Iowa § 507C.40 Claims of other person

Iowa Statutes

§ 507C.40 — Claims of other person

Iowa § 507C.40

Title XIIICOMMERCE

Ch. 507CINSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION

This text of Iowa § 507C.40 (Claims of other person) 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.40 (2026).

Text

If a creditor, whose claim against an insurer is secured in whole or in part by the
undertaking of another person, fails to prove and file that claim, then the other person may
do so in the creditor’s name and shall be subrogated to the rights of the creditor, whether the
claim has been filed by the creditor or by the other person in the creditor’s name to the extent
that the other person discharges the undertaking. However, in the absence of an agreement
with the creditor to the contrary, the other person is not entitled to any distribution until the
amount paid to the creditor on the undertaking plus the distributions paid on the claim from
the insurer’s estate to the creditor equal the amount of the entire claim of the creditor. An
excess received by the creditor shall be held by the cr

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If a creditor, whose claim against an insurer is secured in whole or in part by the
undertaking of another person, fails to prove and file that claim, then the other person may
do so in the creditor’s name and shall be subrogated to the rights of the creditor, whether the
claim has been filed by the creditor or by the other person in the creditor’s name to the extent
that the other person discharges the undertaking. However, in the absence of an agreement
with the creditor to the contrary, the other person is not entitled to any distribution until the
amount paid to the creditor on the undertaking plus the distributions paid on the claim from
the insurer’s estate to the creditor equal the amount of the entire claim of the creditor. An
excess received by the creditor shall be held by the creditor in trust for the other person.
As used in this section, “other person” is not intended to apply to a guaranty association or
foreign guaranty association.