Iowa Code § 523A.101
Short title
This chapter may be cited as the “Iowa Cemetery and Funeral Merchandise and Funeral Services Act”.
Iowa Code Chapter 523A — Cemetery and Funeral Merchandise and Funeral Services
Iowa · statute · Iowa Code ch. 523A · 49 active provisions
Provisions
Iowa Code § 523A.102
Definitions
For purposes of this chapter, unless the context otherwise requires: 1. “Authorized to do business within this state” means a person licensed, registered, or subject to regulation by an agency of the state of Iowa or who has filed a consent to service of process with the commissioner for purposes of this chapter. 2. “B…
Iowa Code § 523A.201
Establishment of trust funds
Unless proceeding under section 523A.401, 523A.402, or 523A.403, a seller must establish a trust fund prior to advertising, selling, promoting, or offering cemetery merchandise, funeral merchandise, funeral services, or a combination thereof in this state as follows: 1. The trust fund must be established at a financial…
Iowa Code § 523A.202
Trust fund deposit requirements
1. All funds held in trust pursuant to section 523A.201 shall be deposited in a financial institution within fifteen days following receipt of the funds. The financial institution shall hold the funds for the designated beneficiary until released. 2. All funds required to be deposited by the purchaser or the seller for…
Iowa Code § 523A.203
Financial institution trustees — qualification and investment requirements
1. A financial institution may serve as a trustee if granted those powers under the laws of this state or of the United States. A financial institution acting as a trustee of trust funds under this chapter shall invest the funds in accordance with applicable law. 2. A financial institution acting as a trustee of trust…
Iowa Code § 523A.204
Preneed seller annual reporting requirements
1. A preneed seller shall file an annual report with the commissioner not later than April 15 on a form prescribed by the commissioner. 2. A preneed seller filing an annual report shall pay a filing fee of ten dollars per purchase agreement sold during the year covered by the report. Duplicate filing fees are not requi…
Iowa Code § 523A.205
Financial institution annual reporting requirements
1. A financial institution shall file with the commissioner not later than March 1 of each year an annual report on a form prescribed by the commissioner showing all funds deposited by a seller under a trust agreement during the previous year. Each report shall contain all information requested. 2. All records maintain…
Iowa Code § 523A.206
Examinations — authority and scope
1. The commissioner may conduct an examination under this chapter of any seller as often as the commissioner deems appropriate. If a seller has a trust arrangement, the commissioner shall conduct an examination of such seller doing business in this state not less than once every five years unless the seller has provide…
Iowa Code § 523A.207
Transfer of preneed purchase agreements sale of a business or business assets
1. A purchase agreement shall not be sold or transferred as part of the sale of a business, or of the assets of a business, until the seller of the business has provided all of the following to the buyer of the business: a. A copy of the most recent annual report filed with the commissioner by the seller. b. The aggreg…
Iowa Code § 523A.301
Definition
As used in sections 523A.302 and 523A.303, “director” means the director of health and human services.
Iowa Code § 523A.302
Identification of merchandise and service provider
If a burial trust fund identifies, either in the trust fund records or in a related purchase agreement, the seller who will provide the cemetery merchandise, funeral merchandise, funeral services, or a combination thereof, the trust fund records or the related purchase agreements must contain a statement signed by an a…
Iowa Code § 523A.303
Disbursement of remaining funds
1. If funds remain in a nonguaranteed irrevocable burial trust fund or from the proceeds of an insurance policy or annuity made payable or assigned to the seller or a provider after the payment of funeral and burial expenses in accordance with the conditions and terms of the purchase agreement for cemetery merchandise,…
Iowa Code § 523A.401
Purchase agreements funded by insurance proceeds
1. A purchase agreement may be funded by insurance proceeds derived from a new or existing insurance policy issued by an insurance company authorized to do business and doing business within this state. 2. Such funding may be in lieu of the trusting requirements of this chapter when the purchaser assigns the proceeds o…
Iowa Code § 523A.402
Purchase agreements funded by annuity proceeds
1. A purchase agreement may be funded by proceeds derived from a new or existing annuity issued by an insurance company authorized to do business and doing business within this state. 2. Such funding may be in lieu of the trust requirements of this chapter when the purchaser assigns the proceeds of an existing annuity.…
Iowa Code § 523A.403
Purchase agreements funded by certificates of deposit
1. A purchase agreement may be funded by proceeds derived from a certificate of deposit in the name of the purchaser made payable to the seller upon the purchaser’s death. 2. The seller of a purchase agreement subject to this chapter which is to be funded by a certificate of deposit shall obtain all permits required to…
Iowa Code § 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…
Iowa Code § 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.
Iowa Code § 523A.501
Preneed sellers — licenses
1. A person shall not advertise, sell, promote, or offer to furnish cemetery merchandise, funeral merchandise, funeral services, or a combination thereof when performance or delivery may be more than one hundred twenty days following the initial payment on the account unless the person has a preneed seller’s license. 2…
Iowa Code § 523A.502
Sales agents — licenses
1. A person shall not advertise, sell, promote, or offer to furnish cemetery merchandise, funeral merchandise, funeral services, or a combination thereof when performance or delivery may be more than one hundred twenty days following initial payment on the account unless the person has a sales license and is a sales ag…
Iowa Code § 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 whe…
Iowa Code § 523A.503
Denial, suspension, revocation, and surrender of licenses
1. The commissioner may, pursuant to chapter 17A, deny any license application, or immediately suspend, revoke, or otherwise impose disciplinary action related to any license issued under section 523A.501 or 523A.502 for several reasons, including but not limited to: a. Committing a fraudulent act, engaging in a fraudu…
Iowa Code § 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 th…
Iowa Code § 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 bus…
Iowa Code § 523A.601
Disclosures
1. A purchase agreement for cemetery merchandise, funeral merchandise, funeral services, or a combination thereof shall be written in clear, understandable language, and shall be printed or typed in an easy-to-read font, size, and style, and shall: a. Identify the preneed seller by name and license number, the sales ag…
Iowa Code § 523A.602
Consumer rescission, cancellation, and refund rights — purchase agreement compliance with other laws
1. A seller shall furnish the purchaser with a completed copy of a purchase agreement pertaining to the sale at the time the purchase agreement is signed. The seller shall comply with the following terms: a. The same language shall be used in both the oral sales representation and the written purchase agreement. b. The…
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