Iowa Administrative Code

nonforfeiture values, issued on or after February 16, 2000, subject to the following exceptions and conditions. 47.2(1) This chapter shall not apply to any of the following: a. Any individual life insurance policy issued on or after February 16, 2000, if the policy is issued in a…

“Basic reserves” means reserves calculated in accordance with Iowa Code section 508.36(6). “Contract segmentation method” means the method of dividing the period from issue to mandatory expiration of a policy into successive segments, with the length of each segment being defined…

reserves. 47.4(1) At the election of the company for any one or more specified plans of life insurance, the minimum mortality standard for basic reserves may be calculated using the 1980 CSO valuation tables with select mortality factors (or any other valuation mortality table ad…

gross premiums or guaranteed nonlevel benefits (other than universal life policies). 47.5(1) Basic reserves. Basic reserves shall be calculated as the greater of the segmented reserves and the unitary reserves. Both the segmented reserves and the unitary reserves for any policy s…

universal life insurance policies that contain provisions resulting in the ability of a policyowner to keep a policy in force over a secondary guarantee period. 47.6(1) General. a. Policies with a secondary guarantee include: (1) A policy with a guarantee that the policy will rem…

arrangement with a qualified outside vendor to assist the commissioner with any or all continuing education services in the same manner as the commissioner may for insurance continuing education services pursuant to rule 191—11.12(505,522B). The commissioner may audit any continu…

of viatical and life settlements in this state by providing rules under which viatical and life settlements may be made, disclosures and other provisions by which viators may be protected, and safeguards by which viatical settlement providers may be monitored and remain in good s…

48.10(1) Unfair trade practices. Pursuant to Iowa Code section 508E.17, a violation of rule 191— 48.4(508E), 191—48.5(508E), 191—48.6(508E), 191—48.7(508E) or 191—48.9(508E) shall be considered an unfair trade practice under Iowa Code chapter 507B, and a violator shall be subject…

follow the procedures in rule 191—10.21(252J,272D) relating to producer suspension for failure to pay child support or state debt for viatical settlement brokers, replacing “producer” with “viatical settlement broker.” [ARC 4910C, IAB 2/12/20, effective 3/18/20]

effective 3/18/20.

effective 3/18/20.

circumstance is held invalid by a court, the remainder of these rules or the rules’ applicability to other persons or circumstances shall not be affected. [ARC 7729B, IAB 4/22/09, effective 4/3/09] These rules are intended to implement Iowa Code chapters 508E, 252J, and 272D. [Fi…

are incorporated by reference. In addition to those definitions and the definitions in rule 191—1.1(502,505), the following definitions apply: “Life settlement” means a viatical settlement in which the viator has not been diagnosed as terminally or chronically ill. For purposes o…

48.3(1) Viatical settlement provider. a. To be considered for licensure as a viatical settlement provider pursuant to Iowa Code section 508E.3, a person must file with the commissioner a completed viatical settlement provider license application in the format prescribed by the co…

48.4(1) If a viatical settlement provider enters into a viatical settlement contract that allows the viator to retain an interest in the policy, the viatical settlement contract shall contain the following: a. A provision that the viatical settlement provider will effect the tran…

viaticating an insurance policy when life expectancy is less than 25 months, a viatical settlement provider shall pay to a viator a discounted amount of the face value of the policy which amount shall be calculated at least at the following rates: Minimum Percentage of Face Value…

viatical settlement contract documents or disclosure statements approved at the time of licensure, or to use new ones, the provider shall submit the new or modified contract documents or disclosure statements to the commissioner for approval in triplicate, along with a postage-pa…

of each year, the secretary and either the president or the vice president of each viatical settlement provider licensed in this state shall submit, under oath, an annual statement report for the immediately preceding calendar year. 48.7(1) Transaction information. The annual sta…

48.8(1) Authority, scope and scheduling of examinations. In addition to the authority, scope and scheduling of examinations set forth in Iowa Code section 508E.7, the following provisions shall apply: a. The commissioner may investigate suspected fraudulent viatical settlement ac…

48.9(1) With respect to policies containing a provision for double or additional indemnity for accidental death, the additional payment shall remain payable to the beneficiary last named by the viator prior to entering into the viatical settlement contract, or to such other benef…

instruments used in hedging transactions in accordance with Iowa Code section 511.8(22). This chapter shall be applicable to the legal reserve funds for all domestic insurers and United States branches of alien insurers entered through this state.

