2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION
507C.2 - DEFINITIONS.

        507C.2  DEFINITIONS.
         As used in this chapter, unless the context otherwise requires:
         1.  "Affiliate" of or "affiliated" with a specific person,
      means a person that directly or indirectly, through one or more
      intermediaries, controls or is controlled by, or is under common
      control with, the person specified.
         2.  "Ancillary state" means a state other than a domiciliary
      state.
         3.  "Commissioner" means the commissioner of insurance and any
      successor in office.
         4.  "Commodity contract" means any of the following:
         a.  A contract for the purchase or sale of a commodity for
      future delivery on, or subject to the rules of, a board of trade
      designated as a contract market by the commodity futures trading
      commission under the federal Commodity Exchange Act, 7 U.S.C. § 1 et
      seq., or a board of trade outside the United States.
         b.  An agreement that is subject to regulation under section
      19 of the federal Commodity Exchange Act, 7 U.S.C. § 1 et seq., and
      that is commonly known to the commodities trade as a margin account,
      margin contract, leverage account, or leverage contract.
         c.  An agreement or transaction that is subject to regulation
      under section 4c(b) of the federal Commodity Exchange Act, 7 U.S.C. §
      1 et seq., and that is commonly known to the commodities trade as a
      commodity option.
         5.  "Control" means the same as defined in section 521A.1,
      subsection 3.
         6.  "Creditor" is a person having a claim against an insurer,
      whether the claim is matured or unmatured, liquidated or
      unliquidated, secured or unsecured, absolute, fixed or contingent.
         7.  "Delinquency proceeding" means a proceeding instituted
      against an insurer for the purpose of liquidating, rehabilitating,
      reorganizing or conserving the insurer, and a summary proceeding
      under section 507C.9 or 507C.10.  "Formal delinquency proceeding"
      means any liquidation or rehabilitation proceeding.
         8.  "Doing business" means any of the following acts, whether
      effected by mail or otherwise:
         a.  The issuance or delivery of contracts of insurance to
      persons resident in this state.
         b.  The solicitation of applications for the contracts, or
      other negotiations preliminary to the execution of the contracts.
         c.  The collection of premiums, membership fees, assessments,
      or other consideration for the contracts.
         d.  The transaction of matters subsequent to execution of the
      contracts and arising out of them.
         e.  Operating as an insurer under a license or certificate of
      authority issued by the division.
         9.  "Domiciliary state" means the state in which an insurer is
      incorporated or organized, or, in the case of an alien insurer, its
      state of entry.
         10.  "Fair consideration" is given for property or obligation
      when either of the following is present:
         a.  When in good faith property is conveyed or services are
      rendered or an obligation is incurred or an antecedent debt is
      satisfied in exchange for the property or obligation, as a fair
      equivalent therefor, and in good faith.
         b.  When the property or obligation is received in good faith
      to secure a present advance or antecedent debt in amount not
      disproportionately small as compared to the value of the property or
      obligation obtained.
         11.  "Foreign country" means another jurisdiction not in a
      state.
         12.  "Forward contract" means a contract for the purchase,
      sale, or transfer of a commodity, as defined in section 1 of the
      federal Commodity Exchange Act, 7 U.S.C. § 1 et seq., or any similar
      good, article, service, right, or interest that is presently or in
      the future becomes the subject of dealing in the forward contract
      trade, or product or byproduct thereof, with a maturity date more
      than two days after the date the contract is entered into, including,
      but not limited to, a repurchase transaction, reverse repurchase
      transaction, consignment, lease, swap, hedge transaction, deposit,
      loan, option, allocated transaction, unallocated transaction, or a
      combination of them or option on any of them.  "Forward contract"
      does not include a commodity contract.
         13.  "General assets" means all real, personal, or other
      property, not specifically mortgaged, pledged, deposited, or
      otherwise encumbered for the security or benefit of specified persons
      or classes of persons.  As to specifically encumbered property,
      "general assets" includes all property or its proceeds in excess
      of the amount necessary to discharge the sum or sums secured by the
      property or its proceeds.  Assets held in trust and on deposit for
      the security or benefit of all policyholders or all policyholders and
      creditors, in more than a single state, shall be treated as general
      assets.
         "General assets" does not include that portion of the assets
      of the insurer allocated to and accumulated in a separate account
      established pursuant to section 508A.1, unless otherwise provided by
      the applicable policy, annuity, agreement, instrument, or contract.
      However, if any assets allocated to and accumulated in a separate
      account, after the satisfaction of any liabilities with regard to the
      operation of the separate account, are in excess of an amount equal
      to the reserves and other liabilities with respect to the separate
      account, the excess shall be treated as part of the general assets of
      the insurer.
         14.  "Guaranty association" means the Iowa insurance guaranty
      association created in chapter 515B, the Iowa life and health
      insurance guaranty association created in chapter 508C, and any other
      similar entity either presently existing or to be created by the
      general assembly for the payment of claims of insolvent insurers.
      "Foreign guaranty association" means a similar entity presently
      existing in or to be created in the future by the legislature of any
      other state.
         15.  "Insolvency" or "insolvent" means any of the
      following:
         a.  For an insurer issuing only assessable fire insurance
      policies, either of the following:
         (1)  The inability to pay any obligation within thirty days after
      it becomes payable.
         (2)  If an assessment is made, the inability to pay the assessment
      within thirty days following the date specified in the first
      assessment notice issued after the date of loss.
         b.  For any other insurer that it is unable to pay its
      obligations when they are due, or when its admitted assets do not
      exceed its liabilities plus the greater of:
         (1)  Any capital and surplus required by law for its organization.

