reglab/statecodes huggingface dataset:
2023 Iowa Code › Title XIII - COMMERCE › Chapter 519 - LIABILITY INSURANCE — CERTAIN PROFESSIONS › Section 519.11 - Liability to assessments.

519.11 Liability to assessments.
The provisions as to maximum liability of members to assessments when assets are insufficient and to assessments when the corporation is insolvent, found in section 518A.9, shall apply to all mutual insurance corporations organized under this chapter.
[C24, 27, 31, 35, 39, §9080; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §519.11]
99 Acts, ch 165, §22; 2000 Acts, ch 1023, §55
2023 Iowa Code › Title XIII - COMMERCE › Chapter 519 - LIABILITY INSURANCE — CERTAIN PROFESSIONS › Section 519.12 - Foreign companies.

519.12 Foreign companies.
Any mutual insurance association organized under the laws of any other state, for the purpose of transacting the kind of business described in this chapter, and which has on hand surplus amounting to not less than ten times the maximum single retained risk, and has not less than two hundred fifty members, may upon application, be admitted to do business in this state if the commissioner finds such admission is in the public interest; and shall thereafter make all reports and be subject to taxation, examination, and supervision by the commissioner of insurance to the same extent and in the same manner as are domestic corporations organized under the provisions of this chapter.
[C24, 27, 31, 35, 39, §9081; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §519.12]
2023 Iowa Code › Title XIII - COMMERCE › Chapter 519 - LIABILITY INSURANCE — CERTAIN PROFESSIONS › Section 519.13 - Construction.

519.13 Construction.
All laws, or parts of laws, in conflict herewith shall be so construed as not to include corporations regulated by this chapter.
[C24, 27, 31, 35, 39, §9082; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §519.13]
2023 Iowa Code › Title XIII - COMMERCE › Chapter 519A - MEDICAL MALPRACTICE INSURANCE › Section 519A.1 - Intent.

519A.1 Intent.
1. The general assembly finds that a critical situation exists because of the high cost and impending unavailability of medical malpractice insurance. The purposes of sections 519A.2 through 519A.13 are to assure that the public is adequately protected against losses arising out of medical malpractice by providing licensed health care providers with medical malpractice insurance through the requirement that certain liability insurance carriers write medical malpractice insurance for a period of two years upon a finding of an emergency by the commissioner of insurance that either such insurance is not available through normal channels or that it is not available on a reasonable basis because of lack of competition for such insurance, or otherwise; to establish an association to equitably spread the risks for such insurance; and to provide for recoupment of losses resulting from the operation of the association through a stabilization reserve fund contributed to by insureds, a surcharge on future liability insurance policies, or a favorable premium tax treatment.
2. It is the intent of this chapter to provide only an interim solution to the impending unavailability of medical malpractice insurance. It is not anticipated that this chapter will resolve the underlying causes of the unavailability and high cost which extend beyond the insurance mechanism. It is anticipated that future legislation will be required to deal on a more permanent basis with the underlying causes of the current situation.
[C77, 79, 81, §519A.1]
2016 Acts, ch 1073, §150
2023 Iowa Code › Title XIII - COMMERCE › Chapter 519A - MEDICAL MALPRACTICE INSURANCE › Section 519A.2 - Definitions.

519A.2 Definitions.
As used in this chapter, unless the context otherwise requires:
1. “Association” means the joint underwriting association established pursuant to this section and sections 519A.3 through 519A.13.
2. “Commissioner” means the commissioner of insurance or a designee.
3. “Licensed health care provider” means and includes a physician and surgeon, osteopathic physician and surgeon, dentist, podiatric physician, optometrist, pharmacist, chiropractor, or nurse licensed pursuant to chapter 147, a hospital licensed pursuant to chapter 135B, and a nursing facility licensed pursuant to chapter 135C.
4. “Medical malpractice insurance” means insurance coverage against the legal liability of the insured and against loss, damage, or expense incident to a claim arising out of the death or injury of any person as the result of negligence or malpractice in rendering professional service by any licensed health care provider.
5. “Net direct premiums” means gross direct premiums written on liability insurance as reported in the annual statements filed by the insurers with the commissioner, including the liability component of multiple peril package policies as computed by the commissioner, less return premiums for the unused or unabsorbed portions of premium deposits.
[C77, 79, 81, §519A.2]
95 Acts, ch 108, §20; 2002 Acts, ch 1111, §32; 2008 Acts, ch 1088, §141; 2016 Acts, ch 1073, §151
Referred to in §519A.1, 519A.3, 519A.4, 519A.5, 519A.10, 519A.13
2023 Iowa Code › Title XIII - COMMERCE › Chapter 519A - MEDICAL MALPRACTICE INSURANCE › Section 519A.3 - Temporary joint underwriting association.

