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.
Services Provided
Service Category