2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION
507C.9 - SUMMARY ORDERS AND SUPERVISION PROCEEDINGS -- PENALTY.

        507C.9  SUMMARY ORDERS AND SUPERVISION PROCEEDINGS --
      PENALTY.
         1.  If after a hearing held under subsection 5, the commissioner
      determines that a domestic insurer has committed or engaged in, or is
      about to commit or engage in, an act, practice, or transaction that
      would subject it to delinquency proceedings under this chapter, the
      commissioner may make and serve upon the insurer and any other
      persons involved orders as are reasonably necessary to correct,
      eliminate, or remedy the conduct, condition, or ground.
         2.  If the commissioner upon reasonable cause determines that a
      domestic insurer is in a condition as to render the continuance of
      its business hazardous to the public or to holders of its policies or
      certificates of insurance or if the domestic insurer gives its
      consent then the commissioner shall do both of the following:
         a.  Notify the insurer of the determination.
         b.  Furnish to the insurer a written list of the
      commissioner's requirements to abate the determination.
         3.  If the commissioner makes a determination to supervise an
      insurer subject to an order under subsection 1 or 2, the commissioner
      shall notify the insurer that it is under the supervision of the
      commissioner.  During the period of supervision, the commissioner may
      appoint a supervisor to supervise the insurer.  The order appointing
      a supervisor shall direct the supervisor to enforce orders issued
      under subsections 1 and 2 and may also require that during the period
      of supervision, the insurer shall not do any of the following without
      the prior approval of the commissioner or the commissioner's
      supervisor:
         a.  Dispose of, convey or encumber its assets or its business
      in force.
         b.  Withdraw from its bank accounts.
         c.  Lend its funds.
         d.  Invest its funds.
         e.  Transfer its property.
         f.  Incur any debt, obligation or liability.
         g.  Merge or consolidate with another company.
         h.  Enter into a new reinsurance contract or treaty.
         i.  Write new or renewal business.
         4.  An insurer subject to an order under this section shall comply
      with the lawful requirements of the commissioner and, if placed under
      supervision, shall have sixty days from the date the supervision
      order is served within which to comply with the requirements of the
      commissioner.  If the insurer fails to comply, the commissioner may
      institute proceedings under section 507C.12 or 507C.17 to have a
      rehabilitator or liquidator appointed or extend the period of
      supervision.
         5.  The notice of hearing and any order issued pursuant to
      subsection 1 shall be served upon the insurer pursuant to chapter
      17A.  The notice of hearing shall state the time and place of
      hearing, and the conduct, condition or ground upon which the
      commissioner would base an order.  Unless mutually agreed between the
      commissioner and the insurer, the hearing shall occur not less than
      ten days nor more than thirty days after notice is served and shall
      be either in Polk county or in some other place convenient to the
      parties to be designated by the commissioner.  All hearings under
      subsection 1 shall be confidential unless the insurer requests a
      public hearing.
         6. a.  An insurer subject to an order under subsection 2 may
      request a hearing to review that order.  The hearing shall be held as
      provided in subsection 5.  The request for a hearing shall not stay
      the effect of the order.
         b.  If the commissioner issues an order under subsection 2,
      the insurer may waive a commissioner's hearing and apply for
      immediate judicial relief by means of any remedy afforded by law
      without first exhausting administrative remedies.  Subsequent to a
      hearing, a party to the proceedings whose interests are substantially
      affected is entitled to judicial review of any order issued by the
      commissioner.
         7.  During the period of supervision the insurer may request the
      commissioner to review an action taken or proposed to be taken by the
      supervisor by specifying the reasons the action complained of is
      believed not to be in the best interest of the insurer.
         8.  If a person has violated a supervision order issued under this
      section which was in effect, the person is liable to pay a civil
      penalty imposed by the district court not to exceed ten thousand
      dollars.
         9.  The commissioner may apply for and any court of general
      jurisdiction may grant restraining orders, preliminary and permanent
      injunctions, and other orders as necessary to enforce a supervision
      order.  

         84 Acts, ch 1175, § 9
         Referred to in § 507C.2, 507C.11, 507C.12, 507C.54, 508C.12