2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 523A - CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES
523A.602 - CONSUMER RECISION, CANCELLATION, AND REFUND RIGHTS -- PURCHASE AGREEMENT COMPLIANCE WITH OTHER LAWS.

        523A.602  CONSUMER RECISION, CANCELLATION, AND REFUND
      RIGHTS -- PURCHASE AGREEMENT COMPLIANCE WITH OTHER LAWS.
         1.  A seller shall furnish the purchaser with a completed copy of
      a purchase agreement pertaining to the sale at the time the purchase
      agreement is signed.  The seller shall comply with the following
      terms:
         a.  The same language shall be used in both the oral sales
      representation and the written purchase agreement.
         b.  The seller shall give notice in the purchase agreement of
      the purchaser's right to rescind after signing the purchase
      agreement.  The recision period must be, but may be greater than,
      three business days after the date of the purchase agreement.  The
      notice must:
         (1)  Be located close to the signature line.
         (2)  Be printed in twelve point boldface type.
         (3)  State that "YOU, THE PURCHASER, HAVE THE RIGHT TO RESCIND
      THIS AGREEMENT AT ANY TIME PRIOR TO MIDNIGHT OF THE (INSERT RELEVANT
      NUMBER, NOT LESS THAN THREE) BUSINESS DAY AFTER THE DATE OF THIS
      AGREEMENT."
         c.  All moneys shall be refunded without penalty within ten
      days after recision.
         2.  Cancellation refund.
         a.  A purchase agreement must include a statement that the
      purchaser has the right to cancel the agreement for the purchase of
      cemetery merchandise, funeral merchandise, and funeral services upon
      written demand and designate or appoint a trustee to hold, manage,
      invest, and distribute the trust assets.
         b. (1)  If a purchase agreement is canceled, a purchaser
      requests a transfer of the trust assets upon cancellation of a
      purchase agreement, or another seller provides merchandise or
      services designated in a purchase agreement, the seller shall refund
      or transfer within thirty days of receiving a written demand no less
      than the purchase price of the applicable cemetery merchandise,
      funeral merchandise, and funeral services adjusted for inflation,
      using the consumer price index amounts announced by the commissioner
      annually, less any actual expenses incurred by the seller pursuant to
      the purchase agreement as set forth in the purchase agreement under
      section 523A.601, subsection 1, paragraph "f".  The amount of the
      actual expenses deducted by the seller shall not exceed ten percent
      of the purchase price of the applicable cemetery merchandise, funeral
      merchandise, and funeral services.  The seller may also deduct the
      value of the cemetery merchandise, funeral merchandise, and funeral
      services already received by, delivered to, or warehoused for the
      purchaser.
         (2)  If a purchase agreement is canceled before the purchase price
      is paid in full, a purchaser requests a transfer of the trust assets
      upon cancellation of a purchase agreement before the purchase price
      is paid in full, or another seller provides cemetery merchandise,
      funeral merchandise, funeral services, or a combination thereof,
      designated in a purchase agreement before the purchase price is paid
      in full, the seller shall refund or transfer within thirty days of
      receiving a written demand no less than the amount paid by the
      purchaser, less any actual expenses incurred by the seller pursuant
      to the purchase agreement as set forth in the purchase agreement
      under section 523A.601, subsection 1, paragraph "f".  The amount
      of the actual expenses deducted by the seller shall not exceed ten
      percent of the total original purchase price of the applicable
      cemetery merchandise, funeral merchandise, funeral services, or a
      combination thereof.  The seller may also deduct the value of the
      cemetery merchandise, funeral merchandise, and funeral services
      already received by, delivered to, or warehoused for the purchaser.
         (3)  For the purposes of this paragraph "b", "actual
      expenses" means all reasonable business expenses of a seller that
      are associated with the sale of cemetery merchandise, funeral
      merchandise, funeral services, or a combination thereof.  "Actual
      expenses" includes but is not limited to the following:
         (a)  Marketing and promotional expenses.
         (b)  Investment management fees.
         (c)  Annual reporting fees related to accounting and regulatory
      requirements.
         (d)  Licensing fees of the seller.
         (e)  Administration, regulatory reporting, and custody expenses
      related to purchase agreements.
         (f)  Computer and software expenses.
         (g)  Expenses related to employees of the seller such as licensing
      fees, continuing education, and salaries and commissions.
         (h)  Miscellaneous office expenses.
         c.  A purchase agreement must include a statement that the
      purchaser is entitled to a refund of the purchase price of the
      applicable funeral merchandise adjusted for inflation, using the
      consumer price index amounts announced by the commissioner annually
      for any item of funeral merchandise that cannot be delivered to the
      location specified in the purchase agreement within forty-eight hours
      of notice of the individual's death, unless the delay is caused by
      weather conditions or a natural disaster.  The seller must return
      such refund to the purchaser within thirty days of receiving the
      written demand.
         3.  This section does not prohibit a purchaser who is or may
      become eligible for benefits under Title XIX of the federal Social
      Security Act from making a guaranteed price purchase agreement
      irrevocable to the extent that federal law or regulations require
      that such an agreement be irrevocable for purposes of a purchaser's
      eligibility for benefits under Title XIX of the federal Social
      Security Act, as permitted under federal law.  The seller of credit
      sale agreements shall comply with the requirements of chapter 537,
      the Iowa consumer credit code, and is subject to the remedies and
      penalties provided in that chapter for noncompliance.  

         2001 Acts, ch 118, §37; 2003 Acts, ch 58, §1; 2006 Acts, ch 1117,
      §117; 2007 Acts, ch 175, §67--69
         Referred to in § 523A.601