2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION
507C.40 - CLAIMS OF OTHER PERSON.

        507C.40  CLAIMS OF OTHER PERSON.
         If a creditor, whose claim against an insurer is secured in whole
      or in part by the undertaking of another person, fails to prove and
      file that claim, then the other person may do so in the creditor's
      name and shall be subrogated to the rights of the creditor, whether
      the claim has been filed by the creditor or by the other person in
      the creditor's name to the extent that the other person discharges
      the undertaking.  However, in the absence of an agreement with the
      creditor to the contrary, the other person is not entitled to any
      distribution until the amount paid to the creditor on the undertaking
      plus the distributions paid on the claim from the insurer's estate to
      the creditor equal the amount of the entire claim of the creditor.
      An excess received by the creditor shall be held by the creditor in
      trust for the other person.  As used in this section, "other
      person" is not intended to apply to a guaranty association or
      foreign guaranty association.  

         84 Acts, ch 1175, § 40; 92 Acts, ch 1117, § 28