reglab/statecodes huggingface dataset:
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.404 - Merchandise delivered to the purchaser or warehoused.

523A.404 Merchandise delivered to the purchaser or warehoused.
1. Trust requirements do not apply to payments made pursuant to a purchase agreement executed prior to July 1, 2007, for outer burial containers made of either polystyrene or polypropylene or cemetery merchandise delivered to the purchaser or stored in an independent third-party storage facility not owned or controlled by the seller when approved by the commissioner. The seller or the storage facility must demonstrate that they will do all of the following:
a. Issue a receipt of ownership in the name of the purchaser and deliver it to the purchaser.
b. Insure the merchandise against loss.
c. Protect the merchandise against damage.
d. Transfer title to the purchaser.
e. Appropriately identify and describe the merchandise in a manner that it can be distinguished from other similar items.
f. Use a method of storage that allows for visual examinations of the merchandise.
g. Have adequate, computerized recordkeeping systems in place to identify, describe, and count each item in storage, including the ownership of each item, and provide an aggregate listing with numerical totals.
h. File a consent to be examined and inspected by the commissioner.
i. Provide reports to the commissioner, annually, by an independent certified public accountant, which shall include a physical count of merchandise held in storage and a review of information, including the seller’s revenue and sales records, as necessary to verify the adequacy of the number of items held at the storage facility.
j. Satisfy the annual reporting requirements of section 523A.204.
2. Lawn crypts may be delivered in lieu of trusting. For this purpose, delivery means installation in a grave owned by the purchaser. The seller shall do all of the following:
a. Notify the administrator before the lawn crypts are installed.
b. Identify the intended location of the lawn crypts within the cemetery.
c. Provide documentation adequately demonstrating delivery has occurred. Adequate documentation includes but is not limited to photographs and third-party certifications.
3. Cemetery merchandise and funeral merchandise shall not be deemed delivered to the purchaser or warehoused if the merchandise is subject to a lien or security interest by any party other than the seller.
4. A seller is prohibited from requiring delivery as a condition of the sale.
5. A seller shall provide services necessary for the installation or burial of outer burial containers sold by the seller. This subsection shall not require the seller to provide for the opening or closing of the interment or entombment space, unless the purchase agreement provides otherwise.
2001 Acts, ch 118, §31; 2007 Acts, ch 175, §14, 15, 62
Referred to in §523A.503, 523A.807
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.405 - Bond in lieu of trust fund.

523A.405 Bond in lieu of trust fund.
The commissioner shall, by rule, establish terms and conditions under which a seller may, in lieu of trust requirements, file with the commissioner a surety bond issued by a surety company authorized to do business and doing business in this state.
2001 Acts, ch 118, §32; 2001 Acts, ch 176, §74; 2007 Acts, ch 175, §63, 64; 2008 Acts, ch 1103, §4; 2008 Acts, ch 1123, §46; 2011 Acts, ch 62, §3; 2015 Acts, ch 128, §36, 50, 51
Referred to in §523A.807
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.502A - Sales agent annual reporting requirements.

523A.502A Sales agent annual reporting requirements.
1. No later than April 15, a sales agent shall file an annual report with the commissioner on a form prescribed by the commissioner describing each purchase agreement sold by the sales agent during the year. An annual report must be filed whether or not a sales agent sold any purchase agreements during the year and whether or not a sales agent is still an agent of a preneed seller or is still licensed by the commissioner.
2. All records maintained by the commissioner under this section shall be confidential pursuant to section 22.7, subsection 58, and shall not be made available for inspection or copying except upon the approval of the commissioner or the attorney general, or except when sought by the sales agent to whom the records relate. Such records shall be privileged and confidential in any judicial or administrative proceeding except any of the following:
a. An action commenced by the commissioner.
b. An administrative proceeding brought by the insurance division.
c. An action or proceeding which arises out of the criminal provisions of the laws of this state or of the United States.
d. An action brought by the insurance division or the attorney general to recover moneys for embezzlement, misappropriation, or misuse of trust funds.
3. The commissioner may impose a late fee of five dollars for each day after April 15 that a sales agent fails to file the sales agent’s annual report. The maximum late fee that may be imposed pursuant to this section is five hundred dollars. The fee shall be collected by the commissioner and deposited pursuant to section 505.7.
2007 Acts, ch 175, §18; 2009 Acts, ch 102, §2, 3; 2009 Acts, ch 181, §94; 2010 Acts, ch 1121, §26; 2015 Acts, ch 128, §40, 41, 50, 51; 2021 Acts, ch 181, §38, 39
Referred to in §22.7(58), 523A.502, 523A.807
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.505 - Duty to disclose.

