507C.16 Termination of rehabilitation. 1. Whenever the commissioner determines that further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public, orwould be futile, the commissioner may petition the district court for an order of liquidation. Apetition under this subsection shall have the same effect as a petition under section 507C.17.The court shall permit the directors of the insurer to take actions as are reasonably necessaryto defend against the petition and may order payment from the estate of the insurer of costsand other expenses of defense as justice may require. 2. The rehabilitator may at any time petition the district court for an order terminating rehabilitation of an insurer. The directors of the insurer may petition the court for an orderterminating rehabilitation of the insurer and the court may order payment from the estate ofthe insurer of costs and other expenses of the petition as justice may require. If the court findsthat rehabilitation has been accomplished and that grounds for rehabilitation under section507C.12 no longer exist, it shall order that the insurer be restored to possession equire. If the court findsthat rehabilitation has been accomplished and that grounds for rehabilitation under section507C.12 no longer exist, it shall order that the insurer be restored to possession of its propertyand the control of its business. The court may also terminate the rehabilitation at any timeupon its own motion. 3. If the payment of obligations pursuant to a policy issued by the insurer is suspended in substantial part for a period of six months at any time after the appointment of therehabilitator, and the rehabilitator has not filed an application for a plan pursuant to section507C.14, subsection 4, the rehabilitator shall petition the court for an order of liquidationon grounds of insolvency. 84 Acts, ch 1175, §16; 92 Acts, ch 1117, §18 Sat Dec 23 00:39:37 2023 Iowa Code 2024, Section 507C.16 (17, 0)
Iowa Legal Code