Obtaining an Insurance License in Iowa General Guidelines
The Insurance Division is empowered by Chapter 522, Code of Iowa, to qualify individuals who wish to operate as insurance producers. The Iowa Insurance and Administrative Codes set forth the lawful standards and requirements for licensees, insurers and insurance products in the state of Iowa. The legislature makes changes annually to the Code, and administrative rules can be changed at any time, using the rule-making process. Licensees are expected to be aware of changes in the law that affect their occupational practice.
What Lines of Authority are granted in Iowa?
In accordance with Iowa laws and regulations, the Division grants the following lines of authority.
Licenses requiring an exam
Life— Life Insurance candidates must successfully complete a Life Insurance exam (Series 10-01 or Series 10-09)to receive their license.
Accident and Health— Accident and Health Insurance candidates must
successfully complete an Accident and Health Insurance exam (Series 02 or Series 10-09) to receive their license.
Personal Lines—(Fire, Casualty and Auto insurance sold to individuals or
families only.) Personal Lines Insurance candidates must successfully complete a Personal Lines exam (Series 10-03) to receive their license.
Commercial Lines—(Fire, Casualty, Auto and Surety insurance sold to
individuals or businesses.) Commercial Lines license candidates must successfully complete a Personal Lines exam (Series 10-03) or hold a Personal Lines license, in addition to successfully completing a Commercial Lines exam (Series 10-04) to receive their Commercial Lines license.
Crop—Crop Insurance license candidates must successfully complete a Crop Insurance exam (Series 10-05) to receive their license.
Credit Life and Credit Accident and Health—Credit Life and Credit
Accident and Health license candidates must successfully complete a Credit Life and Credit Accident and Health exam (Series 10-06) to receive their license. If you will be taking the Life, Accident and Health exam (Series 10-09), or if you currently hold the Life, Accident and Health license, you do not need to take the Credit Life and Credit Accident and Health exam.
Surety—Surety license candidates must successfully complete a Surety exam
(Series 10-07) to receive their license. However, Surety Insurance is included in the Commercial Lines exam (Series 10-04). If you will be taking a Commercial Lines exam, or if you currently hold a Commercial Lines license, you do not need to take the Surety exam separately.
Excess and Surplus Lines—Excess and Surplus Lines license candidates
must pass the exam (Series 10-08) as well as be qualified in Commercial Lines.
Legal Expense—Legal Expense Insurance candidates must successfully
Note: Crop insurance is no longer included in the personal or commercial lines exam. You must take the Crop Insurance exam in order to sell crop insurance.
License Requiring NASD Exam
Variable Contracts License—Variable Contracts license candidates must (1)
be qualified in (have a license for) life insurance; and (2) provide proof of an active Iowa Securities License. Acceptable proof is a Central Registration Depository (CRD) screen print or other similar report of a registered securities dealer, not more than 90 days old. If you have questions about proper proof of your status on the CRD, contact the Iowa Insurance Division for assistance. If this is an amendment to your license, submit your application to the Iowa Insurance Division.
What is the licensing application procedure?
You must do two things to receive a license: (1) you must pass a test and
(2) you must apply for a license.
When you apply for a license, your application is examined to confirm that there is nothing in your background to prohibit your licensure. This may take a week or more while the Division conducts the background check and authorizes your licensure. The license application is only valid for 90 calendar days following processing. You may apply for the license before you test. This means that the background check can be conducted while you are studying to pass the examination. If the Division authorizes your license by the time you pass your exam, your license can be issued at any of the Iowa testing centers, or the centers in Omaha, Neb. and Sioux Falls, S.D. (If the authorization process is not completed at the time you test, your license will be mailed as soon as your license application is approved.) You do not have to apply for your license first, however. You may wait until you have passed the test to apply. If you apply in this manner, you should allow two to three weeks after you apply to receive your license in the mail. All licenses that require an examination will be processed through Experior. Although the Iowa Insurance Division will authorize licenses, Experior will print and distribute licenses to testing candidates.