“Business entity” means a sole proprietorship, corporation, limited liability company, association, partnership, joint stock company, joint venture, mutual fund, trust, joint tenancy or other similar form of business organization, whether organized for profit or not for profit. “…

49.3(1) Before engaging in a derivative transaction pursuant to Iowa Code section 511.8(22), an insurer shall establish written guidelines that shall be used for effecting and maintaining the transactions. The guidelines shall: a. Address investment or, if applicable, underwritin…

relating to each derivative transaction transacted pursuant to Iowa Code section 511.8(22) including, but not limited to: 1. The purpose or purposes of the transaction; 2. The assets or liabilities to which the transaction relates; 3. The specific derivative instrument used in th…

under Iowa Code section 511.8(22) shall be: 1. Traded on a qualified exchange; 2. Entered into with, or guaranteed by, a business entity with an investment grade rating by the NAIC Securities and Valuation Office or by a majority of nationally recognized statistical rating organi…

This rule is intended to implement Iowa Code chapters 505, 507, 508, and 515. [ARC 5515C, IAB 3/10/21, effective 4/14/21]

5.10(1) The phrase “preferred dividend requirements as of the date of acquisition” in Iowa Code section 511.8(6) is construed to include the dividend requirements of a new issue. Consequently, a new preferred issue will qualify if the net earnings of the corporation for each of t…

investment for insurance companies before the loan it secures may so qualify [Iowa Code section 515.35(3) “a”(2)]. The statute provides that a company may not invest in excess of 30 percent of its capital and funds in stocks and not more than 10 percent of its capital and surplus…

any kind, domiciled in the state of Iowa, shall loan any portion of its funds to an officer, director, stockholder, employee or any relative or immediate member of the family of an officer or director. The provisions of Iowa Code sections 508.8 and 511.12 shall likewise be applic…

statement instructions. 5.15(1) Purpose. The purpose of this rule is to adopt the National Association of Insurance Commissioners’ accounting practices and procedures manual which has been revised to provide a comprehensive guide to statutory accounting principles, commonly refer…

admitted to do business in the state of Iowa shall, at the discretion of the division, be subject to either or both of the following: 1. An on-site examination by the division; 2. A desk examination, if the applicant provides a financial examination report prepared by the insuran…

excess item to this division on the basis of the true reserve instead of the mean reserve as has been the practice in the past. Under the true reserve system there will be no excess excepting in the case of indebtedness in excess of policy liabilities. The true reserve system eli…

year policies, mortgage guaranty insurers shall apply the following annual factors or comparable monthly factors in determining the unearned premium reserve: Years policy Unearned Years policy Unearned is in force premium factor is in force premium factor 1 81.8 6 18.2 2 65.5 7 1…

from the table in 191—5.21(515C) above, there shall be maintained a contingency reserve as prescribed in Iowa Code section 515C.4. These rules are intended to implement Iowa Code sections 515C.3 and 515C.4.

5.26(1) This rule applies to all domestic, foreign and alien insurers who are authorized to transact business in this state. 5.26(2) Each domestic, foreign and alien insurer, except entities organized under Iowa Code chapters 512A, 512B, 514, 514B, 518 and 518A and those which wr…

5.27(1) All bonds or other evidences of debt having a fixed term and rate of interest held by an insurer may, if amply secured and not in default as to principal or interest, be valued as follows: a. If purchased at par, at the par value. b. If purchased above or below par, on th…

Iowa Code chapters 508, 515, 518, 518A and 520 are minimums. The commissioner retains the discretion to require greater amounts than set forth in those chapters when the risk-based circumstances of a particular insurer, including the type, nature and volume of business being writ…

reserves and property and casualty loss and loss adjustment expense reserves by a qualified actuary is required in the annual statement blank for all domestic insurers under the terms and conditions contained in the annual statement instructions handbook of the National Associati…

associations, and other entities required to submit annual financial statements to the commissioner shall also submit a short form quarterly financial statement within 45 days of the close of each calendar quarter on a form as specified by the commissioner. Upon request of the co…

under the limitations of Iowa Code section 515.49 to expose itself to any risk on a fidelity or surety bond in excess of 10 percent of its surplus to policyholders, unless such excess shall be reinsured in accordance with the provisions of the statute.

ceded, or renewed unless the reinsurance agreements (treaty, facultative or otherwise) substantially provide, or are amended by a supplemental contract to read in substance as follows: In consideration of the continuing benefits to accrue hereunder to the assuming insurer, the as…

5.32(1) Reason for promulgation. The division is concerned that changes in economic conditions and other market variables could adversely affect domestic insurers having a high concentration of these investments. Accordingly, the division has concluded that a limitation on the pe…

5.33(1) Purpose. The purpose of this rule is to set forth the procedural requirements which the insurance commissioner deems necessary to carry out the provisions of Iowa Code sections 521B.1 to 521B.5. The actions and information required by this rule are hereby declared to be n…

5.34(1) Purpose and effective date. The purpose of this rule is to prescribe: a. Requirements for statements of actuarial opinion that are to be submitted in accordance with Iowa Code section 508.36 and for memoranda in support thereof; b. Rules applicable to the appointment of a…