§ 507C.33 — Recovery of premiums owed

Iowa § 507C.33

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

Text

1. a. An agent, broker, premium finance company or any other person responsible for the
payment of a premium is obligated to pay an unpaid premium for the full policy term due the
insurer at the time of the declaration of insolvency, whether earned or unearned, as shown
on the records of the insurer. The liquidator shall also have the right to recover from the
person any part of an unearned premium that represents commission of the person. Credits
or setoffs or both shall not be allowed to an agent, broker, or premium finance company for
amountsadvancedtotheinsurerbytheagent, broker, orpremiumfinancecompanyonbehalf
of, but in the absence of a payment by, the insured.
b. Notwithstanding paragraph “a”, the agent, broker, premium finance company, or other
person, is not liable for uncollected unearned premium of the insurer. A presumption exists
that the premium as shown on the books of the insurer is collected and the burden is upon the
agent,broker,premiumfinancecompany,orotherpersontodemonstratebyapreponderance
27 INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION, §507C.34
of the evidence that the unearned premium was not actually collected. For purposes of this
paragraph, “unearned premium” means that portion of an insurance premium covering the
unexpired term of the policy or the unexpired period of the policy period.
c. An insured is obligated to pay an unpaid earned premium due the insurer as shown on
the records of the insurer at the time of the declaration of insolvency.
2. Upon satisfactory evidence of a violation of this section, the commissioner may pursue
either one or both of the following courses of action:
a. Suspend or revoke or refuse to renew the licenses of the offending party or parties.
b. Impose a penalty of not more than one thousand dollars for each act in violation of this
section by the party or parties.
3. Before the commissioner shall take any action as set forth in subsection 2, the
commissioner shall give written notice to the person, company, association, or exchange
accused of violating the law, stating specifically the nature of the alleged violation, and fixing
atimeandplace, atleasttendaysthereafter, whenahearingonthemattershallbeheld. After
such hearing, or upon failure of the accused to appear at the hearing, if a violation is found
the commissioner shall impose those penalties under subsection 2 as deemed advisable.
4. When the commissioner shall take action in any or all of the ways set out in subsection
2, the party aggrieved may appeal from the action to court.