523A.505 Duty to disclose.
1. A sales agent, and any person who owns at least five percent of a preneed seller business, shall have an ongoing duty to disclose to the commissioner all felony crimes and those misdemeanor-level crimes involving dishonesty or false statement for which the sales agent or person has been found guilty, or for which the sales agent or person has pled guilty or no contest. Such disclosure shall be made to the commissioner within thirty calendar days of the date that the sales agent or person has been found guilty by a court of competent jurisdiction, or of the date the sales agent or person pleads guilty or no contest.
2. A sales agent, and any person who owns at least five percent of a preneed seller business, shall have an ongoing duty to disclose to the commissioner all liens and judgments over twenty thousand dollars that have been entered against the sales agent or person, and all bankruptcy petitions that have been filed by the sales agent or person. Such disclosure shall be made to the commissioner within thirty calendar days of the date on which the lien or judgment is entered, or of the date on which the sales agent or person files a petition for bankruptcy.
2022 Acts, ch 1047, §4; 2022 Acts, ch 1153, §53
Referred to in §523A.807
NEW section
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.506 - Business continuity planning.

523A.506 Business continuity planning.
A preneed seller shall establish, implement, and maintain written procedures relating to business continuity and succession planning. The business continuity and succession plan shall be based upon the specific facts and circumstances of the preneed seller’s business model including the size of the preneed seller’s business, the types of services provided, and the number of physical locations established and maintained by the preneed seller. The plan must provide for all of the following:
1. The protection, secure backup, and recovery of the preneed seller’s business records.
2. Alternative forms of communication to ensure timely notice of all of the following to customers, key personnel, employees, vendors, and service providers:
a. A significant business interruption.
b. The death or unavailability of key personnel.
c. A disruption of service.
d. The cessation of business activities.
3. Reassignment of key duties to qualified individuals in the event of the death or unavailability of key personnel.
4. Minimization and mitigation of service disruptions and negative impacts to clients that may result from a significant business interruption.
2022 Acts, ch 1047, §5
NEW section
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.603 - Security and notice requirements.

523A.603 Security and notice requirements.
1. If a purchase agreement is funded with an insurance policy or an annuity, the purchaser shall receive a notice thereof from the insurance company within sixty days of making payment. The notice shall include the name and address of the insurance company, the policy number of the insurance policy that secures the agreement, the name of the insured under the insurance policy or annuity, and the amount of the accumulated death benefit. Delivery of the insurance policy or certificate or annuity shall satisfy this notice requirement.
2. If a purchase agreement is funded by a surety bond, the purchaser shall receive a notice from the surety company that evidences coverage under the bond, the name of the purchaser or beneficiary, and the amount of coverage. If the purchase agreement is paid with a single payment, the purchaser shall receive notice of the surety bond within sixty days of making the payment. If the purchase agreement is being paid with multiple, periodic payments, the purchaser shall receive notice of the surety bond within sixty days of making the first payment and within sixty days of making the last payment. Compliance with this notice requirement does not require a seller to purchase individual surety bonds for each purchaser and beneficiary. A seller may file a single bond with the commissioner.
2007 Acts, ch 175, §23; 2008 Acts, ch 1123, §51
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.604 - Purchase agreements — numbering.

523A.604 Purchase agreements — numbering.
Purchase agreements for cemetery merchandise, funeral merchandise, funeral services, or a combination thereof shall be sequentially numbered by each seller in compliance with procedures specified by the commissioner by rules adopted under chapter 17A.
2007 Acts, ch 175, §24
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.605 - Allocation of growth or interest.

523A.605 Allocation of growth or interest.
If a purchase agreement funded by insurance proceeds under section 523A.401 or by annuity proceeds under section 523A.402 includes nonguaranteed merchandise or services, the purchaser, beneficiary, or the beneficiary’s estate shall receive a credit for, and the benefit of, any growth in death benefits that is at least equal to the percentage of the total price under the purchase agreement that is attributable to the nonguaranteed merchandise or services.
2022 Acts, ch 1047, §6
Referred to in §523A.807
NEW section
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.701 - Misleading filings.

523A.701 Misleading filings.
It is unlawful for a person to make or cause to be made, in any document filed with the commissioner or in any proceeding under this chapter, any statement of material fact which is, at the time and in the light of the circumstances under which it is made, false or misleading, or in connection with such statement, to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading.
2001 Acts, ch 118, §38
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.702 - Misrepresentations of government approval.

