1. Within one hundred twenty days of the issuance of a final order of liquidation with a finding of insolvency of a company by a court of competent jurisdiction of this state, the receiver shall make application to the court for approval of a proposal to disburse assets out of such company's marshaled assets from time to time as such assets become available to the Iowa insurance guaranty association and to any entity or person performing a similar function in another state. The Iowa insurance guaranty association and any entity or person performing a similar function in other states shall hereinafter be referred to collectively as the associations.
2. Such proposal shall at least include provisions for:
a. Reserving amounts for the payment of expenses of administration and claims falling within priorities higher than that of the associations.
b. Disbursement of the assets marshaled to date and subsequent disbursements of assets as they become available.
c. Equitable allocation of disbursements to each of the associations entitled thereto for the purpose of paying covered claims and claim handling expense.
d. The securing by the receiver from each of the associations entitled to disbursements of an agreement to return to the receiver such assets previously disbursed as may be required to pay claims of secured creditors and claims falling within priorities higher than that of the associations in accordance with such priorities. No bond shall be required of any such association.
3. The receiver's proposal shall provide for disbursements to the association in amounts estimated to be at least equal to the covered claim payments and claim handling expense made or to be made thereby for which such associations could assert a claim against the receiver, and shall further provide that if the assets available for disbursement from time to time do not equal or exceed the amount of such claim payments and claim handling expense made or to be made by the association then disbursements shall be in the amount of available assets.
4. Notice of such application shall be given to the associations in and to the commissioners of insurance of each of the states. Any such notice shall be deemed to have been given when deposited in the United States certified mail, first-class postage prepaid, at least thirty days prior to submission of such application to the court. Action on the application may be taken by the court provided the above required notice has been given, and provided further that the receiver's proposal complies with paragraphs "a" and "d" of subsection 2 of this section.
[82 Acts, ch 1137, § 1]
Iowa General Assembly
Search: Iowa Code 1997
© 1997 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.iowa.gov.
Last update: Mon Jan 27 16:05:08 CST 1997
URL: /DOCS/IACODE/1997/515B/25.html
jhf