INITIAL LICENSE
Producer licenses in Iowa are issued for three years. It is your responsibility to ensure that the license application and other supporting documents have been properly completed, and that the information provided is accurate. Your careful attention will enable prompt and efficient processing. Applications that are found to contain inaccurate or untruthful responses may be denied. If a license authorized by the Insurance Division is based upon erroneous or untruthful information provided by the applicant, the licensee may be subject to a civil penalty (fine) or to other discipline, up to and including revocation. All initial resident license application and exam registration fees should be paid to “Experior.” A single license fee ($50) covers all lines requested for a license. (The candidate must pass all exams for the requested lines before a license is issued.) Adding a line of authority to your license at a later date is only a $10 amended license fee. License fees are not transferable and, once the license is issued, are not refundable.
What are the Resident License Requirements?
In order to qualify as an Iowa resident insurance producer, you must satisfy the following requirements:
• be at least 18 years of age;
• be a resident of the state of Iowa;
• pass the applicable examination(s);
• be of good character and competency;
• submit a letter of clearance (dated less than 90 days prior), if you have held a resident license in another state within the last five years;
• submit the appropriate fees; and
• file a license application with Experior.
How do I go about applying for a nonresident agent license in Iowa? • Iowa issues licenses to individuals as insurance producers.
• Producers receive one license which includes all qualifications.
• Iowa does not license insurance adjusters.
• Iowa also has a voluntary Insurance Agency license.
• To request an Agency license Information packet, contact the Division at (515) 281-7757 or send a written request along with a stamped return envelope to
• Iowa Insurance Division Attn: Producer Licensing 330 Maple St.
Des Moines, IA 50319-0065.
To obtain an Iowa individual insurance license or to amend an existing license to add an additional qualification, a non-resident must submit:
• the NAIC Uniform Application for Individual Non-Resident License,
• a home state certification letter, and the correct fee for the producer license (with a check payable to the Iowa Insurance Division).
Applying for a License
A non-resident producer may apply for any qualifications that he/she is qualified for in his/her home state. You must complete the NAIC Uniform Application. The qualifications listed on the NAIC form are Property, Casualty, Life, Accident and Health and Variable products. If you would like to apply for a different qualification, you should enclose a letter stating which qualifications are requested.
Certification Letter
An original certification letter must be provided from your home state that indicates the qualifications for which you are licensed. The certification letter must have been issued within 90 days of the date on the application. A certification letter that is older than 90 days will be rejected.
The certification letter should include the producer's name, resident address, qualifications and any disciplinary action taken.
If your state is a participant in the NAIC Producer Database, you do not have to include a letter of certification. As of August 1, 2001, the following states are participants providing regular updates to the system:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, Nevada, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming.
License Fees:
New Licenses: Effective January 1, 1999, all Iowa insurance producer licenses will be issued for three years. Licenses must be renewed every three years. See the attached fee chart. If your state is not listed, the license fee is $50.00.
Amended Licenses: If you already have an Iowa non-resident license and wish to amend the license to add one or more additional qualifications, you may amend your license for
$10.00. Complete the NAIC form and submit a current home state letter of certification. A new license showing all your qualifications will be issued and mailed to your address.
Company Appointments
Iowa permits a producer to solicit business once the license is received. However, a producer cannot receive a commission until he/she has been appointed with a company. A producer may assign commissions to an agency or other insurance business entity.
After you have received your Iowa license, send a copy of it to the company or companies with whom you wish to be appointed in Iowa. The company will then process your appointment and send it to the Insurance Division for approval.
Address/Name Changes
You are required to maintain a current resident address with the Division at all times. Failure to do so could result in forfeiture of your Iowa Insurance License. You must notify the Division, in writing, of an address or name change within 30 days. The report of address/name change should include your name, license number and your new address. A request for name change should also include a copy of the legal document that establishes your new name.
Address changes are not accepted from companies or agencies. The change must be requested under the producer's signature. The Division does not accept post office boxes for a resident address. Upon request, a post office box can be listed along with your street address.