519A.3 Temporary joint underwriting association.
1. A temporary joint underwriting association is created, consisting of all insurers authorized to write and engaged in writing on a direct basis within this state liability insurance, including insurers covering such peril in multiple peril policies. Every such insurer shall be a member of the association and shall remain a member as a condition of its authority to continue to write liability insurance in this state.
2. The purpose of the association shall be to provide, for a period not exceeding two years, a market for medical malpractice insurance on a self-supporting basis without subsidy from its members.
3. a. The association shall not commence underwriting operations for health care providers until the commissioner, after notice and opportunity for hearing, has determined that medical malpractice insurance is not available at a reasonable cost for a specific type of licensed health care provider in the voluntary market. Upon such determination the association shall be authorized to issue policies of medical malpractice insurance for such specific type of health care provider but need not be the exclusive agency through which such insurance may be written on a primary basis in this state.
b. If the commissioner determines at any time that medical malpractice insurance can be made available in the voluntary market at a reasonable price for any specific type of licensed health care provider, the association shall thereby cease underwriting medical malpractice insurance for that type of licensed health care provider.
4. The association shall, subject to the terms and conditions of section 519A.2, this section, and sections 519A.4 through 519A.13, have and exercise the following powers on behalf of its members:
a. To issue, or to cause to be issued, policies of insurance to applicants, including incidental coverages and subject to limits as specified in the plan of operation but not to exceed one million dollars for each claimant under one policy and three million dollars for all claimants under one policy in any one year.
b. To underwrite such insurance and to adjust and pay losses with respect thereto, or to appoint service companies to perform those functions.
c. To assume reinsurance from its members.
d. To cede reinsurance.
[C77, 79, 81, §519A.3]
2012 Acts, ch 1023, §157; 2016 Acts, ch 1073, §152
Referred to in §519A.1, 519A.2, 519A.4, 519A.5, 519A.10, 519A.13
2023 Iowa Code › Title XIII - COMMERCE › Chapter 519A - MEDICAL MALPRACTICE INSURANCE › Section 519A.4 - Plan of operation.

519A.4 Plan of operation.
1. a. The association shall submit a plan of operation to the commissioner, together with any amendments necessary or suitable to assure the fair, reasonable, and equitable administration of the association consistent with sections 519A.2, 519A.3, this section, and sections 519A.5 through 519A.13. The plan of operation and any amendments thereto shall become effective only after promulgation of the plan or amendment by the commissioner as a rule pursuant to section 17A.4, provided that the initial plan may in the discretion of the commissioner become effective immediately upon filing with the secretary of state pursuant to section 17A.5, subsection 2, paragraph “b”, subparagraph (1), subparagraph division (a).
b. If the association fails to submit a suitable plan of operation within twenty-five days following July 1, 1975, or if at any time thereafter the association fails to submit suitable amendments to the plan, the commissioner shall adopt rules necessary to effectuate sections 519A.2, 519A.3, this section, and sections 519A.5 through 519A.13. Such 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. The plan of operation shall provide for economic, fair and nondiscriminatory administration, and for the prompt and efficient provision of medical malpractice insurance. The plan shall contain other provisions, including but not limited to preliminary assessment of all members for initial expenses necessary to commence operations, establishment of necessary facilities, management of the association, assessment of members to defray losses and expenses, commission arrangements, reasonable and objective underwriting standards, acceptance and cession of reinsurance, appointment of servicing carriers or other servicing arrangements, and procedures for determining amounts of insurance to be provided by the association.
3. All member insurers shall comply with the plan of operation.
[C77, 79, 81, §519A.4]
2012 Acts, ch 1023, §157; 2015 Acts, ch 30, §225; 2016 Acts, ch 1073, §153; 2017 Acts, ch 29, §153; 2018 Acts, ch 1041, §105
Referred to in §519A.1, 519A.2, 519A.3, 519A.5, 519A.10, 519A.13
2023 Iowa Code › Title XIII - COMMERCE › Chapter 519A - MEDICAL MALPRACTICE INSURANCE › Section 519A.6 - Stabilization reserve fund.

