Iowa
Summary
Similar to NAIC model.
Iowa adopted this law in 1983 and has made several amendments through the years. It has not been controversial and has been considered a home service contract friendly jurisdiction with minimal insurance department interference. No license requirement for agents or sales representatives.
The law requires a special, annual license by the insurance department but is not considered or defined as insurance under the code; $ 250.00 license fee; $100,000 surety bond; minimum net worth for small issuers; consumer disclosures; form filing with 30 day deemer clause; maintain a reserve account, see 523c.11; and other related requirements.
In 2019, the insurance department is working with NHSCA and SCIC to possibly combine the home and motor vehicle laws into one. Also pending is a clarification that indemnity cash may be paid instead of service, repair or replacement.
Statutes
CHAPTER 523C
RESIDENTIAL SERVICE CONTRACTS. CLICK HERE FOR DIRECT LINK TO IOWA CODE
Note: motor vehicle are regulated under Chapter 516E.
REGULATIONS
None at this time
