Iowa Life Insurance
Iowa life insurance laws deal primarily with claims issues. However, familiarizing yourself with some basic regulations is still key to making wise coverage decisions.
This page:
Briefly describes Iowa life insurance regulations.
Explains the protection of the Iowa Guaranty Association.
Links to more information about life insurance in Iowa
Life Insurance for as Little as $20/Month?
Iowa life insurance rights and regulationsThe life insurance industry in the State of Iowa is regulated under Title VIII of the Iowa Insurance Code. Under this code, claims procedures and policy requirements are overseen by the state in order to protect you, the consumer.
One such consumer protection is the "free look" provision required by Iowa law. This provision allows potential policyholders to decline their life insurance policy within its first 10 days for a full premium refund. On some policies the period may even be longer.
Iowa life insurance companies are also obligated to settle claims as quickly as possible. An insurance company should settle a claim within a month of receiving the necessary documentation. If payment is not made after 30 days, interest on the benefits begins accruing, and will be included in the final settlement.
Policyholders in Iowa can expect any requests for information from credit reports or medical examinations to be honored by their insurers in a timely manner.
And finally, while state of Iowa does not specify a regulation claims procedure, policies should include an outline of the company's process.
However, Iowa also extends some protections to insurance companies. If an insurer discovers any inaccurate statements made on the policy or application within the first two years of its life, the policy may be cancelled. Premiums will be refunded, but claims won't be honored.
Misstatements of age can be discovered at any point in the policy's life, and the insurer will adjust the death benefit to reflect the actual age of the insured. Sidebar
If you are ready to apply for an Iowa term life insurance policy, or if you just want a quick online quote, visit Insured Street now.
If you are not sure about what type of life coverage you want, you can also try InsureME. They will put you in touch with agents who can answer any questions that you might have.
The Iowa Life Insurance Guaranty Association The state of Iowa cautions life insurance policyholders to remember that a life insurance policy is a contract. It is not an investment and it is not guaranteed by the state.
However, if your company is licensed in Iowa your policy is backed by the Iowa Life and Health Insurance Guaranty Association. This organization will help protect you, the insured, should your insurance company go bankrupt.
But even this protection has restrictions. Compensation for death benefit proceeds is limited to $300,000 and compensation for cash values to $100,000.
And only the policyholders of insurer's licensed in Iowa are protected. To verify your insurance company's status you can call the Iowa Insurance Division at 515-281-5705. Sidebar
Apply for a quote with confidence at Insured Street
(for Iowa term life insurance), or InsureME.
Your insurer will be licensed in Iowa.
Other notes on Iowa life insuranceLife insurance illuistrations, (which are financial projections made by an insurer), are allowed in Iowa, but are regulated by the state. However, these illustrations are not financial guarantees.
More IA life insurance helpIf you want more help getting the best value on your IA life insurance policy, start with our guide to term life insurance or sign-up for our free life insurance course (see below).
To find out more about IA life insurance laws and regulations, visit the state's official website at the Iowa Insurance Division.
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