§ 507c-33

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 theinsurer at the time of the declaration of insolvency, whether earned or unearned, as shownon the records of the insurer. The liquidator shall also have the right to recover from theperson any part of an unearned premium that represents commission of the person. Creditsor setoffs or both shall not be allowed to an agent, broker, or premium finance company foramounts advanced to the insurer by the agent, broker, or premium finance company on behalfof, 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 existsthat the premium as shown on the books of the insurer is collected and the burden is upon theagent, broker, premium finance company, or other person to demonstrate by a preponderanceof the evidence that the unearned premium was not actually collected.

r is collected and the burden is upon theagent, broker, premium finance company, or other person to demonstrate by a preponderanceof the evidence that the unearned premium was not actually collected. For purposes of thisparagraph, 'unearned premium' means that portion of an insurance premium covering theunexpired 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 exchangeaccused of violating the law, stating specifically the nature of the alleged violation, and fixinga time and place, at least ten

ll give written notice to the person, company, association, or exchangeaccused of violating the law, stating specifically the nature of the alleged violation, and fixinga 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 violationis found the commissioner shall impose those penalties under subsection 2 as deemedadvisable. 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, §3Referred to in §507C.30 Sat Dec 23 00:39:48 2023 Iowa Code 2024, Section 507C.33 (17, 0)