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2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.6 - Disapproval of filings.

515F.6 Disapproval of filings.
1. If, within the waiting period or any extension of it as provided in section 515F.5, subsection 3, the commissioner finds that a filing does not meet the requirements of this chapter, written notice of disapproval shall be sent to the insurer or advisory organization which made the filing, specifying in what respects the filing fails to meet the requirements of this chapter and stating that the filing shall not become effective. If a filing is disapproved by the commissioner, the insurer or advisory organization, may request a hearing on the disapproval within thirty days. The insurer bears the burden of proving compliance with the standards established by this chapter.
2. If, at any time after a rate has been approved, the commissioner finds that the rate no longer meets the requirements of this chapter, the commissioner may order the discontinuance of use of the rate. The order of discontinuance may be issued only after a hearing with at least ten days’ prior notice for all insurers affected by the order. The order must be in writing and state the grounds for the order. The order shall state when, within a reasonable period after the order is issued, the order of discontinuance shall be effective. The order shall not affect a contract or policy made or issued prior to the expiration of the period set forth in the order.
3. An insured which is aggrieved with respect to a filing which is in effect may make written application to the commissioner for a hearing on that filing. The application shall specify the grounds to be relied upon by the applicant. If the commissioner finds that the application is made in good faith, that the applicant would be so aggrieved if the applicant’s grounds are established, and that the grounds otherwise justify holding a hearing, a hearing shall be held within thirty days after receipt of the application, upon not less than ten days’ written notice to the applicant and to every insurer and advisory organization which made that filing.
4. If, after hearing, the commissioner finds that the filing does not meet the requirements of this chapter, the commissioner shall issue an order specifying in what respects the filing fails to meet the requirements of this chapter, and stating when, within a reasonable period after the order is issued, the filing shall no longer be in effect. Copies of the order shall be sent to the applicant and to every insurer and advisory organization which made that filing. The order shall not affect a contract or policy made or issued prior to the expiration of the period set forth in the order.
90 Acts, ch 1234, §50; 2012 Acts, ch 1023, §126
Referred to in §515F.12, 515F.23
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.7 - Information to be furnished insureds — hearings and appeals of insureds.

515F.7 Information to be furnished insureds — hearings and appeals of insureds.
An insurer shall, within a reasonable time after receiving written request and upon payment of reasonable charges set by the commissioner, furnish to an insured affected by a rate made by the insurer, or to the authorized representative of the insured, all pertinent information as to the rate. An insurer shall provide within this state reasonable means for the insured aggrieved by the application of its rating system to be heard, in person or by the insured’s authorized representative, on written request to review the manner in which the rating system has been applied in connection with the insurance afforded the insured. If the insurer fails to grant or reject a request for hearing and review within thirty days after it is made, the applicant may proceed in the same manner as if the application had been rejected. The insured affected by the action of the insurer on a request may, within thirty days after written notice of the action, appeal to the commissioner, who, after a hearing held upon not less than ten days’ written notice to the appellant and to the insurer, may affirm or reverse the action.
90 Acts, ch 1234, §51
Referred to in §515F.23
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.8 - Licensing advisory organizations.

515F.8 Licensing advisory organizations.
1. License required. An advisory organization shall not provide a service relating to the rates of insurance subject to this chapter, and an insurer shall not utilize the services of an advisory organization for such purposes unless the advisory organization has obtained a license under subsection 3.
2. Availability of services. An advisory organization shall not refuse to supply any services for which it is licensed in this state to an insurer authorized to do business in this state and offering to pay the fair and usual compensation for the services.
3. Licensing.
a. Application. An advisory organization applying for a license shall include with its application all of the following:
(1) A copy of its constitution, charter, articles of organization, agreement, association, or incorporation, and a copy of its bylaws, plan of operation, and any other rules or regulations governing the conduct of its business.
(2) A list of its members and subscribers.
(3) The name and address of one or more residents of this state upon whom notices, process affecting it, or orders of the commissioner may be served.
(4) A statement showing its technical qualifications for acting in the capacity for which it seeks a license.
(5) A biography of the ownership and management of the organization.
(6) Any other relevant information and documents that the commissioner may require.
(7) A license fee of one hundred dollars.
b. Change of circumstances. An advisory organization which has applied for a license shall notify the commissioner of every material change in the facts or in the documents on which its application was based. An amendment to a document filed under this section shall be filed at least thirty days before it becomes effective.
c. Granting of license. If the commissioner finds that the applicant and the natural persons through whom it acts are competent, trustworthy, and technically qualified to provide the services proposed, and that all requirements of the law are met, the commissioner shall issue a license specifying the authorized activity of the applicant. The commissioner shall not issue a license if the proposed activity would tend to create a monopoly or to substantially lessen the competition in any market.
d. Duration. A license issued under this section shall remain in effect for three years unless the license is suspended or revoked. The commissioner may, at any time after hearing, revoke or suspend the license of an advisory organization which does not comply with this chapter.
90 Acts, ch 1234, §52; 2021 Acts, ch 181, §26, 27
Referred to in §515F.14, 515F.23
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.9 - Insurers and advisory organizations — prohibited activity.

