Registration/renewal Of Travel Agency Page 7
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7registration statement, except travel agents’ names as
CS89, § 120.3
required in subsection 5, paragraph “b”. The names of travel
C93, § 9D.3
agents shall be updated at the time of annual registration.
The secretary may revoke or suspend a registration for
9D.4 Penalties.
cause subject to the contested case provisions of chapter
1. A person required to register as a travel agency, or
17A.
an owner of ten percent or more of a travel agency, required
89 Acts, ch 274, §2
to register by this chapter, which fails to register, fails to
CS89, § 120.2
make required corrections to its registration statement, or
C93, §9D.2
fails to pay the required fee on or before thirty days after the
fee becomes due, commits a serious misdemeanor.
9D.3 Evidence of financial security.
2. If a person required to be registered or listed upon a
1. An application for a travel agency must be accompa-
registration statement by this chapter receives money, as a
nied by a surety or cash performance bond in conformity
fee, commission, compensation, or profit in connection with
with rules adopted by the secretary in the principal amount
doing business in this state in violation of section 9D.2, the
of ten thousand dollars, with an aggregate limit of ten
person, in addition to the criminal penalty in subsection 1,
thousand dollars. The bond shall be executed by a surety
shall be liable for a civil penalty of not less than threetimes
company authorized to do business in this state, and the
the sum so received, as may be determined by the
bond shall be continuous in nature until canceled by the
court,which penalty may be recovered in a court of
surety with not less than sixty days’ written notice to both
competentjurisdiction by an aggrieved person, or by the
the registrant and to the secretary. The notice shall indicate
attorney general for the benefit of an aggrieved person or
the surety’s intent to cancel the bond on a date at least
class ofpersons.
sixty days after the date of the notice.
3. A violation of this chapter is also a violation of
2. The bond shall be payable to the state for the use
section 714.16.
and benefit of either:
89 Acts, ch 274, §4
a. A person who is injured by the fraud, misrepresenta-
CS89, § 120.4
tion, or financial failure of the travel agency or a travel agent
C93, § 9D.4
employed by the travel agency.
b. The state on behalf of a person or persons under
9D.5 Exemptions.
paragraph “a”.
1. This chapter does not apply to:
The bond shall be conditioned such that the registrant will
a. A bona fide employee of a travel agency who is
pay any judgment recovered by a person in a court of this
engaged solely in the business of the agency, and whose
state in a suit for actual damages, including reasonable
principal duties do not include consulting with and advising
attorney’s fees, or for rescission, resulting from a cause of
persons concerning travel arrangements or accommoda-
action involving the sale or offer of sale of travel services.
tions.
The bond shall be open to successive claims, but the
b. A direct common carrier of passengers or property
aggregate amount of the claims paid shall not exceed the
regulated by an agency of the federal government or em-
principal amount of the bond.
ployees of a common carrier when engaged solely in the
3. If a registrant has contracted with the airlines
transportation business of the carrier as identified in the
reporting corporation or the passenger network services
carrier’s certificate.
corporation, or similar organizations approved by the
2. A travel agency is subject to this chapter, notwith-
secretary of state with equivalent bonding requirements for
standing that the customer’s name was obtained from the
participation, in lieu of the bond required by subsection 1,
customer as part of a promotion where the customer signed
the registrant may file with the secretary a certified copy of
up to receive a sales presentation or to enter a drawing for a
the official approval and appointment of the applicant from
prize prior to the solicitation. These activities do not consti-
the airlines reporting corporation or the passenger network
tute a previous travel services provider-customer relation-
services corporation.
ship.
4. In lieu of any bond or guarantee required to be
89 Acts, ch 274, §5
provided by this section, a registrant may do any of the
CS89, § 120.5
C93, §9D.5
following:
a. File with secretary proof of professional liability and
errors and omissions insurance in an amount of at least
one million dollars annually.
(Source: Iowa Code 2007)
b. Deposit with the secretary cash, securities, or a
statement from a federally insured financial institution
guaranteeing the performance of the registrant up to a
maximum of ten thousand dollars to be held or applied to
the purposes to which the proceeds of the bond would
otherwise be applied.
89 Acts, ch 274, §3
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