507C.9 Summary orders and supervision proceedings — penalty. 1. If after a hearing held under subsection 5, the commissioner determines that a domestic insurer has committed or engaged in, or is about to commit or engage in, an act,practice, or transaction that would subject it to delinquency proceedings under this chapter,the commissioner may make and serve upon the insurer and any other persons involvedorders as are reasonably necessary to correct, eliminate, or remedy the conduct, condition,or ground. 2. If the commissioner upon reasonable cause determines that a domestic insurer is in a condition as to render the continuance of its business hazardous to the public or to holdersof its policies or certificates of insurance or if the domestic insurer gives its consent then thecommissioner shall do both of the following: a. Notify the insurer of the determination.b. Furnish to the insurer a written list of the commissioner’s requirements to abate the determination. 3. If the commissioner makes a determination to supervise an insurer subject to an order under subsection 1 or 2, the commissioner shall notify the insurer that it is under thesupervision of the commissioner. commissioner makes a determination to supervise an insurer subject to an order under subsection 1 or 2, the commissioner shall notify the insurer that it is under thesupervision of the commissioner. During the period of supervision, the commissioner mayappoint a supervisor to supervise the insurer. The order appointing a supervisor shall directthe supervisor to enforce orders issued under subsections 1 and 2 and may also require thatduring the period of supervision, the insurer shall not do any of the following without theprior approval of the commissioner or the commissioner’s supervisor: a. Dispose of, convey or encumber its assets or its business in force.b. Withdraw from its bank accounts.c. Lend its funds.d. Invest its funds.e. Transfer its property.f. Incur any debt, obligation or liability. g. Merge or consolidate with another company.h. Enter into a new reinsurance contract or treaty.i. Write new or renewal business.4. An insurer subject to an order under this section shall comply with the lawful requirements of the commissioner and, if placed under supervision, shall have sixty daysfrom the date the supervision order is served within which to comply with the tion shall comply with the lawful requirements of the commissioner and, if placed under supervision, shall have sixty daysfrom the date the supervision order is served within which to comply with the requirementsof the commissioner. If the insurer fails to comply, the commissioner may institute proceedings under section 507C.12 or 507C.17 to have a rehabilitator or liquidator appointedor extend the period of supervision. 5. The notice of hearing and any order issued pursuant to subsection 1 shall be served upon the insurer pursuant to chapter 17A. The notice of hearing shall state the time and placeof hearing, and the conduct, condition or ground upon which the commissioner would basean order. Unless mutually agreed between the commissioner and the insurer, the hearingshall occur not less than ten days nor more than thirty days after notice is served and shallbe either in Polk county or in some other place convenient to the parties to be designated bythe commissioner. All hearings under subsection 1 shall be confidential unless the insurerrequests a public hearing. 6. a. An insurer subject to an order under subsection 2 may request a hearing to review that order. All hearings under subsection 1 shall be confidential unless the insurerrequests a public hearing. 6. a. An insurer subject to an order under subsection 2 may request a hearing to review that order. The hearing shall be held as provided in subsection 5. The request for a hearingshall not stay the effect of the order. b. If the commissioner issues an order under subsection 2, the insurer may waive a commissioner’s hearing and apply for immediate judicial relief by means of any remedyafforded by law without first exhausting administrative remedies. Subsequent to a hearing,a party to the proceedings whose interests are substantially affected is entitled to judicialreview of any order issued by the commissioner. 7. During the period of supervision the insurer may request the commissioner to review an action taken or proposed to be taken by the supervisor by specifying the reasons the actioncomplained of is believed not to be in the best interest of the insurer. Sat Dec 23 00:39:32 2023 Iowa Code 2024, Section 507C.9 (18, 0) §507C.9, INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION 2 8. ained of is believed not to be in the best interest of the insurer. Sat Dec 23 00:39:32 2023 Iowa Code 2024, Section 507C.9 (18, 0) §507C.9, INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION 2 8. If a person has violated a supervision order issued under this section which was in effect, the person is liable to pay a civil penalty imposed by the district court not to exceedten thousand dollars. 9. The commissioner may apply for and any court of general jurisdiction may grant restraining orders, preliminary and permanent injunctions, and other orders as necessaryto enforce a supervision order. 84 Acts, ch 1175, §9Referred to in §507C.2, 507C.11, 507C.12, 507C.54, 508C.12 Sat Dec 23 00:39:32 2023 Iowa Code 2024, Section 507C.9 (18, 0)
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