person who violates a provision in chapter 508E shall be deemed to have committed an unfair trade practice under this chapter.
2. The issuance of a qualified charitable gift annuity as provided in chapter 508F does not constitute a trade practice in violation of this chapter.
[C58, 62, 66, 71, §507B.3, 507B.5; C73, 75, 77, 79, 81, §507B.3]
2001 Acts, ch 28, §1; 2003 Acts, ch 91, §5; 2004 Acts, ch 1110, §21; 2008 Acts, ch 1123, §12; 2008 Acts, ch 1155, §20
Referred to in §515E.4, 515K.5
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507B - INSURANCE TRADE PRACTICES › Section 507B.4A - Duty to respond to inquiries and prompt payment of claim.

507B.4A Duty to respond to inquiries and prompt payment of claim.
1. A person shall promptly respond to inquiries from the commissioner.
a. A person’s actions are deemed untimely under this subsection if the person fails to respond to an inquiry from the commissioner within thirty days of the receipt of the inquiry, unless good cause exists for delay.
b. Failure to respond to inquiries from the commissioner pursuant to this subsection with such frequency as to indicate a general business practice shall subject the person to penalty under this chapter.
2. a. An insurer providing accident and sickness insurance under chapter 509, 514, or 514A; a health maintenance organization; or another entity providing health insurance or health benefits subject to state insurance regulation shall either accept and pay or deny a clean claim.
b. For purposes of this subsection, “clean claim” means a properly completed paper or electronic billing instrument containing all reasonably necessary information, that does not involve coordination of benefits for third-party liability, preexisting condition investigations, or subrogation, and that does not involve the existence of particular circumstances requiring special treatment that prevents a prompt payment from being made.
c. The commissioner shall adopt rules establishing processes for timely adjudication and payment of claims by insurers for health care benefits. The rules shall be consistent with the time frames and other procedural standards for claims decisions by group health plans established by the United States department of labor pursuant to 29 C.F.R. pt. 2560 in effect on January 1, 2002.
d. Payment of a clean claim shall include interest at the rate of ten percent per annum when an insurer or other entity as defined in this subsection that administers or processes claims on behalf of the insurer or other entity fails to timely pay a claim.
e. This subsection shall not apply to liability insurance, workers’ compensation or similar insurance, automobile or homeowners’ medical payment insurance, disability income, or long-term care insurance.
2001 Acts, ch 69, §8, 39; 2001 Acts, ch 176, §71; 2017 Acts, ch 148, §33
Referred to in §507B.4, 507B.6, 507B.12, 514F.6
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507B - INSURANCE TRADE PRACTICES › Section 507B.4B - Suitability.

507B.4B Suitability.
1. A person shall not recommend to any individual the purchase, sale, or exchange of any annuity contract, or any rider, endorsement, or amendment thereto, unless the person has reasonable grounds to believe that the recommendation is suitable for the individual based on a reasonable inquiry into the individual’s financial status, investment objectives, and other relevant information.
2. A person engaged in the business of annuities shall establish and maintain a system to monitor recommendations made that is reasonably designed to achieve compliance with subsection 1.
3. The commissioner shall adopt rules pursuant to chapter 17A establishing procedures and standards for implementation of the suitability requirements of subsection 1.
2006 Acts, ch 1117, §25
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507B - INSURANCE TRADE PRACTICES › Section 507B.5 - Favored agent or insurer — coercion of debtors.

