§ 507B.14 — Transfer of insurance stock

Iowa § 507B.14

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 507B: INSURANCE TRADE PRACTICES

Text

1. When a controlling interest in two or more corporations, at least one of which is an
insurance company domiciled in this state, is held by any person, group of persons, firm,
or corporation, no exchange of stock, transfer or sale of securities, or loan based upon
securities of any such corporation shall take place between such corporations, or between
such person, group of persons, firm or corporation and such corporations, without first
securing the approval of the insurance commissioner. If, in the opinion of the insurance
commissioner, such sale, transfer, exchange, or loan would be improper and would work to
the detriment of any such insurance company, the commissioner shall have the power to
prohibit the transaction. A person, firm, or corporate officer or director shall not aid such
transaction without approval of the insurance commissioner. A person, firm, or corporate
officer or director who willfully violates this section is guilty of a class “D” felony. A person,
firm, or corporate officer or director who willfully violates this section, and when such
violation results in a loss of more than ten thousand dollars, is guilty of a class “C” felony.
2. For purposes of this section, “controlling interest” means actual control or the
possession directly or indirectly of the power to direct or cause the direction of the
management and policies of a firm, partnership, corporation, association, or trust, whether
through the ownership of voting securities, by contract, or otherwise.

Legislative History

[C66, 71, 73, 75, 77, 79, 81, §507B.14]