2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION
507C.10 - SEIZURE ORDER.

        507C.10  SEIZURE ORDER.
         1.  With respect to a domestic insurer the commissioner may file
      in the district court a petition alleging all of the following:
         a.  That there exist grounds that would justify a court order
      for a formal delinquency proceeding against an insurer under this
      chapter.
         b.  That the interests of policyholders, creditors, or the
      public will be endangered by delay.
         c.  The contents of an order deemed necessary by the
      commissioner.
         2.  Upon a filing under subsection 1, the court may issue, ex
      parte and without a hearing, the requested order which shall direct
      the commissioner to take possession and control of all or a part of
      the property, books, accounts, documents, and other records of an
      insurer, and of the premises occupied by it for transaction of its
      business, and until further order of the court enjoin the insurer and
      its officers, managers, agents, and employees from disposing of the
      insurer's property and from transacting of the insurer's business,
      except with the written consent of the commissioner.
         3.  The court shall specify in the order the duration of the
      order.  The duration shall be the time the court deems necessary for
      the commissioner to ascertain the condition of the insurer.  Upon
      motion or on its own, the court may from time to time hold hearings
      as it deems desirable after notice as it deems appropriate, and may
      extend, shorten, or modify the terms of the seizure order.  The court
      shall vacate the seizure order if the commissioner fails to commence
      a formal proceeding under this chapter after having had a reasonable
      opportunity to do so.  An order of the court pursuant to a formal
      proceeding under this chapter shall automatically vacate the seizure
      order.
         4.  Entry of a seizure order under this section is not an
      anticipatory breach of a contract of the insurer.
         5.  An insurer subject to an ex parte order under this section may
      petition the court after the issuance of the order for a hearing and
      review of the order.  The court shall hold the hearing and review not
      more than fifteen days after the request.  A hearing under this
      subsection may be held privately in chambers.  Upon request of the
      insurer the hearing shall be held privately in chambers.
         6.  If at any time after the issuance of an order under this
      section it appears to the court that a person whose interest is or
      will be substantially affected by the order did not appear at the
      hearing and has not been served, the court may order that notice be
      given.  An order that notice be given shall not stay the effect of
      any order previously issued by the court.  

         84 Acts, ch 1175, § 10
         Referred to in § 507C.2, 507C.11, 507C.54