House Journal: Page 1351: Monday, April 23, 2001
18 irrevocable burial trust fund, the seller shall
19 disburse the remaining funds according to law.
20 d. State clearly the terms of the funeral and
21 burial trust agreement and whether it is revocable or
22 irrevocable.
23 e. State clearly that the purchaser is entitled to
24 transfer the trust funding, insurance funding, or
25 other trust assets or select another establishment to
26 receive the trust funding, insurance funding, or any
27 other trust assets.
28 f. State clearly who has the authority to amend or
29 revoke the trust agreement, if revocable, and who has
30 the authority to appoint successor trustees if the
31 purchase agreement is canceled.
32 3. The commissioner may adopt rules establishing
33 disclosure and format requirements to promote consumer
34 understanding of the merchandise and services
35 purchased and the available funding mechanisms for a
36 purchase agreement under this chapter.
37 4. A purchase agreement shall be signed by the
38 purchaser, the seller, and if the agreement is for
39 funeral services as defined in chapter 156, a person
40 licensed to deliver funeral services.
41 5. The seller shall disclose the following
42 information prior to accepting the initial payment
43 under a purchase agreement:
44 a. The specific method or methods (trust deposits,
45 certificates of deposit, life insurance or an annuity,
46 a surety bond, or warehousing) that will be used to
47 fund the purchase agreement.
48 b. The relationship between the soliciting agent
49 or agents, the provider of the cemetery merchandise,
50 funeral merchandise, or funeral services, or
Page 31
1 combination thereof, the commissioner, and any other
2 person.
3 c. The relationship of the life insurance policy
4 or other trust assets to the funding of the purchase
5 agreement and the nature and existence of any
6 guarantees regarding the purchase agreement.
7 d. The impact on the purchase agreement of the
8 following:
9 (1) Changes in the funding, including but not
10 limited to changes in the assignment, beneficiary
11 designation, trustee, or use of proceeds.
12 (2) Any penalties to be incurred by the purchaser
13 as a result of the failure to make any additional
14 payments required.
15 (3) Penalties to be incurred upon cancellation.
16 e. A list of cemetery merchandise, funeral
© 2001 Cornell College and
League of Women Voters of Iowa
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