         (2)  The total par or stated value of its authorized and issued
      capital stock.
         c.  As to an insurer licensed to do business in this state as
      of July 1, 1984, which does not meet the standard established under
      paragraph "b", the term "insolvency" or "insolvent" shall
      mean, for a period not to exceed three years from July 1, 1984, that
      it is unable to pay its obligations when they are due or that its
      admitted assets do not exceed its liabilities plus any required
      capital contribution ordered by the commissioner under provisions of
      the insurance law.
         For purposes of this subsection "liabilities" includes but is
      not limited to reserves required by statute or by the division's
      rules or specific requirements imposed by the commissioner upon a
      company at the time of or subsequent to admission.
         16.  "Insurer" means a person who has done, purports to do, is
      doing or is licensed to do insurance business, and is or has been
      subject to the authority of, or to liquidation, rehabilitation,
      reorganization, supervision, or conservation by an insurance
      commissioner.  For purposes of this chapter, any other person
      included under section 507C.3 is an insurer.
         17.  "Netting agreement" means an agreement, including terms
      and conditions incorporated by reference therein, including a master
      agreement, which master agreement, together with all schedules,
      confirmations, definitions, and addenda thereto and transactions
      under any thereof, shall be treated as one netting agreement, that
      documents one or more transactions between parties to the agreement
      for or involving one or more qualified financial contracts and that
      provides for the netting or liquidation of qualified financial
      contracts or present or future payment obligations or payment
      entitlements thereunder, including liquidation or closeout values
      relating to such obligations or entitlements among the parties to the
      netting agreement.
         18.  "Preferred claim" means a claim with respect to which the
      terms of this chapter accord priority of payment from the general
      assets of the insurer.
         19.  "Qualified financial contract" means a commodity
      contract, forward contract, repurchase agreement, securities
      contract, swap agreement, and any similar agreement that the
      commissioner determines by regulation, resolution, or order to be a
      qualified financial contract for the purposes of this chapter.
         20.  "Receiver" means receiver, liquidator, rehabilitator, or
      conservator as the context requires.
         21.  "Reciprocal state" means a state other than this state in
      which section 507C.18, subsection 1, sections 507C.52 and 507C.53 and
      sections 507C.55 through 507C.57 are in force, and in which
      provisions are in force requiring that the commissioner or equivalent
      official be the receiver of a delinquent insurer, and in which some
      provision exists for the avoidance of fraudulent conveyances and
      preferential transfers.
         22.  "Repurchase agreement" means an agreement, including
      related terms, that provides for the transfer of certificates of
      deposit, eligible bankers' acceptances, or securities that are direct
      obligations of, or that are fully guaranteed as to principal and
      interest by, the United States or an agency of the United States
      against the transfer of funds by the transferee of the certificates
      of deposit, eligible bankers' acceptances or securities, with a
      simultaneous agreement by the transferee to transfer to the
      transferor certificates of deposit, eligible bankers' acceptances, or
      securities as described above, at a date certain not later than one
      year after the transfers or on demand against the transfer of funds.
      For the purposes of this definition, the items that may be subject to
      a repurchase agreement include, but are not limited to,
      mortgage-related securities, a mortgage loan, and an interest in a
      mortgage loan, but shall not include any participation in a
      commercial mortgage loan, unless the commissioner determines by rule,
      resolution, or order to include the participation within the meaning
      of the term.  Repurchase agreement also applies to a reverse
      repurchase agreement.
         23.  "Secured claim" means a claim secured by mortgage, trust
      deed, pledge, deposit as security, escrow, or otherwise, but not
      including special deposit claims or claims against general assets.
      The term also includes claims which have become liens upon specific
      assets by reason of judicial process.
         24.  "Securities contract" means a contract for the purchase,
      sale, or loan of a security, including an option for the repurchase
      or sale of a security, certificate of deposit, or group or index of
      securities, including an interest therein or based on the value
      thereof, or an option entered into on a national securities exchange
      relating to foreign currencies, or the guarantee of a settlement of
      cash or securities by or to a securities clearing agency.  For the
      purposes of this definition, the term "security" includes a
      mortgage loan, mortgage-related securities, and an interest in any
      mortgage loan or mortgage-related security.
         25.  "Special deposit claim" means a claim secured by a
      deposit made pursuant to statute for the security or benefit of a
      limited class or classes of persons, but not including a claim
      secured by general assets.
         26.  "State" means a state, district, or territory of the
      United States and the Panama Canal Zone.
         27.  "Swap agreement" means an agreement, including the terms
      and conditions incorporated by reference in an agreement, that is a
      rate swap agreement, basis swap, commodity swap, forward rate
      agreement, interest rate future, interest rate option, forward
      foreign exchange agreement, spot foreign exchange agreement, rate cap
      agreement, rate floor agreement, rate collar agreement, currency swap
      agreement, cross-currency rate swap agreement, currency future, or
      currency option or any other similar agreement, and includes any
      combination of agreements and an option to enter into an agreement.
         28.  "Transfer" shall include the sale and every other and
      different mode, direct or indirect, of disposing of or of parting
      with property or with an interest in the property, or with the
      possession of the property or of fixing a lien upon the property or
      upon an interest in the property, absolutely or conditionally,
      voluntarily, by or without judicial proceedings.  The retention of a
      security title to property delivered to a debtor shall be deemed a
      transfer suffered by a debtor.  

         84 Acts, ch 1175, § 2; 92 Acts, ch 1117, § 10; 2005 Acts, ch 70,
      §4; 2006 Acts, ch 1117, §27