House Journal: Page 1340: Monday, April 23, 2001
29 each converted purchase agreement prior to conversion
30 until the cemetery merchandise, funeral merchandise,
31 and funeral services have been delivered.
32 7. The seller of a purchase agreement subject to
33 this chapter which is to be funded by annuity proceeds
34 shall obtain all permits required to be obtained and
35 comply with all reporting requirements under this
36 chapter.
37 8. An insurance company issuing annuities funding
38 purchase agreements subject to this chapter shall file
39 an annual report with the commissioner on a form
40 prescribed by the commissioner. The report shall list
41 the applicable annuities outstanding for each
42 establishment. Computer printouts may be submitted so
43 long as each legibly provides the same information
44 required in the prescribed form.
45 Sec. . NEW SECTION. 523A.403 PURCHASE
46 AGREEMENTS FUNDED BY CERTIFICATES OF DEPOSIT.
47 1. A purchase agreement may be funded by proceeds
48 derived from a certificate of deposit in the name of
49 the purchaser made payable to the seller upon the
50 purchaser's death.
Page 20
1 2. The seller of a purchase agreement subject to
2 this chapter which is to be funded by a certificate of
3 deposit shall obtain all permits required to be
4 obtained and comply with all reporting requirements
5 under this chapter, implementing rules, and orders.
6 Sec. . NEW SECTION. 523A.404 MERCHANDISE
7 DELIVERED TO THE PURCHASER OR WAREHOUSED.
8 1. Trust requirements do not apply to payments for
9 outer burial containers made of either polystyrene or
10 polypropylene or cemetery merchandise delivered to the
11 purchaser or stored in an independent third-party
12 storage facility not owned or controlled by the seller
13 when approved by the commissioner. The seller or the
14 storage facility must demonstrate that they will do
15 all of the following:
16 a. Issue a receipt of ownership in the name of the
17 purchaser and deliver it to the purchaser.
18 b. Insure the merchandise against loss.
19 c. Protect the merchandise against damage.
20 d. Transfer title to the purchaser.
21 e. Appropriately identify and describe the
22 merchandise in a manner that it can be distinguished
23 from other similar items.
24 f. Use a method of storage that allows for visual
25 audits of the merchandise.
26 g. Have adequate, computerized, recordkeeping
27 systems in place to identify, describe, and count each
© 2001 Cornell College and
League of Women Voters of Iowa
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