2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION
507C.34 - DOMICILIARY LIQUIDATOR'S PROPOSAL TO DISTRIBUTE ASSETS.

        507C.34  DOMICILIARY LIQUIDATOR'S PROPOSAL TO
      DISTRIBUTE ASSETS.
         1.  Within one hundred twenty days of a final determination of
      insolvency under this chapter as assets become available, the
      liquidator shall make application to the court for approval of a
      proposal to disburse assets out of marshaled assets to a guaranty
      association or foreign guaranty association having obligations
      because of the insolvency.  An application and disbursement of assets
      shall be made from time to time as assets become available.  If the
      liquidator determines that there are insufficient assets to disburse,
      the application required by this section shall be considered
      satisfied by a filing by the liquidator stating the reasons for this
      determination.
         2.  The proposal shall at least include provisions for all of the
      following:
         a.  Reserving amounts for the payment of all the following:
         (1)  Expenses of administration.
         (2)  To the extent of the value of the security held, the payment
      of claims of secured creditors.
         (3)  Claims falling within the priorities established in section
      507C.42, subsection 1.
         b.  Disbursement of the assets marshaled to date and
      subsequent disbursement of assets as they become available.
         c.  Equitable allocation of disbursements to each of the
      guaranty associations and foreign guaranty associations entitled to
      disbursements.
         d.  The securing by the liquidator from each of the
      associations entitled to disbursements of an agreement to return to
      the liquidator the assets, together with income earned on assets
      previously disbursed, as may be required to pay claims of secured
      creditors and claims falling within the priorities established in
      section 507C.42 in accordance with the priorities.  A bond shall not
      be required of an association.
         e.  A full report to be made by each association to the
      liquidator accounting for assets so disbursed to the association, all
      disbursements made from the assets, interest earned by the
      association on the assets and any other matter as the court may
      direct.
         3.  The liquidator's proposal shall provide for disbursements to
      the associations in amounts estimated at least equal to the claim
      payments made or to be made for which the associations could assert a
      claim against the liquidator.  The proposal shall provide that if the
      assets available for disbursement do not equal or exceed the amount
      of the claim payments made or to be made by the association then
      disbursements shall be in the amount of available assets.
         4.  With respect to an insolvent insurer writing life or health
      insurance or annuities, the liquidator's proposal shall provide for
      disbursements of assets to a guaranty association or a foreign
      guaranty association covering life or health insurance or annuities
      or to any other entity or organization reinsuring, assuming, or
      guaranteeing policies or contracts of insurance under the acts
      creating the associations.
         5.  Notice of the application shall be given to the association in
      and to the commissioners of insurance of each of the states.  Notice
      is given when deposited in the United States certified mails, first
      class postage prepaid, at least thirty days prior to submission of
      the application to the court.  Action on the application may be taken
      by the court provided the required notice has been given and that the
      liquidator's proposal complies with subsection 2, paragraphs "a"
      and "b".  

         84 Acts, ch 1175, § 34; 92 Acts, ch 1117, § 27; 97 Acts, ch 186,
      §3
         Referred to in § 507C.25