515F.9 Insurers and advisory organizations — prohibited activity.
1. An insurer or advisory organization shall not:
a. Attempt to monopolize, or combine or conspire with any other person to monopolize, an insurance market.
b. Engage in a boycott, on a concerted basis, of an insurance market.
2. a. An insurer shall not agree with any other insurer or with an advisory organization to mandate adherence to or to mandate use of a rate, rating plan, rating schedule, rating rule, policy or bond form, rate classification, rate territory, underwriting rule, survey, inspection, or similar material, except as needed to develop statistical plans permitted by section 515F.11, subsection 1. The fact that two or more insurers, whether or not members or subscribers of an advisory organization, use consistently or intermittently, the same rates, rating plans, rating schedules, rating rules, policy or bond forms, rate classifications, rate territories, underwriting rules, surveys or inspections or similar materials is not sufficient in itself to support a finding that an agreement exists.
b. Two or more insurers having a common ownership or operating in this state under common management or control may act in concert between or among themselves with respect to any matters pertaining to those activities authorized in this chapter as if they constituted a single insurer.
3. An insurer or advisory organization shall not make an arrangement with any other insurer, advisory organization, or other person which has the purpose or effect of restraining trade unreasonably or of substantially lessening competition in the business of insurance.
90 Acts, ch 1234, §53
Referred to in §515F.13, 515F.23
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.10 - Advisory organizations — prohibited activity.

515F.10 Advisory organizations — prohibited activity.
In addition to the other prohibitions contained in this chapter, except as specifically permitted under section 515F.11, an advisory organization shall not compile or distribute recommendations relating to rates that include profit or expenses, other than loss adjustment expenses.
90 Acts, ch 1234, §54
Referred to in §515F.2, 515F.23
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.11 - Advisory organizations — permitted activity.

515F.11 Advisory organizations — permitted activity.
An advisory organization, in addition to other activities not prohibited, may, on behalf of its members and subscribers, do any or all of the following:
1. Develop statistical plans including territorial and class definitions.
2. Collect statistical data from members, subscribers, or any other source.
3. Prepare and distribute prospective loss costs.
4. Prepare and distribute factors, calculations, or formulas pertaining to classifications, territories, increased limits, and other variables.
5. Prepare and distribute manuals of rating rules and rating schedules that do not include final rates, expense provisions, profit provisions, or minimum premiums.
6. Distribute information that is required or directed to be filed with the commissioner.
7. Conduct research and on-site inspections in order to prepare classifications of public fire defenses.
8. Consult with public officials regarding public fire protection as it would affect members, subscribers, and others.
9. Conduct research and collect statistics in order to discover, identify, and classify information relating to causes or prevention of losses.
10. Prepare policy forms and endorsements and consult with members, subscribers, and others relative to their use and application.
11. Conduct research and on-site inspections for the purpose of providing risk information relating to individual structures.
12. Collect, compile, and distribute past and current prices of individual insurers and publish such information.
13. File final rates, at the direction of the commissioner, for residual market mechanisms.
14. Collect, compile, and distribute historical expense information.
15. Furnish any other services, as approved or directed by the commissioner, related to those enumerated in this section.
90 Acts, ch 1234, §55
Referred to in §515F.2, 515F.5, 515F.9, 515F.10, 515F.23
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.12 - Advisory organizations — filing requirements.

515F.12 Advisory organizations — filing requirements.
An advisory organization shall file with the commissioner for approval all prospective loss costs and all supplementary rating information and every change or amendment or modification of any of the foregoing proposed for use in this state. The filings are subject to sections 515F.5 and 515F.6 and other provisions of this chapter relating to filings made by insurers.
90 Acts, ch 1234, §56
Referred to in §515F.23
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.13 - Pool and residual market activities.