523A.702 Misrepresentations of government approval.
It is unlawful for a seller under this chapter to represent or imply in any manner that the seller has been sponsored, recommended, or approved, or that the seller’s abilities or qualifications have in any respect been passed upon, by the commissioner.
2001 Acts, ch 118, §39
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.703 - Fraudulent practices.

523A.703 Fraudulent practices.
Except as otherwise provided in section 523A.704, a person who willfully commits any of the following acts commits a fraudulent practice and is punishable as provided in chapter 714:
1. Fails to comply with any requirement of this chapter, or any rule adopted or order issued under this chapter.
2. Makes, causes to be made, or subscribes to a false statement or representation in a report or other document required under this chapter, implementing rules, or orders, or renders such a report or document misleading through the deliberate omission of information properly belonging in the report or document.
3. In connection with the sale of cemetery merchandise, funeral merchandise, funeral services, or a combination thereof, directly or indirectly makes an untrue statement of a material fact or omits to state a material fact that is necessary to make the statements made, in light of the circumstances under which they were made, not misleading.
4. Unless the purchase agreement expressly provides otherwise, excludes in the sale of cemetery merchandise, funeral merchandise, or a combination thereof, funeral services that are necessary for the delivery, use, or installation of the cemetery merchandise or funeral merchandise at the time of the burial or funeral.
2001 Acts, ch 118, §40; 2007 Acts, ch 175, §25
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.704 - Violations.

523A.704 Violations.
A person who willfully violates section 523A.501, subsection 1, or section 523A.502, subsection 1, is guilty of a class “D” felony.
2007 Acts, ch 175, §26
Referred to in §523A.703
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.801 - Administration.

523A.801 Administration.
1. This chapter shall be administered by the commissioner. The commissioner may employ officers, attorneys, accountants, and other employees as needed for administering this chapter.
2. It is unlawful for the commissioner or any administrative staff to use for personal benefit any information which is filed with or obtained by the commissioner and which is not made public. This chapter does not authorize the commissioner or any such staff member to disclose any such information except among themselves or to other cemetery and funeral administrators, regulatory authorities, or governmental agencies, or when necessary and appropriate in a proceeding or investigation under this chapter or as required by chapter 22. This chapter neither creates nor derogates any privileges that exist at common law or otherwise when documentary or other evidence is sought under a subpoena directed to the commissioner or any administrative staff.
3. The commissioner shall submit an annual report to the general assembly’s standing committees on government oversight by October 1 of each year reporting on the administration of this chapter. The report shall set forth any recommendations for changes in the law that the commissioner deems necessary or desirable to prevent abuses or evasions of this chapter or rules implementing this chapter or to rectify undesirable conditions in connection with the administration of this chapter or rules implementing this chapter.
2001 Acts, ch 118, §41; 2007 Acts, ch 175, §27, 28; 2009 Acts, ch 86, §5
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.802 - Scope.

523A.802 Scope.
1. This chapter applies to any advertisement, sale, promotion, or offer made by a person to furnish, upon the future death of a person named or implied in a purchase agreement, cemetery merchandise, funeral merchandise, funeral services, or a combination thereof. Burial accounts and insurance policies are included if the account records or related documents identify the seller that will provide the cemetery merchandise, funeral merchandise, funeral services, or a combination thereof.
2. This chapter applies when a purchase agreement is executed within this state or an advertisement, promotion, or offer to furnish is made or accepted within this state. An offer to furnish is made within this state, whether or not either party is then present in this state, when the offer originates from this state or is directed by the offeror to this state and received by the offeree in this state through the mail, over the telephone, by the internet, or through any other means of commerce.
3. If a foreign person does not have a registered agent or agents in the state of Iowa, doing business within this state shall constitute the person’s appointment of the secretary of state of the state of Iowa to be its true and lawful attorney upon whom may be served all lawful process of original notice in actions or proceedings arising or growing out of any contract or tort.
2001 Acts, ch 118, §42; 2007 Acts, ch 175, §70
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.802A - Service of process made on the commissioner as the agent for service of process.

523A.802A Service of process made on the commissioner as the agent for service of process.
Service of process made on the commissioner as the agent for service of process shall be made as provided in section 505.30.
2018 Acts, ch 1018, §15
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.804 - Mediation.

