2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 508E - VIATICAL SETTLEMENT CONTRACTS
508E.12 - PERMITTED PRACTICES.

        508E.12  PERMITTED PRACTICES.
         1.  Notwithstanding section 508E.11, at any time subsequent to the
      issuance of the policy, a person may enter into a viatical settlement
      contract if the viator certifies to the viatical settlement provider
      that one or more of the following conditions have been met within the
      five-year period:
         a.  The policy was issued upon the viator's exercise of
      conversion rights arising out of a group or individual policy,
      provided the total of the time covered under the conversion policy
      plus the time covered under the prior policy is at least sixty
      months.  The time covered under a group policy shall be calculated
      without regard to any change in insurance carriers, provided the
      coverage has been continuous and under the same group sponsorship.
         b.  The viator submits an affidavit to the viatical settlement
      provider that one or more of the following conditions exists:
         (1)  The viator or insured is terminally or chronically ill.
         (2)  The viator's spouse or child dies.
         (3)  The viator divorces the viator's spouse.
         (4)  The viator retires from full-time employment.
         (5)  The viator becomes physically or mentally disabled and a
      physician determines that the disability prevents the viator from
      maintaining full-time employment.
         (6)  The viator has filed for bankruptcy or sought reorganization
      in a court of competent jurisdiction, or a court of competent
      jurisdiction has appointed a receiver, trustee, or liquidator to all
      or a substantial part of the viator's assets.
         (7)  Other circumstances as established as eligible exemptions by
      the commissioner by rule, including but not limited to substantial
      adverse financial circumstances or other factors substantially
      affecting the viator.
         2.  Notwithstanding section 508E.11, a person may enter into a
      viatical settlement contract if at all times prior to the date that
      is two years after policy issuance, all of the following conditions
      are met with respect to the policy:
         a.  Policy premiums have been funded exclusively with any of
      the following:
         (1)  Unencumbered assets, including an interest in the life
      insurance policy being financed only to the extent of its net cash
      surrender value, provided by a person described in section 508E.2,
      subsection 15, paragraph "d".
         (2)  Fully recourse liability incurred by the insured or a person
      described in section 508E.2, subsection 15, paragraph "d".
         b.  There is no agreement or understanding with any other
      person to guarantee any such liability or to purchase, or stand ready
      to purchase, the policy, including through an assumption or
      forgiveness of the loan.
         c.  Neither the insured nor the policy has been evaluated for
      settlement.
         3.  Copies of the affidavits described in this section and
      documents required by section 508E.10, subsection 1, shall be
      submitted to the insurer when the viatical settlement provider or
      viatical settlement broker submits a request to the insurer for
      verification of coverage.  The copies shall be accompanied by a
      letter of attestation from the viatical settlement provider that the
      copies are true and correct copies of the documents received by the
      viatical settlement provider.
         4.  If the viatical settlement provider submits to the insurer a
      copy of the owner's or insured's or insurer's affidavit described in
      this section when the provider submits a request to the insurer to
      effect the transfer of the policy or certificate to the viatical
      settlement provider, the copy shall be deemed to conclusively
      establish that the viatical settlement contract satisfies the
      requirement of this section and the insurer shall timely respond to
      the request.  

         2008 Acts, ch 1155, §12
         Referred to in § 508E.11