508.32 - PROCEEDS OF POLICY HELD IN TRUST.

        508.32  PROCEEDS OF POLICY HELD IN TRUST.         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 consideration paid for, or the proceeds      of any life insurance policy or annuity contract, either individual      or group, issued by it, upon such terms and subject to such      limitations as to revocation or control by the policyholder or      beneficiary thereunder, as shall have been agreed to in writing by      such company and the policyholder; provided that the trust provisions      herein contemplated shall in no manner subject said corporation to      any of the provisions of the laws of Iowa relating to banks or trust      companies; and provided further, that the trust or trusts for      premiums or considerations may be invested by such company in the      manner specified in the trust instruments or agreements and held in a      separate or segregated account; and provided further, that the forms      of such trust agreements for beneficiaries shall be first submitted      to and approved by the commissioner of insurance.  The word "trust"      shall include, but not be limited to settlement options and contracts      issued pursuant to policies or contracts, and funds held in a      separate or segregated account in connection with pension or      profit-sharing plans pursuant to agreements with the policyholders.         As used in this section, life insurance policies and annuity      contracts include accident and health insurance policies and      contracts, and include undertakings, duties, and obligations      incidental to or in furtherance of any such policies or contracts.      As used in this section, proceeds include additions and      contributions.  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      insurance company as authorized in this section shall not be      chargeable with liabilities arising out of any other business the      company may conduct.         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.  
         Section History: Early Form
         [C24, 27, 31, 35, 39, § 8674; C46, 50, 54, 58, 62, 66, 71, 73,      75, 77, 79, 81, § 508.32] 
         Section History: Recent Form
         97 Acts, ch 5, §1