519A.6 Stabilization reserve fund.
1. There is created a stabilization reserve fund. The fund shall be administered by three directors, one of whom shall be the commissioner. The remaining two directors shall be appointed by the commissioner, one of whom shall be a representative of the association and the other a representative of its policyholders.
2. The directors shall act by majority vote with two directors constituting a quorum for the transaction of any business or the exercise of any power of the fund. The directors shall serve without salary, but each director other than the commissioner shall be reimbursed for actual and necessary expenses incurred in the performance of official duties as a director. The directors shall not be subject to any personal liability with respect to the administration of the fund for acts or decisions made in good faith pursuant to the provisions of this chapter.
3. Each policyholder shall pay to the association a stabilization reserve fund charge determined by the directors which shall not exceed the amount of one annual premium due for insurance through the association. Such charge shall be separately stated in the policy. The association shall cancel the policy of any policyholder who fails to pay the stabilization reserve fund charge.
4. The association shall promptly pay to the fund all stabilization reserve fund charges which it collects from its policyholders and any retrospective premium refunds payable under any group retrospective rating plan approved by the commissioner under the provisions of this chapter.
5. All moneys received by the fund shall be held in trust by a corporate trustee selected by the directors. The corporate trustee may invest the moneys held in trust, subject to the approval of the directors. All investment income shall be credited to the fund, and all expenses of administration of the fund shall be charged against the fund. The moneys held in trust shall be used solely for the purpose of discharging when due any retrospective premium charges payable by policyholders of the association under the group retrospective rating plan approved by the commissioner. Payment of retrospective premium charges shall be made by the directors upon certification to them by the association of the amount due. If all moneys accruing to the fund are finally exhausted in payment of retrospective premium charges, all liability and obligations of the association’s policyholders with respect to the payment of retrospective premium charges shall there upon terminate and shall be conclusively presumed to have been discharged. Any moneys remaining in the fund after all such retrospective premium charges have been paid shall be returned to policyholders pursuant to procedures authorized by the directors.
[C77, 79, 81, §519A.6]
2017 Acts, ch 29, §154
Referred to in §519A.1, 519A.2, 519A.3, 519A.4, 519A.5, 519A.10, 519A.13
2023 Iowa Code › Title XIII - COMMERCE › Chapter 519A - MEDICAL MALPRACTICE INSURANCE › Section 519A.7 - Procedures.

519A.7 Procedures.
1. Upon a finding by the commissioner, after notice and opportunity for hearing, that medical malpractice insurance is not available at a reasonable cost for a specific type of licensed health care provider in the voluntary market and upon notification of that finding to the association, any licensed health care provider of the type specified in the commissioner’s finding shall be entitled to apply to the association for medical malpractice insurance coverage. The application may be made on behalf of a licensed health care provider by an authorized agent.
2. If the association determines that the applicant meets the underwriting standards of the association as prescribed in the plan of operation, then the association, upon receipt of the premium or such portion thereof as is prescribed in the plan of operation, shall cause to be issued a policy of medical malpractice insurance.
[C77, 79, 81, §519A.7]
Referred to in §519A.1, 519A.2, 519A.3, 519A.4, 519A.5, 519A.10, 519A.13
2023 Iowa Code › Title XIII - COMMERCE › Chapter 519A - MEDICAL MALPRACTICE INSURANCE › Section 519A.8 - Participation.

519A.8 Participation.
All members of the association shall participate in its writings, expenses, servicing allowance, management fees and losses in the proportion that the net direct premiums of each member, excluding that portion of premiums attributable to the operation of the association, written during the preceding calendar year bears to the aggregate net direct premiums written in this state by all members of the association. Each member’s proportion shall be determined annually on the basis of the annual statements and other reports filed by the insurer with the commissioner.
[C77, 79, 81, §519A.8]
Referred to in §519A.1, 519A.2, 519A.3, 519A.4, 519A.5, 519A.10, 519A.13
2023 Iowa Code › Title XIII - COMMERCE › Chapter 519A - MEDICAL MALPRACTICE INSURANCE › Section 519A.9 - Governing board.

519A.9 Governing board.
1. The association shall be governed by a board of eleven directors of whom three shall be appointed annually by the commissioner to represent the licensed health care providers. Eight members shall be elected annually, except as provided in subsection 2, by the members of the association. Vacancies on the board shall be filled for the remaining period of the term by majority vote of the remaining directors subject to approval of the commissioner.
2. a. The commissioner shall designate a time and place for a meeting of the members of the association at which the eight elected members serving on the board shall be elected. The commissioner shall appoint the appointive members of the board on or before the date of the meeting.
b. The commissioner may, prior to the first meeting of the members of the association, appoint an interim governing board of the association consisting of eight member insurers and three representatives of the licensed health care providers. The eight member insurers of that interim governing board shall serve until their successors are elected by the members of the association. In appointing members of the association to the interim governing board, the commissioner shall consider among other things whether all member insurers are fairly represented.
[C77, 79, 81, §519A.9]
2002 Acts, ch 1111, §34; 2012 Acts, ch 1023, §157
Referred to in §519A.1, 519A.2, 519A.3, 519A.4, 519A.5, 519A.10, 519A.13
2023 Iowa Code › Title XIII - COMMERCE › Chapter 519A - MEDICAL MALPRACTICE INSURANCE › Section 519A.10 - Appeals and judicial review.

