Iowa § 536.26 Insured loans

Iowa Statutes

§ 536.26 — Insured loans

Iowa § 536.26

Title XIIICOMMERCE

Ch. 536REGULATED LOANS

This text of Iowa § 536.26 (Insured loans) 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 § 536.26 (2026).

Text

1.A licensee shall not, directly or indirectly, sell or offer for sale any life or accident and health insurance in connection with a loan made under this chapter except as and to the extent authorized by this section. Life, accident and health insurance, or any of them, may be written by a licensed insurance producer upon or in connection with any loan for a term not extending beyond the final maturity date of the loan contract, but only upon one obligor on any one loan contract.

2.The amount of life insurance shall at no time exceed the unpaid balance of principal and interest combined which are scheduled to be outstanding under the terms of the loan contract or the actual amount unpaid on the loan contract, whichever is greater.

3.Accidentandhealthinsuranceshallprovidebenefitsnotinex

Free access — add to your briefcase to read the full text and ask questions with AI

1. A licensee shall not, directly or indirectly, sell or offer for sale any life or accident and
health insurance in connection with a loan made under this chapter except as and to the
extent authorized by this section. Life, accident and health insurance, or any of them, may
be written by a licensed insurance producer upon or in connection with any loan for a term
not extending beyond the final maturity date of the loan contract, but only upon one obligor
on any one loan contract.
2. The amount of life insurance shall at no time exceed the unpaid balance of principal
and interest combined which are scheduled to be outstanding under the terms of the loan
contract or the actual amount unpaid on the loan contract, whichever is greater.
3. Accidentandhealthinsuranceshallprovidebenefitsnotinexcessoftheunpaidbalance
of principal and interest combined which are scheduled to be outstanding under the terms of
the loan contract and the amount of each periodic benefit payment shall not exceed the total
amount payable divided by the number of installments and shall provide that if the insured
obligor is disabled, as defined in the policy, for a period of more than fourteen days, benefits
shall commence as of the first day of disability.
4. The premium, which shall be the only charge for the insurance, shall not exceed that
approved by the commissioner of insurance of the state of Iowa as filed in the office of such
commissioner. Such charge, computed at the time the loan is made for the full term of the
loan contract on the total amount required to pay principal and interest.
5. If a borrower procures insurance by or through a licensee, the licensee shall cause to be
deliveredtotheborroweracopyofthepolicywithinfifteendaysfromthedatesuchinsurance
is procured. No licensee shall decline new or existing insurance which meets the standards
set out in this section nor prevent any obligor from obtaining such insurance coverage from
other sources.

6. If the loan contract is prepaid in full by cash, a new loan, or otherwise, except by
the insurance, any life, accident, and health insurance procured by or through a licensee
shall be canceled and the unearned premium shall be refunded. The amount of the refund
shall represent at least as great a proportion of the insurance premium or identifiable
charge as the sum of the consecutive monthly balances of principal and interest of the loan
contract originally scheduled to be outstanding after the installment date nearest the date
of prepayment bears to the sum of all such monthly balances of the loan contract originally
scheduled to be outstanding.