§ 521a-11a

521A.11A Recovery. 1. Subject to subsections 2 through 4, if an order for liquidation, conservation, or rehabilitation of a domestic insurer has been entered, the receiver appointed under theorder may recover on behalf of the insurer either of the following if made within one yearpreceding the filing of the petition for liquidation, conservation, or rehabilitation: a. From a parent corporation, holding company, affiliate, or other person who otherwise controlled the insurer, the amount of distributions, other than distributions of shares of thesame class of stock, paid by the insurer on its capital stock. b. Any payment in the form of a bonus, termination settlement, or extraordinary lump sum salary adjustment made by the insurer or a subsidiary of the insurer to a director, officer,agent, or employee. 2. A distribution is not recoverable if the parent holding company, affiliate, or other person shows that when the distribution was paid it was lawful and reasonable, and that the insurerdid not know and could not reasonably have known that the distribution might adverselyaffect the ability of the insurer to fulfill its contractual obligations. 3.

and reasonable, and that the insurerdid not know and could not reasonably have known that the distribution might adverselyaffect the ability of the insurer to fulfill its contractual obligations. 3. A parent corporation, holding company, affiliate, or other person who otherwise controlled the insurer or affiliate at the time the distributions were paid is liable only up tothe amount of distributions or payments under subsection 1 that the person received. Aperson who otherwise controlled the insurer at the time the distributions were declared isliable only up to the amount of distributions the person would have received if the personhad been paid immediately. If two or more persons are liable with respect to the samedistributions, each shall be separately liable for their distributive share. 4. The maximum amount recoverable under this section shall be the amount needed in excess of all other available assets of the impaired or insolvent insurer to pay the contractualobligations of the impaired or insolvent insurer and to reimburse any guaranty funds. 5. To the extent that a person liable under subsection 3 is insolvent or otherwise fails to pay claims due from the person

ns of the impaired or insolvent insurer and to reimburse any guaranty funds. 5. To the extent that a person liable under subsection 3 is insolvent or otherwise fails to pay claims due from the person pursuant to this section, the person’s parent corporation, holdingcompany, affiliate, or other person who otherwise controlled it at the time the distribution waspaid, is separately liable for its share of any resulting deficiency in the amount recovered fromthe parent corporation, holding company, affiliate, or other person who otherwise controlledit. 86 Acts, ch 1102, §24; 87 Acts, ch 115, §67 Sat Dec 23 00:52:39 2023 Iowa Code 2024, Section 521A.11A (19, 0)