Iowa Code r. 191-100.41 - Disciplinary procedures
(1)
Investigations. The commissioner is authorized by Iowa Code
sections 17A.13(1) and
523A.803 to conduct such
investigations as the commissioner deems necessary to determine whether any
person has violated or is about to violate Iowa Code chapter 523A. The
commissioner is authorized to issue and enforce subpoenas to compel testimony
and to compel the production of books and records, as more fully described in
Iowa Code section 523A.803. Upon the
commissioner's determination that probable cause exists to commence a
disciplinary proceeding, the procedures contained in 191-Chapter 3 shall
apply.
(2)
Legal
relationship of sales agent to preneed seller. For purposes of Iowa
Code section 523A.502(1), a
sales agent offering preneed services on behalf of a preneed seller is deemed
to have a legal relationship as an agent of the preneed seller. The
determination of whether a sales agent and a preneed seller have a
principal-agent relationship will be made by the commissioner based on the
totality of the circumstances surrounding the business relationship.
(3)
Factors used to determine whether
a preneed seller has agreed to provide merchandise or services.
a. Unless the lack of a mutual agreement has
been appropriately documented in the preneed seller's preneed purchaser file
records, a preneed seller has agreed "to furnish cemetery merchandise, funeral
merchandise, funeral services, or a combination thereof" and received an
"initial payment," for purposes of establishing a "purchase agreement," as
defined by Iowa Code section
523A.102, if:
(1) A sales agent of the preneed seller has
met in person, or had an interactive discussion by telephone or another form of
electronic communication, and discussed specific items of merchandise or
services and the price of the applicable merchandise or services with a
potential purchaser and the potential purchaser did any of the following:
1. Transferred ownership of insurance to the
preneed seller,
2. Assigned
proceeds of insurance to the preneed seller, or
3. Established a financial account made
payable on death to the preneed seller.
(2) A sales agent of the preneed seller has
met in person, or had an interactive discussion by telephone or another
electronic communication, and discussed specific items of merchandise or
services and the applicable prices with the owner of a financial account for
which the preneed seller has been named as the pay-on-death beneficiary to
receive funds upon the death of the owner of the financial account.
b. Written documents retained in
the preneed seller's records may rebut the presumption that a purchase
agreement exists.
(4)
Penalties. Persons violating Iowa Code chapter 523A, this
chapter, or any associated rules or implementing orders may be subject to one
or more of the following penalties.
a.
Rescinded IAB 3/10/21, effective 4/14/21.
b. If the commissioner issues or renews a
license and subsequently determines that the payment method was declined or
returned without payment to the commissioner, the license shall be immediately
placed on restricted status until the payments are made and any fees or
penalties charged by the commissioner are paid, at which time the license may
be reinstated at the request of the applicant.
c. The commissioner may impose the
disciplinary sanctions of Iowa Code chapter 523A, and of this chapter, alone or
in combination, against a preneed seller or sales agent, or as a condition of
licensure of an applicant for a preneed seller license or sales agent license
or as a condition of renewal of a license. Sanctions include but are not
limited to the following:
(1) Issuing a
warning letter or a letter of reprimand.
(2) Requiring additional education or
training.
(3) Requiring certain
specified procedures or methods of operation.
(4) Ordering the payment of consumer
restitution.
(5) Placing a licensee
on probationary status with or without the imposition of reasonable conditions
to control or monitor conduct, such as periodic reports.
(6) Imposing costs associated with the
commissioner's investigation and enforcement activities.
(7) Imposing any other sanction allowed by
law.
d. A person with a
restricted or expired license is subject to disciplinary action, injunctive
action, criminal sanctions and any other available legal remedies in the event
of any violation of Iowa Code chapter 523A, or any rules adopted or orders
issued pursuant thereto.
Notes
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