515F.13 Pool and residual market activities.
1. Authorization. Notwithstanding section 515F.9, rating organizations, advisory organizations, and insurers participating in joint underwriting, joint reinsurance pools, or residual market mechanisms may in connection with such activity act in cooperation with each other in the making of rates, rating systems, policy forms, underwriting rules, surveys, inspections, and investigations, the furnishing of loss and expense statistics or other information, or carrying on research. Joint underwriting, joint reinsurance pools, and residual market mechanisms shall not be deemed advisory organizations.
2. Regulation.
a. Except to the extent modified by this section, insurers, and joint underwriting, joint reinsurance pool, and residual market mechanism activities are subject to the other provisions of this chapter.
b. If, after hearing, the commissioner finds that an activity or practice of an insurer participating in joint underwriting or a pool is unfair, is unreasonable, will tend to lessen competition in a market, or is otherwise inconsistent with the provisions or purposes of this chapter, the commissioner may issue a written order and require the discontinuance of that activity or practice.
c. A pool shall file with the commissioner a copy of its constitution; its articles of incorporation, agreement, or association; its bylaws, rules, and regulations governing its activities; its members; the name and address of a resident of this state upon whom notices or orders of the commissioner or process may be served; and any changes in amendments or changes in the foregoing.
d. (1) A residual market mechanism, or plan or agreement to implement such a mechanism, and any changes or amendments thereto, shall be submitted in writing to the commissioner for consideration and approval, together with information as reasonably required by the commissioner. The commissioner shall only approve agreements found to contemplate both of the following:
(a) The use of rates which meet the standards prescribed by this chapter.
(b) Activities and practices that are not unfair, unreasonable, or otherwise inconsistent with this chapter.
(2) At any time after the agreements are in effect, the commissioner may review the practices and activities of the adherents to the agreements and if, after a hearing, the commissioner finds that any such practice or activity is unfair or unreasonable, or is otherwise inconsistent with this chapter, the commissioner may issue a written order to the parties and either require the discontinuance of the acts or revoke approval of the agreement.
90 Acts, ch 1234, §57; 2012 Acts, ch 1023, §157
Referred to in §515F.3, 515F.14, 515F.23
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.14 - Examinations.

515F.14 Examinations.
The commissioner may, as often as deemed expedient, make or cause to be made an examination of each advisory organization referred to in section 515F.8 and of each group, association, or other organization referred to in section 515F.13. The reasonable costs of an examination shall be paid by the advisory organization or group, association, or other organization examined. The officers, manager, agents, and employees of the advisory organization, or group, association, or other organization may be examined at any time under oath and shall exhibit all books, records, accounts, documents, or agreements governing its method of operation. In lieu of an examination, the commissioner may accept the report of an examination made by the insurance supervisory official of another state, pursuant to the laws of that state.
90 Acts, ch 1234, §58
Referred to in §515F.23
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.15 - Rate administration.

515F.15 Rate administration.
1. Recording and reporting of loss and expense experience.
a. The commissioner may adopt reasonable rules for use by companies to record and report to the commissioner their rates and other information determined by the commissioner to be necessary or appropriate for the administration of this chapter and the effectuation of its purposes.
b. The commissioner may adopt reasonable rules and statistical plans, which shall then be used by each insurer in the recording and reporting of its loss and expense experience, in order that the experience of all insurers may be made available at least annually in the form and detail necessary to aid the commissioner in determining whether rating systems comply with the standards set forth in section 515F.4. The commissioner may designate one or more advisory organizations or other agencies to assist in gathering the experience and making compilations, and the compilations shall be public documents.
2. Interchange of rating plan data. Reasonable rules and plans may be adopted by the commissioner for the interchange of data necessary for the application of rating plans.
3. Consultation with other states. In order to further uniform administration of rate regulatory laws, the commissioner and every insurer and advisory organization may exchange information and experience data with insurance supervisory officials, insurers, and advisory organizations in other states and may consult with them with respect to the application of rating systems.
4. Rules. The commissioner may make reasonable rules necessary, including definitions of the rate standards contained in section 515F.4, to effect the purposes of this chapter.
90 Acts, ch 1234, §59
Referred to in §515F.23
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.16 - False or misleading information.

515F.16 False or misleading information.
A person, including an insurer, or advisory organization, shall not willfully withhold information which will affect the rates or premiums chargeable under this chapter from, or knowingly give false or misleading information to, the commissioner, a statistical agency designated by the commissioner, an advisory organization, or an insurer. A violation of this section subjects the one guilty of the violation to the penalties provided in section 515F.19.
90 Acts, ch 1234, §60
Referred to in §507B.4, 515F.23
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.17 - Assigned risks.

