§ 511.38 — Interest on delayed claims payments

Iowa § 511.38

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 511: PROVISIONS APPLICABLE TO LIFE INSURANCE COMPANIES AND ASSOCIATIONS

Text

1. Whenaninsurancepolicyprovidesforthepaymentofitsproceedstoabeneficiaryupon
the death of an individual and, without the written consent of the beneficiary, the company
fails or refuses to pay the proceeds within thirty days after receipt of satisfactory proof of
death, the company shall pay interest on the proceeds or any amount of the proceeds not
paid within the thirty days, provided, however, if the policy requires a beneficiary to survive
for a designated period after the death of the insured, the company shall pay interest on
the proceeds or any amount of the proceeds not paid within thirty days after the designated
period.
2. The interest owed on any amount of the proceeds of a policy under this section shall
be computed from the date of receipt of the proof of death. The rate of interest shall be the
higher of the following:
a. The effective rate of interest charged by the company on policy loans under section
511.36 on the date of receipt of proof of death.
b. The effective rate of interest paid by the company on death proceeds left on deposit
with the company.
3. A payment of interest shall not be required under this section in any case in which the
beneficiary elects to receive the proceeds under the policy by any means other than a lump
sum payment.