House Journal: Page 1336: Monday, April 23, 2001
33 the seller, the provider, the burial trust fund, and
34 any trustee shall not be liable to the director, the
35 estate of the deceased, any personal representative,
36 or any other interested person for the remaining funds
37 and any lien imposed by the director shall be
38 unenforceable against the seller, the burial trust
39 fund, or any trustee.
40 SUBCHAPTER 4
41 TRUSTING ALTERNATIVES
42 Sec. . NEW SECTION. 523A.401 PURCHASE
43 AGREEMENTS FUNDED BY INSURANCE PROCEEDS.
44 1. A purchase agreement may be funded by insurance
45 proceeds derived from a new or existing insurance
46 policy issued by an insurance company authorized to do
47 business and doing business within this state.
48 2. Such funding may be in lieu of the trusting
49 requirements of this chapter when the purchaser
50 assigns the proceeds of an existing insurance policy.
Page 16
1 3. Such funding may be in lieu of the trusting
2 requirements of this chapter when a new insurance
3 policy is purchased to fund the purchase agreement,
4 with a face amount equal to or greater than the
5 current retail price of the cemetery merchandise,
6 funeral merchandise, and funeral services to be
7 delivered under the purchase agreement or, if less, a
8 face amount equal to the total of all payments to be
9 submitted by the purchaser pursuant to the purchase
10 agreement.
11 4. The premiums of any new insurance policy shall
12 be fully paid within thirty days after execution of
13 the purchase agreement or, with respect to a purchase
14 agreement that provides for periodic payments, the
15 premiums shall be paid directly by the purchaser to
16 the insurance company issuing the policy.
17 5. Any new insurance policy shall satisfy the
18 following conditions:
19 a. Except as necessary and appropriate to satisfy
20 the requirements regarding burial trust funds under
21 Title XIX of the federal Social Security Act, the
22 policy shall not be owned by the establishment, the
23 policy shall not be irrevocably assigned to the
24 establishment, and the assignment of proceeds from the
25 insurance policy to the establishment shall be limited
26 to the establishment's interests as they appear in the
27 purchase agreement, and conditioned on the
28 establishment's delivery of cemetery merchandise,
29 funeral merchandise, and funeral services pursuant to
30 a purchase agreement.
31 b. The policy shall provide that any assignment of
© 2001 Cornell College and
League of Women Voters of Iowa
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