507C.33 Recovery of premiums owed.
1. a. An agent, broker, premium finance company or any other person responsible for the payment of a premium is obligated to pay an unpaid premium for the full policy term due the insurer at the time of the declaration of insolvency, whether earned or unearned, as shown on the records of the insurer. The liquidator shall also have the right to recover from the person any part of an unearned premium that represents commission of the person. Credits or setoffs or both shall not be allowed to an agent, broker, or premium finance company for amounts advanced to the insurer by the agent, broker, or premium finance company on behalf of, but in the absence of a payment by, the insured.
b. Notwithstanding paragraph “a”, the agent, broker, premium finance company, or other person, is not liable for uncollected unearned premium of the insurer. A presumption exists that the premium as shown on the books of the insurer is collected and the burden is upon the agent, broker, premium finance company, or other person to demonstrate by a preponderance of the evidence that the unearned premium was not actually collected. For purposes of this paragraph, “unearned premium” means that portion of an insurance premium covering the unexpired term of the policy or the unexpired period of the policy period.
c. An insured is obligated to pay an unpaid earned premium due the insurer as shown on the records of the insurer at the time of the declaration of insolvency.
2. Upon satisfactory evidence of a violation of this section, the commissioner may pursue either one or both of the following courses of action:
a. Suspend or revoke or refuse to renew the licenses of the offending party or parties.
b. Impose a penalty of not more than one thousand dollars for each act in violation of this section by the party or parties.
3. Before the commissioner shall take any action as set forth in subsection 2, the commissioner shall give written notice to the person, company, association, or exchange accused of violating the law, stating specifically the nature of the alleged violation, and fixing a time and place, at least ten days thereafter, when a hearing on the matter shall be held. After such hearing, or upon failure of the accused to appear at the hearing, if a violation is found the commissioner shall impose those penalties under subsection 2 as deemed advisable.
4. When the commissioner shall take action in any or all of the ways set out in subsection 2, the party aggrieved may appeal from the action to court.
84 Acts, ch 1175, §33; 91 Acts, ch 213, §3
Referred to in §507C.30
Structure Iowa Code
Chapter 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION
Section 507C.1 - Short title — construction — purpose.
Section 507C.3 - Applicability.
Section 507C.4 - Jurisdiction and venue.
Section 507C.5 - Injunctions and orders.
Section 507C.6 - Cooperation of officers, owners, and employees — penalty.
Section 507C.8 - Continuation of delinquency proceedings.
Section 507C.8A - Condition on release from delinquency proceedings.
Section 507C.9 - Summary orders and supervision proceedings — penalty.
Section 507C.10 - Seizure order.
Section 507C.11 - Confidentiality of hearings.
Section 507C.12 - Grounds for rehabilitation.
Section 507C.13 - Rehabilitation orders.
Section 507C.14 - Powers and duties of rehabilitator.
Section 507C.15 - Actions by and against rehabilitator.
Section 507C.16 - Termination of rehabilitation.
Section 507C.17 - Grounds for liquidation.
Section 507C.17A - Rehabilitation or liquidation of certain covered domestic insurers.
Section 507C.18 - Liquidation orders.
Section 507C.19 - Continuance of coverage.
Section 507C.20 - Dissolution or sale of insurer.
Section 507C.20A - Redomestication of foreign insurer.
Section 507C.21 - Powers of liquidator.
Section 507C.22 - Notice to creditors and others.
Section 507C.23 - Duties of agents.
Section 507C.24 - Actions by and against liquidator.
Section 507C.25 - Collection and list of assets.
Section 507C.26 - Fraudulent transfers prior to petition.
Section 507C.27 - Fraudulent transfer after petition.
Section 507C.28 - Voidable preferences and liens.
Section 507C.28A - Qualified financial contracts.
Section 507C.29 - Claims of holders of void or voidable rights.
Section 507C.31 - Assessments.
Section 507C.32 - Reinsurer’s liability.
Section 507C.33 - Recovery of premiums owed.
Section 507C.34 - Domiciliary liquidator’s proposal to distribute assets.
Section 507C.35 - Filing of claims.
Section 507C.36 - Proof of claim.
Section 507C.37 - Special claims.
Section 507C.38 - Special provisions for third-party claims.
Section 507C.39 - Disputed claims.
Section 507C.40 - Claims of other person.
Section 507C.41 - Secured creditor’s claims.
Section 507C.42 - Priority of distribution.
Section 507C.43 - Liquidator’s recommendations to court.
Section 507C.44 - Distribution of assets.
Section 507C.45 - Unclaimed and withheld funds.
Section 507C.46 - Termination of proceedings.
Section 507C.47 - Reopening liquidation.
Section 507C.48 - Disposition of records during and after termination of liquidation.
Section 507C.49 - External audit of receiver’s books.
Section 507C.50 - Conservation of property of foreign or alien insurers found in this state.
Section 507C.51 - Liquidation of property of foreign or alien insurers found in this state.
Section 507C.52 - Domiciliary liquidators in other states.
Section 507C.53 - Ancillary formal proceedings.
Section 507C.54 - Ancillary summary proceedings.
Section 507C.55 - Claims of nonresidents against insurers domiciled in this state.
Section 507C.56 - Claims of residents against insurers domiciled in reciprocal states.
Section 507C.57 - Attachment, garnishment, and levy of execution.
Section 507C.58 - Interstate priorities.
Section 507C.59 - Subordination of claims for noncooperation.