1. If the commissioner believes that a controlling producer or any other person subject to this chapter has not materially complied with this chapter, or any rule adopted or order issued pursuant to this chapter, after notice and opportunity to be heard, the commissioner may order the controlling producer to cease placing business with the controlled insurer. Additionally, if the commissioner finds that because of such noncompliance the controlled insurer or any policyholder of the controlled insurer has suffered any loss or damage, the commissioner may maintain a civil action or intervene in an action brought by or on behalf of the insurer or policyholder for recovery of compensatory damages for the benefit of the insurer or policyholder, or for other appropriate relief.

Terms Used In Iowa Code 510A.6

  • Commissioner: means the commissioner of insurance. See Iowa Code 510.1B
  • controlled: has the meaning ascribed in section 521A. See Iowa Code 510A.2
  • Controlled insurer: means a licensed insurer that is controlled, directly or indirectly, by an insurance producer. See Iowa Code 510A.2
  • Controlling producer: means an insurance producer who, directly or indirectly, controls an insurer. See Iowa Code 510A.2
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • insurer: means any person duly licensed to transact a property and casualty insurance business in this state. See Iowa Code 510A.2
  • person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. See Iowa Code 4.1
  • Rule: includes "regulation". See Iowa Code 4.1
 2. If an order for liquidation or rehabilitation of the controlled insurer has been entered pursuant to chapter 507C, and the receiver appointed under that order believes that the controlling producer or any other person has not materially complied with this chapter, or any rule adopted or order issued pursuant to this chapter, and that the insurer suffered any loss or damage as a result of the noncompliance, the receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the insurer.
 3. This section shall not be construed to affect or limit the right of the commissioner to impose any other penalties, as appropriate, which the commissioner is authorized to impose.
 4. This section shall not be construed to affect or limit the rights of policyholders, claimants, creditors, or other third parties.
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