515F.17 Assigned risks.
Agreements may be made among insurers with respect to the equitable apportionment among them of insurance which may be afforded applicants who are in good faith entitled to, but who are unable to procure, the insurance through ordinary methods, and the insurers may agree among themselves on the use of reasonable rate modifications for such insurance, the agreements and rate modifications to be subject to the approval of the commissioner.
90 Acts, ch 1234, §61
Referred to in §515F.23
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.18 - Exemptions.

515F.18 Exemptions.
The commissioner may, upon the commissioner’s own initiative or upon request of any person, by rule, exempt a market from any or all of the provisions of this chapter, if and to the extent that the exemption is necessary to achieve the purposes of this chapter.
90 Acts, ch 1234, §62
Referred to in §515F.23
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.19 - Penalties.

515F.19 Penalties.
1. The commissioner may, upon a finding that a person or organization has violated a provision of this chapter, impose a civil penalty of not more than ten thousand dollars for each violation, but if the violation is found to be willful, a penalty of not more than twenty-five thousand dollars may be imposed for each violation.
a. The civil penalties may be in addition to any other penalty provided by law.
b. For purposes of this section, an insurer using a rate for which the insurer has failed to file the rate, supplementary rate information, underwriting rules or guides, or supporting information as required by this chapter, has committed a separate violation for each day the failure continues.
2. a. The commissioner may suspend or revoke the license of an advisory organization or insurer which fails to comply with an order of the commissioner within the time limit set by the order, or an extension of the order.
b. The commissioner may determine when a suspension of license becomes effective and it shall remain in effect for the period fixed by the commissioner, unless the commissioner modifies or rescinds the suspension, or until the order upon which the suspension is based is modified, rescinded, or reversed.
3. A penalty shall not be imposed and a license shall not be suspended or revoked except upon a written order of the commissioner stating the commissioner’s findings, made after hearing.
4. A penalty collected under this section shall be deposited as provided in section 505.7.
90 Acts, ch 1234, §63; 2009 Acts, ch 181, §81
Referred to in §515F.16, 515F.23
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.20 - Definitions.

515F.20 Definitions.
As used in sections 515F.21 through 515F.25 unless the context otherwise requires:
1. “Competitive market” means a market for which an order is in effect pursuant to section 515F.22 that a reasonable degree of competition does exist.
2. “Market” means the interaction between buyers and sellers consisting of a product market component and a geographic market component. A product market component consists of identical or readily substitutable products including, but not limited to, consideration of coverage, policy terms, rate classifications, and underwriting. A geographic component is a geographical area in which buyers have a reasonable degree of access to the insurance product through sales outlets or other marketing mechanisms.
3. “Noncompetitive market” means a market which has not been found to be competitive pursuant to section 515F.22.
87 Acts, ch 132, §6
CS87, §515A.20
90 Acts, ch 1234, §77
C91, §515F.20
Referred to in §515F.21
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.21 - Scope of application.

515F.21 Scope of application.
Section 515F.20 and sections 515F.22 through 515F.25 apply to all forms of casualty insurance except joint underwriting and joint reinsurance, assigned risks, and those excluded by section 515F.3.
87 Acts, ch 132, §7
CS87, §515A.21
90 Acts, ch 1234, §65, 77
C91, §515F.21
Referred to in §515F.20
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.22 - Competitive market.

515F.22 Competitive market.
1. A noncompetitive market is presumed to exist unless the commissioner determines after a hearing that a reasonable degree of competition exists in the market and the commissioner issues an order to that effect. Such an order shall not become effective until sixty days after the date of the order and shall expire not later than one year thereafter unless the commissioner renews the order. Any affected insurer or insured may petition for a hearing on the renewal of an order relating to competitive status.
2. In determining whether a reasonable degree of competition exists, the commissioner shall consider relevant factors of workable competition pertaining to the market structure, market performance, and market conduct, and the practical opportunities available to consumers in the market to obtain pricing and other consumer information and to compare and obtain insurance from competing insurers. Such factors may include, but are not limited to, the following:
a. The size and number of insurers actually engaged in the market.
b. The profitability for insurers generally in the market segment and whether that profitability is unreasonably high.
c. The price variance on premiums offered in the market.
d. The availability of consumer information concerning the product and sales outlets or other sales mechanisms.
e. The efforts of insurers to provide consumer information.
f. Consumer complaints regarding the market generally.
87 Acts, ch 132, §8
CS87, §515A.22
90 Acts, ch 1234, §77
C91, §515F.22
Referred to in §515F.20, 515F.21
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.23 - Noncompetitive market.

