IA issues Bulletin on New Viatical Law effective 7/1/08
Today a new law goes into effect regarding viatical and life settlements in Iowa, and the Iowa Insurance Division has issued a bulletin providing a high level discussion of some of the major changes to IA law, with guidance on how the law will be implemented.
Among other provisions, the new law bans newly defined stranger-initiated life insurance, or coverage initiated for the benefit of a third-party investor who has no insurable interest in the insured. The law has fraud provisions and gives authority for the Division to conduct on-site examinations of viatical settlement brokers and providers.
Annual reports from viatical providers are required by the law, the first being due March 1, 2009.
The Division indicates that while they are reviewing their existing rules, those rules remain in effect unless in direct conflict with the new law.
