This text of Iowa § 519A.6 (Stabilization reserve fund) 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.
1.There is created a stabilization reserve fund. The fund shall be administered by three
directors, one of whom shall be the commissioner. The remaining two directors shall be
appointed by the commissioner, one of whom shall be a representative of the association and
the other a representative of its policyholders.
2.The directors shall act by majority vote with two directors constituting a quorum for
the transaction of any business or the exercise of any power of the fund. The directors shall
serve without salary, but each director other than the commissioner shall be reimbursed for
actual and necessary expenses incurred in the performance of official duties as a director.
The directors shall not be subject to any personal liability with respect to the administration
of the fund for act
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1. There is created a stabilization reserve fund. The fund shall be administered by three
directors, one of whom shall be the commissioner. The remaining two directors shall be
appointed by the commissioner, one of whom shall be a representative of the association and
the other a representative of its policyholders.
2. The directors shall act by majority vote with two directors constituting a quorum for
the transaction of any business or the exercise of any power of the fund. The directors shall
serve without salary, but each director other than the commissioner shall be reimbursed for
actual and necessary expenses incurred in the performance of official duties as a director.
The directors shall not be subject to any personal liability with respect to the administration
of the fund for acts or decisions made in good faith pursuant to the provisions of this chapter.
3. Each policyholder shall pay to the association a stabilization reserve fund charge
determined by the directors which shall not exceed the amount of one annual premium due
for insurance through the association. Such charge shall be separately stated in the policy.
The association shall cancel the policy of any policyholder who fails to pay the stabilization
reserve fund charge.
4. The association shall promptly pay to the fund all stabilization reserve fund charges
whichitcollectsfromitspolicyholdersandanyretrospectivepremiumrefundspayableunder
any group retrospective rating plan approved by the commissioner under the provisions of
this chapter.
5. All moneys received by the fund shall be held in trust by a corporate trustee selected
by the directors. The corporate trustee may invest the moneys held in trust, subject to
the approval of the directors. All investment income shall be credited to the fund, and all
expenses of administration of the fund shall be charged against the fund. The moneys held
in trust shall be used solely for the purpose of discharging when due any retrospective
premium charges payable by policyholders of the association under the group retrospective
rating plan approved by the commissioner. Payment of retrospective premium charges
shall be made by the directors upon certification to them by the association of the amount
due. If all moneys accruing to the fund are finally exhausted in payment of retrospective
premium charges, all liability and obligations of the association’s policyholders with respect
to the payment of retrospective premium charges shall there upon terminate and shall be
conclusively presumed to have been discharged. Any moneys remaining in the fund after
all such retrospective premium charges have been paid shall be returned to policyholders
pursuant to procedures authorized by the directors.