Iowa · statute · Iowa Code ch. 523C · 20 active provisions
As used in this chapter, unless the context otherwise requires: 1. “Commissioner” means the commissioner of insurance. 2. “Licensed service company” means a service company which is licensed by the commissioner pursuant to this chapter. 3. “Maintenance agreement” means a contract of any duration that provides for sched…
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 un…
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…
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, paragraphs “a” throug…
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 c…
1Requirements. A reimbursement insurance policy insuring a motor vehicle service contract or residential service contract issued, sold, or offered for sale in this state shall provide for all of the following: a. The reimbursement insurance policy shall obligate the insurer that issued such policy to reimburse or pay o…
1. A motor vehicle service contract or residential service contract shall not be issued, sold, or offered for sale in this state unless the service company does all of the following: a. Provides a receipt for the purchase of the service contract to the service contract holder. b. Provides a copy of the service contract…
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 with…
The commissioner may adopt rules under chapter 17A to implement this chapter.
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…
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. Sta…
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 pre…
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 co…
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.
1. Upon the commissioner’s determination that a person has engaged, is engaging, or is about to engage in any act or practice constituting a violation of this chapter or any rule adopted pursuant to this chapter, the commissioner may issue an order directing the person to cease and desist from engaging in the act or pr…
If a person engages in conduct subject to regulation under this chapter, the conduct shall constitute the appointment of the commissioner of insurance as the person’s attorney to receive service of process in a noncriminal proceeding against the person, a successor, or personal representative, which grows out of that c…
The commissioner shall be the agent for service of process upon a service company. Service of process made on the commissioner as the agent for service of process shall be made as provided in section 505.30.
A licensed service company shall promptly provide a written explanation to the service contract holder, describing the reasons for denying a claim or for the offer of a compromise settlement, based on all relevant facts or legal requirements and referring to applicable provisions of the service contract.
1. a. In enforcing this chapter, the commissioner may conduct a public or private investigation in order to do any of the following: 1. Determine whether a person has violated or is about to violate a provision of this chapter or a rule or order under this chapter. 2. Aid in the enforcement of this chapter or in the pr…
1. A service company oversight fund is created in the state treasury as a separate fund under the control of the commissioner. The fund shall consist of all moneys deposited in the fund pursuant to subsection 2. 2. The commissioner shall deposit in the service company oversight fund an amount equal to one-third of all…