519A.10 Appeals and judicial review.
1. Any applicant or any person insured pursuant to section 519A.7, or a legal representative, or any affected insurer, may appeal to the commissioner within thirty days after any ruling, action or decision by or on behalf of the association, with respect to those items the plan of operation defines as appealable matters.
2. All orders of the commissioner made pursuant to sections 519A.2 through 519A.9, this section, and sections 519A.11 through 519A.13 shall be subject to judicial review as provided in the Iowa administrative procedure Act, chapter 17A.
[C77, 79, 81, §519A.10]
2003 Acts, ch 44, §114; 2016 Acts, ch 1073, §155
Referred to in §519A.1, 519A.2, 519A.3, 519A.4, 519A.5, 519A.13
2023 Iowa Code › Title XIII - COMMERCE › Chapter 519A - MEDICAL MALPRACTICE INSURANCE › Section 519A.11 - Annual statements.

519A.11 Annual statements.
The association shall file in the office of the commissioner on or before the first day of March each year, a statement as prescribed by the commissioner. The statement shall contain matters and information required by the commissioner including, but not limited to, information with respect to its transactions, condition, operations and affairs during the preceding year, and shall be in a form approved by the commissioner. The commissioner may, at any time, require the association to furnish additional information with respect to matters considered to be material to the scope, operation and experience of the association.
[C77, 79, 81, §519A.11]
Referred to in §519A.1, 519A.2, 519A.3, 519A.4, 519A.5, 519A.10, 519A.13
2023 Iowa Code › Title XIII - COMMERCE › Chapter 519A - MEDICAL MALPRACTICE INSURANCE › Section 519A.12 - Examinations.

519A.12 Examinations.
The commissioner shall make an examination of the association at least annually. The expenses of each examination shall be paid by the association.
[C77, 79, 81, §519A.12]
Referred to in §519A.1, 519A.2, 519A.3, 519A.4, 519A.5, 519A.10, 519A.13
2023 Iowa Code › Title XIII - COMMERCE › Chapter 519A - MEDICAL MALPRACTICE INSURANCE › Section 519A.13 - Privileged communications.

519A.13 Privileged communications.
There shall be no liability on the part of, and no cause of action of any nature shall arise against the association, the commissioner, or any other person or organization, for any statements made in good faith by any of them in any report or communication concerning risks insured or to be insured by the association, or during any proceedings within the scope of sections 519A.2 through 519A.12 and this section.
[C77, 79, 81, §519A.13]
2016 Acts, ch 1073, §156
Referred to in §519A.1, 519A.2, 519A.3, 519A.4, 519A.5, 519A.10
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.1 - Authorization.

520.1 Authorization.
Individuals, partnerships, and corporations, and cities, counties, townships, school districts and any other units of local government of this state, designated as subscribers under this chapter, are authorized to exchange reciprocal or interinsurance contracts with each other, and with individuals, partnerships, and corporations of other states, territories, districts, and countries, providing insurance among themselves for any loss which may be insured against under the law, except life insurance.
[C24, 27, 31, 35, 39, §9083; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.1]
2022 Acts, ch 1021, §154
Section amended
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.2 - Execution of contract.

520.2 Execution of contract.
Reciprocal or interinsurance contracts may be executed by an attorney, agent, or other representative designated as the attorney in fact, duly authorized and acting for such subscribers under powers of attorney. The attorney may be a corporation. The attorney shall have the power and authority to execute any and all instruments, papers, and documents incident to and a part of the business of the reciprocal or interinsurance exchange, including deeds for the conveyance of real estate, and acquisition and sale of securities. The attorney shall have the power and authority to do all things necessary and incident to the management and operation of such business. The certificate of the commissioner of insurance certifying the name of the attorney for any reciprocal or interinsurance exchange shall be sufficient proof of the authority of any such attorney.
[C24, 27, 31, 35, 39, §9084; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.2]
2021 Acts, ch 80, §332
Referred to in §520.14
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.3 - Office of attorney — foreign office.

520.3 Office of attorney — foreign office.
The principal office of such attorney shall be maintained at such place as is designated by the subscribers in the power of attorney; provided that, where the principal office of such attorney is located in another state, the commissioner of insurance shall not issue a certificate of authority, or license, as provided in this chapter unless such attorney shall hold a license or certificate of authority from the insurance department of such other state.
[C24, 27, 31, 35, 39, §9085; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.3]
Referred to in §520.14
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.4 - Preliminary declaration.