Continuing Education
If you are required to comply with a CE requirement in your home state, you are exempt from the Iowa requirement. If your home state does not have a CE requirement, you must comply with the Iowa CE requirement.
For specific questions about CE requirements, contact the Iowa CE Coordinator Jill McNally at 515-281-7761.
License Renewal
A Producer Renewal Report (PRR) will be sent to your last-reported address in February of the year your license expires. To complete the renewal process you will be required to submit a current home state Letter of Certification that will attest to your good standing and CE compliance in your home state. If your state is a participant in the NAIC’s Producer Database, you will not be required to submit a letter of certification. The PRR will also state the Iowa renewal fees.
Complete information will be included with the PRR. If you do not renew your license, it will expire. Your license will then be placed on inactive status and your appointments canceled.
What are the fees for Nonresident licenses?
Alabama
$ 120.00
Montana
$300.00
Alaska
$ 600.00
Nebraska
$120.00
Arizona
$ 66.00
Nevada
$ 78.00
Arkansas
$ 180.00
New Jersey
$225.00
California
$ 285.00
New Mexico
$165.00
Canada
$ 225.00
New York
$ 60.00
Connecticut
$ 120.00
Ohio
$ 60.00
Delaware
$ 180.00
Oklahoma
$ 90.00
District of Columbia $ 150.00
Oregon
$ 90.00
Florida
$ 180.00
Pennsylvania
$ 54.00
Georgia
$ 150.00
Rhode Island
$150.00
Hawaii
Not
Eligible
South Carolina
$ 60.00
Idaho
$ 540.00
South Dakota
$ 90.00
Illinois
$ 225.00
Tennessee
$150.00
Kentucky
$ 75.00
Texas
$150.00
Louisiana
$ 105.00
Vermont
$ 90.00
Maine
$ 225.00
Washington
$ 75.00
Maryland
$ 75.00
West Virginia
$ 75.00
Massachusetts
$ 375.00
Wisconsin
$126.00
Minnesota
$ 180.00
Wyoming
$ 75.00
Mississippi
$ 75.00
*If the producer's resident state is not listed, the fee is $50.00 for a three-year license.
What if I am an agent that moves to Iowa?
If you move to Iowa and you have held a valid resident insurance license in your previous state of residence that was canceled no more than 90 days prior to the date on your license application, you will need to satisfy all of the requirements necessary to become a resident producer, EXCEPT THAT you will not need to take the full examination for the license(s) you previously held. Instead, you may take an Iowa laws exam appropriate to the desired license. You must also submit an original clearance letter (dated within the past 90 days) from that state’s Insurance Department verifying your license cancellation.
If the applicant’s resident state is a participant in the NAIC’s Producer Database, the applicant need not submit a physical letter of certification or clearance. The applicant should include a personal letter stating why no letter of certification or clearance is enclosed.
What if I need to add additional lines to my license?
To receive additional license qualifications, the licensee must follow the same procedures in the initial application process through meeting the examination requirements and submitting the following to Experior:
• a license application for the additional qualification; and
• a $10 license amendment fee.
A new license will be generated and mailed to your resident address of record. This process is eligible for express handling only if you are also registering for an exam.
What is the exam and licensing procedure?
The Iowa Insurance Division has contracted with Experior Assessments™, LLC of St. Paul, Minn., to conduct its examination program, process resident license applications and print licenses. Experior provides computerized exams through a multistate network of testing centers. The Iowa area
Experior testing centers are located in Cedar Rapids, West Des Moines and Sioux City. Note that Omaha, Neb., or Sioux Falls, S.D., may be more convenient to your location. Iowa licenses may also be printed at these sites. You may also test at any Experior center across the United States. Experior works closely with the Division and its Examination Review Committee to assure you that exams meet local requirements and professional test development standards.
