reglab/statecodes huggingface dataset:
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508B - CONVERSION FROM MUTUAL COMPANY TO STOCK COMPANY › Section 508B.5 - Appointment of consultant.

508B.5 Appointment of consultant.
1. A plan may provide for the appointment by the mutual company of a person as defined in section 4.1, subsection 20, who is qualified to act as a consultant. The appointment of the consultant shall be reviewed by the commissioner and unless the commissioner finds the consultant unqualified, the consultant shall carry out the duties required by the mutual company and this chapter.
2. The consultant may assist in determining the equity of the policyholders or value of the mutual company. The consultant may consider the value of the consideration to be given to the participating policyholders in exchange for their membership interests and may consider the valuations necessary to carry out the plans provided for in section 508B.3. Valuations shall be made taking into account the latest filed annual statement of the mutual company, updated to the effective date of the conversion plan, and any significant developments occurring subsequent to the date of the statement.
3. The findings of the consultant may be modified by the mutual company at any time so long as the results are not unfair or inequitable to policyholders.
4. If it can be shown by the mutual company to the commissioner that an underwriter of the shares is a qualified person, the underwriter may be appointed as the consultant.
85 Acts, ch 127, §5; 90 Acts, ch 1234, §15; 2018 Acts, ch 1041, §127
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508B - CONVERSION FROM MUTUAL COMPANY TO STOCK COMPANY › Section 508B.6 - Approval of plan by policyholders — notice of election — effective date.

508B.6 Approval of plan by policyholders — notice of election — effective date.
The plan of conversion shall be submitted to and shall not take effect until approved by two-thirds of the policyholders of the mutual company voting on the plan. Notice of a meeting for the purpose of voting on the conversion plan shall be provided by mail to each policyholder entitled to vote in accordance with the articles of incorporation or bylaws of the mutual company. Each policyholder entitled to vote may cast one vote unless otherwise provided in the articles of incorporation or bylaws of the mutual company. Voting shall be by ballot, in person or by proxy. A quorum shall consist of a quorum as defined in the articles of incorporation or bylaws of the mutual company. A copy of the plan of conversion, or a summary of the plan of conversion, shall accompany the notice of meeting and election. The notice of meeting may contain the notice of any planned public hearing. An approved plan of conversion shall take effect on the date specified in the plan.
85 Acts, ch 127, §6; 99 Acts, ch 165, §3
Referred to in §508B.2
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508B - CONVERSION FROM MUTUAL COMPANY TO STOCK COMPANY › Section 508B.7 - Review of plan by commissioner — hearing authorized — approval.

508B.7 Review of plan by commissioner — hearing authorized — approval.
The commissioner of insurance shall review the plan. The commissioner shall approve the plan if the commissioner finds the plan complies with all provisions of law, the plan is fair and equitable to the mutual company and its policyholders, and that the reorganized company will have the amount of capital and surplus deemed by the commissioner to be reasonably necessary for its future solvency. The commissioner may order a hearing on the fairness and equity of the terms of the plan after giving written notice of the hearing to the mutual company, its policyholders, and other interested persons, all of whom have the right to appear at the hearing. Costs incurred in connection with the notice shall be paid by the company.
85 Acts, ch 127, §7; 90 Acts, ch 1234, §16; 2000 Acts, ch 1023, §10, 60
Referred to in §505.23
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508B - CONVERSION FROM MUTUAL COMPANY TO STOCK COMPANY › Section 508B.8 - Payment of fees, salaries and costs.

508B.8 Payment of fees, salaries and costs.
A director, officer, agent or employee of the mutual company shall not receive a fee, commission or other valuable consideration, other than regular salary and compensation, for aiding, promoting or assisting in the conversion except as set forth in the plan approved by the commissioner. This section does not prohibit the payment of reasonable fees and compensation to a consultant, attorneys at law, accountants, actuaries or other persons specifically employed for services performed in the practice of their professions while completing the plan of conversion, even if these persons are directors of the mutual company.
85 Acts, ch 127, §8
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508B - CONVERSION FROM MUTUAL COMPANY TO STOCK COMPANY › Section 508B.9 - Act of conversion — continuation of company.

