(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.
(2) Registered contracts shall be
exempt from the requirements of paragraph 16.26(1)"b" and
subrule 16.27(2) with respect to the provision of illustrations or policy
summaries; however, premium or contract contribution amounts and identification
of the appropriate prospectus or offering circular shall be required
instead.
Notes
Iowa Code r. 191-16.23
ARC 7735C, IAB
3/20/24, effective 4/24/24
Amended by
IAB
December 29, 2021/Volume XLIV, Number 13, effective
2/2/2022
Adopted by
IAB
March 20, 2024/Volume XLVI, Number 19, effective
4/24/2024
