Iowa Administrative Code › Agency 191 - Insurance Division › Life and Health Insurance › Chapter 30 - Life Insurance Policies › Rule 191-30.4 - Prohibitions, Regulations and Disclosure Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
In accordance with the purpose expressed in rule
				  191-30.1 (508) and in
				  conjunction with the intent of Iowa Code section
				  508.28,
				  the use of certain types of policy forms and policy provisions shall be subject
				  to the following prohibitions and regulations:
(1)
Policy names.
Any
				insurance policy labeled or described as a founders, charter or coupon policy
				or names of similar connotation shall not be approved for use in this state on
				or after the effective date of these rules, and furthermore no policies so
				named or labeled heretofore approved shall be issued or delivered in this state
				on or after March 1, 1964.
(2)
Founders policy.
No founders policy as herein defined shall be
				approved for use in this state on or after the effective date of these rules,
				and furthermore no founders policy as herein defined heretofore approved shall
				be issued or delivered in this state on or after March 1, 1964.
(3)
Profit-sharing policy.
No profit-sharing policy shall be approved for use in this state on or after
				the effective date of these rules, and furthermore no profit-sharing policy
				heretofore approved shall be issued or delivered in this state on or after
				March 1, 1964. This subrule does not intend to restrict or prohibit the sale in
				this state of any participating life insurance policy where the dividend or
				abatement of premium is derived solely from the profits of that class of
				participating business.
(4)
Coupon policy.
No coupon policy shall be approved or issued in
				this state after the effective date of these rules, and furthermore no coupon
				policy heretofore approved shall be issued or delivered in this state on or
				after March 1, 1964.
(5)
Guaranteed pure endowment benefits.
No policy containing a
				series of guaranteed pure endowment benefits shall be approved for use after
				the effective date of these rules unless it meets the following requirements:
a. The gross premium charged for this benefit
				shall be separately stated in a size and style of type equal in prominence to
				that stating the gross premium for the other benefits contained in the
				policy.
b. The payment of any
				guaranteed pure endowment benefit shall not be made contingent upon the payment
				of premiums falling due on or after the time the pure endowment benefit has
				matured.
c. The amount of the
				guaranteed series of pure endowment benefits shall be expressed in dollar
				amounts and shall not be presented or defined, either in the policy or any
				sales and advertising material, as a "percentage" of any of the premiums or
				benefits contained therein.
d. No
				participating policy shall include as part of its benefits a guaranteed pure
				endowment benefit.
e. The language
				and terminology of the policy or any of the sales and advertising materials
				used in connection with any policy, which has a series of pure endowment
				benefits therein, shall not purport to represent the pure endowment benefit of
				the policy to be anything other than a guaranteed insurance benefit for which a
				premium is being paid by the policyholder.
This rule is intended to implement Iowa Code sections
				  508.25
				  and
				  508.28.