507B.5 Favored agent or insurer — coercion of debtors.
1. No person may do any of the following:
a. Require, as a condition precedent to the lending of money or extension of credit, or any renewal thereof, that the person to whom such money or credit is extended or whose obligation the creditor is to acquire or finance, negotiate any policy or contract of insurance through a particular insurer or group of insurers or agent or broker or group of agents or brokers.
b. Unreasonably disapprove the insurance policy provided by a borrower for the protection of the property securing the credit or lien.
c. Require directly or indirectly that any borrower, mortgagor, purchaser, insurer, broker, or agent pay a separate charge in connection with the handling of any insurance policy required as security for a loan on real estate or pay a separate charge to substitute the insurance policy of one insurer for that of another.
d. Use or disclose information resulting from a requirement that a borrower, mortgagor or purchaser furnish insurance of any kind on real property being conveyed or used as collateral security to a loan, when such information is to the advantage of the mortgagee, vendor, or lender, or is to the detriment of the borrower, mortgagor, purchaser, insurer, or the agent or broker complying with such a requirement.
2. Subsection 1, paragraph “c” of this section does not include the interest which may be charged on premium loans or premium advancements in accordance with the security instrument.
3. For purposes of subsection 1, paragraph “b” of this section, such disapproval shall be deemed unreasonable if it is not based solely on reasonable standards uniformly applied, relating to the extent of coverage required and the financial soundness and the services of an insurer. Such standards shall not discriminate against any particular type of insurer, nor shall such standards call for the disapproval of an insurance policy because such policy contains coverage in addition to that required.
4. If a violation of this section is found, the person in violation shall be subject to the same procedures and penalties as are applicable to other provisions of this chapter.
5. For purposes of this section, “person” includes any individual, corporation, association, partnership, or other legal entity.
[C73, 75, 77, 79, 81, §507B.5]
2015 Acts, ch 29, §69
Referred to in §507B.6, 507B.12, 535.8
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507B - INSURANCE TRADE PRACTICES › Section 507B.6A - Summary orders.

507B.6A Summary orders.
1. Upon a determination by the commissioner that a person or insurer has engaged, is engaging, or is about to engage in any act or practice constituting a violation of this chapter or a rule adopted or order issued under this chapter, the commissioner may issue a summary order, including a brief statement of findings of fact, conclusions of law, and policy reasons for the decision, and directing the person or insurer to cease and desist from engaging in the act or practice or to take other affirmative action as is in the judgment of the commissioner necessary to comply with the requirements of this chapter.
2. A person who has been issued a summary order under this section may contest the order by filing a request for a contested case proceeding and hearing as provided in chapter 17A and in accordance with the rules adopted by the commissioner. However, the person shall have at least thirty days from the date that the order is issued in order to file the request. Section 17A.18A is inapplicable to a summary order issued under this section. The order shall remain effective from the date of issuance unless overturned by a presiding officer or court following a request for hearing. If a hearing is not timely requested, the summary order becomes final by operation of law.
3. A person or insurer violating a summary order issued under this section shall be deemed in contempt of that order. The commissioner may petition the district court to enforce the order as certified by the commissioner. The district court shall adjudge the person in contempt of the order if the court finds after hearing that the person or insurer is not in compliance with the order. The court may assess a civil penalty against the person or insurer and may issue further orders as it deems appropriate.
2004 Acts, ch 1110, §23
Referred to in §505.8, 507B.7A, 508E.7
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507B - INSURANCE TRADE PRACTICES › Section 507B.8 - Judicial review of cease and desist orders.

507B.8 Judicial review of cease and desist orders.
1. Judicial review of the actions of the commissioner may be sought in accordance with the terms of the Iowa administrative procedure Act, chapter 17A. To the extent that an order of the commissioner is affirmed in any judicial review proceeding, the court shall thereupon issue its own order commanding obedience to the terms of such order of the commissioner.
2. After the period for judicial review of an order of the commissioner has expired and no petition for judicial review has been filed, the attorney general upon request of the commissioner of insurance shall proceed in the Iowa district court to enforce an order of the commissioner. The court shall enter its order commanding obedience to the terms of the commissioner’s order.
3. No order of the commissioner under this chapter or order of a court to enforce the same shall in any way relieve or absolve any person affected by such order from any liability under any other laws of this state.
[C58, 62, 66, 71, 73, 75, 77, 79, 81, §507B.8; 82 Acts, ch 1003, §3]
2003 Acts, ch 44, §114; 2018 Acts, ch 1041, §127
Referred to in §507B.7
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507B - INSURANCE TRADE PRACTICES › Section 507B.9 - Sale of duplicate coverage prohibited.

507B.9 Sale of duplicate coverage prohibited.
1. A person shall not knowingly engage in the sale of duplicate Medicare supplement insurance coverage, as defined by rule of the commissioner.
2. The commissioner of insurance shall adopt rules pursuant to chapter 17A which define the sale of duplicate Medicare supplement insurance coverage.
[C81, §507B.9]
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507B - INSURANCE TRADE PRACTICES › Section 507B.12 - Rules.

