Relating to preneed sellers, sales agents and sales agent applicants, and government cemeteries

This bill relates to preneed sellers, sales agents and sales agent applicants, and government cemeteries.602(2)(c) to calculate the rate of inflation by relying on the most recently released consumer price index for all urban consumers published by the United States department of labor, bureau of labor statistics, rather than relying on the inflation as set by the commissioner of insurance (commissioner) based on the consumer price index under current law. The bill eliminates the requirement under current law that if a preneed seller has a trust agreement, the commissioner shall conduct an examination of the preneed seller at least once every five years unless the preneed seller has annually provided to the commissioner a certified copy of an audit conducted by an independent certified public accountant. Under the bill, the commissioner may require a preneed seller to provide a certified copy of an audit of the preneed seller conducted by an independent certified public accountant to verify compliance. Under the bill, prior to being issued a sales license, an applicant for a sales license must be designated by a preneed seller to sell, negotiate, or solicit purchase agreements on behalf of the preneed seller. At the time the applicant submits their application for a sales license, the preneed seller shall file documentation of the designation for the applicant to sell, negotiate, or solicit purchase agreements on behalf of the preneed seller. A license as a sales agent shall not be issued to an applicant unless they have met all licensure requirements and the insurance division (division) has received a designation by a preneed seller. A preneed seller must disclose to the commissioner changes made to the designation of a sales agent authorized to conduct business on the preneed seller’s behalf within 30 days of a designation change. A sales agent license shall not be effective during a time period in which the sales agent is not employed by or associated with a preneed seller. Under the bill, for a sales agent to renew their license, the sales agent must pay a renewal fee. Payment of a renewal fee is not required under current law.312(2)(n) (disclosure requirements —— interment agreements) to clarify the manner in which to contact the division by directing inquiries and complaints to the division’s internet site, rather than by telephone or mail under current law. The bill eliminates the requirement that the commissioner or the commissioner’s designee conduct an examination no less than once every five years of any cemetery that has a trust arrangement. Under the bill, all cemeteries under Code chapter 523I (Iowa cemetery Act) are designated as perpetual care cemeteries, nonperpetual care cemeteries, or government cemeteries. “Government cemetery” is defined in the bill. Under the bill, Code chapter 523I, subchapter VIII (perpetual care cemeteries —— requirements), shall not apply to government cemeteries. Under current law, a cemetery owned or operated by a political subdivision is not required to make a minimum initial deposit in a care fund, and may serve as a trustee. The bill eliminates these exceptions. Current law prohibits a cemetery that commenced business in this state on or after July 1, 2005, from selling interment spaces unless the cemetery has a care fund of at least $25,000 in cash. The bill eliminates the requirement that the care fund be in cash.807(3).