511.38 Interest on delayed claims payments. 1. When an insurance policy provides for the payment of its proceeds to a beneficiary upon the death of an individual and, without the written consent of the beneficiary, the companyfails or refuses to pay the proceeds within thirty days after receipt of satisfactory proof ofdeath, the company shall pay interest on the proceeds or any amount of the proceeds notpaid within the thirty days, provided, however, if the policy requires a beneficiary to survivefor a designated period after the death of the insured, the company shall pay interest onthe proceeds or any amount of the proceeds not paid within thirty days after the designatedperiod. 2. The interest owed on any amount of the proceeds of a policy under this section shall be computed from the date of receipt of the proof of death. The rate of interest shall be thehigher of the following: a. The effective rate of interest charged by the company on policy loans under section 511.36 on the date of receipt of proof of death. b. The effective rate of interest paid by the company on death proceeds left on deposit with the company. 3. the company on policy loans under section 511.36 on the date of receipt of proof of death. b. The effective rate of interest paid by the company on death proceeds left on deposit with the company. 3. A payment of interest shall not be required under this section in any case in which the beneficiary elects to receive the proceeds under the policy by any means other than a lumpsum payment. 89 Acts, ch 321, §35Referred to in §507B.4 Sat Dec 23 00:43:01 2023 Iowa Code 2024, Section 511.38 (17, 0)
Iowa Legal Code