Iowa Independent Adjuster Practice Test

Correct answer: B. A nonemployee contractor paid by insurers to settle property claims

Iowa Code 522C.2(11) defines an independent adjuster as someone who contracts for compensation with insurers or self-insurers, directly or through a firm or third-party administrator, is treated as an independent contractor rather than an employee, and investigates, negotiates or settles property, casualty or workers' compensation claims. A salaried insurer employee is a staff adjuster, a person hired by homeowners is a public adjuster, and an attorney acting as an attorney is exempt under 522C.4.

Reference: Iowa Code 522C.2(11), (18) and (21); 522C.4(2)(b)

Correct answer: D. Nothing, because adjusting solely crop claims is outside the chapter

The definition of adjuster in Iowa Code 522C.2(1) states that a person who acts as an adjuster solely for crop hail or multiperil crop insurance claims is not subject to chapter 522C, so Rosa needs no adjuster license, bond or examination under it. If she also handled other property or casualty claims as a contractor, the license requirement in 522C.4 would apply. Staff adjuster licensing in Iowa is optional, never mandatory.

Reference: Iowa Code 522C.2(1); 522C.4(1)

Correct answer: B. A presidential major disaster declaration or governor's proclamation

Section 522C.2(4) describes a catastrophic disaster by its effects (mass casualties, destroyed facilities, overwhelmed response resources, severe economic harm), and paragraph b adds that it includes a major disaster declaration by the president or a state of disaster emergency proclamation by the governor. The term matters because it triggers the 72-hour no-contract period and the 10% public adjuster fee cap. Claim counts and dollar thresholds are not part of the definition.

Reference: Iowa Code 522C.2(4); 522C.10(1)(a)(8); 522C.11(2)

Correct answer: A. A named insured with a fire claim under her own homeowners policy

Chapter 522C limits public adjuster licensure to assisting insureds with first-party claims, and 522C.2(9) defines a first-party claim as one filed by a named insured under the policy against which the claim is made. The pedestrian and the neighbor are third-party claimants, and every public adjuster contract must state that the adjuster will not handle bodily injury, death or noneconomic damage claims. Insurers use staff or independent adjusters, not public adjusters.

Reference: Iowa Code 522C.1; 522C.2(9) and (18); 522C.10(1)(a)(13)

Correct answer: C. She needs no license, but other chapter 522C rules still apply

Section 522C.4(2)(a) says a license is not required of a staff adjuster, but staff adjusters must comply with all other provisions of the chapter except section 522C.7 on financial responsibility. Standards of conduct such as the 15-business-day response rule therefore still bind Priya. Iowa offers an optional staff adjuster license, which requires proof of employment, but there is no mandatory deadline to obtain one.

Reference: Iowa Code 522C.4(2)(a); Iowa Insurance Division, Adjusters (Staff Adjusters)

Correct answer: B. None, since appointed producers with claim authority are exempt

2026 Iowa Acts, House File 2582, effective on enactment April 9, 2026, added paragraph d to section 522C.4(2): an insurance producer licensed under chapter 522B who is appointed by, and granted claim authority by, an insurer or self-insurer does not need an adjuster license. Ben works for the insurer, so a public adjuster license would be wrong in any case, because public adjusters represent insureds, not insurers.

Reference: Iowa Code 522C.4(2)(d), added by 2026 Iowa Acts, House File 2582, section 2

Correct answer: D. A contractor paid by an insurer to negotiate and settle hail claims

Section 522C.4(2) exempts staff adjusters, attorneys acting in their professional capacity, and people employed only to obtain facts about a loss or give technical help to a licensed adjuster, such as photographers, estimators, private investigators, engineers and handwriting experts. A contractor who negotiates and settles claims for an insurer is an independent adjuster under 522C.2(11) and must be licensed under 522C.4(1).

Reference: Iowa Code 522C.4(1) and (2); 522C.2(11)

Correct answer: A. Keeping a home-state office open by appointment or regular hours

Section 522C.5A lists the resident requirements: Iowa is the home state, no grounds for denial, character and competence, financial responsibility, payment of fees, an office in the home state available by reasonable appointment or regular business hours, age 18 or older, a passed adjuster examination, and any needed secretary of state authority. Iowa does not require a prelicensing course, prior claims experience or a producer license.

Reference: Iowa Code 522C.5A

Correct answer: C. Fieldprint prints booked with the code from her NIPR application

Iowa Code 522C.5(2) lets the commissioner require a criminal history check under 522B.5A, and the Division requires fingerprints for an initial public, independent or staff adjuster license when no state and national check was done by the applicant's resident state insurance department. Applicants apply in NIPR first, then book Fieldprint using the code in the confirmation. Fingerprints taken for another purpose cannot be reused.

