§ 520.9

520.9 Standard of solvency. 1. There shall at all times be maintained as assets a sum in cash, or in securities of the kind designated by the laws of the state where the principal office is located for the investment offunds of insurance companies, equal to one hundred percent of the net unearned premiums ordeposits collected and credited to the account of subscribers, or assets equal to fifty percentof the net annual deposits collected and credited to the account of subscribers on policieshaving one year or less to run and pro rata on those for longer periods; in addition to whichthere shall be maintained in cash, or in such securities, assets sufficient to discharge allliabilities on all outstanding losses arising under policies issued, the same to be calculatedin accordance with the laws of the state relating to similar reserves for companies insuringsimilar risks; provided that where the assets on hand available for the payment of losses otherthan determined losses, do not equal five million dollars, all liability for each determined lossor claim deferred for more than one year, shall be provided for by a special deposit in a trustcompany or bank having fiduciary powers of the

ve million dollars, all liability for each determined lossor claim deferred for more than one year, shall be provided for by a special deposit in a trustcompany or bank having fiduciary powers of the state in which the principal office is located,to be used in payment of compensation benefits for disability; such deposit to be a trust fundand applicable only to the purposes stated, or such liability may be reinsured in authorizedcompanies with a surplus of at least five million dollars. For the purpose of such reserves,net deposits shall be construed to mean the advance payments of subscribers after deductingthe amount specifically provided in the subscribers’ agreements for expenses. If at any timethe assets so held in cash or such securities shall be less than required above, or less thanfive million dollars, the subscribers or their attorney for them shall make up the deficiencywithin thirty days after notice from the commissioner of insurance to do so. In computing theassets required by this section, the amount specified in section 520.4, subsection 7, shall beincluded. 2. Notwithstanding subsection 1, a person issuing reciprocal contracts and authorized to transact business

ired by this section, the amount specified in section 520.4, subsection 7, shall beincluded. 2. Notwithstanding subsection 1, a person issuing reciprocal contracts and authorized to transact business under this chapter shall comply with the minimum surplus requirementsof this section or chapter 521E, whichever is greater. [C24, 27, 31, 35, 39, §9091; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §520.9]88 Acts, ch 1111, §16; 96 Acts, ch 1046, §8; 2007 Acts, ch 137, §20Referred to in §85.65A, 520.9A, 520.14 Sat Dec 23 00:52:00 2023 Iowa Code 2024, Section 520.9 (15, 0)