To comply with Financial Responsibility Requirements of SF 619 under Iowa Code § 522C.7, all licensed Public Adjusters and Independent Adjusters must demonstrate proof of financial responsibility. This requirement ensures consumer protection by providing coverage for damages resulting from erroneous acts, fraud, or unfair practices.
The Iowa Insurance Division (Division) accepts three primary forms of financial responsibility as described in Bulletin 25-08:
Surety Bonds, Professional Liability/Errors & Omission (E&O) Insurance, or an Irrevocable Letter of Credit.
1. Who Must File?
Required
- Public Adjusters: Must file proof of financial responsibility.
- Independent Adjusters: Must file personal proof of financial responsibility or applicable attestation confirming coverage under their employer’s proof of financial responsibility.
Adjuster Business Entities: Must file proof covering the entity and its affiliated adjusters.
2. Acceptable Forms of Financial Responsibility
Option A: Surety Bond (Individual Bond or Business Entity Bond)
Option B: Professional Liability/E&O Insurance
Option C: Irrevocable Letter of Credit
Note: Unless specifically employed and covered by the adjuster business entity’s qualifying proof of financial responsibility, non-employee (independent contractor or 1099 staff) adjusters must maintain their own individual bond or other qualifying proof of financial responsibility.
3. How to Submit Your Documents
Submission Method: Email Submission
You must submit your documents directly to the Division.
- Email: producer.licensing@iid.iowa.gov
- Subject Line: Adjuster Application Requirements - [Your Name/Entity Name] - [NPN/Transaction Number]
- Attachment: Attach the PDF of your Bond, Credit of Insurance (COI), or Letter of Credit along with any additional required document(s).
Required Documentation:
- Business Entity Applicants - PDF of your Bond, Certificate of Insurance, or Letter of Credit covering the entity and its affiliated adjusters and the appropriate attestation form (if applicable).
- Individual Applicants - PDF of your Bond, Certificate of Insurance, or Letter of Credit and the appropriate attestation form (if applicable).
- Attestation Forms
Dependent on your particular situation, the below attestation forms might be necessary along with your proof of financial responsibility document;
- Attestation of Financial Responsibility – Business Entity Adjuster
- Attestation of Financial Responsibility – Individual Adjuster
4. Maintenance and Compliance
- Existing Filings: If you have already filed a bond that meets these requirements, no action is needed other than maintaining that bond.
- Recordkeeping: All licensees must maintain current evidence of their bond or qualifying coverage and make it available to the Division upon request. Lapses, cancellations, or failure to maintain continuous financial responsibility will result in license inactivation until proof of reinstatement or replacement coverage is submitted and approved.
Questions?
For assistance regarding these requirements, please contact the Iowa Insurance Division:
- Email: producer.licensing@iid.iowa.gov
- Phone: 515-654-6628