523A.804 Mediation.
1. The commissioner may order a seller to participate in mediation in any dispute regarding a purchase agreement. Mediation performed under this section shall be conducted by a mediator appointed by the commissioner and shall comply with the provisions of chapter 679C.
2. Mediation of these disputes shall include attendance at a mediation session with the mediator and the parties to the dispute, listening to the mediator’s explanation of the mediation process, presentation of one party’s view of the dispute, and listening to the response of the other party. Participation in mediation does not require that the parties reach a mediation agreement.
3. Parties to the mediation shall have the right to advice and presence of counsel at all times. The parties to the mediation shall present any mediation agreement reached through the mediation to the commissioner. If a mediation agreement is not reached, the mediator shall file a report with the commissioner. The costs of the mediation shall be approved by the commissioner and shall be borne by the insurance division’s regulatory fund.
2001 Acts, ch 118, §44; 2007 Acts, ch 175, §72
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.805 - Cease and desist orders — injunctions.

523A.805 Cease and desist orders — injunctions.
If it appears to the commissioner that a person has engaged or is about to engage in an act or practice constituting a violation of this chapter, implementing rules, or orders issued under this chapter, the commissioner or the attorney general may do either or both of the following:
1. Issue a summary order directed at the person requiring the person to cease and desist from engaging in such act or practice. A person may request a hearing within thirty days of issuance of the summary order. If a hearing is not timely requested, the summary order shall become final by operation of law. The order shall remain effective from the date of issuance until the date the order becomes final by operation of law or is overturned by a presiding officer following a request for hearing. Section 17A.18A is inapplicable to summary cease and desist orders issued under this section.
2. Bring an action in the district court in any county of the state for an injunction to restrain a person subject to this chapter and any agents, employees, or associates of the person from engaging in conduct or practices deemed contrary to the public interest. In any proceeding for an injunction, the commissioner or attorney general may apply to the court for a subpoena to require the appearance of a defendant and the defendant’s agents and for any books, accounts, papers, correspondence, memoranda, purchase agreements, files, or other documents or records germane to the hearing upon the petition for an injunction. Upon a proper showing, a permanent or temporary injunction, restraining order, or writ of mandamus shall be granted and a receiver may be appointed for the defendant or the defendant’s assets. The commissioner or attorney general shall not be required to post a bond.
2001 Acts, ch 118, §45
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.806 - Court action for failure to cooperate.

523A.806 Court action for failure to cooperate.
1. If a person fails or refuses to file any statement or report or to produce any books, accounts, papers, correspondence, memoranda, purchase agreements, files, or other documents or records, or to obey any subpoena issued by the commissioner, the commissioner may refer the matter to the attorney general, who may apply to a district court to enforce compliance. The court may order any or all of the following:
a. Injunctive relief, restricting or prohibiting the offer or sale of cemetery merchandise, funeral merchandise, funeral services, or a combination thereof.
b. Revocation or suspension of any license issued under this chapter.
c. Production of documents or records including but not limited to books, accounts, papers, correspondence, memoranda, purchase agreements, files, or other documents or records.
d. Such other relief as may be required.
2. Such an order shall be effective until the person files the statement or report or produces the documents requested, or obeys the subpoena.
2001 Acts, ch 118, §46; 2007 Acts, ch 175, §73
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.808 - Cooperation with other agencies.

523A.808 Cooperation with other agencies.
1. To encourage uniform interpretation and administration of this chapter and effective regulation of the sale of cemetery merchandise, funeral merchandise, and funeral services, the commissioner may cooperate with any governmental law enforcement or regulatory agency.
2. This cooperation includes but is not limited to:
a. Making a joint examination or investigation.
b. Holding a joint administrative hearing.
c. Filing and prosecuting a joint civil or administrative proceeding.
d. Sharing and exchanging personnel.
e. Sharing and exchanging relevant information and documents.
f. Formulating, in accordance with chapter 17A, rules or proposed rules on matters such as statements of policy, regulatory standards, guidelines, and interpretive opinions.
2001 Acts, ch 118, §48
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.809 - Rules, forms, and orders.

523A.809 Rules, forms, and orders.
1. Under chapter 17A, the commissioner may from time to time make, amend, and rescind such rules, forms, and orders as are necessary or appropriate for the protection of purchasers and the public and to administer the provisions of this chapter, its implementing rules, and orders issued under this chapter.
2. A rule, form, or order shall not be made, amended, or rescinded unless the commissioner finds that the action is necessary or appropriate in the public interest or for the protection of purchasers and consistent with the purposes fairly intended by the policies and provisions of this chapter, its implementing rules, and orders issued under this chapter.
3. A provision of this chapter imposing any liability does not apply to any act done or omitted in good faith in conformity with any rule, form, or order of the commissioner, notwithstanding that the rule, form, or order may later be amended or rescinded or be determined by judicial or other authority to be invalid for any reason.
2001 Acts, ch 118, §49
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.810 - Date of filing — interpretive opinions.

