§ 507C.31 — Assessments

Iowa § 507C.31

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 507C: INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION

Text

1. As soon as practicable but not more than two years from the date of an order of
liquidation under section 507C.18 of an insurer issuing assessable policies, the liquidator
shall make a report to the court setting forth all of the following:
a. The reasonable value of the assets of the insurer.
b. The insurer’s probable total liabilities.
c. The probable aggregate amount of the assessment necessary to pay claims of creditors
§507C.31, INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION 26
and expenses in full, including expenses of administration and costs of collecting the
assessment.
d. A recommendation as to whether an assessment should be made and, if so, in what
amount.
2. a. Upon the basis of the report provided in subsection 1 and any supplement or
amendment to the report, the court may levy one or more assessments against all members
of the insurer who are subject to assessment.
b. Subject to any applicable legal limits on assessability, the aggregate assessment shall
be for the amount that the sum of the probable liabilities, the expenses of administration, and
the estimated cost of collection of the assessment, exceeds the value of existing assets. Due
regard shall be given to assessments that cannot be collected economically.
3. Afterlevyofassessmentundersubsection2,theliquidatorshallissueanorderdirecting
a member who has not paid the assessment pursuant to the order to show cause why the
liquidator should not pursue a judgment for the assessment.
4. The liquidator shall give notice of the order to show cause by publication and by first
class mail to a member liable under the order. The notice shall be mailed to the member’s last
known address as it appears on the insurer’s records at least twenty days before the return
day of the order to show cause.
5. a. If a member does not appear and serve duly verified objections upon the liquidator
on or before the return day of the order to show cause under subsection 3, the court shall
order the adjudging member to be liable for the amount of the assessment plus costs. The
liquidator shall have a judgment against the member for the amount entered in the order.
b. If on or before the return day, the member appears and serves duly verified objections
upon the liquidator, the commissioner may hear and determine the matter or may appoint a
referee to hear it and make such order as the facts warrant. If the commissioner determines
that the objections do not warrant relief from assessment, the member may request the court
to review the matter and vacate the order to show cause.
6. The liquidator may enforce an order or collect a judgment under subsection 5 by any
lawful means.