Iowa § 520.9 Standard of solvency

Iowa Statutes

§ 520.9 — Standard of solvency

Iowa § 520.9

Title XIIICOMMERCE

Ch. 520RECIPROCAL OR INTERINSURANCE CONTRACTS

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Bluebook

Iowa Code § 520.9 (2026).

Text

1.Thereshallatalltimesbemaintainedasassetsasumincash, orinsecuritiesofthekind designated by the laws of the state where the principal office is located for the investment of fundsofinsurancecompanies,equaltoonehundredpercentofthenetunearnedpremiumsor deposits collected and credited to the account of subscribers, or assets equal to fifty percent of the net annual deposits collected and credited to the account of subscribers on policies having one year or less to run and pro rata on those for longer periods; in addition to which there shall be maintained in cash, or in such securities, assets sufficient to discharge all liabilities on all outstanding losses arising under policies issued, the same to be calculated in accordance with the laws of the state relating to similar reserves for comp

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1. Thereshallatalltimesbemaintainedasassetsasumincash, orinsecuritiesofthekind
designated by the laws of the state where the principal office is located for the investment of
fundsofinsurancecompanies,equaltoonehundredpercentofthenetunearnedpremiumsor
deposits collected and credited to the account of subscribers, or assets equal to fifty percent
of the net annual deposits collected and credited to the account of subscribers on policies
having one year or less to run and pro rata on those for longer periods; in addition to which
there shall be maintained in cash, or in such securities, assets sufficient to discharge all
liabilities on all outstanding losses arising under policies issued, the same to be calculated
in accordance with the laws of the state relating to similar reserves for companies insuring
similarrisks; providedthatwheretheassetsonhandavailableforthepaymentoflossesother
than determined losses, do not equal five million dollars, all liability for each determined loss
or claim deferred for more than one year, shall be provided for by a special deposit in a trust
company or bank having fiduciary powers of the state in which the principal office is located,
to be used in payment of compensation benefits for disability; such deposit to be a trust fund
and applicable only to the purposes stated, or such liability may be reinsured in authorized
companies with a surplus of at least five million dollars. For the purpose of such reserves,
net deposits shall be construed to mean the advance payments of subscribers after deducting
the amount specifically provided in the subscribers’ agreements for expenses. If at any time
the assets so held in cash or such securities shall be less than required above, or less than
five million dollars, the subscribers or their attorney for them shall make up the deficiency
within thirty days after notice from the commissioner of insurance to do so. In computing the
assets required by this section, the amount specified in section 520.4, subsection 7, shall be
included.
2. Notwithstanding subsection 1, a person issuing reciprocal contracts and authorized to
transact business under this chapter shall comply with the minimum surplus requirements
of this section or chapter 521E, whichever is greater.