§ 508.32

508.32 Proceeds of policy held in trust. 1. As used in this section:a. 'Annuity contracts' and 'life insurance policies' include accident and health insurance policies and contracts, and include undertakings, duties, and obligations incidental to or infurtherance of any such policies or contracts. b. 'Proceeds' includes additions and contributions.c. 'Trust' includes but is not limited to settlement options and contracts issued pursuant to policies or contracts, and funds held in a separate or segregated account in connectionwith pension or profit-sharing plans pursuant to agreements with the policyholders. 2. Any life insurance company organized under the provisions of this chapter and doing business in this state, shall have the power to hold in trust the premiums or considerationpaid for, or the proceeds of any life insurance policy or annuity contract, either individualor group, issued by it, upon such terms and subject to such limitations as to revocation orcontrol by the policyholder or beneficiary thereunder, as shall have been agreed to in writingby such company and the policyholder; provided that the trust provisions contemplated inthis section shall in no manner subject

older or beneficiary thereunder, as shall have been agreed to in writingby such company and the policyholder; provided that the trust provisions contemplated inthis section shall in no manner subject the corporation to any of the provisions of the laws ofIowa relating to banks or trust companies; and provided further, that the trust or trusts forpremiums or considerations may be invested by such company in the manner specified in thetrust instruments or agreements and held in a separate or segregated account; and providedfurther, that the forms of such trust agreements for beneficiaries shall be first submitted toand approved by the commissioner of insurance. 3. Funds held by an insurance company as authorized by this section may be held in a separate account established pursuant to section 508A.1, except that section 508A.1,subsection 5, shall not be applicable to such account. However, funds held by an insurancecompany as authorized in this section shall not be chargeable with liabilities arising out ofany other business the company may conduct. 4. An instrument or agreement issued or used by an insurance company as authorized by this section does not constitute a security as

bilities arising out ofany other business the company may conduct. 4. An instrument or agreement issued or used by an insurance company as authorized by this section does not constitute a security as defined in section 502.102. [C24, 27, 31, 35, 39, §8674; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §508.32]97 Acts, ch 5, §1; 2018 Acts, ch 1041, §127; 2020 Acts, ch 1063, §273; 2021 Acts, ch 80, §320 Sat Dec 23 00:40:43 2023 Iowa Code 2024, Section 508.32 (21, 0)