§ 507C.58 — Interstate priorities

Iowa § 507C.58

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

Text

1. In a liquidation proceeding in this state involving one or more reciprocal states, the
order of distribution of the domiciliary state shall control as to claims of residents of this
and reciprocal states. Claims of residents of reciprocal states shall be given equal priority of
payment from general assets regardless of where the assets are located.
2. The owners of special deposit claims against an insurer for which a liquidator is
appointed in this or any other state is given priority against the special deposits in accordance
with the statutes governing the creation and maintenance of the deposits. If there is a
deficiency in a deposit so that the claims secured by it are not fully discharged from it, the
claimants may share in the general assets. However, the sharing shall be deferred until
general creditors and claimants against other special deposits who have received smaller
37 INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION, §507C.60
percentages from their respective special deposits have been paid percentages of their
claims equal to the percentage paid from the special deposit.
3. The owner of a secured claim against an insurer for which a liquidator has been
appointed in this or any other state may surrender the security and file the claim as a general
creditor, or the claim may be discharged by resort to the security in accordance with section
507C.41, in which case the deficiency shall be treated as a claim against the general assets
of the insurer on the same basis as claims of unsecured creditors.