§ 523a-601

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, andshall 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 agent by name and license number, the purchaser, and the person for whom the cemetery merchandise,funeral merchandise, funeral services, or a combination thereof is purchased, if other thanthe purchaser. b. Specify the cemetery merchandise, funeral merchandise, funeral services, or a combination thereof to be provided, and the cost of each merchandise item or service. c. State clearly the conditions upon which substitution will be allowed.d. State the total purchase price and the terms under which it is to be paid.e. State clearly whether the purchase agreement is a guaranteed price agreement or a nonguaranteed price agreement. A nonguaranteed price agreement shall contain in twelvepoint boldface type an explanation of the consequences of such agreement in substantiallythe following language: The prices of merchandise and services under this

ice agreement shall contain in twelvepoint boldface type an explanation of the consequences of such agreement in substantiallythe following language: The prices of merchandise and services under this agreement are subject to change in the future. Any funds paid under thisagreement are only a deposit to be applied, together with accruedincome, toward the final costs of the merchandise or servicesagreed upon. Additional charges may be incurred when additionalmerchandise or services or both are provided or when prices haveincreased more than accrued income. f. State that the purchase of the cemetery merchandise, funeral merchandise, and funeral services is revocable and specify the damages for cancellation, if any. g. State clearly who has the authority to cancel, amend, or revoke the purchase agreement to purchase cemetery merchandise, funeral merchandise, and funeral services. h. State clearly that the purchaser is entitled to rescind the purchase agreement under terms and conditions specified by section 523A.602. i. Include an explanation of regulatory oversight by the insurance division in twelve point boldface type, in substantially the following language: This agreement is

ns specified by section 523A.602. i. Include an explanation of regulatory oversight by the insurance division in twelve point boldface type, in substantially the following language: This agreement is subject to rules administered by the Iowa insurance division. You may call the insurance division at (telephone number). Written inquiries or complaints should be mailed to the Iowa securities and regulated industries bureau,(street address), (city), Iowa (zip code). 2. A purchase agreement that is funded by a trust shall also:a. State the percentage of money to be placed in trust.b. Explain the disposition of the income generated from investments and include a statement of the purchaser’s responsibility for income taxes owed on the income ifapplicable. c. State that if, after all payments are made under the conditions and terms of the purchase agreement for cemetery merchandise, funeral merchandise, funeral services, or acombination thereof, any funds remain in the nonguaranteed irrevocable burial trust fund,the seller shall disburse the remaining funds according to law. d. State clearly the terms of the funeral and burial trust agreement and whether it is revocable or irrevocable.

able burial trust fund,the seller shall disburse the remaining funds according to law. d. State clearly the terms of the funeral and burial trust agreement and whether it is revocable or irrevocable. e. State clearly that the purchaser is entitled to transfer the trust funding, insurance funding, or other trust assets or select another seller to receive the trust funding, insurancefunding, or any other trust assets. f. State clearly who has the authority to amend or revoke the trust agreement, if revocable, and who has the authority to appoint successor trustees if the purchase agreement is canceled. 3. The commissioner may adopt rules establishing disclosure and format requirements Sat Dec 23 00:59:14 2023 Iowa Code 2024, Section 523A.601 (36, 0) §523A.601, CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES 2 to promote consumer understanding of the merchandise and services purchased and theavailable funding mechanisms for a purchase agreement under this chapter. 4. All purchase agreements, including a purchase agreement delivered or executed by electronic means, must have a sales agent identified.

nding mechanisms for a purchase agreement under this chapter. 4. All purchase agreements, including a purchase agreement delivered or executed by electronic means, must have a sales agent identified. A purchase agreement, including apurchase agreement delivered or executed by electronic means, shall be reviewed by the salesagent identified and named in the purchase agreement pursuant to subsection 1, paragraph'a', and be signed by the purchaser and seller. If the purchase agreement is for mortuaryscience services as 'mortuary science' is defined in section 156.1, the purchase agreementmust also be signed by a person licensed to deliver funeral services. 5. The seller shall disclose the following information prior to accepting the initial payment under a purchase agreement: a. The specific method or methods, including but not limited to trust deposits, certificates of deposit, life insurance or an annuity, a surety bond, or warehousing, that will be used tofund the purchase agreement. b. The relationship between the soliciting agent or agents, the provider of the cemetery merchandise, funeral merchandise, or funeral services, or combination thereof, thecommissioner, and any other

b. The relationship between the soliciting agent or agents, the provider of the cemetery merchandise, funeral merchandise, or funeral services, or combination thereof, thecommissioner, and any other person. c. The relationship of the life insurance policy or other trust assets to the funding of the purchase agreement and the nature and existence of any guarantees regarding the purchaseagreement. d. The impact on the purchase agreement of the following:(1) Changes in the funding, including but not limited to changes in the assignment, beneficiary designation, trustee, or use of proceeds. (2) Any penalties to be incurred by the purchaser as a result of the failure to make any additional payments required. (3) Penalties to be incurred upon cancellation.e. A list of cemetery merchandise, funeral merchandise, and funeral services which are agreed upon under the purchase agreement and all relevant information concerning theprice of the cemetery merchandise, funeral merchandise, funeral services, or a combinationthereof, including a statement that the purchase price is either guaranteed at the time ofpurchase or to be determined at the time of need. f.