515F.23 Noncompetitive market.
Unless the commissioner has determined a market to be competitive, the provisions of sections 515F.1 through 515F.19 apply.
87 Acts, ch 132, §9
CS87, §515A.23
90 Acts, ch 1234, §66, 77
C91, §515F.23
Referred to in §515F.20, 515F.21
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.24 - Filing of rates in a competitive market.

515F.24 Filing of rates in a competitive market.
1. Subject to the inland marine exception specified in section 515F.5, subsection 1, a competitive filing shall become effective when filed and shall be deemed to meet the requirements of section 515F.4 as long as the filing remains in effect unless it is disapproved upon review by the commissioner.
2. In a competitive market, every insurer shall file with the commissioner all rates and supplementary rate information which are used in this state. The rates and supplementary rate information shall be filed not later than fifteen days after the effective date of the rates.
3. In a competitive market, if the commissioner finds that an insurer’s rates require closer supervision because of the insurer’s financial condition or unfairly discriminatory rating practices, the insurer shall file with the commissioner at least thirty days prior to the effective date of the rates all the rates and supplementary rate information and supporting information as prescribed by the commissioner. Upon application by the filer, the commissioner may authorize an earlier effective date.
87 Acts, ch 132, §10
CS87, §515A.24
90 Acts, ch 1234, §67, 77
C91, §515F.24
Referred to in §515F.20, 515F.21
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.25 - Disapproval of a rate filing in a competitive market.

515F.25 Disapproval of a rate filing in a competitive market.
1. If the commissioner believes that an insurer’s rate filing in a competitive market violates the requirements of sections 515F.4 and 515F.5, the commissioner may require the insurer to file supporting information. If after reviewing the supporting information the commissioner continues to believe that the filing violates sections 515F.4 and 515F.5, the commissioner shall notify the insurer of the insurer’s right to petition for a hearing on any subsequent order relating to the filing.
2. The commissioner may disapprove prefiled rates that have not become effective. However, the commissioner shall notify the insurer whose rates have been disapproved of the insurer’s right to petition for a hearing on the disapproval within thirty days after the disapproval.
3. If the commissioner disapproves a filing in a competitive market, the commissioner shall issue an order specifying the reasons the filing fails to meet the requirements of sections 515F.4 and 515F.5. For rates in effect at the time of disapproval, the commissioner shall inform the insurer within a reasonable period of time the date when further use of the rates for policies or contracts of insurance is prohibited. The order shall be issued within thirty days of disapproval, or within thirty days of a hearing on the disapproval if a hearing is held. The order may include a provision for premium adjustment for the period after the effective date of the order for policies or contracts in effect on the date of the order.
4. Whenever an insurer has filed no legally effective rates as a result of the commissioner’s disapproval of a filing, the commissioner shall on request of the insurer work with the insurer to develop interim rates for the insurer that are sufficient to protect the interest of all parties and the commissioner may order that a specified portion of the premium be placed in an escrow account approved by the commissioner. When new rates become legally effective, the commissioner shall order the escrowed funds or any overcharge in the interim rates to be distributed appropriately. The commissioner may waive distribution if the commissioner determines that the amount involved would not warrant such action.
87 Acts, ch 132, §11
CS87, §515A.25
90 Acts, ch 1234, §68, 77
C91, §515F.25
Referred to in §515F.20, 515F.21
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.31 - Purpose.

515F.31 Purpose.
The purposes of this subchapter include all of the following:
1. To make basic property insurance available to qualified applicants with the least possible administrative detail and expense.
2. To establish a plan, an industry placement facility, and a joint reinsurance association for the equitable distribution and placement of risks among insurers.
3. To utilize fully the voluntary insurance market as a source of essential property insurance.
4. To encourage the delivery of basic property insurance at the most reasonable cost possible, provided that insurance pricing by the FAIR plan is actuarially self-supporting and does not actively compete with insurance pricing in the voluntary insurance market.
2003 Acts, ch 119, §2, 11; 2017 Acts, ch 54, §76
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.32 - Definitions.

