Iowa § 509.14 Group insurance on franchise plan

Iowa Statutes

§ 509.14 — Group insurance on franchise plan

Iowa § 509.14

Title XIIICOMMERCE

Ch. 509GROUP INSURANCE

This text of Iowa § 509.14 (Group insurance on franchise plan) 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.

Bluebook

Iowa Code § 509.14 (2026).

Text

It shall be lawful for an authorized insurer to issue life, accident and sickness insurance policies on a franchise plan at reduced rates, covering the members of an association, subject to the following:

1.An “association” as referred to herein shall consist of a labor union, trade association, association of employees, industrial association or professional association, which has been organized and operating more than two years for purposes other than procuring insurance.

2.A “franchise plan” as referred to herein shall consist of an insurance policy or policies covering the insurable members of an association, but in no case less than ten. Such policies may be written in the name of the association or may be written individually for the insured members, subject to the following:

a.A

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It shall be lawful for an authorized insurer to issue life, accident and sickness insurance
policies on a franchise plan at reduced rates, covering the members of an association, subject
to the following:
1. An “association” as referred to herein shall consist of a labor union, trade association,
association of employees, industrial association or professional association, which has been
organized and operating more than two years for purposes other than procuring insurance.
2. A “franchise plan” as referred to herein shall consist of an insurance policy or policies
covering the insurable members of an association, but in no case less than ten. Such policies
may be written in the name of the association or may be written individually for the insured
members, subject to the following:
a. A life insurance policy written in the name of the association, shall conform to the
provisions of section 509.2.
b. An individual policy on the life of a member of an association, providing for term

insurance renewable only during the continuation of membership, shall also provide in the
event of termination of membership the same provision for conversion as set out in section
509.2, subsection 8.
c. An individual life policy written on any basis other than term shall provide that
the policyholder may elect to continue it in force upon the policyholder’s termination of
membership in the association by giving the insurer a notice in writing of such election
within thirty days thereafter and paying therefor the renewal premium, which the insurer
may increase to reflect the normal individual rate for the policyholder as determined by the
policyholder’s age and class at the date of issue of the policy.
d. If an accident and sickness policy is written in the name of the association, it shall
conform to the provisions of section 509.3.
e. An individual accident and sickness policy shall be subject to the provisions of chapter
514A.
f. Premiums for such policies may be paid entirely from the funds of the association,
entirely from the funds of the members or partly from the funds of each.
g. Accident and sickness policies may include the spouse and dependents of the insured.