523A.810 Date of filing — interpretive opinions.
1. A document is filed when it is received by the commissioner.
2. Requests for interpretive opinions may be granted in the commissioner’s discretion.
2001 Acts, ch 118, §50
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.811 - Receiverships.

523A.811 Receiverships.
1. The commissioner may notify the attorney general of the potential need for establishment of a receivership if a receivership is requested or consented to by a seller subject to this chapter.
2. The commissioner shall notify the attorney general of the potential need for establishment of a receivership if the commissioner finds that a seller subject to this chapter meets one or more of the following conditions:
a. Is insolvent.
b. Has utilized trust funds for personal or business purposes in a manner inconsistent with this chapter.
c. The amount of funds currently held in trust for cemetery merchandise, funeral merchandise, and funeral services is less than the amount required in section 523A.201, subsection 2 or 3, as applicable.
d. Has refused to pay any just claim or demand based on a purchase agreement referred to in section 523A.201.
e. The commissioner finds upon investigation that a seller is unable to pay any claim or demand based on a purchase agreement which has been legally determined to be just and outstanding.
f. A receivership has been established for a cemetery subject to chapter 523I that is owned or operated by a seller who is subject to this chapter.
3. The commissioner or attorney general may apply to the district court in any county of the state for the establishment of a receivership. Upon proof of any of the grounds for a receivership described in this section, the court may grant a receivership.
4. If a seller who is subject to this chapter owns or operates a cemetery subject to chapter 523I, for which a receivership has been established, the receivership provisions of section 523I.212 shall apply to any receivership established under this section.
2001 Acts, ch 118, §51; 2007 Acts, ch 175, §30, 31; 2008 Acts, ch 1103, §10; 2017 Acts, ch 14, §1
Referred to in §523A.812
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.812 - Insurance division regulatory fund.

523A.812 Insurance division regulatory fund.
The insurance division may authorize the creation of a special revenue fund in the state treasury, to be known as the insurance division regulatory fund. The commissioner shall allocate annually from the filing fees paid pursuant to section 523A.204, two dollars for each purchase agreement reported on a preneed seller’s annual report filed pursuant to section 523A.204 for deposit to the regulatory fund. The remainder of the fees collected pursuant to section 523A.204 shall be deposited as provided in section 505.7. The commissioner shall also allocate annually the examination fees paid pursuant to section 523A.814 and any examination expense reimbursement for deposit to the regulatory fund. The moneys in the regulatory fund shall be retained in the fund. The moneys are appropriated and, subject to authorization by the commissioner, may be used to pay examiners, examination expenses, investigative expenses, the expenses of mediation ordered by the commissioner, consumer education expenses, the expenses of a toll-free telephone line to receive consumer complaints, and the expenses of receiverships established under section 523A.811. If the commissioner determines that funding is not otherwise available to reimburse the expenses of a person who receives title to a cemetery subject to chapter 523I, pursuant to such a receivership, the commissioner shall use moneys in the regulatory fund as necessary to preserve, protect, restore, and maintain the physical integrity of that cemetery and to satisfy claims or demands for cemetery merchandise, funeral merchandise, and funeral services based on purchase agreements which the commissioner determines are just and outstanding.
2001 Acts, ch 118, §52; 2005 Acts, ch 128, §4; 2007 Acts, ch 175, §32; 2009 Acts, ch 181, §97; 2021 Acts, ch 181, §42
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.813 - License revocation — recommendation by commissioner to board of mortuary science.

523A.813 License revocation — recommendation by commissioner to board of mortuary science.
Upon a determination by the commissioner that grounds exist for an administrative license revocation or suspension action by the board of mortuary science under chapter 156, the commissioner may forward to the board the grounds for the determination, including all evidence in the possession of the commissioner, so that the board may proceed with the matter as deemed appropriate.
2001 Acts, ch 118, §53; 2007 Acts, ch 10, §178
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES › Section 523A.814 - Examination fee.