515F.32 Definitions.
As used in this subchapter, unless the context otherwise requires:
1. “Basic property insurance” means insurance against direct loss to property as defined in the standard fire policy and extended coverage, vandalism, and malicious mischief endorsements; homeowners insurance; and such other coverage or classes of insurance as may be added to the FAIR plan by the commissioner. “Basic property insurance” does not include any of the following:
a. Automobile insurance.
b. Inland marine insurance.
2. “FAIR plan” means the plan to assure fair access to insurance requirements established pursuant to section 515F.33.
3. “Insurer” includes all companies or associations licensed to transact insurance business in this state under chapters 515, 518, and 518A, reciprocal insurers issued a certificate of authority pursuant to chapter 520, and companies or associations admitted or seeking to be admitted to do business in this state under any of those chapters, notwithstanding any provision of the Code to the contrary.
2003 Acts, ch 119, §3, 11; 2004 Acts, ch 1101, §74; 2021 Acts, ch 181, §28, 29
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.33 - FAIR plan established.

515F.33 FAIR plan established.
The FAIR plan to assure fair access to insurance requirements is established. The plan shall operate subject to the provisions and conditions of this subchapter.
2003 Acts, ch 119, §4, 11; 2017 Acts, ch 54, §76
Referred to in §515F.32, 515J.4
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.34 - Membership.

515F.34 Membership.
1. Eligibility for membership in the FAIR plan and its underwriting association requires all of the following:
a. The insurer must be licensed to write property insurance in this state.
b. The insurer is engaged in writing property insurance in this state, including the property insurance components of multiperil on a direct basis.
2. Each insurer that meets the eligibility requirements in subsection 1 shall be required to do all of the following:
a. Automatically subscribe to the articles of agreement for the FAIR plan and the underwriting association as a prerequisite to authority to transact property insurance business in this state.
b. Become and remain a member both of the FAIR plan and the underwriting association.
c. Comply with the requirements of the FAIR plan and the underwriting association as a condition of the insurer’s authority to transact property insurance business in this state.
2003 Acts, ch 119, §5, 11
Referred to in §515J.11
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.35 - Status of plan.

515F.35 Status of plan.
1. The FAIR plan is not and shall not be deemed a department, unit, agency, or instrumentality of the state.
2. All debts, claims, obligations, and liabilities incurred by the FAIR plan shall be the debts, claims, obligations, and liabilities of the FAIR plan only, and are not the debts or pledges of credit of the state, or the state’s agencies, instrumentalities, officers, or employees.
3. The moneys of the FAIR plan are not part of the general fund of the state, and the state shall not budget for or provide general fund appropriations to the plan.
4. The records, reports, and communications of the FAIR plan, the governing committee, the committees of the FAIR plan, and their representatives, producers, and employees are not public records.
2003 Acts, ch 119, §6, 11
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.36 - Administration.

515F.36 Administration.
1. A governing committee shall administer the FAIR plan, subject to the supervision of the commissioner. The FAIR plan shall be operated by a manager appointed by the committee.
2. The committee shall consist of seven members.
a. Five of the members shall be elected to the committee, with one member from each of the following:
(1) American property casualty insurance association.
(2) National association of mutual insurance companies.
(3) Iowa insurance institute.
(4) Mutual insurance association of Iowa.
(5) Independent insurance agents of Iowa.
b. Two of the members shall be elected to the committee by other insurer members of the plan.
3. Not more than one insurer in a group under the same management or ownership shall serve on the committee at the same time.
4. The plan of operation and articles of association shall make provision for an underwriting association having authority on behalf of its members to cause to be issued property insurance policies, to reinsure in whole or in part any such policies, and to cede any such reinsurance. The plan of operation and articles of association shall provide, among other things, for the perils to be covered, limits of coverage, geographical area of coverage, compensation and commissions, assessments of members, the sharing of expenses, income, and losses on an equitable basis, cumulative weighted voting for the governing committee of the association, the administration of the FAIR plan, and any other matter necessary or convenient for the purpose of assuring fair access to insurance requirements.
2003 Acts, ch 119, §7, 11; 2004 Acts, ch 1101, §75; 2005 Acts, ch 70, §24; 2021 Acts, ch 181, §30
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.38 - Retroactive applicability.

515F.38 Retroactive applicability.
This subchapter applies retroactively to October 7, 1968, to validate action taken under the Iowa basic property insurance inspection and placement program adopted by the commissioner of insurance.
2003 Acts, ch 119, §9, 11; 2017 Acts, ch 54, §76
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515F - CASUALTY INSURANCE › Section 515F.39 - Cancellation or nonrenewal — FAIR notice.

