§ 508C.12 — Prevention of insolvencies

Iowa § 508C.12

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 508C: IOWA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION

Text

1. To aid in the detection and prevention of member insurer insolvencies or impairments
the commissioner shall:
a. (1) Notify the commissioners or insurance departments of other states or territories of
the United States and the District of Columbia when any of the following actions against a
member insurer is taken:
(a) A license is revoked.
(b) A license is suspended.
(c) A formal order is made that a member insurer restrict its premium writing, obtain
additional contributions to surplus, withdraw from the state, reinsure all or any part of its
business, or increase capital, surplus, or any other account for the security of policyholders,
contract owners, certificate holders, or creditors.
(2) Notice shall be mailed to the commissioners or departments within thirty days
following the earlier of when the action was taken or the date on which the action occurs.
This subparagraph does not supersede section 507C.9, subsection 5.
b. Reporttotheboardofdirectorswhenthecommissionerhastakenanyoftheactionsset
forth in paragraph “a” or has received a report from any other commissioner indicating that
such action has been taken in another state. Reports to the board of directors shall contain
all significant details of the action taken or the report received from another commissioner.
c. Report to the board of directors when there is reasonable cause to believe from an
examination, whether completed or in process, of a member insurer that the insurer may be
an impaired or insolvent insurer.
d. Furnish to the board of directors the national association of insurance commissioners’
insurance regulatory information system ratios, and listing of insurers not included in the
ratios, developed by the national association of insurance commissioners, and the board may
use the information in carrying out its duties and responsibilities under this section. The
report and the information contained in the report shall be kept confidential by the board of
directors until such time as it is made public by the commissioner or other lawful authority.
2. The commissioner may seek the advice and recommendations of the board of directors
concerning any matter affecting the commissioner’s duties and responsibilities regarding the
financial condition of member insurers, and insurers or health maintenance organizations
seeking admission to transact insurance business in this state.
3. The board of directors may upon majority vote make reports and recommendations
to the commissioner upon any matter germane to the solvency, liquidation, rehabilitation,
or conservation of a member insurer or germane to the solvency of an insurer or health
maintenance organization seeking to transact business in this state. These reports and
recommendations are not public records pursuant to chapter 22.
4. Upon majority vote, the board of directors shall notify the commissioner of any
information indicating that a member insurer may be an impaired or insolvent insurer.
5. Upon majority vote, the board of directors may request that the commissioner order
an examination of a member insurer which the board in good faith believes may be an
impaired or insolvent insurer. The examination may be conducted as a national association
of insurance commissioners examination or may be conducted by persons designated by
the commissioner. The cost of the examination shall be paid by the association and the
examination report shall be treated as are other examination reports. The examination
report shall not be released to the board of directors prior to its release to the public, but this
shall not preclude the commissioner from complying with subsection 1. The commissioner
shall notify the board of directors when the examination is completed. The request for an
examination shall be kept on file by the commissioner but it is not a public record pursuant
to chapter 22 until the release of the examination report to the public.
6. Upon majority vote, the board of directors may make recommendations to the
commissioner for the detection and prevention of member insurer insolvencies.