§ 507C.34 — Domiciliary liquidator’s proposal to distribute assets

Iowa § 507C.34

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

Text

1. Within one hundred twenty days of a final determination of insolvency under this
chapter as assets become available, the liquidator shall make application to the court for
approval of a proposal to disburse assets out of marshaled assets to a guaranty association
or foreign guaranty association having obligations because of the insolvency. An application
and disbursement of assets shall be made from time to time as assets become available.
If the liquidator determines that there are insufficient assets to disburse, the application
required by this section shall be considered satisfied by a filing by the liquidator stating the
reasons for this determination.
2. The proposal shall at least include provisions for all of the following:
a. Reserving amounts for the payment of all the following:
(1) Expenses of administration.
(2) To the extent of the value of the security held, the payment of claims of secured
creditors.
(3) Claims falling within the priorities established in section 507C.42, subsection 1.
b. Disbursement of the assets marshaled to date and subsequent disbursement of assets
as they become available.
c. Equitable allocation of disbursements to each of the guaranty associations and foreign
guaranty associations entitled to disbursements.
d. The securing by the liquidator from each of the associations entitled to disbursements
of an agreement to return to the liquidator the assets, together with income earned on assets
previously disbursed, as may be required to pay claims of secured creditors and claims falling
within the priorities established in section 507C.42 in accordance with the priorities. A bond
shall not be required of an association.
e. A full report to be made by each association to the liquidator accounting for assets so
disbursed to the association, all disbursements made from the assets, interest earned by the
association on the assets and any other matter as the court may direct.
3. The liquidator’s proposal shall provide for disbursements to the associations in
amounts estimated at least equal to the claim payments made or to be made for which the
associations could assert a claim against the liquidator. The proposal shall provide that
if the assets available for disbursement do not equal or exceed the amount of the claim
payments made or to be made by the association then disbursements shall be in the amount
of available assets.
4. With respect to an insolvent insurer writing life or health insurance or annuities, the
liquidator’s proposal shall provide for disbursements of assets to a guaranty association
§507C.34, INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION 28
or a foreign guaranty association covering life or health insurance or annuities or to any
other entity or organization reinsuring, assuming, or guaranteeing policies or contracts of
insurance under the acts creating the associations.
5. Noticeoftheapplicationshallbegiventotheassociationinandtothecommissionersof
insurance of each of the states. Notice is given when deposited in the United States certified
mails, first class postage prepaid, at least thirty days prior to submission of the application to
the court. Action on the application may be taken by the court provided the required notice
has been given and that the liquidator’s proposal complies with subsection 2, paragraphs “a”
and “b”.