515F.39 Cancellation or nonrenewal — FAIR notice.
If basic property insurance coverage is canceled or not renewed other than for nonpayment of a premium pursuant to section 515.125, 515.126, 515.127, 515.128, 518.23, or 518A.29, the insurer shall notify the named insured that the named insured may be eligible for basic property insurance through the FAIR plan. The notice shall accompany the notice of cancellation or the intent not to renew.
2021 Acts, ch 181, §31
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515G - MUTUAL INSURANCE COMPANY CONVERSIONS › Section 515G.1 - Definitions.

515G.1 Definitions.
As used in this chapter, unless the context clearly requires otherwise:
1. “Affiliate” of a mutual insurer means a person who controls, is controlled by, or is under common control with, the mutual insurer being converted.
2. “Control” has the meaning assigned to it in section 521A.1, subsection 3.
3. “Eligible policyholder” means a policyholder who had a policy in force with a mutual insurer at any time during the three-year period immediately preceding the date of the adoption of a plan of conversion by the mutual insurer’s board of directors, including the date of adoption of the plan of conversion, and who, therefore, is eligible to receive an equitable share of the remaining statutory surplus of the mutual insurer, after provision for the base value for voting policyholders, as a result of the conversion.
4. “Holder of a surplus note agreement” means the holder of a guaranty fund or contribution certificate issued pursuant to section 515.20 or its equivalent which has been approved by the commissioner of insurance.
5. “Mutual insurer” means a domestic mutual property and casualty insurance company organized and licensed under chapter 515.
6. “Voting policyholder” means a policyholder who had a policy in force as provided in section 515G.4.
90 Acts, ch 1083, §1; 2006 Acts, ch 1117, §74
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515G - MUTUAL INSURANCE COMPANY CONVERSIONS › Section 515G.2 - Mutual insurer becoming stock company — authorization.

515G.2 Mutual insurer becoming stock company — authorization.
1. A mutual insurer may become a stock insurance company pursuant to a plan of conversion established and approved in the manner provided by this chapter. The plan of conversion shall be adopted by the board of directors of the insurer to become effective on a future stated date.
2. A plan of conversion may provide that a mutual insurance company may convert into a domestic stock insurance company, convert and merge, or convert and consolidate with a domestic stock insurance company, as provided in chapter 490 or chapter 491, whichever is applicable. However, a mutual insurance company is not required to comply with sections 490.1102 and 490.1104 or sections 491.102 through 491.105 relating to approval of merger or consolidation plans by boards of directors and shareholders.
3. If conversion from a mutual insurer to a stock company is to be undertaken by a transaction which would be governed by chapter 521 or 521A, but the plan of conversion adopted by the board of directors of the insurer includes approval of an acquisition of control, merger, consolidation, or reinsurance, then chapter 521 or 521A shall not be applicable to the transaction. However, in that case, the commissioner may require any information from the person or persons acquiring control of the insurer as could be required under chapter 521 or 521A, and may disapprove the transaction on any basis on which it could be disapproved under chapter 521 or 521A.
90 Acts, ch 1083, §2; 2006 Acts, ch 1117, §75
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515G - MUTUAL INSURANCE COMPANY CONVERSIONS › Section 515G.4 - Policyholders — voting rights.

515G.4 Policyholders — voting rights.
The policyholders who are entitled to notice of and to vote upon approval of a plan of conversion and entitled to notice of a public hearing are the policyholders whose policies are in force on the date of the adoption of the plan by the board of directors.
90 Acts, ch 1083, §4
Referred to in §515G.1
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515G - MUTUAL INSURANCE COMPANY CONVERSIONS › Section 515G.5 - Appointment of consultant.

515G.5 Appointment of consultant.
1. A plan may provide for the appointment by the mutual insurer 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 insurer and this chapter.
2. The consultant may assist in determining the equity or value of the policyholders and the mutual insurer. The consultant may consider the value of the consideration to be given to the participating policyholders in exchange for their membership interests or into which the membership interest is to be converted and may consider any valuations necessary to carry out the plans provided for in section 515G.3. Valuations shall be made taking into account the latest filed annual statement of the mutual insurer and any significant developments occurring subsequent to the date of the statement.
3. The findings of the consultant may be modified by the mutual insurer at any time so long as the results are not unfair or inequitable to policyholders.
4. If it can be shown by the mutual insurer to the commissioner that an underwriter of the shares is a qualified person, the underwriter may be appointed as the consultant.
90 Acts, ch 1083, §5; 2018 Acts, ch 1041, §127
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515G - MUTUAL INSURANCE COMPANY CONVERSIONS › Section 515G.6 - Approval of plan by policyholders — notice of election — effective date.