507B.12 Rules.
1. The commissioner may, after notice and hearing, promulgate reasonable rules, as are necessary or proper to identify specific methods of competition or acts or practices which are prohibited by section 507B.4, 507B.4A, or 507B.5, but the rules shall not enlarge upon or extend the provisions of such sections. Such rules shall be subject to review in accordance with chapter 17A.
2. The powers vested in the commissioner by this chapter shall be additional to any other powers to enforce any penalties, fines, or forfeitures authorized by law with respect to the methods, acts, and practices declared to be unfair or deceptive.
[C58, 62, 66, 71, 73, 75, 77, 79, 81, §507B.12]
2001 Acts, ch 69, §11, 39; 2018 Acts, ch 1041, §127; 2019 Acts, ch 24, §76; 2020 Acts, ch 1063, §271
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507B - INSURANCE TRADE PRACTICES › Section 507B.13 - Immunity from prosecution.

507B.13 Immunity from prosecution.
If any person shall ask to be excused from attending and testifying or from producing any books, papers, records, correspondence or other documents at any hearing on the ground that the testimony or evidence required of the person may tend to incriminate the person or subject the person to a penalty or forfeiture, and shall notwithstanding be directed to give such testimony or produce such evidence, the person must nonetheless comply with such direction, but the person shall not thereafter be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter or thing concerning which the person may testify or produce evidence pursuant thereto, and no testimony so given or evidence produced shall be received against the person upon any criminal action, investigation or proceeding, provided, however, that no such individual so testifying shall be exempt from prosecution or punishment for any perjury committed by the individual while so testifying and the testimony or evidence so given or produced shall be admissible against the individual upon any criminal action, investigation or proceeding concerning such perjury, nor shall the individual be exempt from the refusal, revocation or suspension of any license, permission or authority conferred, or to be conferred, pursuant to the insurance law of this state. Any such individual may execute, acknowledge and file in the office of the commissioner a statement expressly waiving such immunity or privilege in respect to any transaction, matter or thing specified in such statement and thereupon the testimony of such person or such evidence in relation to such transaction, matter or thing may be received or produced before any judge or justice, court, tribunal, grand jury or otherwise, and if so received or produced such individual shall not be entitled to any immunity or privilege on account of any testimony the individual may so give or evidence so produced.
[C58, 62, 66, 71, 73, 75, 77, 79, 81, §507B.13]
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507B - INSURANCE TRADE PRACTICES › Section 507B.14 - Transfer of insurance stock.

507B.14 Transfer of insurance stock.
1. When a controlling interest in two or more corporations, at least one of which is an insurance company domiciled in this state, is held by any person, group of persons, firm, or corporation, no exchange of stock, transfer or sale of securities, or loan based upon securities of any such corporation shall take place between such corporations, or between such person, group of persons, firm or corporation and such corporations, without first securing the approval of the insurance commissioner. If, in the opinion of the insurance commissioner, such sale, transfer, exchange, or loan would be improper and would work to the detriment of any such insurance company, the commissioner shall have the power to prohibit the transaction. A person, firm, or corporate officer or director shall not aid such transaction without approval of the insurance commissioner. A person, firm, or corporate officer or director who willfully violates this section is guilty of a class “D” felony. A person, firm, or corporate officer or director who willfully violates this section, and when such violation results in a loss of more than ten thousand dollars, is guilty of a class “C” felony.
2. For purposes of this section, “controlling interest” means actual control or the possession directly or indirectly of the power to direct or cause the direction of the management and policies of a firm, partnership, corporation, association, or trust, whether through the ownership of voting securities, by contract, or otherwise.
[C66, 71, 73, 75, 77, 79, 81, §507B.14]
2004 Acts, ch 1161, §66, 68; 2017 Acts, ch 29, §142
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION › Section 507C.1 - Short title — construction — purpose.

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. The purpose of this chapter is the protection of the interests of insureds, claimants, creditors, and the public, with minimum interference with the normal prerogatives of the owners and managers of insurers, through all of the following:
a. Early detection of a potentially dangerous condition in an insurer and prompt application of appropriate corrective measures.
b. Improved methods for rehabilitating insurers, involving the cooperation and management expertise of the insurance industry.
c. Enhanced efficiency and economy of liquidation, through clarification of the law, to minimize legal uncertainty and litigation.
d. Equitable apportionment of any unavoidable loss.
e. Lessening the problems of interstate rehabilitation and liquidation by facilitating cooperation between states in the liquidation process, and by extending the scope of personal jurisdiction over debtors of the insurer outside this state.
f. Regulation of the insurance business by the impact of the law relating to delinquency procedures and substantive rules on the entire insurance business.
g. Providing for a comprehensive scheme for the rehabilitation and liquidation of insurance companies and those subject to this chapter as part of the regulation of the business of insurance, the insurance industry, and insurers in this state. Proceedings in cases of insurer insolvency and delinquency are deemed an integral aspect of the business of insurance and are of vital public interest and concern.
84 Acts, ch 1175, §1; 92 Acts, ch 1117, §8, 9
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION › Section 507C.3 - Applicability.

