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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. Funds held by an insurance
1 17 company in conjunction with an accident and health insurance
1 18 policy as authorized by this section do not constitute a
1 19 security as defined in section 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 Funds held by an insurance company as authorized by this
1 30 section shall not be chargeable with liabilities arising out
1 31 of any other business the company may conduct.
1 32 Funds held by an insurance company in conjunction with an
1 33 accident and health insurance policy as authorized by this
1 34 section do not constitute a security as defined in section
1 35 502.102.
2 1 Sec. 3. NEW SECTION. 508A.1A FUNDS HELD IN SEPARATE
2 2 ACCOUNT.
2 3 As used in section 508A.1, life insurance and annuities
2 4 include accident and health insurance policies and contracts,
2 5 and include undertakings, duties, and obligations incidental
2 6 to or in furtherance of any such policies or contracts. As
2 7 used in this section, proceeds and benefits include additions
2 8 and contributions.
2 9 Funds held by an insurance company in conjunction with an
2 10 accident and health insurance policy as authorized by this
2 11 section do not constitute a security as defined in section
2 12 502.102.
2 13 Sec. 4. This Act, being deemed of immediate importance,
2 14 takes effect upon enactment.
2 15 EXPLANATION
2 16 This bill amends provisions of Code chapters 508 and 508A
2 17 regarding the ability of a life insurance company to hold
2 18 funds in a custodial or separate account for the purpose of a
2 19 medical savings account or similar account, as authorized
2 20 under federal or state law.
2 21 Code section 508.32 is amended to provide that life
2 22 insurance policies and annuity contracts include accident and
2 23 health insurance policies and contracts, and undertakings,
2 24 duties, and obligations which are incidental to or in
2 25 furtherance of such life insurance policies, annuity
2 26 contracts, and accident and health insurance policies and
2 27 contracts. The bill provides that a life insurance company
2 28 may hold funds in a separate account established pursuant to
2 29 section 508A.1, except that the requirement that the funds in
2 30 such separate account must be owned by the insurance company
2 31 and the prohibition against the insurance company holding
2 32 itself out as trustee do not apply. The bill provides that
2 33 funds held by an insurance company in conjunction with an
2 34 accident and health insurance policy are not chargeable with
2 35 liabilities arising out of any other business of the company
3 1 and do not constitute a security under section 502.102.
3 2 New Code section 508.32A is created and authorizes a life
3 3 insurance company to hold funds as a custodian in a custodial
3 4 or similar account in conjunction with an accident and health
3 5 insurance policy. Funds held in such account are not
3 6 chargeable with liabilities arising out of any other business
3 7 of the company and do not constitute a security under section
3 8 502.102.
3 9 New Code section 508A.1 is created and provides that life
3 10 insurance and annuities include accident and health insurance
3 11 policies and contracts. Funds held in a separate account
3 12 pursuant to this section are not chargeable with liabilities
3 13 arising out of any other business of the company and do not
3 14 constitute a security under section 502.102.
3 15 The bill takes effect upon enactment.
3 16 LSB 1440XC 77
3 17 mj/sc/14
Text: SSB00107 Text: SSB00109 Text: SSB00100 - SSB00199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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