508B.9 Act of conversion — continuation of company.
1. When the commissioner and the policyholders approve the conversion plan as provided in this chapter, the commissioner shall issue a new certificate of authority to the reorganized company effective on the effective date of the conversion as provided in the plan. The reorganized company is a continuation of the mutual life insurance company and the conversion shall not annul or modify any of the mutual company’s existing suits, contracts, or liabilities except as provided in the approved conversion plan. All rights, franchises, and interests of the mutual company in and to property, assets, and other interests shall be transferred to and shall vest in the reorganized company and the reorganized company shall assume all obligations and liabilities of the mutual company.
2. The reorganized company shall exercise all rights and powers and perform all duties conferred or imposed by law on life insurance companies writing the classes of insurance written by it, and shall retain the rights and contracts existing before conversion, subject to provisions of the plan.
85 Acts, ch 127, §9; 86 Acts, ch 1237, §32; 2000 Acts, ch 1023, §11; 2018 Acts, ch 1041, §127
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508B - CONVERSION FROM MUTUAL COMPANY TO STOCK COMPANY › Section 508B.10 - Continuation of officers.

508B.10 Continuation of officers.
The directors and officers of the mutual company shall serve the reorganized company until new directors and officers are elected and qualify pursuant to the articles of incorporation and bylaws of the reorganized company.
85 Acts, ch 127, §10
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508B - CONVERSION FROM MUTUAL COMPANY TO STOCK COMPANY › Section 508B.12 - Amendments — withdrawal.

508B.12 Amendments — withdrawal.
At any time before the conversion, if done pursuant to rules issued by the commissioner or as may otherwise be required by the commissioner, the board of directors of a mutual company may amend the conversion plan. An amendment to a conversion plan is subject to the prior approval of the commissioner. The board of directors of a mutual company may withdraw the plan of conversion at any time prior to the conversion.
85 Acts, ch 127, §12; 99 Acts, ch 165, §4
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508B - CONVERSION FROM MUTUAL COMPANY TO STOCK COMPANY › Section 508B.13 - Prohibitions on certain offers to acquire shares.

508B.13 Prohibitions on certain offers to acquire shares.
Prior to and for a period of five years following the effective date of the conversion, and in the case of the plans of conversion specified in section 508B.3, subsections 1 and 3, five years following the date of distribution of consideration to the policyholders in exchange for their membership interests, a person, other than the reorganized company, other than an employee benefit plan or employee benefit trust sponsored by the reorganized company, or as otherwise specifically provided for in the plan of conversion, shall not directly or indirectly acquire or offer to acquire the beneficial ownership of more than five percent of any class of voting security of the reorganized company, and a person, other than the reorganized company or other than an employee benefit plan or employee benefit trust sponsored by the reorganized company, who acquires five percent or more of any class of voting security of the reorganized company prior to the conversion or as specifically provided for in the plan of conversion, shall not directly or indirectly acquire or offer to acquire the beneficial ownership of additional voting securities of the reorganized company, unless the acquisition is approved by the commissioner as not being contrary to the interests of the policyholders of the reorganized company or its life insurance company subsidiary and by the board of directors of the reorganized company. The commissioner and the board of directors may consider the factors set forth in section 490.1108A. The provisions of section 521A.3, except section 521A.3, subsection 4, paragraph “a”, shall be applicable to a proposed acquisition subject to this section. An approved plan of conversion may include a stock option plan. As used in this section, “beneficial ownership” means, with respect to a security, the sole or shared power to vote or direct the voting of the security or the sole power to dispose or direct the disposition of the security.
85 Acts, ch 127, §13; 90 Acts, ch 1234, §17; 99 Acts, ch 165, §5; 2002 Acts, ch 1154, §110, 125
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508B - CONVERSION FROM MUTUAL COMPANY TO STOCK COMPANY › Section 508B.14 - Limitation of actions — security for attorney fees.

508B.14 Limitation of actions — security for attorney fees.
1. The commissioner’s order approving or disapproving a plan of conversion shall be considered final agency action under chapter 17A.
2. An action challenging the validity of a conversion plan, or any part of a conversion plan, shall not be commenced more than thirty days following the date of approval by the commissioner, unless an application for rehearing is filed pursuant to section 17A.16, subsection 2. If an application for rehearing is filed, then such action must be filed within thirty days after that application is denied or deemed denied or, if the application is granted, within thirty days after the issuance of the commissioner’s final decision on rehearing.
3. The reorganized company or a defendant may petition the court in such an action to give security for the reasonable attorney fees which may be incurred by any party to the action. The amount of the security may be increased or decreased in the discretion of the court having jurisdiction if a showing is made that the security provided is or may become inadequate or excessive.
85 Acts, ch 127, §14; 90 Acts, ch 1234, §18; 99 Acts, ch 165, §6; 2000 Acts, ch 1023, §12; 2018 Acts, ch 1041, §127
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508B - CONVERSION FROM MUTUAL COMPANY TO STOCK COMPANY › Section 508B.15 - Duties of secretary of state.