523A.814 Examination fee.
In addition to the filing fee paid pursuant to section 523A.204, subsection 2, a seller filing an annual report shall pay an examination fee in the amount of five dollars for each purchase agreement subject to a filing fee that is sold between July 1, 2005, and December 31, 2007, and in the amount of ten dollars for each purchase agreement subject to a filing fee that is sold after December 31, 2007.
2005 Acts, ch 128, §5; 2007 Acts, ch 175, §33
Referred to in §523A.812
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523C - RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS › Section 523C.2 - License required.

523C.2 License required.
1. A person shall not issue, offer for sale, or sell a motor vehicle service contract or residential service contract in this state unless the person is licensed as a service company under this chapter.
2. The licensure requirements of this chapter shall not apply to any person who provides support services or works under the direction of a licensed service company in connection with the issuance, offer for sale, or sale of a service contract in this state, including but not limited to a person who provides marketing, administrative, or technical support.
83 Acts, ch 87, §3; 93 Acts, ch 60, §7; 2019 Acts, ch 142, §2, 19
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523C - RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS › Section 523C.3 - Application for license.

523C.3 Application for license.
1. Application for a license as a service company shall be made to and filed with the commissioner on forms approved by the commissioner and shall include all of the following information:
a. The name and principal address of the applicant.
b. The state of incorporation of the applicant.
c. The name and address of the applicant’s registered agent for service of process within Iowa.
d. A certificate of good standing for the applicant issued by the secretary of state and dated not more than thirty days prior to the date of the application.
e. Evidence of compliance with section 523C.5.
f. A copy of each motor vehicle service contract form to be used or issued in this state, if applicable.
g. A copy of each residential service contract form to be used or issued in this state, if applicable.
2. The application shall be accompanied by all of the following:
a. A license fee in the amount of five hundred dollars.
b. If applicable, a fee in the amount of thirty-five dollars for each motor vehicle service contract form submitted in an application as provided in subsection 1, paragraph “f”.
3. If the application contains the required information and is accompanied by the items set forth in subsection 2, the commissioner shall issue the license. If the form of application is not properly completed or if the required accompanying documents are not furnished or in proper form, the commissioner shall not issue the license and shall give the applicant written notice of the grounds for not issuing the license. A notice of license denial shall be accompanied by a refund of fifty percent of the fee submitted with the application.
4. Fees collected under this section shall be deposited as provided in section 523C.24.
83 Acts, ch 87, §4; 88 Acts, ch 1112, §704; 92 Acts, ch 1078, §2; 2009 Acts, ch 181, §98; 2019 Acts, ch 142, §3, 19; 2021 Acts, ch 181, §43
Referred to in §523C.4
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523C - RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS › Section 523C.4 - License expiration and renewal.

523C.4 License expiration and renewal.
1. Each license issued under this chapter shall be valid for a period of one year and shall be renewed by August 31 of each year following the date of issuance.
2. An application for renewal shall include the information required for an initial license as described in section 523C.3, subsection 1.
3. The renewal application shall be accompanied by all of the following:
a. A license renewal fee in the amount of five hundred dollars.
b. If applicable, a fee in the amount of three percent of the aggregate amount of payments the licensee received for the sale or issuance of residential service contracts in this state during the preceding fiscal year, provided that such fee shall be no less than one hundred dollars and no greater than fifty thousand dollars.
c. If applicable, a fee in the amount of thirty-five dollars for each motor vehicle service contract form submitted with the renewal application pursuant to subsection 2, and as provided in section 523C.3, subsection 1, paragraph “f”.
d. Information regarding the number of motor vehicle service contracts or residential service contracts issued during the preceding fiscal year, the number canceled or expired during the preceding fiscal year, the number in effect at the end of the preceding fiscal year, and the amount of service contract fees received during the preceding fiscal year.
4. If the commissioner denies renewal of the license, the denial shall be in writing setting forth the grounds for denial and shall be accompanied by a refund of fifty percent of the license renewal fee.
5. In addition to the annual license renewal requirements as provided in this section, a licensee shall report to the commissioner any material change in information submitted by the licensee in its initial license application which has not been reported to the commissioner, including a change in contact information, a change in ownership, or any other change which substantially affects the licensee’s operations in this state.
83 Acts, ch 87, §5; 2019 Acts, ch 142, §4, 19; 2021 Acts, ch 181, §44
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523C - RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS › Section 523C.5 - Financial responsibility — demonstration requirements.