520.4 Preliminary declaration.
Such subscribers so contracting among themselves, shall, through their attorney, file with the commissioner of insurance a declaration verified by the oath of such attorney, or, where such attorney is a corporation, by the oath of the duly authorized officers thereof, setting forth:
1. The name of the attorney and the name or designation under which such contracts are issued, which name or designation shall not be so similar to any name or designation adopted by any attorney or by any insurance organization in the United States prior to the adoption of such name or designation by the attorney, as to confuse or deceive.
2. The location of the principal office.
3. The kind or kinds of insurance to be effected.
4. A copy of each form of policy, contract, or agreement under or by which insurance is to be effected.
5. A copy of the form of power of attorney under which such insurance is to be effected.
6. That applications have been made for indemnity or insurance upon at least one hundred separate risks aggregating not less than one and one-half million dollars represented by executed contracts or bona fide applications to become concurrently effective; or in case of employers liability or workers’ compensation insurance, covering a total payroll of not less than two and one-half million dollars.
7. That there is in the possession of such attorney and available for the payment of losses, assets amounting to not less than three hundred thousand dollars.
8. A financial statement under oath in form prescribed for the annual statement.
9. The instrument authorizing service of process as provided for in this chapter.
10. Certificate showing deposit of funds.
[C24, 27, 31, 35, 39, §9086; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.4]
Referred to in §85.65A, 520.5, 520.9, 520.14, 520.18
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.5 - Actions — venue — commissioner as process agent.

520.5 Actions — venue — commissioner as process agent.
Concurrently with the filing of the declaration provided for by the terms of section 520.4, the attorney shall file with the commissioner of insurance, an instrument in writing executed by the attorney for the subscribers, conditioned that, upon the issuance of certificate of authority provided for in this chapter, action may be brought in the county in which the property or person insured thereunder is located, and that service of process shall be had upon the commissioner of insurance or upon the attorney in fact in all suits in this state, whether arising out of such policies, contracts, agreements or otherwise. Service shall be valid and binding upon all subscribers exchanging at any time reciprocal or interinsurance contracts through such attorney. All suits of every kind and description brought against the reciprocal exchange, or the subscribers on account of their connection with the reciprocal exchange, must be brought against the attorney in fact or the exchange as such, and shall not be brought against any of the subscribers individually on account of their connection with or membership in such reciprocal exchange, and must be brought in the manner and method provided in this section.
[C24, 27, 31, 35, 39, §9087; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.5]
2020 Acts, ch 1063, §291
Referred to in §520.14
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.6 - Service of process.

520.6 Service of process.
Service of process made on the commissioner as the agent for service of process shall be made as provided in section 505.30.
[C24, 27, 31, 35, 39, §9088; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.6]
2018 Acts, ch 1018, §11
Referred to in §520.7, 520.14
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.7 - Judgment — satisfaction.

520.7 Judgment — satisfaction.
A judgment rendered in any such case where service of process has been made under section 520.6 upon the commissioner of insurance, shall be valid and binding against any and all such subscribers as their interests appear and such judgment may be satisfied out of the funds in the possession of the attorney belonging to such subscribers.
[C24, 27, 31, 35, 39, §9089; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.7]
2019 Acts, ch 59, §190
Referred to in §520.14
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.8 - Reports — limitations on risks.

520.8 Reports — limitations on risks.
There shall be filed with the commissioner of insurance by such attorney whenever the commissioner of insurance shall so require, a statement under oath of such attorney showing the maximum amount of indemnity upon a single risk, and, except as to workers’ compensation insurance, no subscriber shall assume on any single risk an amount greater than ten percent of the net worth of such subscriber.
[C24, 27, 31, 35, 39, §9090; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.8]
Referred to in §520.14
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.9 - Standard of solvency.

520.9 Standard of solvency.
1. There shall at all times be maintained as assets a sum in cash, or in securities of the kind designated by the laws of the state where the principal office is located for the investment of funds of insurance companies, equal to one hundred percent of the net unearned premiums or deposits collected and credited to the account of subscribers, or assets equal to fifty percent of the net annual deposits collected and credited to the account of subscribers on policies having one year or less to run and pro rata on those for longer periods; in addition to which there shall be maintained in cash, or in such securities, assets sufficient to discharge all liabilities on all outstanding losses arising under policies issued, the same to be calculated in accordance with the laws of the state relating to similar reserves for companies insuring similar risks; provided that where the assets on hand available for the payment of losses other than determined losses, do not equal five million dollars, all liability for each determined loss or claim deferred for more than one year, shall be provided for by a special deposit in a trust company or bank having fiduciary powers of the state in which the principal office is located, to be used in payment of compensation benefits for disability; such deposit to be a trust fund and applicable only to the purposes stated, or such liability may be reinsured in authorized companies with a surplus of at least five million dollars. For the purpose of such reserves, net deposits shall be construed to mean the advance payments of subscribers after deducting the amount specifically provided in the subscribers’ agreements for expenses. If at any time the assets so held in cash or such securities shall be less than required above, or less than five million dollars, the subscribers or their attorney for them shall make up the deficiency within thirty days after notice from the commissioner of insurance to do so. In computing the assets required by this section, the amount specified in section 520.4, subsection 7, shall be included.
2. Notwithstanding subsection 1, a person issuing reciprocal contracts and authorized to transact business under this chapter shall comply with the minimum surplus requirements of this section or chapter 521E, whichever is greater.
[C24, 27, 31, 35, 39, §9091; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.9]
88 Acts, ch 1111, §16; 96 Acts, ch 1046, §8; 2007 Acts, ch 137, §20
Referred to in §85.65A, 520.9A, 520.14
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.9A - Solvency standard — transition.

