2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION
507C.26 - FRAUDULENT TRANSFERS PRIOR TO PETITION.

        507C.26  FRAUDULENT TRANSFERS PRIOR TO PETITION.
         1.  A transfer made and an obligation incurred by an insurer
      within one year prior to the filing of a successful petition for
      rehabilitation or liquidation under this chapter is fraudulent as to
      then existing and future creditors if made or incurred without fair
      consideration, or with actual intent to hinder, delay, or defraud
      either existing or future creditors.  A fraudulent transfer made or
      an obligation incurred by an insurer ordered to be rehabilitated or
      liquidated under this chapter may be avoided by the receiver, except
      as to a person who in good faith is a purchaser, lienor, or obligee
      for a present fair equivalent value.  A purchaser, lienor, or
      obligee, who in good faith has given a consideration less than fair
      for such transfer, lien, or obligation, may retain the property, lien
      or obligation as security for repayment.  The court may, on due
      notice, order any such transfer or obligation to be preserved for the
      benefit of the estate, and in that event, the receiver shall succeed
      to and may enforce the rights of the purchaser, lienor, or obligee.
         2. a.  A transfer of property other than real property is made
      when it becomes perfected so that a subsequent lien obtainable by
      legal or equitable proceedings on a simple contract could not become
      superior to the rights of the transferee under section 507C.28,
      subsection 3.
         b.  A transfer of real property is made when it becomes
      perfected so that a subsequent bona fide purchaser from the insurer
      could not obtain rights superior to the rights of the transferee.
         c.  A transfer which creates an equitable lien is not
      perfected if there are available means by which a legal lien could be
      created.
         d.  A transfer not perfected prior to the filing of a petition
      for liquidation shall be deemed to be made immediately before the
      filing of the successful petition.
         e.  This subsection applies whether or not there are or were
      creditors who might have obtained a lien or persons who might have
      become bona fide purchasers.
         3.  A transaction of the insurer with a reinsurer is fraudulent
      and may be avoided by the receiver under subsection 1 if both of the
      following exist:
         a.  The transaction consists of the termination, adjustment,
      or settlement of a reinsurance contract in which the reinsurer is
      released from any part of its duty to pay the originally specified
      share of losses that had occurred prior to the time of the
      transaction, unless the reinsurer gives a present fair equivalent
      value for the release.
         b.  Part of the transaction took place within one year prior
      to the date of filing of the petition through which the receivership
      was commenced.
         4.  A person receiving property from an insurer or any benefit
      from an insurer which is a fraudulent transfer under subsection 1 is
      personally liable for the property or benefit and shall account to
      the liquidator.  

         84 Acts, ch 1175, § 26; 93 Acts, ch 88, §7
         Referred to in § 507C.14, 507C.21, 507C.35