Title XIII, COMMERCE (Ch. 505 - 554I)

If an insured obtains a second policy which provides equal or more extensive coverage for any vehicle designated in both policies, the first policy’s coverage of such vehicle may be terminated by failure to renew as of the effective time and date of the second policy, whether or …

Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation which existed before the effective date of renewal. [C71, 73, 75, 77, 79, 81, §515D.9 ]

The purpose of this chapter is to regulate the formation and operation in this state of risk retention groups formed pursuant to the Product Liability Risk Retention Act of 1981, 15 U.S.C. §3901 et seq., or the Risk Retention Amendments of 1986, Pub. L. No. 99-563. As used in thi…

1. The commissioner may make use of any of the powers established under the laws of this state to enforce the laws of this state so long as those powers are not specifically preempted by the federal Act, including but not limited to, the commissioner’s authority to investigate, i…

A risk retention group which violates a provision of this chapter is subject to fines and penalties applicable to licensed insurers generally, including revocation of the group’s license and of the right to do business in this state. 88 Acts, ch 1111, §12

A person acting, or offering to act, as an agent or broker for a risk retention group or purchasing group, which solicits members, sells or procures insurance coverage, purchases coverage for its members located within the state, or otherwise does business in this state shall, be…

An order issued by a district court of the United States enjoining a risk retention group from soliciting or selling insurance, or operating, in any state, or in all states, or in any territory or possession of the United States, upon a finding that such a group is in a hazardous…

The commissioner may establish and from time to time amend rules relating to risk retention groups as necessary or desirable to carry out the provisions of this chapter . 88 Acts, ch 1111, §15

As used in this chapter , unless the context otherwise requires: 1. “Commissioner” means the commissioner of insurance or the commissioner, director, superintendent of insurance, or similar public official, in any other state. 2. a. “Completed operations liability” means liabilit…

1. To be organized as a risk retention group in this state, the group must be organized and licensed as a liability insurance company authorized by the insurance laws of this state. Except as provided elsewhere in this chapter , a risk retention group organized in this state must…

1. A risk retention group that is organized under the laws of any other state for the purpose of writing insurance, as authorized by this chapter , may redomesticate to this state by doing all of the following: a. Complying with section 490.905 . b. Complying with all of the requ…

Risk retention groups chartered in other states and seeking to do business as a risk retention group in this state must observe and abide by the laws of this state as provided in this section . However, a risk retention group failing to qualify under the definitional requirement …

A risk retention group shall not join or contribute financially to an insurance insolvency guaranty fund, or similar mechanism, in this state, nor shall a risk retention group, or its insureds, receive any benefit from an insurance insolvency guaranty fund, or similar mechanism, …

A purchasing group which meets the criteria established under the federal Act is exempt from any law of this state relating to the creation of groups for the purchase of insurance, the prohibition of group purchasing, or any law that would discriminate against a purchasing group …

1. A purchasing group which intends to do business in this state shall, prior to doing business, furnish notice to the commissioner which notice shall include all of the following: a. The state in which the group is domiciled and all states in which the group does or intends to d…

A purchasing group shall not purchase insurance from an insurer not admitted in this state unless the purchase is effected through a duly licensed insurance producer acting pursuant to chapter 515I . 88 Acts, ch 1111, §10 ; 90 Acts, ch 1234, §44 ; 2007 Acts, ch 152, §81 ; 2012 Ac…

1. The purpose of this chapter is to promote the public welfare by regulating insurance rates so they are not excessive, inadequate, or unfairly discriminatory, and to authorize and regulate limited cooperative action among insurers in ratemaking-related activities and in other m…

In addition to the other prohibitions contained in this chapter , except as specifically permitted under section 515F.11 , an advisory organization shall not compile or distribute recommendations relating to rates that include profit or expenses, other than loss adjustment expens…

An advisory organization, in addition to other activities not prohibited, may, on behalf of its members and subscribers, do any or all of the following: 1. Develop statistical plans including territorial and class definitions. 2. Collect statistical data from members, subscribers…

An advisory organization shall file with the commissioner for approval all prospective loss costs and all supplementary rating information and every change or amendment or modification of any of the foregoing proposed for use in this state. The filings are subject to sections 515…

1. Authorization. Notwithstanding section 515F.9 , rating organizations, advisory organizations, and insurers participating in joint underwriting, joint reinsurance pools, or residual market mechanisms may in connection with such activity act in cooperation with each other in the…

The commissioner may, as often as deemed expedient, make or cause to be made an examination of each advisory organization referred to in section 515F.8 and of each group, association, or other organization referred to in section 515F.13 . The reasonable costs of an examination sh…

1. Recording and reporting of loss and expense experience. a. The commissioner may adopt reasonable rules for use by companies to record and report to the commissioner their rates and other information determined by the commissioner to be necessary or appropriate for the administ…

A person, including an insurer, or advisory organization, shall not willfully withhold information which will affect the rates or premiums chargeable under this chapter from, or knowingly give false or misleading information to, the commissioner, a statistical agency designated b…

