2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 523C - RESIDENTIAL SERVICE CONTRACTS
523C.8 - REBATES AND COMMISSIONS.

        523C.8  REBATES AND COMMISSIONS.
         1.  Except as provided in subsection 2, a service company shall
      not pay a commission or any other consideration to any person as an
      inducement or compensation for the issuance, purchase, or acquisition
      of a residential service contract.
         2.  This section does not prohibit any of the following:
         a.  The payment of an override commission or marketing fee to
      an employee or commission sales agent who is a marketing or sales
      representative of the service company or its parent company,
      subsidiary, or affiliate on the sale or marketing of a residential
      service contract, provided the employee or commission sales agent is
      not a real estate licensee sharing in or entitled to share in, or
      affiliated with, a company or organization which is entitled to share
      in any real estate commission generated by the underlying real
      property transaction.
         b.  Fees, payments, or reimbursements for a bona fide
      inspection, if an inspection of the property to be the subject of a
      residential service contract is required by a service company and if
      the inspection fee is reasonably related to the services performed.
         3.  The division may adopt rules identifying types of fees,
      payments, or reimbursements that do not constitute an inducement or
      compensation for the issuance, purchase, or acquisition of a
      residential service contract.  

         83 Acts, ch 87, § 9; 92 Acts, ch 1078, § 5; 93 Acts, ch 60, §8; 99
      Acts, ch 166, §13