Motor Vehicle Service Contract License

About

Annual filing of an automobile service contract with the Insurance Commissioner. Filing permits motor vehicle dealers to sell service contracts on the vehicles they sell. The companies that provide the contracts and the insurance companies must file for approval. Code Citation Iowa Code chapter 523C Who Applies Anyone who is the Obligor on a service contract that agrees to provide repair, replacement, or expense reimbursement when a motor vehicle has an operational or structure failure. When To Apply Before contracts are issued. Initial Requirements A motor vehicle 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 $35 for each contract form to be used or issued in Iowa. Renewal Requirements Same as initial requirements. Exam Does not pertain. Additional Information Filing instructions and the forms are available at https://iid.iowa.gov/motor-vehicle-service-contracts-entities.