507C.3 Applicability.
This chapter may be applied to any of the following:
1. Insurers who are doing or have done insurance business in this state, and against whom claims arising from that business may exist now or in the future.
2. Insurers who purport to do insurance business in this state.
3. Insurers who have insureds who are residents in this state.
4. Other persons organized or in the process of organizing with the intent to do insurance business in this state.
5. Nonprofit health service corporations and all fraternal benefit societies and beneficial societies subject to chapters 512A, 512B, and 514.
6. Prepaid health care delivery plans which are regulated by the commissioner.
7. Health maintenance organizations formed under chapter 514B other than limited service organizations formed under section 514B.33.
84 Acts, ch 1175, §3; 93 Acts, ch 88, §5; 2019 Acts, ch 12, §1, 35, 36
Referred to in §507C.2
Subsection 7 applies beginning March 29, 2019; 2019 Acts, ch 12, §35, 36
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION › Section 507C.4 - Jurisdiction and venue.

507C.4 Jurisdiction and venue.
1. A delinquency proceeding shall not be commenced under this chapter by a person other than the commissioner. A court shall not have jurisdiction over a proceeding under this chapter commenced by a person other than the commissioner.
2. A court shall not have jurisdiction over a petition praying for the dissolution, liquidation, rehabilitation, sequestration, conservation or receivership of an insurer, or praying for an injunction or restraining order or other relief preliminary to, incidental to or relating to such proceedings other than pursuant to this chapter.
3. A court having jurisdiction of the subject matter has jurisdiction over a person served pursuant to the Iowa rules of civil procedure or other applicable provisions in an action brought by the receiver of a domestic insurer or an alien insurer domiciled in this state for any of the following:
a. In an action on or incident to an obligation if the person served is obligated to the insurer in any way as an incident to an agency or brokerage arrangement that may exist or has existed between the insurer and the agent or broker.
b. In an action on or incident to a reinsurance contract, if the person served is a reinsurer who has at any time written a policy of reinsurance for an insurer against which a delinquency proceeding has been instituted, or is an agent or broker of or for the reinsurer and the action results from or is incident to the relationship with the reinsurer.
c. In an action resulting from a relationship with the insurer, if the person served is or has been an officer, manager, trustee, organizer, promoter, or person in a position of comparable authority or influence in an insurer against which a rehabilitation or liquidation order is in effect when the action is commenced.
d. In an action if the person served is or was at the time of the institution of the delinquency proceeding against the insurer holding assets which are the subject of the proceeding and in which the receiver claims an interest on behalf of the insurer.
e. If the person served is obligated to the insurer in any way whatsoever, in an action on or incident to the obligation.
4. If the court on motion of a party finds that an action should as a matter of substantial justice be tried in a forum outside this state, the court may enter an order to stay the proceedings on the action in this state.
5. All actions authorized in this chapter shall be brought in the district court in Polk county.
84 Acts, ch 1175, §4; 92 Acts, ch 1117, §11, 12; 2015 Acts, ch 29, §70
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION › Section 507C.6 - Cooperation of officers, owners, and employees — penalty.

