House Journal: Page 1353: Monday, April 23, 2001
16 funeral merchandise, and funeral services upon written
17 demand and designate or appoint a trustee to hold,
18 manage, invest, and distribute the trust assets.
19 b. If a purchase agreement is canceled, a
20 purchaser requests a transfer of the trust assets upon
21 cancellation of a purchase agreement, or another
22 establishment provides merchandise or services
23 designated in a purchase agreement, the seller shall
24 refund or transfer within thirty days of receiving a
25 written demand no less than the purchase price of the
26 applicable cemetery merchandise, funeral merchandise,
27 and funeral services adjusted for inflation, using the
28 consumer price index amounts announced by the
29 commissioner annually, less any cancellation penalty
30 set forth in the purchase agreement. The amount of
31 the cancellation penalty shall not exceed ten percent
32 of the purchase price of the applicable cemetery
33 merchandise, funeral merchandise, and funeral
34 services. The seller may also deduct the value of the
35 cemetery merchandise, funeral merchandise, and funeral
36 services already received by, delivered to, or
37 warehoused for the purchaser.
38 c. A purchase agreement must include a statement
39 that the purchaser is entitled to a refund of the
40 purchase price of the applicable funeral merchandise
41 adjusted for inflation, using the consumer price index
42 amounts announced by the commissioner annually for any
43 item of funeral merchandise that cannot be delivered
44 to the location specified in the purchase agreement
45 within forty-eight hours of notice of the individual's
46 death, unless the delay is caused by weather
47 conditions or a natural disaster. The seller must
48 return such refund to the purchaser within thirty days
49 of receiving the written demand.
50 3. This section does not prohibit a purchaser who
Page 33
1 is or may become eligible for benefits under Title XIX
2 of the federal Social Security Act from making a
3 guaranteed price purchase agreement irrevocable to the
4 extent that federal law or regulations require that
5 such an agreement be irrevocable for purposes of a
6 purchaser's eligibility for benefits under Title XIX
7 of the federal Social Security Act, as permitted under
8 federal law. The seller of credit sale agreements
9 shall comply with the requirements of chapter 537, the
10 Iowa consumer credit code, and is subject to the
11 remedies and penalties provided in that chapter for
12 noncompliance.
13 SUBCHAPTER 7
14 FRAUDULENT PRACTICES
© 2001 Cornell College and
League of Women Voters of Iowa
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