§ 507a-7

507A.7 Proceedings before commissioner — indemnifying bond. 1. Before any unauthorized person or insurer files or causes to be filed any pleading or process in an administrative proceeding before the commissioner of insurance, institutedagainst such person or insurer, by service made as provided in this chapter, such person orinsurer shall either: a. Deposit with the clerk of the court in which such action, suit, or proceeding is pending, or with the commissioner of insurance in administrative proceedings before thecommissioner, cash or securities, or file with such clerk or commissioner a bond with goodand sufficient sureties, to be approved by the clerk or commissioner in an amount to be fixedby the court or commissioner sufficient to secure the payment of any final judgment whichmay be rendered in such action or administrative proceeding. b. Procure a certificate of authority to transact the business of insurance in this state.2. The court in any action, suit, or proceeding in which service is made as provided in section 507A.6, subsections 2 and 3, or the commissioner of insurance in any administrativeproceeding before the commissioner in which service is made as provided in

ch service is made as provided in section 507A.6, subsections 2 and 3, or the commissioner of insurance in any administrativeproceeding before the commissioner in which service is made as provided in section507A.6, subsections 2 and 3, may in the court’s or commissioner’s discretion, order suchpostponement as may be necessary to afford the defendant reasonable opportunity tocomply with the provisions of subsection 1 of this section and to defend such action. 3. Nothing in subsection 1 of this section shall be construed to prevent an unauthorized person or foreign or alien insurer from filing a motion to quash a writ or to set aside servicethereof made in the manner provided in sections 507A.5 and 507A.6, on the ground that suchunauthorized person or insurer has not done any of the acts enumerated in section 507A.3. 4. In an action against an unauthorized person or insurer upon a contract of insurance issued or delivered in this state to a resident thereof or to a corporation authorized to dobusiness therein, if the person or insurer has failed for thirty days after demand prior to thecommencement of the action to make payment in accordance with the terms of the contract,and it

ized to dobusiness therein, if the person or insurer has failed for thirty days after demand prior to thecommencement of the action to make payment in accordance with the terms of the contract,and it appears to the court that such refusal was without reasonable cause, the court mayallow to the plaintiff a reasonable attorney fee and include such fee in any judgment that maybe rendered in such action. Failure of the person or insurer to defend any such action shall bedeemed prima facie evidence that its failure to make payment was without reasonable cause. [C50, 54, 58, 62, 66, §507A.4, 507A.5; C71, 73, 75, 77, 79, 81, §507A.7]2013 Acts, ch 30, §119Referred to in §602.8102(69) Sat Dec 23 00:39:12 2023 Iowa Code 2024, Section 507A.7 (22, 0)