2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION
507C.18 - LIQUIDATION ORDERS.

        507C.18  LIQUIDATION ORDERS.
         1.  An order to liquidate the business of a domestic insurer shall
      appoint the commissioner as liquidator and shall direct the
      liquidator to immediately take possession of the assets of the
      insurer and to administer them under the general supervision of the
      court.  The liquidator is vested with the title to the property,
      contracts, and rights of action and the books and records of the
      insurer ordered liquidated, wherever located, as of the entry of the
      final order of liquidation.  The filing or recording of the order
      with the clerk of the court and the recorder of deeds of the county
      in which its principal office or place of business is located, or, in
      the case of real estate with the recorder of deeds of the county
      where the property is located, is notice as a deed, bill of sale, or
      other evidence of title duly filed or recorded with the recorder of
      deeds.
         2.  Upon issuance of the order, the rights and liabilities of an
      insurer and of its creditors, policyholders, shareholders, members,
      and other persons interested in its estate shall become fixed as of
      the date of entry of the order of liquidation, except as provided in
      sections 507C.19 and 507C.37.
         3.  An order to liquidate the business of an alien insurer
      domiciled in this state must be in the same terms and have the same
      legal effect as an order to liquidate a domestic insurer, except that
      the assets and the business in the United States shall be the only
      assets and business included in the order.
         4.  At the time of petitioning for an order of liquidation, or at
      any time thereafter, the commissioner, after making appropriate
      findings of an insurer's insolvency, may petition the court for a
      declaration of insolvency.  After providing notice and hearing as it
      deems proper, the court may make the declaration.
         5.  An order issued under this section shall require accounting to
      the court by the liquidator.  Accountings, at a minimum, must include
      all funds received or disbursed by the liquidator during the current
      period.  An accounting shall be filed within one year of the
      liquidation order and at such other times as the court may require.
         6. a.  Within five days of July 1, 1992, or, if later, within
      five days after the initiation of an appeal of an order of
      liquidation, which order has not been stayed, the commissioner shall
      present for the court's approval a plan for the continued performance
      of the defendant company's policy claims obligations, including the
      duty to defend insureds under liability insurance policies, during
      the pendency of an appeal.  The plan shall provide for the continued
      performance and payment of policy claims obligations in the normal
      course of events, notwithstanding the grounds alleged in support of
      the order of liquidation including the ground of insolvency.  If the
      defendant company's financial condition will not, in the judgment of
      the commissioner, support the full performance of all policy claims
      obligations during the appeal pendency period, the plan may prefer
      the claims of certain policyholders and claimants over creditors and
      interested parties as well as other policyholders and claimants, as
      the commissioner finds to be fair and equitable considering the
      relative circumstances of such policyholders and claimants.  The
      court shall examine the plan submitted by the commissioner and if it
      finds the plan to be in the best interests of the parties, the court
      shall approve the plan.  No action shall lie against the commissioner
      or any of the commissioner's deputies, agents, clerks, assistants, or
      attorneys by any party based on preference in an appeal pendency plan
      approved by the court.
         b.  The appeal pendency plan shall not supersede or affect the
      obligations of any insurance guaranty association.
         c.  Any such plans shall provide for equitable adjustments to
      be made by the liquidator to any distributions of assets to guaranty
      associations, in the event that the liquidator pays claims from
      assets of the estate, which would otherwise be the obligations of any
      particular guaranty association but for the appeal of the order of
      liquidation, such that all guaranty associations equally benefit on a
      pro rata basis from the assets of the estate.  If an order of
      liquidation is set aside upon an appeal, the company shall not be
      released from delinquency proceedings unless and until all funds
      advanced by a guaranty association, including reasonable
      administrative expenses in connection therewith relating to
      obligations of the company, shall be repaid in full, together with
      interest at the judgment rate of interest, or unless an arrangement
      for repayment thereof has been made with the consent of all
      applicable guaranty associations.  

         84 Acts, ch 1175, § 18; 92 Acts, ch 1117, § 19
         Referred to in § 507C.2, 507C.19, 507C.31, 507C.37
         Judgment rate of interest, see § 535.3