520.9A Solvency standard — transition.
Notwithstanding section 520.9, a reciprocal or interinsurance insurer authorized to transact business in this state prior to July 1, 1988, may continue in operation provided that the insurer contributes an additional ten percent of the previous year ending capital and surplus to capital and surplus each year. If an insurer fails to contribute the additional ten percent, the commissioner of insurance may revoke the insurer’s authorization to do business in this state. The insurance commissioner may waive this requirement for just cause shown.
88 Acts, ch 1111, §17
Referred to in §520.14
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.10 - Annual report — examination — penalties.

520.10 Annual report — examination — penalties.
1. Such attorney shall, within the time limited for filing the annual statement by insurance companies transacting the same kind of business, make a report, under oath, to the commissioner of insurance for each calendar year, showing the financial condition of affairs at the office where such contracts are issued and shall, at any and all times, furnish such additional information and reports as may be required; provided, however, that the attorney shall not be required to furnish the names and addresses of any subscribers except in case of an unpaid final judgment. The business affairs, records, and assets of any such organization shall be subject to examination by the commissioner of insurance at any reasonable time, and such examination shall be at the expense of the organization examined.
2. A certificate of authority of a reciprocal or interinsurance insurer authorized under this chapter shall be renewed annually in accordance with section 520.12 so long as the insurer transacts its business in accordance with all legal requirements.
3. The commissioner shall refuse to renew the certificate of authority of a reciprocal or interinsurance insurer that fails to comply with the provisions of this chapter and the insurer’s right to transact new business in this state shall immediately cease until the insurer has so complied.
4. A reciprocal or interinsurance insurer that fails to timely file the report required under subsection 1 is in violation of this section and shall pay an administrative penalty of five hundred dollars to the treasurer of state for deposit as provided in section 505.7.
5. The commissioner may give notice to a reciprocal or interinsurance insurer that the insurer has not timely filed the report required under subsection 1 and is in violation of this section. If the insurer fails to file the required report and comply with this section within ten days of the date of the notice, the insurer shall pay an additional administrative penalty of one hundred dollars for each day that the failure continues to the treasurer of state for deposit as provided in section 505.7.
[C24, 27, 31, 35, 39, §9092; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.10]
2006 Acts, ch 1117, §96; 2009 Acts, ch 181, §86
Referred to in §520.14, 520.15
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.11 - Implied powers of corporations.

520.11 Implied powers of corporations.
Any corporation organized under the laws of this state shall, in addition to the rights, powers, and franchises specified in its articles of incorporation, have full power and authority to exchange insurance contracts of the kind and character mentioned in this chapter. The right to exchange such contracts is hereby declared to be incidental to the purposes for which such corporations are organized and as fully granted as the rights and powers expressly conferred.
[C24, 27, 31, 35, 39, §9093; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.11]
2021 Acts, ch 80, §333
Referred to in §520.14
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.12 - Certificate of authority — renewal — penalties.

520.12 Certificate of authority — renewal — penalties.
1. Upon compliance with the requirements of this chapter, the commissioner of insurance shall issue a certificate of authority or a license to the attorney, authorizing the attorney to make such contracts of insurance, which license shall specify the kind or kinds of insurance and shall contain the name of the attorney, the location of the principal office and the name or designation under which such contracts of insurance are issued. The certificate of authority shall expire on the first day of June next succeeding its issue, and shall be renewed annually as long as the company transacts business in accordance with the requirements of law. A copy of the certificate, when certified by the commissioner of insurance, shall be admissible in evidence for or against a company with the same effect as the original.
2. A reciprocal or interinsurance insurer shall submit annually, on or before March 1, a completed application for renewal of the insurer’s certificate of authority. An insurer that fails to timely file an application for renewal shall pay an administrative fee of five hundred dollars to the treasurer of state for deposit as provided in section 505.7.
[C24, 27, 31, 35, 39, §9094; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.12]
88 Acts, ch 1112, §110; 2006 Acts, ch 1117, §97; 2009 Acts, ch 181, §87
Referred to in §520.10, 520.14, 520.15
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.13 - Fidelity or surety bonds executed.