515G.6 Approval of plan by policyholders — notice of election — effective date.
After the plan has been approved by the commissioner as provided in section 515G.7, the plan of conversion shall be submitted to and shall not take effect until approved by two-thirds of the policyholders of the mutual insurer voting on the plan or such greater vote, if any, as is required by the articles of incorporation or bylaws of the mutual insurer. 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 notice provisions in the articles of incorporation or bylaws of the mutual insurer. Each policyholder entitled to vote may cast one vote unless otherwise provided in the articles of incorporation or bylaws of the mutual insurer. Voting shall be by ballot, in person, or by proxy. A quorum consists of a quorum as defined in the articles of incorporation or bylaws of the mutual insurer. A copy of the plan of conversion, or a summary of the plan of conversion, shall accompany the notice of meeting and election. An approved plan of conversion shall take effect on the date specified in the plan.
90 Acts, ch 1083, §6
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515G - MUTUAL INSURANCE COMPANY CONVERSIONS › Section 515G.7 - Review of plan by commissioner — hearing authorized — approval.

515G.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 insurer 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 insurer, and its policyholders, all of whom have the right to appear at the hearing.
90 Acts, ch 1083, §7; 2000 Acts, ch 1023, §33
Referred to in §505.23, 515G.6
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515G - MUTUAL INSURANCE COMPANY CONVERSIONS › Section 515G.8 - Payment of fees, salaries, and costs.

515G.8 Payment of fees, salaries, and costs.
A director, officer, agent, or employee of the mutual insurer 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. However, 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 insurer.
90 Acts, ch 1083, §8
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515G - MUTUAL INSURANCE COMPANY CONVERSIONS › Section 515G.9 - Act of conversion — continuation of company.

515G.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 successor stock company effective on the date specified in the plan. The successor stock company is a continuation of the mutual insurer and the conversion does not annul or modify any of the mutual insurer’s existing suits, contracts, or liabilities except as provided in the approved conversion plan. All rights, franchises, and interests of the mutual insurer in and to property, assets, and other interests shall be transferred to and shall vest in the successor stock company and the successor stock company shall assume all obligations and liabilities of the mutual insurer.
2. The successor stock company shall exercise all rights and powers and perform all duties conferred or imposed by law on insurance companies writing the classes of insurance written by the company, and shall retain the rights and contracts existing before conversion, subject to provisions of the plan.
90 Acts, ch 1083, §9; 2019 Acts, ch 59, §189
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515G - MUTUAL INSURANCE COMPANY CONVERSIONS › Section 515G.10 - Continuation of officers.

515G.10 Continuation of officers.
The directors and officers of the mutual insurer 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.
90 Acts, ch 1083, §10
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515G - MUTUAL INSURANCE COMPANY CONVERSIONS › Section 515G.12 - Amendments — withdrawal.

515G.12 Amendments — withdrawal.
At any time before approval of the plan of conversion and pursuant to rules issued by the commissioner, the board of directors of a mutual insurer may amend the conversion plan. The board of directors of a mutual insurer may withdraw the plan of conversion at any time prior to the approval of the plan of conversion by either the commissioner or the policyholders.
90 Acts, ch 1083, §12
2023 Iowa Code › Title XIII - COMMERCE › Chapter 515G - MUTUAL INSURANCE COMPANY CONVERSIONS › Section 515G.13 - Prohibitions on certain offers to acquire shares.

515G.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 five years following the date of distribution of consideration to the policyholders in exchange for their membership interests, an officer or director, including family members and their spouses, of the mutual insurer or the successor stock company, shall not directly or indirectly offer to acquire or acquire control of the successor stock company unless the acquisition is made pursuant to a stock option or other plan approved by the commissioner, made pursuant to the plan of conversion, or made after the initial public offering from a broker or dealer of registered securities with the securities and exchange commission at the quoted price on the date of purchase, or made in connection with the defense against an acquisition of control of the reorganized company pursuant to any proposal not approved by the board of directors. As used in this section, “family member” includes a brother, sister, spouse, parent, grandparent, ancestor, or descendant of the officer or director.
90 Acts, ch 1083, §13