2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION
507C.16 - TERMINATION OF REHABILITATION.

        507C.16  TERMINATION OF REHABILITATION.
         1.  Whenever the commissioner determines that further attempts to
      rehabilitate an insurer would substantially increase the risk of loss
      to creditors, policyholders, or the public, or would be futile, the
      commissioner may petition the district court for an order of
      liquidation.  A petition under this subsection shall have the same
      effect as a petition under section 507C.17.  The court shall permit
      the directors of the insurer to take actions as are reasonably
      necessary to defend against the petition and may order payment from
      the estate of the insurer of costs and other expenses of defense as
      justice may require.
         2.  The rehabilitator may at any time petition the district court
      for an order terminating rehabilitation of an insurer.  The directors
      of the insurer may petition the court for an order terminating
      rehabilitation of the insurer and the court may order payment from
      the estate of the insurer of costs and other expenses of the petition
      as justice may require.  If the court finds that rehabilitation has
      been accomplished and that grounds for rehabilitation under section
      507C.12 no longer exist, it shall order that the insurer be restored
      to possession of its property and the control of its business.  The
      court may also terminate the rehabilitation at any time upon its own
      motion.
         3.  If the payment of obligations pursuant to a policy issued by
      the insurer is suspended in substantial part for a period of six
      months at any time after the appointment of the rehabilitator, and
      the rehabilitator has not filed an application for a plan pursuant to
      section 507C.14, subsection 4, the rehabilitator shall petition the
      court for an order of liquidation on grounds of insolvency.  

         84 Acts, ch 1175, § 16; 92 Acts, ch 1117, § 18