507C.20 Dissolution or sale of insurer. The commissioner may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in this state at thetime the commissioner applies for a liquidation order. The court shall order dissolution ofthe corporation upon petition by the commissioner upon or after the granting of a liquidationorder. If the dissolution has not previously been ordered, it shall be effected by operationof law upon the discharge of the liquidator if the insurer is insolvent. However, dissolutionmay be ordered by the court upon the discharge of the liquidator if the insurer is undera liquidation order for some other reason. Notwithstanding the above, upon applicationby the commissioner and following notice as prescribed by the court and a hearing, thecourt may sell the corporation as an entity, together with any of its licenses to do business,despite the entry of an order of liquidation. The sale may be made on terms and conditionsthe court deems appropriate. However, the order approving the sale shall provide that theproceeds of the sale shall become part of the assets of the liquidation estate, be made on terms and conditionsthe court deems appropriate. However, the order approving the sale shall provide that theproceeds of the sale shall become part of the assets of the liquidation estate, to be distributedin the manner set forth in section 507C.42, and that the corporate entity and its licensesshall thereafter be free and clear from the claims or interests of all claimants, creditors,policyholders, and stockholders of the corporation under liquidation. 84 Acts, ch 1175, §20; 87 Acts, ch 168, §1; 88 Acts, ch 1112, §502Referred to in §507C.21 Sat Dec 23 00:39:39 2023 Iowa Code 2024, Section 507C.20 (17, 0)
Iowa Legal Code