Agreements may be made among insurers with respect to the equitable apportionment among them of insurance which may be afforded applicants who are in good faith entitled to, but who are unable to procure, the insurance through ordinary methods, and the insurers may agree among th…

The commissioner may, upon the commissioner’s own initiative or upon request of any person, by rule, exempt a market from any or all of the provisions of this chapter , if and to the extent that the exemption is necessary to achieve the purposes of this chapter . 90 Acts, ch 1234…

1. The commissioner may, upon a finding that a person or organization has violated a provision of this chapter , impose a civil penalty of not more than ten thousand dollars for each violation, but if the violation is found to be willful, a penalty of not more than twenty-five th…

As used in this chapter , unless the context otherwise requires: 1. “Advisory organization” means an entity, including its affiliates or subsidiaries, which either has two or more member insurers or is controlled either directly or indirectly by two or more insurers, and which as…

As used in sections 515F.21 through 515F.25 unless the context otherwise requires: 1. “Competitive market” means a market for which an order is in effect pursuant to section 515F.22 that a reasonable degree of competition does exist. 2. “Market” means the interaction between buye…

Section 515F.20 and sections 515F.22 through 515F.25 apply to all forms of casualty insurance except joint underwriting and joint reinsurance, assigned risks, and those excluded by section 515F.3 . 87 Acts, ch 132, §7 CS87, §515A.21 90 Acts, ch 1234, §65, 77 C91, §515F.21 Referre…

1. A noncompetitive market is presumed to exist unless the commissioner determines after a hearing that a reasonable degree of competition exists in the market and the commissioner issues an order to that effect. Such an order shall not become effective until sixty days after the…

Unless the commissioner has determined a market to be competitive, the provisions of sections 515F.1 through 515F.19 apply. 87 Acts, ch 132, §9 CS87, §515A.23 90 Acts, ch 1234, §66, 77 C91, §515F.23 Referred to in §515F.20 , 515F.21

1. Subject to the inland marine exception specified in section 515F.5, subsection 1 , a competitive filing shall become effective when filed and shall be deemed to meet the requirements of section 515F.4 as long as the filing remains in effect unless it is disapproved upon review…

1. If the commissioner believes that an insurer’s rate filing in a competitive market violates the requirements of sections 515F.4 and 515F.5 , the commissioner may require the insurer to file supporting information. If after reviewing the supporting information the commissioner …

1. This chapter applies to all forms of casualty insurance, including fidelity, surety, and guaranty bonds, including but not limited to all forms of fire and inland marine insurance, and to any combination of any of the foregoing, on risks or operations located in this state. 2.…

This subchapter may be cited as the “Fair Access to Insurance Requirements Plan Act” , or the “FAIR Plan Act” . 2003 Acts, ch 119, §1, 11 ; 2017 Acts, ch 54, §76

The purposes of this subchapter include all of the following: 1. To make basic property insurance available to qualified applicants with the least possible administrative detail and expense. 2. To establish a plan, an industry placement facility, and a joint reinsurance associati…

As used in this subchapter , unless the context otherwise requires: 1. “Basic property insurance” means insurance against direct loss to property as defined in the standard fire policy and extended coverage, vandalism, and malicious mischief endorsements; homeowners insurance; an…

The FAIR plan to assure fair access to insurance requirements is established. The plan shall operate subject to the provisions and conditions of this subchapter . 2003 Acts, ch 119, §4, 11 ; 2017 Acts, ch 54, §76 Referred to in §515F.32 , 515J.4

1. Eligibility for membership in the FAIR plan and its underwriting association requires all of the following: a. The insurer must be licensed to write property insurance in this state. b. The insurer is engaged in writing property insurance in this state, including the property …

1. The FAIR plan is not and shall not be deemed a department, unit, agency, or instrumentality of the state. 2. All debts, claims, obligations, and liabilities incurred by the FAIR plan shall be the debts, claims, obligations, and liabilities of the FAIR plan only, and are not th…

1. A governing committee shall administer the FAIR plan, subject to the supervision of the commissioner. The FAIR plan shall be operated by a manager appointed by the committee. 2. The committee shall consist of seven members. a. Five of the members shall be elected to the commit…

The commissioner shall adopt rules necessary to administer this subchapter . 2003 Acts, ch 119, §8, 11 ; 2017 Acts, ch 54, §76

This subchapter applies retroactively to October 7, 1968, to validate action taken under the Iowa basic property insurance inspection and placement program adopted by the commissioner of insurance. 2003 Acts, ch 119, §9, 11 ; 2017 Acts, ch 54, §76

If basic property insurance coverage is canceled or not renewed other than for nonpayment of a premium pursuant to section 515.125 , 515.126 , 515.127 , 515.128 , 518.23 , or 518A.29 , the insurer shall notify the named insured that the named insured may be eligible for basic pro…

Rates shall be made in accordance with the following: 1. Rates shall not be excessive, inadequate, or unfairly discriminatory. 2. Due consideration may be given to past and prospective loss experience within and outside this state; to the conflagration and catastrophe hazards; to…