A funeral director in southwest Iowa?s Pottawattamie County is under investigation for possible illegal business practices. Officials with the Iowa Insurance Division of the Iowa Securities and Regulated Industries Bureau issued Rick L. Knutson, funeral director for the Knutson Family Chapel in Avoca, a cease-and-desist order Wednesday.
The order requires Knutson to stop the unlicensed sales “pre-need” funeral services and merchandise. Officials say Pre-need funeral laws require sellers to be licensed with the Iowa Insurance Division and to secure transactions with trust accounts, surety bonds, warehoused merchandise or insurance policies.
They say Knutson failed to follow those prescribed practices and is therefore not licensed to sell those services. Depending on the results of the investigation, the funeral home may have the opportunity to apply for proper licenses. Officials say although it is effective upon issuance, the cease and desist order is not final for 30 days, and the Knutson Family Chapel is entitled to a hearing.