Iowa Insurance Laws

License Renewal

Resident producers must renew their license every 3 years and complete 36 hours of continuing education.

Fines of unintentional and intentional violations

$1,000 for each unintentional violation and $5,000 per intentional violation

Commissioner of Insurance

Appointed by the governor for a 4-year term.

Suitability Information Includes:

Age, annual income, financial experience

Claims Form Period

An insurance company will send forms of filing proof of loss to a claimant within 15 days after company receives notice of a claim.

Insurance Fraud Notification

An insurer that suspects fraud must notify the Bureau within 60 days.

Conservation

Any attempt by the existing insurer or its insurance producer to dissuade a policy owner from replacing an existing insurance policy.

Temporary License

Commissioner may issue a temporary insurance producer license for a maximum period of 180 days.

Coercion

Compelling a party to act in an involuntary manner by use of threats, including propaganda or force.

Buyer's Guide

Enables applicants to compare different life insurance policies and helps them choose which policy is best for their needs.

Medicare Supplements - Free Look

Free look period for Medicare Supplements is 30 days.

Twisting

Inducing or attempting to induce an insured person through misrepresentation to lapse, forfeit, or surrender insurance.

Credit Life

Insurance issued on a debtor to cover outstanding balances on installment loans.

Free Look - Life Insurance Period

Life insurance policies must provide a minimum free-look period of 10 days upon policy delivery.

Inflation Protection

Not required in a partnership long-term care policy if the individual is at least 76 years old at issue

Rebating

Offering a client something of value not stated in the contract in exchange for their business.

Notice of Termination

Once the producer's appointment with the insurer has been terminated the insurer must mail a notice of termination to the producer within 15 days.

Certificate of Authority

Permits an insurance company to transact business in Iowa.

Appointment

The authorization or certification of a producer to act for, or represent, an insurance company.

Grace Period for Health and Accident Insurance

The grace period for health and accident insurance is required to be no less than 7 days for weekly premium policies, 10 days for monthly premium policies, and 31 days for all other policies.

Commissioner may hold a hearing whenever deemed necessary and must give notice of the time and place at least

10 days in advance

The Commissioner must examine each domestic insurance company every

5 years

Long-Term Care - Free Look

A 30 day free look period is required for long-term care policies.

Misrepresentation

A false or misleading statement that, if intentional and material, can allow the insurer to void the insurance contract.

Federal Marketplace

A health policy must provide Essential Benefits without annual and lifetime limits when purchased individually or with group coverage

Commingling

A producer who has combined premiums collected with personal funds.

Deliver Receipt

A signed document that starts the "free-look" period.

Legal Action

There is a waiting period of 60 days to file a lawsuit after a claim for loss has been filed by the insured

Proof of Loss

Written Proof of Loss must be furnished to the insurer within 90 days after the date of such loss.

Notice of Claims

Written notice claim for injury or sickness must be given to the insurer within 20 days after the date of occurrence.