508B.15 Duties of secretary of state.
After approval of the conversion plan by the commissioner and the policyholders, the secretary of state shall accept for filing a verified copy of the amended articles of incorporation.
85 Acts, ch 127, §15; 86 Acts, ch 1237, §33
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508C - IOWA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION › Section 508C.2 - Purpose.

508C.2 Purpose.
1. The purpose of this chapter is to protect, subject to certain limitations, the persons specified in section 508C.3, subsection 1, against failure in the performance of contractual obligations under life, health, and annuity policies, plans, or contracts specified in section 508C.3, subsection 2, because of the impairment or insolvency of the member insurer which issued the policies, plans, or contracts.
2. To provide this protection, an association of member insurers is created to enable the guaranty of payments of benefits and continuation of coverages as limited by this chapter. Members of the association are subject to assessment to provide funds to carry out the purpose of this chapter.
87 Acts, ch 223, §2; 2019 Acts, ch 12, §2, 35, 36
Referred to in §508C.4
2019 amendment applies beginning March 29, 2019; 2019 Acts, ch 12, §35, 36
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508C - IOWA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION › Section 508C.6 - Creation of association.

508C.6 Creation of association.
1. A nonprofit legal entity is created to be known as the Iowa life and health insurance guaranty association. All member insurers shall be and shall remain members of the association as a condition of their authority to transact insurance or health maintenance organization business in this state. The association shall perform its functions under the plan of operation established and approved under section 508C.10 and shall exercise its powers through the board of directors established in section 508C.7. For purposes of administration and assessment, the association shall maintain all of the following accounts:
a. A health account.
b. A life insurance account.
c. An annuity account, which shall include annuity contracts owned by a governmental retirement plan, or the plan’s trustee, established under section 401, 403(b), or 457 of the United States Internal Revenue Code, but shall otherwise exclude unallocated annuities.
d. An unallocated annuity contract account, which shall exclude contracts owned by a governmental retirement benefit plan, or the plan’s trustee, established under section 401, 403(b), or 457 of the United States Internal Revenue Code.
2. The association is subject to the immediate supervision of the commissioner and the applicable provisions of the insurance laws of this state.
87 Acts, ch 223, §6; 88 Acts, ch 1135, §7, 8; 2008 Acts, ch 1123, §15; 2019 Acts, ch 12, §9, 35, 36
Referred to in §508C.5, 508C.9
2019 amendment applies beginning March 29, 2019; 2019 Acts, ch 12, §35, 36
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508C - IOWA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION › Section 508C.7 - Board of directors.

508C.7 Board of directors.
1. The board of directors of the association shall consist of not less than seven nor more than eleven member insurers serving terms as established in the plan of operation. The members of the board shall be selected by member insurers, subject to the approval of the commissioner. Vacancies on the board shall be filled for the remaining period of the term by a majority vote of the remaining board members, subject to the approval of the commissioner. To select the initial board of directors, and initially organize the association, the commissioner shall give notice to all member insurers of the time and place of the organizational meeting. In determining voting rights at the organizational meeting, each member insurer shall be entitled to one vote in person or by proxy. If the board of directors is not selected within sixty days after notice of the organizational meeting, the commissioner may appoint the initial members.
2. In approving selections or in appointing members to the board, the commissioner shall consider, among other factors, whether all member insurers, including member insurers that primarily write life insurance, annuity contracts, or health benefit plans, are fairly represented.
3. At the option of the association, members of the board may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors. However, members of the board shall not otherwise be compensated by the association for their services.
87 Acts, ch 223, §7; 2019 Acts, ch 12, §10, 35, 36
Referred to in §508C.6, 508C.10
2019 amendment applies beginning March 29, 2019; 2019 Acts, ch 12, §35, 36
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508C - IOWA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION › Section 508C.8A - Principal place of business — determination.

508C.8A Principal place of business — determination.
1. The principal place of business of a plan sponsor or a person other than a natural person shall be determined by the association in its reasonable judgment by considering all of the following factors:
a. The state in which the primary executive and administrative headquarters of the entity is located.
b. The state in which the principal office of the chief executive officer of the entity is located.
c. The state in which the board of directors or similar governing person or persons of the entity conducts the majority of its meetings.
d. The state in which the executive or management committee of the board of directors or similar governing person or persons of the entity conducts the majority of its meetings.
e. The state from which the management of the overall operations of the entity is directed.
2. In the case of a benefit plan sponsored by affiliated companies comprising a consolidated corporation, the principal place of business of the entity shall be deemed to be the state in which the holding company or controlling affiliate has its principal place of business as determined by the association using the factors enumerated in subsection 1. However, if more than fifty percent of the participants in the benefit plan are employed in a single state, that state shall be determined to be the principal place of business of the entity.
3. In the case of a benefit plan established or maintained by two or more employers, or jointly by one or more employers and one or more employee organizations, the principal place of business of the entity shall be deemed to be the principal place of business of the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan. In lieu of a specific or clear designation of the principal place of business of the entity under this subsection, the principal place of business of the entity shall be deemed to be the principal place of business of the employer or employee organization that has the largest investment in the benefit plan in question.
2011 Acts, ch 70, §12
Referred to in §508C.5
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508C - IOWA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION › Section 508C.10 - Plan of operation.

