Except for employee welfare benefit plans regulated under the federal Employee Retirement Income Security Act, a person transacting the business of legal insurance and any business other than insurance shall transact legal insurance wholly through a segregated account in accordance with all of the following requirements:
1. The segregated account must satisfy the financial requirements for issuance of a certificate of authority.
2. Except as provided in subsections 6 and 7, the income and assets attributable to the segregated account shall always remain identifiable within the account but unless the commissioner so orders, the assets need not be kept physically separate from other assets of the person. The income, gains, and losses, whether or not realized, from assets attributable to the segregated account shall be credited to or charged against the account without regard to other income, gains, or losses of the person.
3. Except as provided in subsection 4, assets attributable to a segregated account shall not be chargeable with any liabilities arising out of any other business of the person, nor shall any assets not attributable to the account be chargeable with any liabilities arising out of the account.
4. The segregated account shall be deemed an insurer within the meaning of chapter 507C. Claims remaining unpaid after completion of the liquidation under section 507C.42 shall be liens on the interests of shareholders, if any, in all of the person's assets that are not liquidated.
5. Assets allocated to segregated accounts are the property of the person, which is not and shall not hold itself out to be a trustee of the assets.
6. A person may allocate a portion or part of a particular asset to the segregated account.
7. The person may by an identifiable act transfer assets to or from the segregated account if both of the following conditions are satisfied:
a. The terms are fair and reasonable.
b. The books, accounts, and records of each party are maintained so as to clearly and accurately disclose the precise nature and details of the transaction.
90 Acts, ch 1150, §6
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