520.13 Fidelity or surety bonds executed.
Fidelity or surety bonds executed by a reciprocal or interinsurance exchange pursuant to authority given by the commissioner of insurance shall be received and accepted as company or corporate bonds, provided, however, that such reciprocal companies before being permitted to qualify for writing fidelity or surety bonds shall be required to maintain a surplus of three hundred thousand dollars.
[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.13]
Referred to in §520.14
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.14 - Violations — exceptions.

520.14 Violations — exceptions.
It shall be unlawful for an attorney to exchange contracts of insurance of the kind and character specified in this chapter, or for an attorney or representative of the attorney to solicit or negotiate any applications for the same without the attorney having first complied with the provisions of sections 520.2 through 520.13. For the purpose of organization and upon issuance of permit by the commissioner of insurance, powers of attorney and applications for such contracts may be solicited without compliance with the provisions of this chapter, but an attorney, agent, or other person shall not make any such contracts of indemnity until all of the provisions of this chapter shall have been complied with.
[C24, 27, 31, 35, 39, §9095; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.14]
2004 Acts, ch 1110, §59; 2009 Acts, ch 133, §169
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.15 - Refusal or revocation of certificate.

520.15 Refusal or revocation of certificate.
In addition to the penalties provided in sections 520.10 and 520.12, and where not otherwise provided, the penalty for failure or refusal to comply with any of the terms and provisions of this chapter, upon the part of the attorney, shall be the refusal, suspension, or revocation of certificate of authority or license by the commissioner of insurance and the public announcement of the commissioner’s act, after due notice and opportunity for hearing has been given such attorney so that the attorney may appear and show cause why such action should not be taken.
[C24, 27, 31, 35, 39, §9096; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.15]
2020 Acts, ch 1063, §292
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.16 - Bonds.

520.16 Bonds.
Where the principal office of the attorney in fact is located in this state the attorney shall give a fidelity bond to the subscribers thereof, personal or surety, in such sum as the commissioner of insurance shall deem sufficient, no less, however, than ten thousand dollars, which bond shall be approved by and deposited with the commissioner of insurance.
[C24, 27, 31, 35, 39, §9097; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.16]
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.17 - Additional security — refusal.

520.17 Additional security — refusal.
Should the commissioner of insurance consider the surety on said bond, or the amount thereof, insufficient, the commissioner may require additional security or an increase in the amount of the bond. If such additional security or increase be not furnished within thirty days after notice to furnish the same, the commissioner of insurance may revoke the certificate of authority.
[C24, 27, 31, 35, 39, §9098; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.17]
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.18 - Foreign attorney — bonds.

520.18 Foreign attorney — bonds.
Where the principal office of the attorney is located in another state, there shall be filed with the commissioner of insurance, in connection with the declaration, provided for by section 520.4, certified copies of all such bonds given by such attorney as security for the funds of subscribers.
[C24, 27, 31, 35, 39, §9099; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.18]
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.19 - Annual tax — fees.

520.19 Annual tax — fees.
In lieu of all other taxes, licenses, charges, and fees whatsoever, such attorney shall annually pay to the commissioner the same fees as are paid by mutual companies transacting the same kind of business, and an annual tax based upon the applicable percentage stated in section 432.1, subsection 4, calculated upon the gross premiums or deposits collected from subscribers in this state during the preceding calendar year, after deducting therefrom returns, or cancellations, and all amounts returned to subscribers or credited to their accounts as savings, and the amount returned upon canceled policies and rejected applications covering property situated or on business done within this state.
[C24, 27, 31, 35, 39, §9100; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.19]
88 Acts, ch 1112, §305; 2005 Acts, ch 70, §47
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.20 - Form of policy — construction.

520.20 Form of policy — construction.
The attorney may insert in any form of policy prescribed by the laws of this state any provisions or conditions required by the plan of reciprocal or interinsurance, provided the same shall not be inconsistent with or in conflict with any law of this state. Such policy, in lieu of conforming to the language and form prescribed by such law, shall be held to conform thereto in substance if such policy includes a provision or endorsement reciting that the policy shall be construed as if in the language and form prescribed by such law. Any such policy or endorsement shall first be filed with and approved by the commissioner of insurance.
[C24, 27, 31, 35, 39, §9101; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.20]
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.21 - Reinsurance.

520.21 Reinsurance.
Such attorney shall not effect any reinsurance on risks in this state unless the insurance carrier granting such reinsurance shall be licensed in this state.
[C24, 27, 31, 35, 39, §9102; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.21]
Referred to in §521.13
2023 Iowa Code › Title XIII - COMMERCE › Chapter 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS › Section 520.23 - Deposit of securities by reciprocal or interinsurance exchanges.

