Residential Service Contract License

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License to issue residential service contracts. A residential service contract is a contract between a residential customer and a service company that agrees to perform, or arrange to perform, maintenance, repair or replacement of all or any part of the structural components, appliances or electrical, plumbing, heating, cooling or air conditioning systems of residential property.   Code Citation Iowa Code chapter 523C Who Applies Anyone who is the Obligor on a provides a service contract that promises to replace or repair structural components of a residential property or appliances or systems in a residential property. When To Apply Before contracts are issued. Initial Requirements A residential service company must demonstrate financial responsibility by securing a Contractual Liability Insurance Policy (CLIP) or filing a surety bond with the commissioner in the amount of $25,000. Duration Renewal must take place on or before August 31st of each year following the date of issuance. Processing Time Approximately 10 days. Fee Structure Initial License: $500 Renewal: $500, due with plus 3% of the aggregate of past sales ranging from $100 to $50,000. Renewal Requirements Same as initial requirements. Exam Does not pertain. Additional Information Filing instructions and the forms are available at https://iid.iowa.gov/residential-service-contracts-entities.