§ 511.40

511.40 Employer — insurable interest in employees. 1. As used in this section, 'employees' includes officers, managers, and directors of an employer, and the shareholders, partners, members, proprietors, or other owners of theemployer. 2. An employer and a trust established by the employer for the benefit of the employer or for the benefit of the employer’s active or retired employees has an insurable interest ineach of the lives of the employer’s active or retired employees and may insure their lives onan individual or group basis. 3. The amount of coverage on the lives of nonmanagement or nonkey employees shall be reasonably related to the benefit provided to the employees. 4. On and after July 1, 2003, an employer or trust shall obtain the written consent of each employee being insured by an employer and trust pursuant to this section before insuringthe employee’s life. The consent shall include an acknowledgment by the employee that theemployer or trust may maintain the life insurance after the employee is no longer employedby the employer. An employer shall not retaliate in any manner against an employee whorefuses to consent. 5. a.

ployer or trust may maintain the life insurance after the employee is no longer employedby the employer. An employer shall not retaliate in any manner against an employee whorefuses to consent. 5. a. The gross amount of premiums received by a life insurance company or association for an employer-owned life insurance contract which has not been allocated to another stateshall be allocated to this state for purposes of section 432.1, subsection 1, if either of thefollowing is applicable: (1) The contract is issued or delivered in this state.(2) The company or association is domiciled in this state.b. To the extent that premiums are allocated to this state pursuant to paragraph 'a', the provisions of section 505.14 are not applicable to those premiums. c. As used in this subsection, 'employer-owned life insurance contract' means a policy which provides coverage on a life for which the employer has an insurable interest under thissection or a similar provision of the laws of another state and the policy is owned by eitherthe employer or a trust established by the employer for the benefit of the employer or theemployer’s active or retired employees.

ovision of the laws of another state and the policy is owned by eitherthe employer or a trust established by the employer for the benefit of the employer or theemployer’s active or retired employees. 2003 Acts, ch 91, §22; 2013 Acts, ch 124, §15Referred to in §508E.13 Sat Dec 23 00:43:03 2023 Iowa Code 2024, Section 511.40 (19, 0)