507C.6 Cooperation of officers, owners, and employees — penalty.
1. An officer, manager, director, trustee, owner, employee, or agent of an insurer, or any other person with authority over or in charge of any segment of the insurer’s affairs, shall cooperate with the commissioner in any proceeding under this chapter or any investigation preliminary to the proceeding. The term “person” as used in this section, shall include any person who exercises control directly or indirectly over activities of the insurer through any holding company or other affiliate of the insurer. “To cooperate” shall include, but shall not be limited to, the following:
a. To reply promptly in writing to any inquiry from the commissioner requesting a reply.
b. To make available to the commissioner any books, accounts, documents, or other records, information, or property of or pertaining to the insurer and in the person’s possession, custody, or control.
2. A person shall not obstruct or interfere with the commissioner in the conduct of a delinquency proceeding or an investigation preliminary or incidental to a delinquency proceeding.
3. This section does not abridge otherwise existing legal rights, including the right to resist a petition for liquidation, other delinquency proceedings, or other orders.
4. It shall be unlawful for a person as defined in subsection 1 to fail to cooperate with the commissioner, or to obstruct or interfere with the commissioner in the conduct of a delinquency proceeding or an investigation preliminary or incidental to a delinquency proceeding, or to violate a valid order of the commissioner.
84 Acts, ch 1175, §6; 90 Acts, ch 1234, §4; 2004 Acts, ch 1110, §25
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION › Section 507C.7 - Bonds.

507C.7 Bonds.
In a proceeding under this chapter, the commissioner and the commissioner’s deputies shall be responsible on their official bonds for the faithful performance of their duties. If the court deems it desirable for the protection of the assets, it may require an additional bond from the commissioner or the commissioner’s deputies. The bonds shall be paid for out of the assets of the insurer as a cost of administration.
84 Acts, ch 1175, §7
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION › Section 507C.8A - Condition on release from delinquency proceedings.

507C.8A Condition on release from delinquency proceedings.
An insurer subject to a delinquency proceeding shall not be released from the delinquency proceeding unless the proceeding is converted into a rehabilitation or liquidation proceeding; shall not be permitted to solicit or accept new business, or request or accept the restoration of any suspended or revoked license or certificate of authority; and shall not be returned to the control of the insurer’s shareholders or private management, or have any of the insurer’s assets returned to the control of its shareholders or private management, until all payments of or on account of the insurer’s contractual obligations by all guaranty associations, along with all expenses of such obligations and interest on all such payments and expenses, have been repaid to the guaranty association or a plan of repayment by the insurer is approved by the guaranty association.
92 Acts, ch 1117, §13
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION › Section 507C.10 - Seizure order.

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 the public will be endangered by delay.
c. The contents of an order deemed necessary by the commissioner.
2. Upon a filing under subsection 1, the court may issue, ex parte and without a hearing, the requested order which shall direct the commissioner to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer, and of the premises occupied by it for transaction of its business, and until further order of the court enjoin the insurer and its officers, managers, agents, and employees from disposing of the insurer’s property and from transacting of the insurer’s business, except with the written consent of the commissioner.
3. The court shall specify in the order the duration of the order. The duration shall be the time the court deems necessary for the commissioner to ascertain the condition of the insurer. Upon motion or on its own, the court may from time to time hold hearings as it deems desirable after notice as it deems appropriate, and may extend, shorten, or modify the terms of the seizure order. The court shall vacate the seizure order if the commissioner fails to commence a formal proceeding under this chapter after having had a reasonable opportunity to do so. An order of the court pursuant to a formal proceeding under this chapter shall automatically vacate the seizure order.
4. Entry of a seizure order under this section is not an anticipatory breach of a contract of the insurer.
5. An insurer subject to an ex parte order under this section may petition the court after the issuance of the order for a hearing and review of the order. The court shall hold the hearing and review not more than fifteen days after the request. A hearing under this subsection may be held privately in chambers. Upon request of the insurer the hearing shall be held privately in chambers.
6. If at any time after the issuance of an order under this section it appears to the court that a person whose interest is or will be substantially affected by the order did not appear at the hearing and has not been served, the court may order that notice be given. An order that notice be given shall not stay the effect of any order previously issued by the court.
84 Acts, ch 1175, §10
Referred to in §507C.2, 507C.11, 507C.54
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION › Section 507C.11 - Confidentiality of hearings.

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 following occurs:
1. The insurer requests that the records be made public.
2. After a hearing on the issue with the parties to the proceeding, the court orders that the records be made public. Until such court order, the clerk of court shall hold all papers filed in a confidential file.
84 Acts, ch 1175, §11; 92 Acts, ch 1117, §14; 2004 Acts, ch 1110, §26
Referred to in §507C.54
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION › Section 507C.13 - Rehabilitation orders.

