§ 523A.603 — Security and notice requirements

Iowa § 523A.603

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 523A: CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES

Text

1. Ifapurchaseagreementisfundedwithaninsurancepolicyoranannuity, thepurchaser
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. Ifapurchaseagreementisfundedbyasuretybond, thepurchasershallreceiveanotice
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.