Direct all examination questions and requests for information about exams to: Experior
1360 Energy Park Drive St. Paul, MN 55108-5252 Fax: 800.347.9242 TDD User: 800.790.3926 Voice: 800.873.7321
License Application and Exam Registration Procedures
You may apply for licensure and register for your exam concurrently, or you may apply for your license after you register or test. If you are a resident of Iowa and wish to be licensed to sell insurance you must:
• file a license application and exam registration by mail, fax or phone, using the proper application and registration forms; and
• schedule your exam by phone by calling 800.873.7321.
Mail License application and/or exam registration
You may mail the forms for license application and examination registration together to Experior, or mail your license application after you register or test, and they will be processed within 48 hours from the time received.
Telephone license application and/or exam registration License application and exam registration:
You may file a license application, as well as register for and schedule your
exam, during one telephone call. This expedited application process requires an additional fee of $10. Your application will be printed out at the testing center after you have passed your exam.
Exam registration only:
You also may register for and schedule your exam by phone. This is an expedited registration process available for an additional fee of $5.
Fax License application and/or exam registration License application and exam registration:
You may fax the forms for both the license application and examination registration to Experior at 800.347.9242. This is an expedited application process that requires an additional fee of $10. Your application will be printed out at the testing center after you have successfully completed the exam. You must then schedule your examination by phone.
Exam registration only:
You may fax the forms for exam registration only to Experior at 800.347.9242. This is an expedited registration process that requires an additional fee of $5. You must then schedule your examination by phone.
Exam re-registration
If you have allowed your examination registration to expire or were unsuccessful in your exam attempt, you may re-register by any of the methods listed above. Another Examination
Registration form AND exam registration fee are required. Examination scores are valid for 90 days.
Exam registration and application expiration
An examination registration and license application remains valid for 90 calendar days after it has been processed, and will expire without further notice at that time.
Fees and refund policy
The license fee is $50, and the fee for an amended license is an additional $10. You may request a refund of your licensing fee at any time prior to license issuance, or it will be automatically refunded 30 days after your application expires. HOWEVER, EXAM REGISTRATION AND EXPRESS APPLICATION FEES ARE NOT REFUNDABLE OR TRANSFERABLE, AND EXPIRE IN 90 DAYS.
What are the fees to take an exam?
Series Exam Title Exam Fee Total Here
10-01 Life Insurance $79.00
10-02 Accident and Health Insurance $79.00
10-03 Personal Lines Insurance (Property/Casualty) $79.00 10-04 Commercial Lines Insurance (Property/Casualty) $79.00 10-05 Crop Insurance $79.00
10-06 Credit Life and Credit Accident and Health Insurance $79.00 10-07 Surety Insurance $79.00
10-08 Excess and Surplus Lines Insurance $79.00 10-09 Life, Accident and Health Insurance $96.00 10-10 Life Insurance Laws and Regulations $79.00
10-11 Accident and Health Insurance Laws and Regulations $79.00 10-12 Life, Accident and Health Insurance Laws and Regulations $79.00 10-13 Property and Casualty Insurance Laws and Regulations $79.00 10-15 Legal Expense Insurance $79.00
How do I schedule or cancel an exam? Appointments and Cancellations
Once you have registered for an examination (an original or a retake), you must arrange the time and place for taking it by calling 800.873.7321. You may take your examination at any Experior testing center nationwide. Appointments are available three to five days per week at most centers. Register and schedule your test early to get your preferred site and time. If you miss or are late for your appointment, you will be assessed a $40 rescheduling fee. If you need to change your appointment, you must contact Experior three full working days before your appointment to allow time to refill your appointment slot, or you will be subject to the same fee. To reinstate or reschedule your exam, call 800.873.7321. If you are too ill to take the exam at your scheduled time, you may submit a letter from your doctor or hospital (on their letterhead). The rescheduling fee may be waived in this circumstance.
Social Security Number confidentiality
Experior will use your Social Security number only as an identification number in maintaining your record and reporting your grades to the Division. By law, you are required to disclose your Social Security number to obtain your insurance license.