508C.10 Plan of operation.
1. a. The association shall submit to the commissioner a plan of operation and any amendments to the plan of operation necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments to the plan are effective upon the commissioner’s written approval.
b. If the association fails to submit a suitable plan of operation or if at any time the association fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt rules pursuant to chapter 17A as necessary or advisable to effectuate this chapter. The rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner.
2. All member insurers shall comply with the plan of operation.
3. In addition to other requirements established in this chapter the plan of operation shall establish all of the following:
a. Procedures for handling the assets of the association.
b. The amount and method of reimbursing members of the board of directors under section 508C.7.
c. Regular places and times for meetings of the board of directors.
d. Procedures for records to be kept of all financial transactions of the association, its agents, and the board of directors.
e. Procedures for selecting the board of directors and submitting the selections to the commissioner.
f. Any additional procedures for assessments under section 508C.9.
g. Additional provisions necessary or proper for the execution of the powers and duties of the association.
4. The plan of operation may provide that any powers and duties of the association, except those under section 508C.8, subsection 9, paragraph “c”, and section 508C.9 are delegated to a corporation, association, or other organization which performs or will perform functions similar to those of this association, or its equivalent, in two or more states. Such a corporation, association, or organization shall be reimbursed for any payments made on behalf of the association and shall be paid for its performance of any function of the association. A delegation under this subsection shall take effect only with the approval of both the board of directors and the commissioner. The delegation shall be made only to a corporation, association, or organization which extends protection at least as favorable and effective as that provided by this chapter.
87 Acts, ch 223, §10; 2019 Acts, ch 12, §23, 35, 36
Referred to in §508C.6, 508C.9
2019 amendment to subsection 1, paragraph b, applies beginning March 29, 2019; 2019 Acts, ch 12, §35, 36
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508C - IOWA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION › Section 508C.11 - Duties and powers of commissioner.

508C.11 Duties and powers of commissioner.
1. The commissioner shall:
a. Upon request of the board of directors, provide the association with a statement of the premiums for each member insurer.
b. When an impairment is declared and the amount of the impairment is determined, serve a demand upon the impaired insurer to make good the impairment within a reasonable time. Notice to the impaired insurer constitutes notice to its shareholders, if any. The failure of the impaired insurer to promptly comply with the demand shall not excuse the association from the performance of its powers and duties under this chapter.
2. After notice and hearing, the commissioner may suspend or revoke the certificate of authority to transact business in this state of a member insurer which fails to pay an assessment when due, or fails to comply with the plan of operation. As an alternative, the commissioner may levy an administrative penalty on any member insurer which fails to pay an assessment when due. The administrative penalty shall not exceed five percent of the unpaid assessment per month. However, an administrative penalty shall not be less than one hundred dollars per month.
3. A final action of the board of directors or the association may be appealed to the commissioner by a member insurer if the appeal is taken within sixty days of the member insurer’s receipt of notice of the final action being appealed. A final action or order of the commissioner is subject to judicial review pursuant to chapter 17A in a court of competent jurisdiction.
4. The liquidator, rehabilitator, or conservator of an impaired insurer may notify all interested persons of the effect of this chapter.
87 Acts, ch 223, §11; 88 Acts, ch 1112, §203; 2011 Acts, ch 70, §15, 16; 2019 Acts, ch 12, §24, 35, 36
2019 amendment applies beginning March 29, 2019; 2019 Acts, ch 12, §35, 36
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508C - IOWA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION › Section 508C.14 - Examination of association — annual report.

508C.14 Examination of association — annual report.
The association is subject to examination and regulation by the commissioner. The board of directors shall submit to the commissioner by May 1 of each year, a financial report for the preceding calendar year and a report of its activities during the preceding calendar year. The financial report shall be in a form approved by the commissioner.
87 Acts, ch 223, §14
Referred to in §508C.13
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508C - IOWA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION › Section 508C.16 - Immunity — indemnification.

