Iowa § 511.40 Employer — insurable interest in employees

Iowa Statutes

§ 511.40 — Employer — insurable interest in employees

Iowa § 511.40

Title XIIICOMMERCE

Ch. 511PROVISIONS APPLICABLE TO LIFE INSURANCE COMPANIES AND ASSOCIATIONS

This text of Iowa § 511.40 (Employer — insurable interest in employees) 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 § 511.40 (2026).

Text

1.As used in this section, “employees” includes officers, managers, and directors of an employer, and the shareholders, partners, members, proprietors, or other owners of the employer.

2.An employer and a trust established by the employer for the benefit of the employer or for the benefit of the employer’s active or retired employees has an insurable interest in each of the lives of the employer’s active or retired employees and may insure their lives on an individual or group basis.

3.The amount of coverage on the lives of nonmanagement or nonkey employees shall be reasonably related to the benefit provided to the employees.

4.On and after July 1, 2003, an employer or trust shall obtain the written consent of each employee being insured by an employer and trust pursuant to this sectio

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1. As used in this section, “employees” includes officers, managers, and directors of an
employer, and the shareholders, partners, members, proprietors, or other owners of the
employer.
2. An employer and a trust established by the employer for the benefit of the employer
or for the benefit of the employer’s active or retired employees has an insurable interest in
each of the lives of the employer’s active or retired employees and may insure their lives on
an individual or group basis.
3. The amount of coverage on the lives of nonmanagement or nonkey employees shall be
reasonably related to the benefit provided to the employees.
4. On and after July 1, 2003, an employer or trust shall obtain the written consent of each
employee being insured by an employer and trust pursuant to this section before insuring
the employee’s life. The consent shall include an acknowledgment by the employee that the
employer or trust may maintain the life insurance after the employee is no longer employed
by the employer. An employer shall not retaliate in any manner against an employee who
refuses to consent.
5. a. The gross amount of premiums received by a life insurance company or association
for an employer-owned life insurance contract which has not been allocated to another state
shall be allocated to this state for purposes of section 432.1, subsection 1, if either of the
following is applicable:
(1) The contract is issued or delivered in this state.
(2) The company or association is domiciled in this state.
b. To the extent that premiums are allocated to this state pursuant to paragraph “a”, the
provisions of section 505.14 are not applicable to those premiums.
c. As used in this subsection, “employer-owned life insurance contract” means a policy
which provides coverage on a life for which the employer has an insurable interest under this
section or a similar provision of the laws of another state and the policy is owned by either
the employer or a trust established by the employer for the benefit of the employer or the
employer’s active or retired employees.