Taking the Examination
Your examination will be given by computer at an Experior testing center. You must present a valid form of identification before you may test, and it must meet the following criteria:
• the document must be government-issued (driver’s license, state-issued identification card or military identification);
• it must have a current photo and your signature; and
• the name on the identification must be the same as the name used to register for the examination (including designations such as “Jr.” or “III,” etc.).
FAILURE TO PROVIDE APPROPRIATE IDENTIFICATION AT THE TIME OF THE EXAMINATION IS CONSIDERED A MISSED APPOINTMENT. If you cannot provide the identification as listed above, contact Experior before scheduling your appointment to arrange for an alternate form of meeting this requirement.
Security Procedures
The following security procedures will apply during the exam:
• examination contents are proprietary. No cameras, notes, tape recorders, phones or pagers are allowed in the testing room;
• no programmable calculators are permitted; and
• no valuables or weapons should be brought to the testing center. Only keys and wallets may be taken into the testing room, and Experior is not responsible for items left in the reception area.
FAILURE TO FOLLOW ANY OF THESE SECURITY PROCEDURES MAY RESULT IN THE DISQUALIFICATION OF YOUR EXAMINATION. EXPERIOR RESERVES THE RIGHT TO VIDEOTAPE ANY EXAMINATION SESSION.
Special Test Considerations
Can arrangements be made for someone with a disability to take the exam? Americans with Disabilities Act (ADA)
Examinees with a physical or mental impairment that substantially limits a major life activity may be eligible for accommodation in the testing process to assure you that the tests accurately reflect skills, knowledge or abilities. Experior is fully compliant with ADA guidelines and will provide reasonable accommodations. Examinees should contact Experior to request documentation forms to submit when registering to test. Registration and scheduling services are also available via our Telecommunications Device for the Deaf (TDD) by calling 1-800-790-3926.
English as a Second Language (ESL)
If English is not your primary language, you may qualify for additional time for your test by requesting an ESL Authorization from Experior. Please include:
• a personal letter requesting the authorization; AND
• a letter from your English instructor or sponsoring company (on company letterhead) certifying that English is not your primary language.
If documentation is approved, Experior may extend the time limit on your examination up to one hour. You will be notified by mail of this approval, and should not schedule your exam until you have received the approval letter.
What is the question format?
The questions that will appear on your licensing examination are multiple-choice and give you four options from which to choose your answer. The examination will contain questions with three different multiple-choice formats.
Experimental Questions
Your exam may include up to five additional questions that will not be scored. These are used to gather statistical information on the questions before they are added to the actual examination for your state. These questions, distributed throughout the exam, WILL NOT:
• be counted for or against you in your final examination score; OR
• take any time away from your allotted testing time.
What is a passing score?
Your total percentage score is computed by dividing the number of questions you answered correctly by the total number of questions in the examination. A total score of 70 percent is required to pass. Exam results are transmitted electronically to the Department. Examination scores are valid for 90 days. Exam scores are confidential and will be revealed only to you and the Department. You may call or write to Experior to request a duplicate of your Score Report for a period of one year after you complete the examination. Any questions or comments you have about your examination should be directed to Experior.
When will my license be issued?
If your application has already been processed by Experior and the Division authorizes license issuance, you will be able to obtain your license at the testing center immediately after passing your examination. If the license authorization has not been issued, Experior will mail your license within 24 hours of receiving authorization by the Iowa Insurance Division.
Do I need an Appointment to collect commissions?
In Iowa, a producer may NOT receive a commission from an insurer unless that producer is properly licensed and appointed. A producer’s appointment is initiated by the insurer. The insurer submits a Midwest Zone Uniform Appointment/Cancellation Form to the Division. It is the responsibility of the insurance company to verify that the producer being appointed is licensed and qualified to sell that company’s products. An appointment is terminated when the insurer submits a cancellation form to the Division and after the form is processed. The Division’s records shall always be the authority for determining a producer’s appointment with a particular insurance company. A producer must check with the company to ensure that the appointment/cancellation has been processed. Contracts negotiated between a producer and an insurer, or between a producer and an agency, are not regulated by the Division. The Division does not regulate the commissions or other compensation in producer-insurer relationships, except as filed with the Division under specific product approvals. Disputes between producers and insurers relating to their relationship must be resolved through the civil process.