508C.16 Immunity — indemnification.
1. A member insurer and its agents and employees, the association and its agents and employees, members of the board of directors, and the commissioner and the commissioner’s representatives are not liable for any action taken by them or omission by them while acting within the scope of their employment and in the performance of their powers and duties under this chapter and such immunity granted under this section shall extend to their participation in any organization of one or more state associations of similar purposes and to that organization and its agents and employees.
2. Sections 490.850 through 490.859 apply to the association.
87 Acts, ch 223, §16; 88 Acts, ch 1170, §9; 91 Acts, ch 97, §55; 2002 Acts, ch 1154, §111, 125; 2011 Acts, ch 70, §20
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508C - IOWA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION › Section 508C.17 - Stay of proceedings — reopening default judgments.

508C.17 Stay of proceedings — reopening default judgments.
Proceedings in which the insolvent insurer is a party in a court in this state shall be stayed one hundred eighty days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the association on matters germane to its powers or duties. The association may apply to have a judgment under a decision, order, verdict, or finding based on default, set aside by the same court that entered the judgment, and shall be permitted to defend against the suit on the merits.
87 Acts, ch 223, §17; 2011 Acts, ch 70, §21
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508C - IOWA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION › Section 508C.18 - Prohibited advertisements.

508C.18 Prohibited advertisements.
A person, including a member insurer, agent, or affiliate of a member insurer, shall not make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly, to be made, published, disseminated, circulated, or placed before the public in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over a radio station or television station, or in any other way, an advertisement, announcement, or statement, written or oral, which uses the existence of the insurance guaranty association of this state for the purpose of sales, solicitation, or inducement to purchase any form of insurance or other coverage covered by this chapter. However, this section does not apply to the association or any other entity which does not sell or solicit insurance or coverage by a health maintenance organization.
87 Acts, ch 223, §18; 2011 Acts, ch 70, §22; 2019 Acts, ch 12, §30, 35, 36
2019 amendment applies beginning March 29, 2019; 2019 Acts, ch 12, §35, 36
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508C - IOWA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION › Section 508C.19 - Credits for assessments paid.

508C.19 Credits for assessments paid.
1. An insurer may offset an assessment made pursuant to section 508C.9 against its premium tax liability pursuant to chapter 432 to the extent of twenty percent of the amount of the assessment for each of the five calendar years following the year in which the assessment was paid. If an insurer ceases doing business, all uncredited assessments may be credited against its premium tax liability for the year it ceases doing business.
2. Sums acquired by refund from the association which have been written off by contributing insurers and offset against premium taxes as provided in subsection 1 and are not then needed for purposes of this chapter shall be paid by the association to the commissioner. The commissioner shall remit the moneys to the treasurer of state to deposit in the state general fund.
87 Acts, ch 223, §19
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508D - MULTISTATE LIFE AND HEALTH INSURANCE RESOLUTION FACILITY › Section 508D.2 - Purpose.

508D.2 Purpose.
The purpose of this chapter is to authorize the formation of an entity by one or more state life and health insurance guaranty associations for the purpose of administering and disposing of the business of impaired or insolvent insurance companies assumed by or assigned to the entity by its member guaranty associations, or by impaired or insolvent insurers through the impaired or insolvent insurer’s duly appointed receiver, liquidator, or rehabilitator, and to establish the conditions under which such an entity shall do business.
94 Acts, ch 1011, §2
Referred to in §508D.3, 508D.4
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508D - MULTISTATE LIFE AND HEALTH INSURANCE RESOLUTION FACILITY › Section 508D.3 - Definitions.

508D.3 Definitions.
As used in this chapter, unless the context otherwise requires:
1. “Facility” means the multistate life and health insurance resolution facility created pursuant to section 508D.4 as a legal entity domiciled in Iowa with its principal place of business and other business offices either within or without the state of Iowa as the board of directors may designate or as the business of the entity may require and established for the purpose set out in section 508D.2.
2. “Member guaranty association” means the Iowa life and health insurance guaranty association created pursuant to chapter 508C or any other state life and health insurance guaranty association which is or becomes a member of the facility pursuant to the plan of operation.
3. “Oversight organization” means the Iowa commissioner of insurance and the state insurance commissioner, or other state official charged with the responsibility of regulating the insurance industry in the same or similar manner as the Iowa commissioner of insurance, from the state of domicile of each member guaranty association.
94 Acts, ch 1011, §3
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508D - MULTISTATE LIFE AND HEALTH INSURANCE RESOLUTION FACILITY › Section 508D.4 - Facility established.

