Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 508.32, Code 1997, is amended by adding 1 2 the following new unnumbered paragraphs: 1 3 NEW UNNUMBERED PARAGRAPH. As used in this section, life 1 4 insurance policies and annuity contracts include accident and 1 5 health insurance policies and contracts, and include 1 6 undertakings, duties, and obligations incidental to or in 1 7 furtherance of any such policies or contracts. As used in 1 8 this section, proceeds include additions and contributions. 1 9 Funds held by an insurance company as authorized by this 1 10 section may be held in a separate account established pursuant 1 11 to section 508A.1, except that section 508A.1, subsection 5, 1 12 shall not be applicable to such account. However, funds held 1 13 by an insurance company as authorized in this section shall 1 14 not be chargeable with liabilities arising out of any other 1 15 business the company may conduct. 1 16 NEW UNNUMBERED PARAGRAPH. An instrument or agreement 1 17 issued or used by an insurance company as authorized by this 1 18 section does not constitute a security as defined in section 1 19 502.102. 1 20 Sec. 2. NEW SECTION. 508.32A FUNDS HELD IN CUSTODIAL OR 1 21 SIMILAR ACCOUNT. 1 22 A life insurance company organized under this chapter and 1 23 doing business in this state may hold funds, including 1 24 additions and contributions, as custodian in a custodial or 1 25 similar account in conjunction with an accident and health 1 26 insurance policy. Funds held by an insurance company as 1 27 authorized by this section may be invested by such company in 1 28 the manner specified in the account instrument or agreement, 1 29 and may be held in a separate account established pursuant to 1 30 section 508A.1. Funds held by an insurance company as 1 31 authorized by this section shall not be chargeable with 1 32 liabilities arising out of any other business the company may 1 33 conduct. 1 34 An instrument or agreement issued or used by an insurance 1 35 company as authorized by this section does not constitute a 2 1 security as defined in section 502.102. 2 2 Sec. 3. This Act, being deemed of immediate importance, 2 3 takes effect upon enactment. 2 4 EXPLANATION 2 5 This bill amends provisions of Code chapter 508 regarding 2 6 the ability of a life insurance company to hold funds in a 2 7 custodial or separate account for the purpose of a medical 2 8 savings account or similar account, as authorized under 2 9 federal or state law. 2 10 Code section 508.32 is amended to provide that life 2 11 insurance policies and annuity contracts include accident and 2 12 health insurance policies and contracts, and undertakings, 2 13 duties, and obligations which are incidental to or in 2 14 furtherance of such life insurance policies, annuity 2 15 contracts, and accident and health insurance policies and 2 16 contracts. The bill provides that a life insurance company 2 17 may hold funds in a separate account established pursuant to 2 18 section 508A.1, except that the requirement that the funds in 2 19 such separate account must be owned by the insurance company 2 20 and the prohibition against the insurance company holding 2 21 itself out as trustee do not apply. The bill provides that 2 22 funds held by an insurance company in conjunction with an 2 23 accident and health insurance policy are not chargeable with 2 24 liabilities arising out of any other business of the company. 2 25 New Code section 508.32A is created and authorizes a life 2 26 insurance company to hold funds as a custodian in a custodial 2 27 or similar account in conjunction with an accident and health 2 28 insurance policy. Funds held in such account are not 2 29 chargeable with liabilities arising out of any other business 2 30 of the company. The bill also provides that an instrument or 2 31 agreement issued or used by an insurance company as authorized 2 32 under this section does not constitute a security under 2 33 section 502.102. 2 34 The bill takes effect upon enactment. 2 35 LSB 1440YC 77 3 1 mj/sc/14.1
Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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