2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 507A - UNAUTHORIZED INSURERS
507A.7 - PROCEEDINGS BEFORE COMMISSIONER -- INDEMNIFYING BOND.

        507A.7  PROCEEDINGS BEFORE COMMISSIONER --
      INDEMNIFYING BOND.
         1.  Before any unauthorized person or insurer files or causes to
      be filed any pleading or process in an administrative proceeding
      before the commissioner of insurance, instituted against such person
      or insurer, by service made as provided in this chapter, such person
      or insurer shall either:
         a.  Deposit with the clerk of the court in which such action,
      suit, or proceeding is pending, or with the commissioner of insurance
      in administrative proceedings before the commissioner, cash or
      securities, or file with such clerk or commissioner a bond with good
      and sufficient sureties, to be approved by the clerk or commissioner
      in an amount to be fixed by the court or commissioner sufficient to
      secure the payment of any final judgment which may be rendered in
      such action or administrative proceeding.
         b.  Procure a certificate of authority to transact the
      business of insurance in this state.
         2.  The court in any action, suit, or proceeding in which service
      is made as provided in subsections 2 and 3 of section 507A.6, or the
      commissioner of insurance in any administrative proceeding before the
      commissioner in which service is made as provided in subsections 2
      and 3 of section 507A.6, may in the court's or commissioner's
      discretion, order such postponement as may be necessary to afford the
      defendant reasonable opportunity to comply with the provisions of
      subsection 1 of this section and to defend such action.
         3.  Nothing in subsection 1 of this section shall be construed to
      prevent an unauthorized person or foreign or alien insurer from
      filing a motion to quash a writ or to set aside service thereof made
      in the manner provided in sections 507A.5 and 507A.6, on the ground
      that such unauthorized person or insurer has not done any of the acts
      enumerated in section 507A.3.
         4.  In an action against an unauthorized person or insurer upon a
      contract of insurance issued or delivered in this state to a resident
      thereof or to a corporation authorized to do business therein, if the
      person or insurer has failed for thirty days after demand prior to
      the commencement of the action to make payment in accordance with the
      terms of the contract, and it appears to the court that such refusal
      was without reasonable cause, the court may allow to the plaintiff a
      reasonable attorney fee and include such fee in any judgment that may
      be rendered in such action.  Failure of the person or insurer to
      defend any such action shall be deemed prima facie evidence that its
      failure to make payment was without reasonable cause.  

         [C50, 54, 58, 62, 66, § 507A.4, 507A.5; C71, 73, 75, 77, 79, 81, §
      507A.7]
         Referred to in § 602.8102(69)