2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 514G - LONG=TERM CARE INSURANCE ACT
514G.106 - INCONTESTABILITY PERIOD.

        514G.106  INCONTESTABILITY PERIOD.
         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      payments if the policy or certificate is rescinded.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
      benefits of a life insurance policy that accelerates benefits for
      long-term care are not governed by this section but by the provisions
      of section 508.28.  In all other situations, this section shall apply
      to life insurance policies that accelerate benefits for long-term
      care.  

         2008 Acts, ch 1175, §7