523C.8 - REBATES AND COMMISSIONS.

        523C.8  REBATES AND COMMISSIONS.         1.  Except as provided in subsection 2, a service company shall      not pay a commission or any other consideration to any person as an      inducement or compensation for the issuance, purchase, or acquisition      of a residential service contract.         2.  This section does not prohibit any of the following:         a.  The payment of an override commission or marketing fee to      an employee or commission sales agent who is a marketing or sales      representative of the service company or its parent company,      subsidiary, or affiliate on the sale or marketing of a residential      service contract, provided the employee or commission sales agent is      not a real estate licensee sharing in or entitled to share in, or      affiliated with, a company or organization which is entitled to share      in any real estate commission generated by the underlying real      property transaction.         b.  Fees, payments, or reimbursements for a bona fide      inspection, if an inspection of the property to be the subject of a      residential service contract is required by a service company and if      the inspection fee is reasonably related to the services performed.         3.  The division may adopt rules identifying types of fees,      payments, or reimbursements that do not constitute an inducement or      compensation for the issuance, purchase, or acquisition of a      residential service contract.  
         Section History: Recent Form
         83 Acts, ch 87, § 9; 92 Acts, ch 1078, § 5; 93 Acts, ch 60, §8; 99      Acts, ch 166, §13