Senate File 2075

                                       SENATE FILE       
                                       BY  DOTZLER


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the refund of unearned accident and health
  2    insurance premiums upon the death of the insured.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5149XS 80
  5 rh/sh/8

PAG LIN

  1  1    Section 1.  NEW SECTION.  514A.3A  REFUND OF UNEARNED
  1  2 PREMIUM UPON DEATH OF INSURED.
  1  3    In the event of the death of the insured of any policy
  1  4 covered by this chapter, the insurer, upon receipt of notice
  1  5 of the insured's death supported by a certified copy of a
  1  6 valid death certificate and a request for a pro rata refund by
  1  7 a party entitled to claim such a refund, shall refund the
  1  8 unearned premium prorated to the month of the insured's death.
  1  9 Refund of the premium and termination of the coverage shall be
  1 10 without prejudice to any claim originating prior to the date
  1 11 of the insured's death.
  1 12                           EXPLANATION
  1 13    This bill relates to the refund of unearned accident and
  1 14 health insurance premiums upon the death of the insured.
  1 15    The bill provides that upon the death of an insured covered
  1 16 by an individual accident and health insurance policy under
  1 17 Code chapter 514A, the insurer shall refund the unearned
  1 18 premium prorated to the month of the insured's death to a
  1 19 party entitled to claim such a refund.  The bill requires that
  1 20 a request for a prorated refund upon the insured's death be
  1 21 supported by a certified copy of a valid death certificate.
  1 22 The bill also provides that the refund of the premium shall be
  1 23 without prejudice to any claim filed prior to the date of the
  1 24 insured's death.
  1 25    Code section 514A.1 specifies that the words "policy of
  1 26 accident and sickness insurance", which includes a policy or
  1 27 contract covering insurance against loss resulting from
  1 28 sickness, or from bodily injury or death by accident, or both,
  1 29 and the words "policy of accident and health insurance" and
  1 30 "policy of accident or health insurance" are interchangeable
  1 31 without deviation of meaning under Code chapter 514A.
  1 32 LSB 5149XS 80
  1 33 rh/sh/8
  1 34
  1 35