203C.15 - INSURANCE REQUIRED -- EXCEPTION.
203C.15 INSURANCE REQUIRED -- EXCEPTION.
1. All agricultural products in storage in a licensed warehouse
and all agricultural products which have been deposited temporarily
in a licensed warehouse pending storage or for purposes other than
storage, shall be kept fully insured by the warehouse operator for
the current value of the agricultural products against loss by fire,
inherent explosion, or windstorm.
a. The insurance shall be carried in an insurance company or
companies authorized to do business in this state, and evidence of
the insurance coverage in a form approved by the department shall be
filed with the department. An insurance policy shall not be canceled
by the insurance company on less than ninety days' notice by
certified mail to the department and the principal unless the policy
is being replaced with another policy and evidence of the new policy
is filed with the department at the time of cancellation of the
policy on file.
b. The insurance shall be provided by, and carried in the
name of, the warehouse operator. However, whenever the department
shall receive notice from an insurance company that it has canceled
the insurance of a licensed warehouse, the department shall
automatically suspend the warehouse license if replacement insurance
is not received by the department within seventy-five days of receipt
of the notice of cancellation. The department shall cause an
inspection of the licensed warehouse immediately at the end of the
seventy-five-day period. If replacement insurance is not filed
within another ten days following suspension, the warehouse license
shall be automatically revoked.
2. When a license is revoked, the department shall notify each
holder of an outstanding warehouse receipt and all known persons who
have grain retained in open storage of the revocation. The
department shall further notify each receipt holder and all known
persons who have grain retained in open storage that the grain must
be removed from the warehouse not later than the thirtieth day
following the revocation. The notice shall be sent by ordinary mail
to the last known address of each person having grain in storage as
provided in this subsection.
3. Claimants against the insurance have precedence in the
following order:
a. Holders of warehouse receipts other than the warehouse
operator and owners of bulk grain other than the warehouse operator.
b. Owners of all other agricultural products as their
interests appear.
c. Warehouse operators who have warehouse receipts.
d. Warehouse operators owners of bulk grain.
4. However, notwithstanding the insurance requirements set forth
in this section, a licensed warehouse may exclude from the insurance
coverage stored grain to which title is fully vested in the United
States government or any of its subdivisions or agencies, provided
that the licensed warehouse has on file with the United States
government or any of its subdivisions or agencies a current and
accepted uninsured storage rate under the provisions of their uniform
grain storage agreement. The licensed warehouse shall file a copy of
the current uninsured tariff rate with the department immediately
upon acceptance of the uninsured rate by the United States government
or any of its subdivisions or agencies. Section History: Early Form
[C24, 27, 31, § 9725; C35, § 9751-g7; C39, § 9751.07; C46, 50,
54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 543.15] Section History: Recent Form
86 Acts, ch 1006, § 6; 86 Acts, ch 1103, § 1; 86 Acts, ch 1152, §
26; 89 Acts, ch 143, §804
C93, § 203C.15
2009 Acts, ch 41, §217
Referred to in § 203C.11