Service companies must be licensed to sell motor vehicle and residential service contracts in Iowa.

The bill mandates that service companies must be licensed to sell motor vehicle and residential service contracts in Iowa. It outlines specific requirements for service contracts, including clear disclosure of terms, cancellation instructions, and obligations of the service company. It also details the process for licensing, including application requirements and fees. The commissioner of insurance is authorized to suspend or revoke licenses and impose civil penalties for violations. The bill also specifies that service contracts are not considered insurance.

Service companies must be licensed to sell motor vehicle and residential service contracts in Iowa.

The bill mandates that service companies must be licensed to sell motor vehicle and residential service contracts in Iowa. It outlines specific requirements for service contracts, including clear disclosure of terms, cancellation instructions, and obligations of the service company. It also details the process for licensing, including application requirements and fees. The commissioner of insurance is authorized to suspend or revoke licenses and impose civil penalties for violations. The bill also specifies that service contracts are not considered insurance.