This text of Iowa § 508E.12 (Permitted practices) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
1.Notwithstanding section 508E.11, at any time subsequent to the issuance of the policy,
a person may enter into a viatical settlement contract if the viator certifies to the viatical
settlement provider that one or more of the following conditions have been met within the
five-year period:
a.The policy was issued upon the viator’s exercise of conversion rights arising out of a
group or individual policy, provided the total of the time covered under the conversion policy
plusthetimecoveredunderthepriorpolicyisatleastsixtymonths. Thetimecoveredundera
group policy shall be calculated without regard to any change in insurance carriers, provided
the coverage has been continuous and under the same group sponsorship.
b.The viator submits an affidavit to the viatical settlement provider that o
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1. Notwithstanding section 508E.11, at any time subsequent to the issuance of the policy,
a person may enter into a viatical settlement contract if the viator certifies to the viatical
settlement provider that one or more of the following conditions have been met within the
five-year period:
a. The policy was issued upon the viator’s exercise of conversion rights arising out of a
group or individual policy, provided the total of the time covered under the conversion policy
plusthetimecoveredunderthepriorpolicyisatleastsixtymonths. Thetimecoveredundera
group policy shall be calculated without regard to any change in insurance carriers, provided
the coverage has been continuous and under the same group sponsorship.
b. The viator submits an affidavit to the viatical settlement provider that one or more of
the following conditions exists:
(1) The viator or insured is terminally or chronically ill.
(2) The viator’s spouse or child dies.
(3) The viator divorces the viator’s spouse.
(4) The viator retires from full-time employment.
(5) The viator becomes physically or mentally disabled and a physician determines that
the disability prevents the viator from maintaining full-time employment.
(6) The viator has filed for bankruptcy or sought reorganization in a court of competent
jurisdiction, or a court of competent jurisdiction has appointed a receiver, trustee, or
liquidator to all or a substantial part of the viator’s assets.
(7) Other circumstances as established as eligible exemptions by the commissioner by
rule, including but not limited to substantial adverse financial circumstances or other factors
substantially affecting the viator.
2. Notwithstanding section 508E.11, a person may enter into a viatical settlement contract
if at all times prior to the date that is two years after policy issuance, all of the following
conditions are met with respect to the policy:
a. Policy premiums have been funded exclusively with any of the following:
(1) Unencumbered assets, including an interest in the life insurance policy being financed
only to the extent of its net cash surrender value, provided by a person described in section
508E.2, subsection 15, paragraph “d”, subparagraph (5).
(2) Fullyrecourseliabilityincurredbytheinsuredorapersondescribedinsection508E.2,
subsection 15, paragraph “d”, subparagraph (5).
b. There is no agreement or understanding with any other person to guarantee any
such liability or to purchase, or stand ready to purchase, the policy, including through an
assumption or forgiveness of the loan.
c. Neither the insured nor the policy has been evaluated for settlement.
3. Copies of the affidavits described in this section and documents required by section
508E.10, subsection 1, shall be submitted to the insurer when the viatical settlement provider
or viatical settlement broker submits a request to the insurer for verification of coverage. The
copies shall be accompanied by a letter of attestation from the viatical settlement provider
thatthecopiesaretrueandcorrectcopiesofthedocumentsreceivedbytheviaticalsettlement
provider.
4. If the viatical settlement provider submits to the insurer a copy of the owner’s or
insured’s or insurer’s affidavit described in this section when the provider submits a request
to the insurer to effect the transfer of the policy or certificate to the viatical settlement
provider, the copy shall be deemed to conclusively establish that the viatical settlement
contract satisfies the requirement of this section and the insurer shall timely respond to the
request.