What are the Continuing Education requirements in Iowa?
The state of Iowa’s Continuing Education (CE) requirements encourage licensees to maintain, improve or expand skills and knowledge obtained prior to initial licensure, or to develop new and relevant skills and knowledge. CE credits are required to keep your producer’s license. Specific descriptions follow. You must obtain a minimum of 36 credits for each CE term (a term is the three calendar years ending the December 31 prior to the license expiration date), in approved courses. You must also pay a $30 CE filing fee. If you hold a crop only, a legal expense only, or credit only insurance license, there are no CE requirements.
If I am a nonresident am I exempt from Iowa CE requirements?
Nonresident producers residing in a state or district that has producer CE requirements need only file a certification letter from your resident state verifying that you are in compliance with your state’s requirements. (Certificates of completion are not required.)
What are the CE providers responsibilities?
The CE provider is responsible to apply for approval from the Division a minimum of 30 days prior to the scheduled course date. It is the producer’s responsibility to verify with the provider that the selected course has been filed and approved for CE credit in Iowa. The provider will file an attendance report with the Division. The provider shall also issue a certificate of completion to each person who satisfactorily completes such course work within 20 days of finishing the course. The certificate must be signed by either the course instructor or the provider’s authorized representative. Providers must also maintain a list for at least four years of all persons attending the courses for credit. The provider must notify registrants at least
seven calendar days prior to the scheduled date of any canceled course.
How do I renew my license?
Iowa insurance licenses are issued on a three-year renewal cycle, at a cost of $50. In February of the year of the renewal of your license, the Iowa Insurance Division will mail to your address-of-record a producer renewal report form. Resident and nonresident producers must renew their licenses by returning the following information to the Division before the expiration date printed on the license. The packet must include:
• a completed producer renewal report;
• a $30 CE filing fee; and
• a license renewal fee.
It is your responsibility to know the date your license expires and to contact the Division even if you have not received a producer renewal report form.
Under what circumstances may a license be terminated?
If a license is not renewed, it will automatically terminate. Should you decide to retire or leave the state of Iowa, you must notify the Division and voluntarily surrender your license by writing to the Division’s Licensing Bureau. The actual license must be enclosed with the letter or you must indicate that you no longer have personal possession of the license.
How can I reinstate my license?
If you failed to renew your license properly, you may reinstate your license prior to September 30 of your renewal year by properly submitting a completed producer renewal report, the appropriate license renewal fee and a $100 reinstatement fee.
How do I obtain a duplicate license?
If you need a duplicate license, send a signed request to the Division, including your license number, a check or money order for $10 payable to the “State of Iowa”, and a self-addressed, stamped envelope.
What if my address or name changes?
A licensee must notify the Division in writing within 30 days of any address or name change. The notification must include the previous and new names, the license number, as well as previous and new addresses. A request for a name change must be accompanied by a copy of the legal document that changed the producer’s name. The notice must be signed by the licensee. All requests without a signature will be returned. If a nonresident producer moves from one state to another, neither of which is Iowa, the producer must notify the Division within 60 days and submit a letter of certification from the new state of residence or the license will be canceled. If an Iowa resident moves from Iowa to another state, the producer must notify the Division within 60 days and submit a letter of certification from the new state of residence or the license will be canceled. You must file a change of address form with the Division or your license will be canceled. If you previously held a valid Iowa resident license, and you left Iowa and continuously held a resident license in another state, and then move back to Iowa within three years, you do not need to take
examinations to obtain resident producer qualifications. You will need to comply with other resident licensing requirements, including CE. Failing to comply with any of the requirements may result in administrative action by the Division.
How do I obtain a letter of certification?
To obtain a letter of certification, the producer must submit a written request to the Division, including the license number, a $5 fee, the state for which the certification letter is requested and a self-addressed, stamped envelope.
