2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 520 - RECIPROCAL OR INTERINSURANCE CONTRACTS
520.9 - STANDARD OF SOLVENCY.

        520.9  STANDARD OF SOLVENCY.
         1.  There shall at all times be maintained as assets a sum in
      cash, or in securities of the kind designated by the laws of the
      state where the principal office is located for the investment of
      funds of insurance companies, equal to one hundred percent of the net
      unearned premiums or deposits collected and credited to the account
      of subscribers, or assets equal to fifty percent of the net annual
      deposits collected and credited to the account of subscribers on
      policies having one year or less to run and pro rata on those for
      longer periods; in addition to which there shall be maintained in
      cash, or in such securities, assets sufficient to discharge all
      liabilities on all outstanding losses arising under policies issued,
      the same to be calculated in accordance with the laws of the state
      relating to similar reserves for companies insuring similar risks;
      provided that where the assets on hand available for the payment of
      losses other than determined losses, do not equal five million
      dollars, all liability for each determined loss or claim deferred for
      more than one year, shall be provided for by a special deposit in a
      trust company or bank having fiduciary powers of the state in which
      the principal office is located, to be used in payment of
      compensation benefits for disability; such deposit to be a trust fund
      and applicable only to the purposes stated, or such liability may be
      reinsured in authorized companies with a surplus of at least five
      million dollars.  For the purpose of such reserves, net deposits
      shall be construed to mean the advance payments of subscribers after
      deducting the amount specifically provided in the subscribers'
      agreements for expenses.  If at any time the assets so held in cash
      or such securities shall be less than required above, or less than
      five million dollars, the subscribers or their attorney for them
      shall make up the deficiency within thirty days after notice from the
      commissioner of insurance to do so.  In computing the assets required
      by this section, the amount specified in section 520.4, subsection 7,
      shall be included.
         2.  Notwithstanding subsection 1, a person issuing reciprocal
      contracts and authorized to transact business under this chapter
      shall comply with the minimum surplus requirements of this section or
      chapter 521E, whichever is greater.  

         Section History: Early Form

         [C24, 27, 31, 35, 39, § 9091; C46, 50, 54, 58, 62, 66, 71, 73,
      75, 77, 79, 81, § 520.9] 

         Section History: Recent Form

         88 Acts, ch 1111, § 16; 96 Acts, ch 1046, § 8; 2007 Acts, ch 137,
      §20
         Referred to in § 85.65A, 520.9A, 520.14