House Journal: Page 1350: Monday, April 23, 2001
19 under which it is to be paid.
20 e. State clearly whether the purchase agreement is
21 a guaranteed price agreement or a nonguaranteed price
22 agreement. A nonguaranteed price agreement shall
23 contain in twelve point bold-faced type an explanation
24 of the consequences of such agreement in substantially
25 the following language:
26 THE PRICES OF MERCHANDISE AND SERVICES UNDER THIS
27 AGREEMENT ARE SUBJECT TO CHANGE IN THE FUTURE. ANY
28 FUNDS PAID UNDER THIS AGREEMENT ARE ONLY A DEPOSIT TO
29 BE APPLIED, TOGETHER WITH ACCRUED INCOME, TOWARD THE
30 FINAL COSTS OF THE MERCHANDISE OR SERVICES AGREED
31 UPON. ADDITIONAL CHARGES MAY BE INCURRED WHEN
32 ADDITIONAL MERCHANDISE OR SERVICES OR BOTH ARE
33 PROVIDED OR WHEN PRICES HAVE INCREASED MORE THAN
34 ACCRUED INCOME.
35 f. State that the purchase of the cemetery
36 merchandise, funeral merchandise, and funeral services
37 is revocable and specify the damages for cancellation,
38 if any.
39 g. State clearly who has the authority to cancel,
40 amend, or revoke the purchase agreement to purchase
41 cemetery merchandise, funeral merchandise, and funeral
42 services.
43 h. State clearly that the purchaser is entitled to
44 rescind the purchase agreement under terms and
45 conditions specified by section 523A.602.
46 i. Include an explanation of regulatory oversight
47 by the insurance division in twelve point bold-faced
48 type, in substantially the following language:
49 THIS AGREEMENT IS SUBJECT TO RULES ADMINISTERED BY
50 THE IOWA INSURANCE DIVISION. YOU MAY CALL THE
Page 30
1 INSURANCE DIVISION AT (___) ________. WRITTEN
2 INQUIRIES OR COMPLAINTS SHOULD BE MAILED TO THE IOWA
3 SECURITIES BUREAU, (STREET ADDRESS), (CITY), IOWA (ZIP
4 CODE).
5 2. A purchase agreement that is funded by a trust
6 shall also:
7 a. State the percentage of money to be placed in
8 trust.
9 b. Explain the disposition of the income generated
10 from investments and include a statement of the
11 purchaser's responsibility for income taxes owed on
12 the income if applicable.
13 c. State that if, after all payments are made
14 under the conditions and terms of the purchase
15 agreement for cemetery merchandise, funeral
16 merchandise, funeral services, or a combination
17 thereof, any funds remain in the nonguaranteed
© 2001 Cornell College and
League of Women Voters of Iowa
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