Commissioner's Bulletin 25-04: Initial implementation of SF 619 related to adjuster, appraiser and umpire licensure.

Bulletin 25-04 To: All Adjusters, Appraisers, Umpires, Insurers and Insurance Producers in the State of Iowa. From: Doug Ommen, Iowa Insurance Commissioner Re: Initial implementation of SF 619 related to adjuster, appraiser and umpire licensure Date: June 9, 2025 SF 619 was passed by the Iowa Legislature and signed by Governor Reynolds on April 22, 2025. Division V of SF 619 is regarding Public, Independent and Staff Adjusters. Division VI of SF 619 is regarding Appraisers and Umpires. SF 619 made changes to public adjuster law in Iowa. It also created new law related to the regulation of independent adjusters, staff adjusters (license is optional), appraisers, and umpires. Catastrophic weather events across Iowa over the last five years caused significant damage and an increase in insurance claims experience. As a result, Iowans have experienced increases in insurance premiums and difficulty in securing insurance coverage. Insurers conducting business in Iowa experienced sharp increases in reinsurance coverage rates and reduced reinsurer availability. Unfair and unprofessional adjuster and appraisal practices have contributed to unnecessary claim costs and delays identified in claims handling and claims adjudication are cost drivers that must be addressed. These new provisions provide authority to the commissioner to regulate individuals handling these claims service functions. The Iowa Insurance Division will ensure individuals working in this claims environment, who meet the experience requirements of the statute, can continue to provide these services to both consumers and insurance companies with the least amount of impact while instituting the licensing requirements set forth by the legislature. The information below explains that transition for those currently acting as adjusters (public/independent/staff), appraisers, and umpires and looking to continue to do so in a licensed manner moving forward. Public Adjuster A person may currently be licensed as a public adjuster in Iowa under current Iowa code chapter 522C. A public adjuster – either resident or non-resident - that is licensed and in good standing in Iowa prior to the implementation date of July 1, 2025 will not need to provide anything additional to the Iowa Insurance Division to continue to be licensed as a public adjuster in Iowa on July 1, 2025 until the public adjusters next license renewal date. SF 619 did institute an increase in the bond requirement for public adjusters from $20,000 to $50,000. The new bond amount requirement will apply to all existing public adjusters as well as any new applicants for public adjuster licensure applying on or after July 1, 2025. A public adjuster currently licensed in Iowa as of July 1, 2025, should provide this updated bond information as soon as practicable, but no later than their renewal period, to the Iowa Insurance Division Producer Licensing Department at producer.licensing@iid.iowa.gov. Information related to the public adjuster licensure process can be found here. Independent Adjuster and Staff Adjuster That Provided Adjuster Services Prior to January 1, 2025 An independent adjuster or staff adjuster as defined in SF 619, who was providing adjuster services on insurance claims (in Iowa or any other state) prior to January 1, 2025, and who is interested in becoming licensed in Iowa as required by SF 619, shall be allowed to utilize the modified licensure process until October 1, 2025, to request a license without the requirements of examination. The independent adjuster and staff adjuster interested in becoming licensed in Iowa will be allowed to continue to provide services as an independent adjuster or staff adjuster until a formal licensing decision is provided by the Iowa Insurance Division so long as the application was submitted no later than Oct. 1, 2025. As a reminder, licensure for staff adjusters is not required but is optional, per SF 619. Independent Adjuster and Staff Adjuster That Did Not Provide Adjuster Services Prior to January 1, 2025 A person that is currently not providing services as an independent adjuster or staff adjuster in Iowa or any other state prior to January 1, 2025, and who is interested in becoming licensed in Iowa as required by SF 619, must meet the examination requirements through the normal licensing process unless waived by the commissioner. If the person submitted a waiver request, they will be allowed to continue to provide services as an independent adjuster or staff adjuster until a formal licensing decision is provided by the Iowa Insurance Division so long as the waiver request and application were submitted no later than Oct. 1, 2025. As a reminder, licensure for staff adjusters is not required but is optional per SF 619. Appraiser A person that is currently performing services as an appraiser in any state and possess the requisite experience (listed below), will not be subject to the examination requirement in SF 619 and shall be allowed to utilize the modified licensure process until October 1, 2025, to request a license without the requirements of examination. (1) A minimum of three (3) years’ experience as a professional engineer licensed under chapter 542B or similarly licensed in another state. (2) A minimum of three (3) years’ experience as an architect licensed under chapter 544A or similarly licensed in another state. (3) A minimum of three (3) years’ experience as an adjuster licensed under chapter 522C or similarly licensed in another state. (4) A minimum of three (3) years’ experience as a residential contractor as defined in section 103A.71. (5) A minimum of three (3) years’ experience as a contractor registered under chapter 91C or similarly registered in another state. A person without the requisite experience that is currently performing services as an appraiser may apply for a waiver by the commissioner based on the individual’s other professional qualifications. If the person submitted a waiver request, they will be allowed to continue to provide services as an appraiser until a formal licensing decision is provided by the Iowa Insurance Division so long as the waiver request and application were submitted no later than Oct. 1, 2025. If the person without the requisite experience does not request a waiver, the person must meet the examination requirements through the normal appraiser licensing process unless waived by the commissioner. Umpire Individuals that are currently performing services as an umpire in any state and possess the requisite experience (listed below), will not be subject to the examination requirement in SF 619 and shall be allowed to utilize the modified licensure process until October 1, 2025, to request a license without the requirements of examination. (1) A minimum of three (3) years’ experience as a professional engineer licensed under chapter 542B or similarly licensed in another state. (2) A minimum of three (3) years’ experience as an architect licensed under chapter 544A or similarly licensed in another state. (3) A minimum of three (3) years’ experience as an adjuster licensed under chapter 522C or similarly licensed in another state. (4) A minimum of three (3) years’ experience as an appraiser. (5) A licensed attorney (6) A minimum of three (3) years’ experience as an insurance regulator Individuals without the requisite experience that are currently performing services as an umpire may apply for a waiver by the commissioner based on the individual’s other professional qualifications. If the person submitted a waiver request, they will be allowed to continue to provide services as an umpire until a formal licensing decision is provided by the Iowa Insurance Division so long as the waiver request and application were submitted no later than Oct. 1, 2025. If the individual without the requisite experience does not request a waiver, the individual must meet the examination requirements through the normal umpire licensing process unless waived by the commissioner. Criminal History Check Requirements An applicant intending to become licensed in Iowa as required by SF 619, who is currently licensed by another state insurance regulator that performed a criminal history check on the applicant at the time of licensure or upon the most recent license renewal, has satisfied the criminal history requirements pursuant to 522B.5A. An applicant intending to become licensed in Iowa as required by SF 619, who is currently licensed in another state and did not have a criminal history check performed by another state insurance regulator, a criminal history check of the applicant will be required to comply with the criminal history check requirements in 522B.5A. These individuals will be allowed to continue to provide services while the Division reviews the criminal history check, if the individual applies for licensure no later than Oct. 1, 2025. Reciprocity For purposes of the adjuster examination exemption requirements under Iowa Code 522C.9, an individual applying for a non-resident license in Iowa can meet the requirement of “Iowa-specific statutes and administrative rules” by submitting to the Iowa Insurance Division a completed and attested version of this informational Examination Exemption Attestation that relates to Iowa laws.