2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 516E - MOTOR VEHICLE SERVICE CONTRACTS
516E.2 - REQUIREMENTS FOR DOING BUSINESS -- REGISTRATION -- FEE.

        516E.2  REQUIREMENTS FOR DOING BUSINESS --
      REGISTRATION -- FEE.
         1.  A service contract shall not be issued, sold, or offered for
      sale in this state unless the service company does all of the
      following:
         a.  Provides a receipt for the purchase of the service
      contract to the service contract holder.
         b.  Provides a copy of the service contract to the service
      contract holder within a reasonable period of time after the date of
      purchase of the service contract.
         2.  A service company shall not issue a service contract or
      arrange to perform services pursuant to a service contract unless the
      service company is registered with the commissioner.  A service
      company shall file a registration with the commissioner annually, on
      a form prescribed by the commissioner, accompanied by a registration
      fee in the amount of five hundred dollars.  Fees collected under this
      subsection shall be deposited as provided in section 505.7.
         3.  In order to assure the faithful performance of a service
      company's obligations to its service contract holders, service
      contracts shall be secured by a reimbursement insurance policy in
      compliance with the requirements set forth in section 516E.4 or the
      service company shall comply with the financial responsibility and
      security standards set forth in section 516E.21.
         4. a.  The commissioner may issue an order denying,
      suspending, or revoking any registration if the commissioner finds
      that the order is in the public interest and finds any of the
      following:
         (1)  The registration is incomplete in any material respect or
      contains any statement which, in light of the circumstances under
      which the registration was made, is determined by the commissioner to
      be false or misleading with respect to any material fact.
         (2)  A provision of this chapter or a rule, order, or condition
      lawfully imposed under this chapter, has been willfully violated in
      connection with the sale of service contracts by any of the following
      persons:
         (a)  The person filing the registration, but only if the person
      filing the registration is directly or indirectly controlled by or
      acting for the service company.
         (b)  The service company, any partner, officer, or director of the
      service company or any person occupying a similar status or
      performing similar functions for the service company, or any person
      directly or indirectly controlling or controlled by the service
      company.
         (3)  The service company has not filed a document or information
      required under this chapter.
         (4)  The service company's literature or advertising is
      misleading, incorrect, incomplete, or deceptive.
         (5)  The service company has failed to pay the proper filing fee.
      However, the commissioner shall vacate an order issued pursuant to
      this paragraph when the proper fee has been paid.
         b.  The commissioner may vacate or modify an order issued
      under this subsection if the commissioner finds that the conditions
      which prompted the entry of the order have changed or that it is
      otherwise in the public interest to do so.  

         Section History: Recent Form

         85 Acts, ch 45, §2
         CS85, §321I.2
         90 Acts, ch 1145, § 2; 2000 Acts, ch 1147, §3, 15
         C2001, §516E.2
         2005 Acts, ch 70, §26; 2006 Acts, ch 1117, §79, 80; 2009 Acts, ch
      181, §82
         Referred to in § 516E.21 

         Footnotes

         For future repeal of 2009 amendment to subsection 2, effective
      July 1, 2011, see 2009 Acts, ch 179, §146