House Journal: Page 1338: Monday, April 23, 2001
31 until the cemetery merchandise, funeral merchandise,
32 and funeral services have been delivered.
33 7. The seller of a purchase agreement subject to
34 this chapter which is to be funded by insurance
35 proceeds shall obtain all permits required to be
36 obtained and comply with all reporting requirements
37 under this chapter.
38 8. An insurance company issuing policies funding
39 purchase agreements subject to this chapter shall file
40 an annual report with the commissioner on a form
41 prescribed by the commissioner. The report shall list
42 the applicable insurance policies outstanding for each
43 establishment. Computer printouts may be submitted so
44 long as each legibly provides the same information
45 required in the prescribed form.
46 Sec. . NEW SECTION. 523A.402 PURCHASE
47 AGREEMENTS FUNDED BY ANNUITY PROCEEDS.
48 1. A purchase agreement may be funded by proceeds
49 derived from a new or existing annuity issued by an
50 insurance company authorized to do business and doing
Page 18
1 business within this state.
2 2. Such funding may be in lieu of the trust
3 requirements of this chapter when the purchaser
4 assigns the proceeds of an existing annuity.
5 3. Such funding may be in lieu of the trust
6 requirements of this chapter when a new annuity is
7 purchased to fund the purchase agreement, with a face
8 amount equal to or greater than the current retail
9 price of the cemetery merchandise, funeral
10 merchandise, and funeral services to be delivered
11 under the purchase agreement or, if less, a face
12 amount equal to the total of all payments to be
13 submitted by the purchaser pursuant to the purchase
14 agreement.
15 4. The premiums of any new annuity shall be fully
16 paid within thirty days after execution of the
17 purchase agreement or, with respect to a purchase
18 agreement that provides for periodic payments, the
19 premiums shall be paid directly by the purchaser to
20 the insurance company issuing the annuity.
21 5. The annuity shall satisfy the following
22 conditions:
23 a. Except as necessary and appropriate to satisfy
24 the requirements regarding burial trust funds under
25 Title XIX of the federal Social Security Act, the
26 annuity shall not be owned by the establishment or
27 irrevocably assigned and any designation of the
28 establishment as a beneficiary shall not be made
29 irrevocable.
© 2001 Cornell College and
League of Women Voters of Iowa
Comments about this site or page?
hjourn@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Tue Apr 24 13:35:00 CDT 2001
URL: /DOCS/GA/79GA/Session.1/HJournal/01300/01338.html
jhf