§ 514G.106 — Incontestability period

Iowa § 514G.106

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 514G: LONG-TERM CARE INSURANCE ACT

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1. An insurer may rescind a long-term care insurance policy or certificate or deny an
otherwise valid long-term care insurance claim if the policy or certificate has been in force
for less than six months upon a showing of misrepresentation that is material to the insurer’s
acceptance for coverage.
2. An insurer may rescind a long-term care insurance policy or certificate or deny an
otherwise valid long-term care insurance claim if the policy or certificate has been in force
for at least six months but less than two years, upon a showing of misrepresentation that is
both material to the acceptance for coverage and pertains to the condition for which benefits
are sought.
3. An insurer shall not contest a long-term care insurance policy or certificate that has
been in force for two or more years solely upon the grounds of misrepresentation. Such a
policy or certificate may be contested only upon a showing that the insured knowingly and
intentionally misrepresented relevant facts relating to the insured’s health.
4. A long-term care insurance policy or certificate may be field-issued if the compensation
paid to the field issuer is not based on the number of policies or certificates issued. For the
purposes of this subsection, a “field-issued” policy means a policy or certificate issued by
a producer or third-party administrator pursuant to the underwriting authority granted to
the producer or third-party administrator by an insurer and using the insurer’s underwriting
guidelines.
5. An insurer that has paid benefits under a long-term care insurance policy or certificate
shall not recover such benefit payments if the policy or certificate is rescinded.
6. The provisions of this section are applicable to life insurance policies or certificates
that accelerate benefits for long-term care. However, if an insured dies, the remaining death
benefitsofalifeinsurancepolicythatacceleratesbenefitsforlong-termcarearenotgoverned
bythissectionbutbytheprovisionsofsection508.28. Inallothersituations, thissectionshall
apply to life insurance policies that accelerate benefits for long-term care.