The Iowa Legislature recently passed House File 2516, which goes into effect on July 1, 2025. This introduced new license and surety bond requirements for all insurance adjusters in the state.
The Iowa Insurance Division (IID) now requires all licensed public adjusters to file a $50,000 surety bond. This applies to new and renewing licensees.
The IID also established a licensing process and surety bond requirement for independent adjusters, who were previously unregulated.
Continue reading to learn how these changes impact you as an Iowa adjuster and how to update your bond coverage.
Why These Changes Were Introduced
Over the past five years, severe weather in Iowa has led to rising insurance claims, resulting in higher premiums and reduced coverage accessibility.
Due to this, insurance providers are experiencing increased reinsurance costs and reduced reinsurer availability. Unethical adjuster practices have also reportedly added to claim expenses and delays.
This new legislation aims to allow the IID to better regulate adjusters and address these inefficiencies.
What Is the New Iowa Adjuster Surety Bond Requirement?
The Iowa Insurance Division raised the required public adjuster bond amount from $20,000 to $50,000. Although the law goes into effect on July 1, 2025, currently licensed public adjusters are not required to update the bond until they renew their license.
This law also extends the same $50,000 bond requirement to all independent insurance adjusters in Iowa who now need to be licensed and bonded.
Where Can I Buy My Bond?
Insurance adjusters must purchase their bonds from an authorized surety company. SuretyBonds.com works with the top surety providers in Iowa to offer the best bond rates and an easy application process.
Purchase your Iowa adjuster bond online instantly for $500. We deliver official adjuster bond documents in minutes via email.
How Do I Update My Current Bond Amount?
If you work with the same surety market, the Iowa Insurance Division will accept a rider amendment document, allowing you to keep the same policy while increasing the amount to $50,000. Contact your current surety provider to request a bond rider.
You can also cancel your current bond and purchase a new bond to put on file when you renew your license.
What Are the New Licensing Requirements for Independent Adjusters?
Iowa will require licensing for all independent adjusters as of July 1, 2025. This includes passing the adjuster exam and filing a $50,000 surety bond.
However, the state has not yet defined the new formal licensing process. So, if you have been operating as an independent adjuster in any state prior to January 1, 2025, you can complete the modified application process until October 1, 2025.
If you began providing services after January 1, 2025, you’ll need to pass the independent adjuster exam or submit a waiver request based on professional experience.
What If I Don’t Meet the Modified Application Requirements?
If you don’t meet the modified process requirements and your waiver was denied, you’ll need to apply as a new independent adjuster:
- Iowa residents without a license in any state: Apply online through NIPR and pass the adjuster exam
- Iowa residents with a license in another state: Apply through the Iowa Insurance Division and pass the adjuster exam
- Nonresidents with a license in another state: Apply online through NIPR and submit an exam waiver
- Business entities: Apply through the Iowa Insurance Division
Next Steps
Be sure to comply with this new bond requirement by the date of your license renewal or new license application to avoid penalties and delays.
For more information, refer to the Iowa Insurance Division website or call 1 (800) 308-4358 to speak with one of our surety experts.