COMPILED CODE - Iowa Legislature - State of Iowa

382
§§ 5696-a8-5696-a9. MUTUAL ASSESSMENT ASSOCIATIONS. Tit. XVIII, Ch. 8.
4 value of the building at the date of the policy : Provided, the asso-
5 dation issuing such policy may show the actual value of said property
6 at date of policy, and any depreciation in the value thereof before the
7 loss occurred; but the said association shall be liable for the actual
8 value of the property insured at the date of the loss, unless such value
9 exceeds the amount of insurance stated in the policy. And in any
10 action on a policy to recover loss or damage on personal property, the
11 association shall not be liable in excess of the amourft of damage or
12 loss at the time the loss or damage occurs ; provided that the value of
13 growing crops may be stated in the policy or contract.
[39 G. A., ch. 120, § 7.]
SEC. 5696-a8. Powers of commissioner—quo warranto—injunction—dissolution.
1 The commissioner of insurance may address inquiries to any as-
2 sociation in relation to its doings and condition and any association
3 so addressed shall promptly reply thereto in writing. If the commis-
4 sioner of insurance is then satisfied that the association has failed to
5 comply with any provisions of this law, or is exceeding its powers, or
6 is not carrying out its contracts in good faith ; or is transacting busi-
7 ness fraudulently or soliciting insurance in territories where it is not
8 legally admitted to do business, or is in such condition as to render
9 the further transaction of business by it hazardous to the public or
10 its policyholders, the business under his supervision and with the con-
11 sent of the association may be reinsured in some mutual association,
12 or he may present the facts relating thereto to the attorney general
13 and if the circumstances warrant he may commence an action in quo
14 warranto in a court of competent jurisdiction and such court shall
15 thereupon notify the officers of such association of a hearing, and
16 unless it shall then appear that some special and good reason exists
17 why such association should not be closed, said association shall be
18 enjoined from carrying on any further business, and some person
19 shall be appointed receiver of such associations and shall proceed at
20 once to take possession of the books, papers, moneys and other assets
21 of the association and shall forthwith, under the direction of the court
22 proceed to close the affairs of the association and to distribute its
23 funds to those entitled thereto, or he may make an assessment pro
24 rata on the membership liable to an assessment to pay the legitimate
25 debts of the association.
[C, '97, § 1766; S., '13, § 1759-g; 39 G. A., ch. 120, § 8.]
SEC. 5696-a9. Cancellation of policy.
1 Any policy of insurance issued by any association operating under
2 the provisions of this chapter may be canceled by the association
3 giving five days' written notice thereof to the insured, or if the in-
4 sured shall demand in writing or in person of the association the can-
5 cellation of policy, the association shall immediately advise him by
6 letter to last known address, the amount, if any, due, as his pro rata
7 share of losses and in addition actual expenses incurred on said policy.
8 Upon surrender of his policy and payment of all sums due, his mem-
9 bership shall cease, provided, that during the months of June, July
10 and August, hail insurance policies may be canceled only at the option
11 of the officers of the association carrying the risk.