Iowa Administrative Code › Agency 191 - Insurance Division › Unfair Trade Practices › Chapter 16 - Replacement of Life Insurance and Annuities › Rule 191-16.23 - Exemptions

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Unless
				otherwise specifically included, these rules shall not apply to transactions
				involving:
a. Credit life
				insurance.
b. Group life insurance
				or group annuities where there is no direct solicitation of individuals by an
				insurance producer. Direct solicitation shall not include any group meeting
				held by an insurance producer solely for the purpose of educating or enrolling
				individuals or, when initiated by an individual member of the group, assisting
				with the selection of investment options offered by a single insurer in
				connection with enrolling that individual. Group life insurance or group
				annuity certificates marketed through direct-response solicitation shall be
				subject to the provisions of rule
				191-16.28 (507B).
c. Group life insurance and annuities used to
				fund formal prepaid funeral contracts.
d. An application to the existing insurer
				that issued the existing policy or contract when a contractual change or a
				conversion privilege is being exercised; or when the existing policy or
				contract is being replaced by the same insurer pursuant to a program filed with
				and approved by the commissioner.
e. Proposed life insurance that is to replace
				life insurance under a binding or conditional receipt issued by the same
				company.
f. Except as noted below,
				policies or contracts used to fund:
(1) An
				employee pension or welfare benefit plan that is covered by the Employee
				Retirement and Income Security Act (ERISA);
(2) A plan described by Section 401(a),
				401(k) or 403(b) of the Internal Revenue Code, where the plan, for purposes of
				ERISA, is established or maintained by an employer;
(3) A governmental or church plan defined in
				Section 414 of the Internal Revenue Code, a governmental or church welfare
				benefit plan, or a deferred compensation plan of a state or local government or
				tax-exempt organization under Section 457 of the Internal Revenue Code;
				or
(4) A nonqualified deferred
				compensation arrangement established or maintained by an employer or plan
				sponsor.
These rules shall apply to policies or contracts used to fund
				  any plan or arrangement that is funded solely by contributions an employee
				  elects to make, whether on a pretax or after-tax basis, and where the insurance
				  company has been notified that plan participants may choose from among two or
				  more annuity providers or policy providers and there is a direct solicitation
				  of an individual employee by an insurance producer for the purchase of a
				  contract or policy.
g. New coverage provided under a life
				insurance policy or contract where the cost is borne wholly by the insured's
				employer or by an association of which the insured is a member.
h. Existing life insurance that is a
				non-convertible term life insurance policy that will expire in five years or
				less and cannot be renewed.
i.
				Immediate annuities that are purchased with proceeds from an existing contract.
				Immediate annuities purchased with proceeds from an existing policy are not
				exempted from the requirements of this chapter.
j. Structured settlement annuities.