523C.5 Financial responsibility — demonstration requirements.
In order to assure the faithful performance of a service company’s obligations to its contract holders in this state, a licensed service company shall demonstrate financial responsibility to the commissioner by satisfying one of the following, as evidenced by the service company:
1. Insuring all motor vehicle service contracts and residential service contracts offered for sale in this state under a reimbursement insurance policy that complies with section 523C.6.
2. Doing both of the following:
a. Maintaining a funded reserve account for the service company’s obligations under any issued and outstanding service contracts in this state, in an amount no less than forty percent of gross consideration received, less claims paid, for the sale of all service contracts issued and in force in this state. The reserve account shall be subject to examination and review by the commissioner.
b. Placing in trust with the commissioner a financial security deposit in an amount no less than five percent of the gross consideration received by the service company, less claims paid, for the sale of all motor vehicle service contracts and residential service contracts issued and in force in this state, but not less than twenty-five thousand dollars, consisting of one of the following:
(1) Cash.
(2) Securities of the type eligible for deposit by insurers authorized to transact business in this state.
(3) Certificates of deposit.
(4) A surety bond issued by an authorized surety company.
(5) Another form of security as prescribed by the commissioner by rule.
3. Doing both of the following:
a. Maintaining, on its own or together with a parent company, a minimum net worth or stockholders’ equity of one hundred million dollars or more.
b. Upon request from the commissioner, providing either:
(1) A copy of the service company’s financial statements.
(2) If the service company’s financial statements are consolidated with those of its parent company, a copy of the parent company’s most recent form 10-K or form 20-F filed with the federal securities and exchange commission within the last calendar year, or if the parent company does not file with the federal securities and exchange commission, a copy of the parent company’s audited financial statements showing a net worth of at least one hundred million dollars. If the service company’s financial statements are consolidated with those of its parent company, the service company shall also provide a copy of a written agreement by the parent company guaranteeing the obligations of the service company under motor vehicle service contracts and residential service contracts issued and outstanding by the service company in this state.
83 Acts, ch 87, §6; 88 Acts, ch 1112, §705; 92 Acts, ch 1078, §3; 2012 Acts, ch 1023, §157; 2019 Acts, ch 142, §5, 19
Referred to in §523C.3, 523C.7, 523C.9, 523C.15
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523C - RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS › Section 523C.9 - Suspension or revocation of license.

523C.9 Suspension or revocation of license.
The commissioner may suspend or revoke or refuse to renew the license of a service company for any of the following grounds:
1. The service company violated a lawful order of the commissioner or any provision of this chapter.
2. The service company failed to pay any final judgment rendered against it in this state within sixty days after the judgment became final.
3. The service company has without just cause refused to perform or negligently or incompetently performed services required to be performed under its service contracts and the refusal, or negligent or incompetent performance, has occurred with such frequency, as determined by the commissioner, as to indicate the general business practices of the service company.
4. The service company violated section 523C.13.
5. The service company failed to demonstrate financial responsibility pursuant to section 523C.5.
6. The service company failed to maintain its corporate certificate of good standing with the secretary of state.
83 Acts, ch 87, §10; 2006 Acts, ch 1010, §146; 2019 Acts, ch 142, §8, 19; 2020 Acts, ch 1062, §60; 2020 Acts, ch 1063, §300; 2021 Acts, ch 76, §131
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523C - RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS › Section 523C.12 - Optional examination.

523C.12 Optional examination.
The commissioner or a designee of the commissioner may make an examination of the books and records of a service company, including copies of contracts and records of claims and expenditures, and verify its assets, liabilities, and reserves. The actual costs of the examination shall be borne by the service company. The costs of an examination under this section shall not exceed an amount equal to ten percent of the service company’s reported net income in the previous fiscal year.
83 Acts, ch 87, §13; 94 Acts, ch 1031, §18; 2019 Acts, ch 142, §9, 19
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523C - RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS › Section 523C.13 - Prohibited acts or practices — penalty — violations — contracts voided.

