2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION
507C.31 - ASSESSMENTS.

        507C.31  ASSESSMENTS.
         1.  As soon as practicable but not more than two years from the
      date of an order of liquidation under section 507C.18 of an insurer
      issuing assessable policies, the liquidator shall make a report to
      the court setting forth all of the following:
         a.  The reasonable value of the assets of the insurer.
         b.  The insurer's probable total liabilities.
         c.  The probable aggregate amount of the assessment necessary
      to pay claims of creditors and expenses in full, including expenses
      of administration and costs of collecting the assessment.
         d.  A recommendation as to whether an assessment should be
      made and, if so, in what amount.
         2. a.  Upon the basis of the report provided in subsection 1
      and any supplement or amendment to the report, the court may levy one
      or more assessments against all members of the insurer who are
      subject to assessment.
         b.  Subject to any applicable legal limits on assessability,
      the aggregate assessment shall be for the amount that the sum of the
      probable liabilities, the expenses of administration, and the
      estimated cost of collection of the assessment, exceeds the value of
      existing assets.  Due regard shall be given to assessments that
      cannot be collected economically.
         3.  After levy of assessment under subsection 2, the liquidator
      shall issue an order directing a member who has not paid the
      assessment pursuant to the order to show cause why the liquidator
      should not pursue a judgment for the assessment.
         4.  The liquidator shall give notice of the order to show cause by
      publication and by first class mail to a member liable under the
      order.  The notice shall be mailed to the member's last known address
      as it appears on the insurer's records at least twenty days before
      the return day of the order to show cause.
         5. a.  If a member does not appear and serve duly verified
      objections upon the liquidator on or before the return day of the
      order to show cause under subsection 3, the court shall order the
      adjudging member to be liable for the amount of the assessment plus
      costs.  The liquidator shall have a judgment against the member for
      the amount entered in the order.
         b.  If on or before the return day, the member appears and
      serves duly verified objections upon the liquidator, the commissioner
      may hear and determine the matter or may appoint a referee to hear it
      and make such order as the facts warrant.  If the commissioner
      determines that the objections do not warrant relief from assessment,
      the member may request the court to review the matter and vacate the
      order to show cause.
         6.  The liquidator may enforce an order or collect a judgment
      under subsection 5 by any lawful means.  

         84 Acts, ch 1175, § 31