191—105.5 (523A) Fidelity bond or insurance. A preneed seller shall obtain and maintain a fidelity bond or similar insurance in an amount not less than $50,000 to protect against the loss of purchaser payments not placed in trust, as required by Iowa Code section 523A.201(5) unless the preneed seller only uses the trusting alternatives set forth in Iowa Code sections 523A.401 to 523A.405 or unless the preneed seller deposits 100 percent of each payment into a trust fund. This requirement may be satisfied by a cash deposit held and administered in trust for the benefit and protection of purchasers and beneficiaries in this state, pursuant to a trust agreement filed with and acceptable to the commissioner.
[ARC 1975C, IAB 4/29/15, effective 6/3/15]