520.23 Deposit of securities by reciprocal or interinsurance exchanges.
If the commissioner of insurance or chief insurance officer of any other state or territory of the United States, claiming to proceed under existing or future laws of any such state or territory, shall require reciprocal or interinsurance exchanges of this state or the agents thereof to make any deposit of securities in such other state or territory for the protection of policyholders or otherwise or to make payment of taxes, fines, penalties, certificates of authority, license fees or otherwise or subject them to any restrictions, obligations, conditions, or penalties, greater than are required or imposed by the laws of the state of Iowa relating to reciprocal or interinsurance exchanges, from such exchanges of such other states or territories by the then existing laws of this state, then and in every such case all such reciprocal or interinsurance exchanges of such other states or territories shall be and they are hereby required to make like deposits for like purposes with the insurance division of this state and to pay to the commissioner of insurance taxes, fines, penalties, certificates of authority, license fees and otherwise in an amount equal to the amount of such charges and payments, and shall be subjected to the same restrictions, obligations, conditions, or penalties imposed by the commissioner of insurance or chief insurance officer of such other states under and by virtue of law, upon reciprocal or interinsurance exchanges of this state and the agents thereof.
[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.23]
2023 Iowa Code › Title XIII - COMMERCE › Chapter 521 - CONSOLIDATION, MERGER, AND REINSURANCE › Section 521.1 - Definitions.

521.1 Definitions.
For the purposes of this chapter:
1. “Affected company” or “affected mutual company” means the company being merged with and into the surviving company.
2. “Commission” means the commission created in section 521.5.
3. “Commissioner” means the commissioner of insurance.
4. “Company” means a company or association organized under chapter 508, 514B, 515, 518, 518A, or 520, and includes a mutual insurance holding company organized pursuant to section 521A.14.
5. “Dividing insurer” means the same as defined in section 521I.1.
6. “Resulting insurer” means the same as defined in section 521I.1.
[S13, §1821-m; C24, 27, 31, 35, 39, §9104; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §521.1]
89 Acts, ch 83, §75; 95 Acts, ch 185, §41; 2006 Acts, ch 1117, §98; 2007 Acts, ch 22, §91; 2011 Acts, ch 70, §39; 2019 Acts, ch 20, §18
Referred to in §521.2
2023 Iowa Code › Title XIII - COMMERCE › Chapter 521 - CONSOLIDATION, MERGER, AND REINSURANCE › Section 521.2 - Consolidation, merger, and reinsurance.

521.2 Consolidation, merger, and reinsurance.
1. One or more domestic mutual insurance companies organized under chapter 491 may merge or consolidate with a domestic or foreign mutual insurance company as provided in this chapter.
2. One or more domestic insurance companies organized under chapter 490 may merge with a domestic or foreign insurance company as provided in chapter 490 with the approval of the commission pursuant to this chapter.
3. The provisions of this chapter shall not be applicable to the merger or consolidation of a domestic mutual company with a stock company pursuant to chapter 508B or chapter 515G.
4. A domestic insurance company shall not assume or reinsure the whole or any part of the risks of any other company, except as provided in this chapter. However, this chapter shall not be construed to prevent any company, as defined in section 521.1, from reinsuring a fractional part of any risk.
5. One or more foreign or domestic stock insurance companies may merge into a domestic mutual insurance company organized under chapter 491 as provided in this chapter.
6. One or more domestic health maintenance organizations or limited service organizations formed under chapter 514B may merge into a domestic insurance company organized under chapter 490 or chapter 491 as provided in this chapter.
7. Sections 491.102 through 491.105 shall not be applicable to a merger or consolidation of a domestic mutual insurance company pursuant to this chapter.
[S13, §1821-n; C24, 27, 31, 35, 39, §9105; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §521.2]
95 Acts, ch 185, §42; 2006 Acts, ch 1117, §99; 2007 Acts, ch 137, §21; 2009 Acts, ch 145, §51; 2011 Acts, ch 70, §40, 41
Referred to in §508.33A
2023 Iowa Code › Title XIII - COMMERCE › Chapter 521 - CONSOLIDATION, MERGER, AND REINSURANCE › Section 521.3 - Submission of plan and application to commissioner of insurance.

521.3 Submission of plan and application to commissioner of insurance.
Any company proposing to consolidate, merge, or enter into any reinsurance contract with another company shall file a plan and an application in support of the plan with the commissioner. The plan shall set forth the terms of the proposed contract of consolidation, merger, or reinsurance, along with any other information requested by the commissioner.
[S13, §1821-o; C24, 27, 31, 35, 39, §9106; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §521.3]
2006 Acts, ch 1117, §100
Referred to in §521.4