508D.4 Facility established.
The facility may be created by one or more life and health insurance guaranty associations for the purpose set out in section 508D.2. The name of the facility shall be the multistate life and health insurance resolution facility. A life and health insurance guaranty association or other entity as approved by the board may elect to become a member of the association. The facility shall perform its functions under a plan of operation established and approved under section 508D.7 and shall exercise its powers through a board of directors established under section 508D.5. Only one facility shall be established pursuant to this chapter.
94 Acts, ch 1011, §4
Referred to in §508D.3
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508D - MULTISTATE LIFE AND HEALTH INSURANCE RESOLUTION FACILITY › Section 508D.5 - Board of directors.

508D.5 Board of directors.
1. The members of the board of directors shall be selected by the member guaranty associations. The number of members of the board and their terms shall be established in the plan of operation. Vacancies on the board shall be filled for the remaining period of the term by a majority vote of the remaining board members. In determining voting rights, each member guaranty association shall be entitled to one vote in person or by proxy.
2. The initial board of directors of the facility shall be established by the Iowa life and health insurance guaranty association and shall consist of not less than five nor more than nine members. The initial board of directors shall adopt a plan of operation for the facility as provided in section 508D.7.
3. Members of the board of directors are entitled to reasonable compensation for expenses incurred in attending meetings of the board or while on business conducted on behalf of the facility. Members of the board may also be compensated by the facility for their services provided as members of the board as provided in the plan of operation.
94 Acts, ch 1011, §5
Referred to in §508D.4
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508D - MULTISTATE LIFE AND HEALTH INSURANCE RESOLUTION FACILITY › Section 508D.6 - Powers and duties of the facility.

508D.6 Powers and duties of the facility.
1. The facility shall perform those duties of the member guaranty associations which are delegated to the facility as permitted under the enabling legislation of each member guaranty association and which are consistent with the plan of operation.
2. Except as otherwise provided in this chapter, the facility is granted specific authority to exercise the powers of a domestic life or health insurer.
3. The facility is not authorized to solicit, advertise, market, sell, underwrite, issue, insure, administer, or reinsure new insurance business or insurance business of insurance companies which are not impaired or insolvent according to the laws of their state of domicile.
4. The board of directors of the facility may enter into agreements with any interstate compact organization established for the purpose of administering impaired or insolvent insurance companies in this or any other state.
5. An activity involving the authority of the facility derived from chapter 507C or other law related to insurer supervision, rehabilitation, and liquidation shall be performed in compliance with the requirements of such law.
6. The facility established under this chapter is not subject to any insurance licensing requirements and an employee of the facility is not subject to any insurance licensing requirements for activities performed within the employee’s scope of duties. All regulatory oversight of the facility shall be conducted by the oversight organization.
94 Acts, ch 1011, §6
Referred to in §508D.9
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508D - MULTISTATE LIFE AND HEALTH INSURANCE RESOLUTION FACILITY › Section 508D.7 - Plan of operation.

508D.7 Plan of operation.
1. The facility shall submit to the oversight organization a plan of operation and any amendments to the plan of operation necessary or suitable to assure the fair, reasonable, and equitable administration of the facility’s business. The plan of operation and any amendments to the plan are effective upon the oversight organization’s written approval.
2. The plan of operation, in addition to other requirements established in this chapter, shall establish all of the following:
a. Procedures for administering the assets under the control of the facility.
b. Regular places and times for meetings of the board of directors.
c. Procedures for records to be kept of all financial transactions engaged in by the facility, the agents of the facility, and the board of directors.
d. Procedures for selecting the board of directors and submitting the selections to the oversight organization.
e. Procedures for permitting life and health insurance guaranty associations to become members of the facility.
f. Procedures for the assumption of the insurance business or the assignment of the insurance business to the facility by member guaranty associations.
g. Procedures for determining and making assessments against member guaranty associations by the board of directors.
h. Additional provisions necessary and proper for the execution of the powers and duties of the facility.
i. A description of staffing requirements and qualifications for positions within the facility.
3. The plan of operation may provide that any powers and duties of the facility, except the power to borrow money and the power to make assessments, may be delegated to a corporation, association, or other organization or individual which performs or will perform those functions. Such corporation, association, or other organization or individual shall be reimbursed for any payments made on behalf of the facility and shall be compensated for the performance of any permissible function, as directed by the facility. A delegation of any power or duty pursuant to this subsection takes effect only with the approval of the board of directors.
94 Acts, ch 1011, §7
Referred to in §508D.4, 508D.5
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508D - MULTISTATE LIFE AND HEALTH INSURANCE RESOLUTION FACILITY › Section 508D.8 - Costs and assessments.

