511.38 - INTEREST ON DELAYED CLAIMS PAYMENTS.

        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 company fails or      refuses to pay the proceeds within thirty days after receipt of      satisfactory proof of death, the company shall pay interest on the      proceeds or any amount of the proceeds not paid within the thirty      days, provided, however, if the policy requires a beneficiary to      survive for a designated period after the death of the insured, the      company shall pay interest on the proceeds or any amount of the      proceeds not paid within thirty days after the designated period.         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 the higher 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.  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 lump sum payment.  
         Section History: Recent Form
         89 Acts, ch 321, § 35         Referred to in § 507B.4