2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 509 - GROUP INSURANCE
509.14 - GROUP INSURANCE ON FRANCHISE PLAN.

        509.14  GROUP INSURANCE ON FRANCHISE PLAN.
         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 subsection 8 of section 509.2.
         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.  

         [C54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 509.14]
         Referred to in § 509.19, 514D.3, 514D.4