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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