523C.13 Prohibited acts or practices — penalty — violations — contracts voided.
1. A licensed service company which offers motor vehicle service contracts for sale in this state, or its representative, shall not, directly or indirectly, represent in any manner, whether by written solicitation or telemarketing, a false, deceptive, or misleading statement with respect to any of the following:
a. Statements regarding the service company’s affiliation with a motor vehicle manufacturer or importer.
b. Statements regarding the validity or expiration of a warranty.
c. Statements regarding a motor vehicle service contract holder’s coverage under a motor vehicle service contract, including statements suggesting that the service contract holder must purchase a new service contract in order to maintain coverage under the existing service contract or warranty.
2. The commissioner may adopt rules which regulate motor vehicle service contracts and residential service contracts to prohibit misrepresentation, false advertising, defamation, boycotts, coercion, intimidation, false statements and entries and unfair discrimination or practices. If the commissioner finds that a person has violated the rules adopted under this section, the commissioner may order any or all of the following:
a. Payment of a civil penalty of not more than one thousand dollars for each and every act or violation, but not to exceed an aggregate of ten thousand dollars, unless the person knew or reasonably should have known the person was in violation of this section, in which case the penalty shall be not more than five thousand dollars for each and every act or violation, but not to exceed an aggregate penalty of fifty thousand dollars in any one six-month period. The commissioner shall, if it finds the violations of this section were directed, encouraged, condoned, ignored, or ratified by the employer of such person, assess such penalty to the employer and not such person. Any civil penalties collected under this subsection shall be deposited as provided in section 505.7.
b. Suspension or revocation of the license of a person, if the person knew or reasonably should have known the person was in violation of this section.
3. A violation of this chapter constitutes an unlawful practice pursuant to section 714.16.
4. A service contract issued or sold in this state is void if the person that issued or sold the service contract, at the time of issuance or sale, was not licensed as a service company under this chapter.
83 Acts, ch 87, §14; 92 Acts, ch 1078, §7; 2009 Acts, ch 181, §99; 2012 Acts, ch 1021, §101; 2019 Acts, ch 142, §10, 19
Referred to in §523C.9, 523C.17, 714H.3
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523C - RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS › Section 523C.15 - Annual report.

523C.15 Annual report.
A licensed service company that does not demonstrate financial responsibility by insuring service contracts under a reimbursement insurance policy as provided in section 523C.5, subsection 1, shall file with the commissioner an annual report no later than August 31 of each year. The annual report shall be in a form prescribed by the commissioner and contain all of the following:
1. A current financial statement including a balance sheet and statement of operations prepared in accordance with generally accepted accounting principles and certified by an independent certified public accountant.
2. Any other information relating to the performance and solvency of the service company required by the commissioner.
83 Acts, ch 87, §16; 2019 Acts, ch 142, §11, 19
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523C - RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS › Section 523C.16 - Exclusions.

523C.16 Exclusions.
This chapter does not apply to any of the following and the following do not constitute the practice of insurance:
1. A performance guarantee given by a builder of a residence or the manufacturer or seller or lessor of residential property if no identifiable charge is made for the guarantee.
2. A residential service contract, guarantee or warranty between a residential customer and a service company which will perform the work itself and not through subcontractors for the service, repair or replacement of residential property, appliances, or electrical, plumbing, heating, cooling or air-conditioning systems.
3. A contract between a service company issuing residential service contracts and a person who actually performs the maintenance, repairs, or replacements of structural components, or appliances, or electrical, plumbing, heating, cooling, or air-conditioning systems, if someone other than the service company actually performs these functions.
4. A residential service contract, guarantee or warranty issued by a retail merchant to a retail customer, guaranteeing or warranting the repair, service or replacement of appliances or electrical, plumbing, heating, cooling or air-conditioning systems sold by said retail merchant.
5. A residential service contract, guarantee, or warranty issued by a manufacturer, third party, or retail company, covering the repair, maintenance, or replacement of residential property, individual appliances, and other individual items of merchandise marketed and sold by a retail company, in the ordinary course of business.
6. A motor vehicle service contract issued by the manufacturer or importer of the motor vehicle covered by the service contract or to any third party acting in an administrative capacity on the manufacturer’s behalf in connection with that service contract.
7. A residential service contract involving residential property containing more than four dwelling units.
8. A warranty.
9. A motor vehicle service contract issued, offered for sale, or sold to any person other than a consumer.
10. A maintenance agreement.
83 Acts, ch 87, §17; 96 Acts, ch 1160, §10; 2019 Acts, ch 142, §12, 19
2023 Iowa Code › Title XIII - COMMERCE › Chapter 523C - RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS › Section 523C.17 - Lending institutions.

523C.17 Lending institutions.
A bank, savings association, insurance company, or other lending institution shall not require the purchase of a motor vehicle service contract or residential service contract as a condition of a loan or the sale of any property or motor vehicle. Violation of this section is punishable as provided in section 523C.13.
83 Acts, ch 87, §18; 93 Acts, ch 60, §10; 2012 Acts, ch 1017, §102; 2019 Acts, ch 142, §13, 19