508D.8 Costs and assessments.
1. Costs of administration shall be recorded separately for each impaired or insolvent company and those costs shall be reimbursed from the assets of such company.
2. The board of directors of the facility shall assess the member guaranty associations at the time and for the amounts the board finds necessary to reimburse the facility for any additional costs not reimbursed from assets managed by the facility. Assessments made pursuant to this subsection shall be allocated among member guaranty associations pursuant to a formula adopted by the board and consistent with each individual guaranty association’s liability for the facility’s insurance business which is the subject of the assessment. An assessment is due not less than ninety days after prior written notice has been sent to the member guaranty association and accrues interest at ten percent per annum commencing on the due date.
3. The total of all assessments upon a member guaranty association shall not exceed in any one calendar year the limit set by the enabling legislation of the member guaranty association’s state of domicile for assessments against insurance companies. If a maximum assessment in any one year does not provide an amount sufficient to carry out the responsibilities of the facility, the necessary additional funds shall be assessed in succeeding years as soon as permitted by this chapter and by the enabling legislation of the member guaranty association’s state of domicile.
4. Notwithstanding subsection 3, the Iowa life and health insurance guaranty association shall levy additional assessments not to exceed one hundred dollars per company per year if necessary to fund organizational expenses of the facility.
94 Acts, ch 1011, §8
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508D - MULTISTATE LIFE AND HEALTH INSURANCE RESOLUTION FACILITY › Section 508D.9 - Miscellaneous provisions.

508D.9 Miscellaneous provisions.
1. Records shall be kept of all negotiations and meetings in which the facility or the facility’s representatives are involved to discuss the activities of the facility in carrying out the powers and duties set out under section 508D.6. Records of negotiations or meetings shall be made public pursuant to chapter 22 only upon the termination of a liquidation, rehabilitation, or conservation proceeding involving the impaired or insolvent insurance company whose business was assumed by or assigned to the facility, upon the termination of the impairment or insolvency of the insurance company, or upon the order of a court of competent jurisdiction. This subsection does not limit the duty of the association to render a report of its activities under subsection 2.
2. The facility is subject to examination and regulation by the oversight organization. The board of directors shall submit to the oversight organization by June 1 of each year a financial report for the preceding calendar year and a report of its activities during the preceding calendar year. The financial report shall be in a form approved by the oversight organization.
3. The facility is exempt from payment of all fees and taxes levied by this state or any of its subdivisions on insurance companies, except taxes levied on the real property of the facility.
4. A member guaranty association and its agents and employees, the facility and its agents and employees, members of the board of directors, and the oversight organization and its representatives are not liable for any acts or omissions while acting within the scope of their employment and in the performance of their powers and duties under this chapter, except for acts or omissions not in good faith which involve intentional misconduct or which involve a knowing violation of law.
94 Acts, ch 1011, §9
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508E - VIATICAL SETTLEMENT CONTRACTS › Section 508E.1A - Authority of the commissioner.

508E.1A Authority of the commissioner.
The commissioner shall regulate, but not prohibit, the sale of viatical settlements as provided in this chapter.
2000 Acts, ch 1147, §35
C2001, §508E.1
2008 Acts, ch 1155, §21
C2009, §508E.1A
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508E - VIATICAL SETTLEMENT CONTRACTS › Section 508E.4 - License revocation and denial.