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. The filing or recording of the order with the clerk of the district court or recorder of deeds of the county in which the principal business of the insurer is conducted, or the county in which its principal office or place of business is located, is the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that recorder of deeds. The order to rehabilitate the insurer shall vest title to all assets of the insurer in the rehabilitator.
2. An order issued under this section requires accounting to the court by the rehabilitator. Accountings shall be at intervals the court specifies in the order. Each accounting must include a report concerning the rehabilitator’s opinion as to whether a plan pursuant to section 507C.14, subsection 4, will be prepared. If the rehabilitator includes in any accounting that such a plan is likely, the accounting shall also include a proposed timetable for the preparation and implementation of the plan.
3. Entry of an order of rehabilitation is not an anticipatory breach of a contract of the insurer.
84 Acts, ch 1175, §13; 92 Acts, ch 1117, §15
Referred to in §507C.15, 507C.37
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION › Section 507C.14 - Powers and duties of rehabilitator.

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 all expenses of taking possession of the insurer and of conducting the proceedings shall be fixed by the commissioner with the approval of the court and shall be paid out of the funds or assets of the insurer. The persons appointed under this section shall serve at the pleasure of the commissioner. If the property of the insurer does not contain sufficient cash or liquid assets to defray the costs incurred, the commissioner may advance the costs so incurred out of any appropriation for the maintenance of the division. Amounts so advanced for expenses of administration shall be repaid to the commissioner for the use of the division out of the first available money of the insurer.
2. The rehabilitator may take action as the rehabilitator deems necessary or appropriate to reform and revitalize the insurer. The rehabilitator shall have the powers of the directors, officers, and managers of the insurer, whose authority shall be suspended, except as the powers are redelegated by the rehabilitator. The rehabilitator shall have power to direct and manage, to hire and discharge employees subject to contract rights the employees may have, and to deal with the property and business of the insurer.
3. If it appears to the rehabilitator that there has been criminal or tortious conduct, or breach of a contractual or fiduciary obligation by any person detrimental to the insurer, the rehabilitator may pursue appropriate legal remedies on behalf of the insurer.
4. If the rehabilitator determines that reorganization, consolidation, conversion, reinsurance, merger, or other transformation of the insurer is appropriate, the rehabilitator shall prepare a plan to effect the changes. Upon application of the rehabilitator for approval of the plan, and after notice and hearings as the court may prescribe, the court may either approve, disapprove or modify the plan proposed. Before approving a plan, the court shall find that it is fair and equitable to all parties concerned. If the plan is approved, the rehabilitator shall carry out the plan. In the case of a life insurer, if all rights of shareholders are first relinquished, the plan proposed may include the imposition of liens upon the policies of the company. A plan for a life insurer may also propose imposition of a moratorium upon loan and cash surrender rights under policies.
5. The rehabilitator shall have the power under sections 507C.26 and 507C.27 to avoid fraudulent transfers.
84 Acts, ch 1175, §14; 92 Acts, ch 1117, §16; 93 Acts, ch 88, §6
Referred to in §507C.13, 507C.16
2023 Iowa Code › Title XIII - COMMERCE › Chapter 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION › Section 507C.15 - Actions by and against rehabilitator.

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 time as necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take action respecting the pending litigation as necessary in the interests of justice and for the protection of creditors, policyholders, and the public. The rehabilitator shall immediately consider all litigation pending outside this state and shall petition the courts having jurisdiction over that litigation for stays whenever necessary to protect the estate of the insurer.
2. A statute of limitations or defense of laches shall not run in an action by or against an insurer between the filing of a petition for appointment of a rehabilitator for that insurer and the order granting or denying that petition. An action by or against the insurer that might have been commenced when the petition was filed may be commenced for at least sixty days after the order of rehabilitation is entered or the petition is denied. The rehabilitator, upon the issuance of an order for rehabilitation pursuant to section 507C.13, may institute an action or proceeding on behalf of the insurer based upon a cause of action for which the period of limitation has not expired at the time of the filing of the petition for an order to rehabilitate. The action or proceeding by the rehabilitator may be instituted within one year or a longer period if provided by applicable law, of the issuance of the order for rehabilitation.
3. A guaranty association or foreign guaranty association covering life or health insurance or annuities shall have standing to appear in a court proceeding concerning the rehabilitation of a life or health insurer if the association is or may become liable to act as a result of the rehabilitation.
84 Acts, ch 1175, §15; 92 Acts, ch 1117, §17