(AP Photo/Eduardo Verdugo)

Two Midwestern states are opening their markets to disability insurance products aimed at clients with high incomes.

The governors in those states, Iowa and Nebraska, have signed bills that permit underwriters to sell special use disability insurance plans on a surplus lines basis.

Petersen International Underwriters, Valencia, Calif., an underwriter active in the market, says the moves will expand the market for specialized disability insurance products aimed mainly at professional athletes and other insureds with high incomes and, in many cases, unusual or complicated insurance needs.

Petersen International says its compliance department played a role in building support for the special use disability bills.

All lawmakers in Iowa and Nebraska who voted on the special use disability product bills ended up voting in favor of the bills.

Gov. Terry Branstad signed the Iowa bill into law, and Gov. David Heinemann signed the Nebraska bill into law.