2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION
507C.30 - SETOFFS.

        507C.30  SETOFFS.
         1.  Except as provided in subsection 2 and section 507C.33 mutual
      debts or mutual credits between the insurer and another person in
      connection with an action or proceeding under this chapter shall be
      set off and the balance only shall be allowed or paid.
         2. a.  A setoff shall not be allowed in favor of a person
      where any of the following are found:
         (1)  At the date of the filing of a petition for liquidation, the
      obligation of the insurer to the person would not entitle the person
      to share as a claimant in the assets of the insurer.
         (2)  The obligation of the insurer to the person was purchased by
      or transferred to the person with a view to its being used as a
      setoff.
         (3)  The obligation of the insurer is owed to the affiliate of
      such person, or any other entity or association other than the
      person.
         (4)  The obligation of the person is owed to the affiliate of the
      insurer, or any other entity or association other than the insurer.
         (5)  The obligation of the person is to pay an assessment levied
      against the members or subscribers of the insurer, or is to pay a
      balance upon a subscription to the capital stock of the insurer, or
      is in any other way in the nature of a capital contribution.
         (6)  The obligation of the person is to pay earned premiums to the
      insurer.
         b.  Nothing in paragraph "a", however, restricts the right
      of a person to set off premium due to or from the insurer pursuant to
      a reinsurance contract.  

         84 Acts, ch 1175, § 30; 92 Acts, ch 1117, § 26; 96 Acts, ch 1045,
      § 1; 2005 Acts, ch 70, §6
         Referred to in § 507C.28A