§ 515F.13 — Pool and residual market activities

Iowa § 515F.13

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 515F: CASUALTY INSURANCE

Text

1. Authorization. Notwithstanding section 515F.9, rating organizations, advisory
organizations, and insurers participating in joint underwriting, joint reinsurance pools,
or residual market mechanisms may in connection with such activity act in cooperation
with each other in the making of rates, rating systems, policy forms, underwriting rules,
surveys, inspections, and investigations, the furnishing of loss and expense statistics or
other information, or carrying on research. Joint underwriting, joint reinsurance pools, and
residual market mechanisms shall not be deemed advisory organizations.
2. Regulation.
a. Except to the extent modified by this section, insurers, and joint underwriting,
joint reinsurance pool, and residual market mechanism activities are subject to the other
provisions of this chapter.
b. If, after hearing, the commissioner finds that an activity or practice of an insurer
participating in joint underwriting or a pool is unfair, is unreasonable, will tend to lessen
competition in a market, or is otherwise inconsistent with the provisions or purposes of this
chapter, the commissioner may issue a written order and require the discontinuance of that
activity or practice.
c. A pool shall file with the commissioner a copy of its constitution; its articles of
incorporation, agreement, or association; its bylaws, rules, and regulations governing its
activities; its members; the name and address of a resident of this state upon whom notices
or orders of the commissioner or process may be served; and any changes in amendments
or changes in the foregoing.
d. (1) A residual market mechanism, or plan or agreement to implement such a
mechanism, and any changes or amendments thereto, shall be submitted in writing to the
commissioner for consideration and approval, together with information as reasonably
required by the commissioner. The commissioner shall only approve agreements found to
contemplate both of the following:
(a) The use of rates which meet the standards prescribed by this chapter.
(b) Activities and practices that are not unfair, unreasonable, or otherwise inconsistent
with this chapter.
(2) At any time after the agreements are in effect, the commissioner may review the
practices and activities of the adherents to the agreements and if, after a hearing, the
commissioner finds that any such practice or activity is unfair or unreasonable, or is
otherwise inconsistent with this chapter, the commissioner may issue a written order to the
parties and either require the discontinuance of the acts or revoke approval of the agreement.