, funeral merchandise, funeral services, or a combinationthereof, including a statement that the purchase price is either guaranteed at the time ofpurchase or to be determined at the time of need. f. All relevant information concerning what occurs and whether any entitlements or obligations arise if there is a difference between the funding and the amount actually neededto fund the purchase agreement. g. Any penalties or restrictions, including but not limited to geographic restrictions or the inability of the provider to perform, upon delivery of cemetery merchandise, funeralmerchandise, or funeral services, or the purchase agreement guarantee. h. If the funding is being transferred from another seller, any material facts related to the revocation of the prior purchase agreement and the transfer of the existing trust funds. 6. a. (1) A guaranteed purchase agreement that is funded by a trust shall include a conspicuous statement in language substantially similar to the following language: For your prearranged funeral agreement, we will deposit not less than eighty percent of your payments in trust at (name of financialinstitution), (street address), (city), (state) (zip code)

anguage: For your prearranged funeral agreement, we will deposit not less than eighty percent of your payments in trust at (name of financialinstitution), (street address), (city), (state) (zip code) within fifteendays following receipt of the funds. For your protection, you will be notified within sixty days from the date of deposit by thefinancial institution, if acting as a trustee of trust funds under thischapter, to confirm that the deposit of these funds has been madeestablishing a trust fund as required by law. If you do not receivethis notification, you may contact the Iowa insurance division forassistance by calling the insurance division at (telephone number)or by mail at (street address), (city), Iowa (zip code), or you maycontact the financial institution by calling the financial institutionat (telephone number) or by mail at the address indicated above. Sat Dec 23 00:59:14 2023 Iowa Code 2024, Section 523A.601 (36, 0) (2) A nonguaranteed purchase agreement that is funded by a trust shall include a conspicuous statement in language substantially similar to the following language: For your prearranged funeral agreement, we will deposit all of your payments in trust at

by a trust shall include a conspicuous statement in language substantially similar to the following language: For your prearranged funeral agreement, we will deposit all of your payments in trust at (name of financial institution), (streetaddress), (city), (state) (zip code) within fifteen days followingreceipt of the funds. For your protection, you will be notified withinsixty days from the date of deposit by the financial institution, ifacting as a trustee of trust funds under this chapter, to confirmthat the deposit of these funds has been made establishing a trustfund as required by law. If you do not receive this notification, youmay contact the Iowa insurance division for assistance by callingthe insurance division at (telephone number) or by mail at (streetaddress), (city), Iowa (zip code), or you may contact the financialinstitution by calling the financial institution at (telephone number)or by mail at the address indicated above. b. A purchase agreement that is funded with an insurance policy or an annuity shall include a conspicuous statement in language substantially similar to the following language: An (insurance policy or annuity) will be purchased from (name of

h an insurance policy or an annuity shall include a conspicuous statement in language substantially similar to the following language: An (insurance policy or annuity) will be purchased from (name of issuer of the policy or annuity), (street address), (city), (state)(zip code). You should receive confirmation of the purchase ofan insurance policy or certificate or an annuity within sixty daysof making payment. Delivery of the actual insurance policy or certificate or annuity shall also constitute confirmation. For yourprotection, you have the right to confirm that the insurance policyor annuity is issued as required by law. If you do not receive confirmation that an insurance policy or certificate or an annuityhas been purchased or receive the insurance policy or certificateor the annuity, you should report this fact to the Iowa insurancedivision by calling the insurance division at (telephone number).Written reports should be mailed to the Iowa insurance division at(street address), (city), Iowa (zip code). c. A purchase agreement that is funded with a surety bond shall include a conspicuous statement in language substantially similar to the following language: Coverage under a

(city), Iowa (zip code). c. A purchase agreement that is funded with a surety bond shall include a conspicuous statement in language substantially similar to the following language: Coverage under a surety bond in the amount of $(amount) will be purchased from (name of issuer of surety bond), (street address),(city), (state) (zip code) to fund your purchase. If you pay pursuantto your purchase agreement with a single payment, you shouldreceive confirmation of the purchase of a surety bond within sixtydays of making the payment. If you pay pursuant to your purchaseagreement with multiple, periodic payments, you should receiveconfirmation of the purchase of a surety bond within sixty days ofmaking the first payment and within sixty days of making the lastpayment pursuant to the agreement. For your protection, you havethe right to confirm that the surety bond is issued as required bylaw. If you do not receive confirmation of coverage under a suretybond within sixty days of making the first payment and withinsixty days of making the last payment, you should report this factto the Iowa insurance division by calling the insurance division at(telephone number).

xty days of making the first payment and withinsixty days of making the last payment, you should report this factto the Iowa insurance division by calling the insurance division at(telephone number). Written reports should be mailed to the Iowainsurance division at (street address), (city), Iowa (zip code). 2001 Acts, ch 118, §36; 2002 Acts, ch 1119, §84; 2006 Acts, ch 1117, §116; 2007 Acts, ch 175, §21, 22, 65, 66; 2008 Acts, ch 1103, §8; 2008 Acts, ch 1191, §140; 2010 Acts, ch 1121, §27; Sat Dec 23 00:59:14 2023 Iowa Code 2024, Section 523A.601 (36, 0) §523A.601, CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES 4 2011 Acts, ch 62, §4; 2013 Acts, ch 90, §157; 2019 Acts, ch 24, §79; 2021 Acts, ch 181, §40;2022 Acts, ch 1032, §88 Referred to in §523A.602 Sat Dec 23 00:59:14 2023 Iowa Code 2024, Section 523A.601 (36, 0)