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HF 2634

A bill for an act relating to preneed sellers, sales agents and sales agent applicants, and government cemeteries.

2025-2026 Regular Session

HF 2634 tightens preneed seller and sales agent oversight by tying licensure to seller designation and mandating designation changes, with streamlined online inquiries and redefine

Signed by Governor.
#cemeteries #funeralmerchandise #sales
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Bill Summary · HF 2634

Summary of HF 2634 (2025-2026) – Iowa

A bill relating to preneed sellers, sales agents and applicants, and government cemeteries.

Main purpose and intent

HF 2634 seeks to tighten and standardize the regulation of preneed sellers, their sales agents and applicants, and certain cemetery operations. Key aims include ensuring explicit designation of sales applicants by preneed sellers, clarifying contact procedures with the insurance division, updating licensure and renewal requirements, modifying cemetery oversight practices, and defining government cemeteries.

Key provisions and changes

Preneed sellers, sales agents, and applicants

  • Pre-licensing designation requirement:
    • An applicant for a sales license must be designated by a preneed seller to sell, negotiate, or solicit purchase agreements on the seller’s behalf.
    • At the time of application, the preneed seller must file documentation confirming the designation of the applicant.
  • Licensure and designation linkage:
    • A sales agent license cannot be issued unless the applicant meets all licensure requirements and the insurance division has received the seller’s designation.
  • Changes to designation:
    • If the designation of a sales agent changes, the preneed seller must disclose the change to the commissioner within 30 days.
  • Employment condition for license validity:
    • A sales agent license is not effective during any period when the agent is not employed by or associated with a preneed seller.
  • License renewal:
    • Sales agents must pay a renewal fee to renew their license (current law does not require a renewal fee).

Communication and complaint procedures

  • Clarifies how to contact the division for inquiries and complaints:
    • Directs inquiries and complaints to the division’s website, rather than telephone or mail, under specified code sections related to disclosures and interment agreements.

Cemetery oversight and definitions

  • Examination frequency for cemeteries with trust arrangements:
    • The bill eliminates the requirement that the commissioner or the commissioner’s designee conduct an examination at least once every five years for any cemetery with a trust arrangement.
  • Perpetual care classification of cemeteries:
    • All cemeteries under Iowa Code Chapter 523I (Iowa Cemetery Act) are designated as perpetual care cemeteries, nonperpetual care cemeteries, or government cemeteries.
  • Government cemetery designation:
    • The bill defines “government cemetery” and places it within the framework of Chapter 523I, Subchapter VIII (perpetual care cemeteries) and related provisions.

Who is affected

  • Preneed sellers: Responsible for designating sales applicants and reporting designation changes to the commissioner; their cooperation is required for license issuance of sales agents.
  • Sales agents/applicants: Must be designated by a preneed seller to be eligible for licensure; their license status is tied to ongoing employment with a preneed seller; renewal requires a renewal fee.
  • Insurance division/commissioner: Receives designation paperwork, disclosures about designation changes, and directs information via the division’s website.
  • Cemeteries governed by Iowa Code Chapter 523I: Reclassified and regulated under clarified terms for government, perpetual care, and nonperpetual care statuses; frequency of examinations for trust cemeteries is altered.
  • Government cemeteries: Defined and accommodated within the cemetery regulatory framework.

Procedural and timeline aspects

  • Designation filing: Documentation of designation must accompany the sales license application.
  • Change disclosures: Within 30 days of a designation change, the preneed seller must inform the commissioner.
  • Renewal: Sales agents must pay a renewal fee to renew their license (effective date not specified in the text, but part of the renewal requirement).
  • Examination frequency: The requirement for periodic five-year examinations for cemeteries with trust arrangements is removed (specific effective date not provided in the excerpt).
  • Communication: Inquiries/complaints relating to disclosures and interment agreements are to be directed through the division’s website.

Overall assessment

HF 2634 introduces stricter controls on the relationship between preneed sellers and their sales agents, tying licensure and renewals to explicit seller designations and timely reporting of designation changes. It also streamlines complaint and inquiry channels to the division’s online platform. On cemeteries, the bill revises examination requirements and clarifies classifications, including a defined government cemetery category. The measure balances oversight with clarified administrative procedures for smoother regulatory compliance.

Compiled from official sources — confirm details with the bill’s official record.

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