508E.4 License revocation and denial.
1. The commissioner may refuse to issue, suspend, revoke, or refuse to renew the license of a viatical settlement provider or viatical settlement broker if the commissioner finds that any of the following applies:
a. There was any material misrepresentation in the application for the license.
b. The licensee or any officer, partner, member, or key management personnel has been convicted of fraudulent or dishonest practices, is subject to a final administrative action, or is otherwise shown to be untrustworthy or incompetent.
c. The viatical settlement provider demonstrates a pattern of unreasonable payments to viators.
d. The licensee or any officer, partner, member, or key management personnel has been found guilty of, or has pleaded guilty or nolo contendere to, any felony, or to a misdemeanor involving fraud or moral turpitude, regardless of whether a judgment of conviction has been entered by the court.
e. The viatical settlement provider has entered into any viatical settlement contract form that has not been approved pursuant to this chapter.
f. The viatical settlement provider has failed to honor contractual obligations set out in a viatical settlement contract.
g. The licensee no longer meets the requirements for initial licensure.
h. The viatical settlement provider has assigned, transferred, or pledged a viaticated policy to a person other than a viatical settlement provider licensed in this state, viatical settlement purchaser, an accredited investor, or qualified institutional buyer as defined respectively in
17 C.F.R. §230.501(a)
or
17 C.F.R. §230.144A
as promulgated by the United States securities and exchange commission under the federal Securities Act of 1933, as amended, 15 U.S.C. §77a et seq., a financing entity, special purpose entity, or related provider trust.
i. The licensee or any officer, partner, member, or key management personnel has violated any provision of this chapter.
2. The commissioner may suspend, revoke, or refuse to renew the license of a viatical settlement broker or a life insurance producer operating as a viatical settlement broker pursuant to this chapter if the commissioner finds that the viatical settlement broker or life insurance producer has violated the provisions of this chapter or has otherwise engaged in bad faith conduct with one or more viators.
3. If the commissioner denies a license application or suspends, revokes, or refuses to renew the license of a viatical settlement provider or viatical settlement broker, or suspends, revokes, or refuses to renew a license of a life insurance producer operating as a viatical settlement broker pursuant to this chapter, the commissioner shall conduct a hearing in accordance with chapter 17A.
2000 Acts, ch 1147, §38; 2008 Acts, ch 1155, §4
Referred to in §522B.5A
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508E - VIATICAL SETTLEMENT CONTRACTS › Section 508E.5 - Approval of viatical settlement contracts and disclosure statements.

508E.5 Approval of viatical settlement contracts and disclosure statements.
A person shall not use a viatical settlement contract form or provide to a viator a disclosure statement form in this state unless first filed with and approved by the commissioner. The commissioner shall disapprove a viatical settlement contract form or disclosure statement form if, in the commissioner’s opinion, the contract or provisions contained therein fail to meet the requirements of sections 508E.8, 508E.10, 508E.14, and 508E.15, subsection 2, or are unreasonable, contrary to the interests of the public, or otherwise misleading or unfair to the viator. At the commissioner’s discretion, the commissioner may require the submission of advertising material. The commissioner’s approval of any of the materials shall not be a defense or otherwise preclude a civil action for fraud.
2008 Acts, ch 1155, §5
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508E - VIATICAL SETTLEMENT CONTRACTS › Section 508E.6 - Reporting requirements and privacy.

508E.6 Reporting requirements and privacy.
1. For any policy settled within five years of policy issuance, each viatical settlement provider shall file with the commissioner on or before March 1 of each year an annual statement containing such information as the commissioner may adopt by rule. In addition to any other requirements, the annual statement shall specify the total number, aggregate face amount, and life settlement proceeds of policies settled during the immediately preceding calendar year, together with a breakdown of the information by policy issue year. The annual statement shall also include the names of the insurance companies whose policies have been settled and the viatical settlement brokers that have settled said policies. Such information shall be limited to only those transactions where the viator is a resident of this state. Notwithstanding chapter 22, individual transaction data regarding the business of viatical settlements or data that could compromise the privacy of personal, financial, and health information of the viator or insured shall be filed with the commissioner on a confidential basis.
2. Except as otherwise allowed or required by law, a viatical settlement provider, viatical settlement broker, insurance company, insurance producer, information bureau, rating agency or company, or any other person with actual knowledge of an insured’s identity shall not disclose that identity as an insured, or the insured’s financial or medical information to any other person unless the disclosure is any of the following:
a. Necessary to effect a viatical settlement between the viator and a viatical settlement provider and the viator and insured have provided prior written consent to the disclosure.
b. Provided in response to an investigation or examination by the commissioner or any other governmental officer or agency or pursuant to the requirements of section 508E.15, subsection 3.
c. A term of or condition to the transfer of a policy by one viatical settlement provider to another viatical settlement provider.
d. Necessary to permit a financing entity, related provider trust, or special purpose entity to finance the purchase of policies by a viatical settlement provider and the viator and insured have provided prior written consent to the disclosure.
e. Necessary to allow the viatical settlement provider, viatical settlement broker, or their authorized representatives to make contacts for the purpose of determining health status.
f. Required to purchase stop-loss coverage or financial guaranty insurance.
2008 Acts, ch 1155, §6
2023 Iowa Code › Title XIII - COMMERCE › Chapter 508E - VIATICAL SETTLEMENT CONTRACTS › Section 508E.9 - Disclosure to insurer.

508E.9 Disclosure to insurer.
A viatical settlement broker, or viatical settlement provider, shall fully disclose to an insurer a transaction or series of transactions to which the viatical settlement broker or viatical settlement provider is a party to originate, renew, continue, or finance a life insurance policy with the insurer for the purpose of engaging in the business of viatical settlements at any time prior to, or during the first five years after, issuance of the policy.
2008 Acts, ch 1155, §9