Iowa § 507C.20 Dissolution or sale of insurer

Iowa Statutes

§ 507C.20 — Dissolution or sale of insurer

Iowa § 507C.20

Title XIIICOMMERCE

Ch. 507CINSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION

This text of Iowa § 507C.20 (Dissolution or sale of insurer) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 507C.20 (2026).

Text

The commissioner may petition for an order dissolving the corporate existence of a
domestic insurer or the United States branch of an alien insurer domiciled in this state at the
time the commissioner applies for a liquidation order. The court shall order dissolution of
the corporation upon petition by the commissioner upon or after the granting of a liquidation
order. If the dissolution has not previously been ordered, it shall be effected by operation
of law upon the discharge of the liquidator if the insurer is insolvent. However, dissolution
may be ordered by the court upon the discharge of the liquidator if the insurer is under
a liquidation order for some other reason. Notwithstanding the above, upon application
by the commissioner and following notice as prescribed by the court and 

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The commissioner may petition for an order dissolving the corporate existence of a
domestic insurer or the United States branch of an alien insurer domiciled in this state at the
time the commissioner applies for a liquidation order. The court shall order dissolution of
the corporation upon petition by the commissioner upon or after the granting of a liquidation
order. If the dissolution has not previously been ordered, it shall be effected by operation
of law upon the discharge of the liquidator if the insurer is insolvent. However, dissolution
may be ordered by the court upon the discharge of the liquidator if the insurer is under
a liquidation order for some other reason. Notwithstanding the above, upon application
by the commissioner and following notice as prescribed by the court and a hearing, the
court may sell the corporation as an entity, together with any of its licenses to do business,
despite the entry of an order of liquidation. The sale may be made on terms and conditions
the court deems appropriate. However, the order approving the sale shall provide that the
proceeds of the sale shall become part of the assets of the liquidation estate, to be distributed
in the manner set forth in section 507C.42, and that the corporate entity and its licenses
shall thereafter be free and clear from the claims or interests of all claimants, creditors,
policyholders, and stockholders of the corporation under liquidation.