Reference: Iowa Code 522C.5(2); Iowa Insurance Division, Fingerprinting and Criminal History Checks

Correct answer: B. It becomes inactive because her home-state license ended

Section 522C.5B(2) requires a nonresident to be licensed as a resident adjuster and in good standing in the home state. If that resident license terminates for any reason, the Iowa nonresident license becomes inactive, unless the termination is because the adjuster received a new resident license in a new home state that has reciprocity with Iowa. Financial responsibility is a separate requirement and cannot substitute for the home-state license.

Reference: Iowa Code 522C.5B(2)

Correct answer: D. 90 calendar days

Section 522C.8(4) makes examination results valid to submit for licensure for 90 calendar days after the date of the examination. The Iowa Insurance Division says to allow up to three business days for passing results to reach the NIPR system, so candidates should file the NIPR application, fingerprints and financial responsibility documents promptly. Once the window closes, the results can no longer be used for licensure.

Reference: Iowa Code 522C.8(3) and (4); Iowa Insurance Division, Adjusters (Adjuster Examination)

Correct answer: A. Applying for a resident license within 90 days of establishing residency

Section 522C.9(2) exempts a relocating adjuster from the Iowa examination if the resident application is submitted within 90 calendar days of establishing legal residency and the adjuster is currently licensed in the prior state, that state certifies good standing, and producer database or NAIC records confirm it. Letting the old license lapse or surrendering it would defeat the exemption, and continuing education cannot replace the examination.

Reference: Iowa Code 522C.9(2)

Correct answer: C. $150

Section 522C.6(2) sets the fee for issuance or renewal of an adjuster license at $50 for a consecutive 24-month period, so one issuance plus two renewals is 3 x $50 = $150, paid electronically through the NIPR gateway. Separate charges apply for the examination ($44 for 12-IA-21) and for fingerprinting when required, and reinstatement or reissuance after disciplinary action costs $100.

Reference: Iowa Code 522C.6(2), (4) and (7); Pearson VUE Iowa Candidate Handbook

Correct answer: A. 24 credits, including 2 hours of ethics, each two-year license term

The Division's adjuster page states that adjusters must complete at least 24 credits of continuing education, including two hours of ethics, during each two-year license term, and that resident and nonresident adjusters must be compliant before renewing. Rule 191-55.11 sets the same 24 credits with 2 ethics credits for public adjusters and defines a credit as 50 minutes of instruction or reading material.

Reference: Iowa Insurance Division, Adjusters (Continuing Education); 191 IAC 55.11(1)

Correct answer: D. $50,000, issued in favor of the state of Iowa

Rule 191-55.10(1)(a)(1), an emergency rule adopted under 2026 Iowa Acts, House File 2582 and effective May 5, 2026, requires an individual bond of no less than $50,000 issued in favor of the state of Iowa by an insurer authorized in Iowa. The coverage must respond to damages from an adjuster's erroneous act, failure to act, fraud, chapter 522C violations or unfair practices under chapter 507B. Since HF 2582, these amounts come from the rule, not from Iowa Code 522C.7.

Reference: 191 IAC 55.10(1)(a) (emergency rule ARC 0308D, effective May 5, 2026); Iowa Code 522C.7 as amended by 2026 HF 2582

Correct answer: B. An E&O certificate with $50,000 per adjuster and $1 million aggregate

Rule 191-55.10(1) accepts three forms: a surety bond, a professional liability or errors and omissions certificate of at least $50,000 per adjuster with a $1 million aggregate, or an irrevocable letter of credit of at least $50,000 from a qualified financial institution. A savings balance is not on the list, general liability does not cover professional errors, and a bond must be at least $50,000 and issued by an insurer authorized in Iowa.

Reference: 191 IAC 55.10(1)(a) to (c) (emergency rule ARC 0308D, effective May 5, 2026); Iowa Insurance Division, Proof of Financial Responsibility

Correct answer: C. $500,000

Rule 191-55.10(1)(a)(2) allows a scheduled or blanket bond with a $50,000 per occurrence limit and an aggregate set by head count: 2 to 20 adjusters, $250,000 (five times the individual bond); 21 to 40, $500,000 (ten times); 41 or more, $1 million (20 times). With 25 adjusters the firm needs $500,000, not 25 x $50,000. Contractors not covered by the entity's bond need their own.

Reference: 191 IAC 55.10(1)(a)(2) (emergency rule ARC 0308D, effective May 5, 2026)

Correct answer: D. Not allowed while he remains employed as a staff adjuster

Section 522C.11(17) lets a staff adjuster hold a public adjuster or independent adjuster license but prohibits providing services as an independent or public adjuster while employed as a staff adjuster. Holding the license is permitted; using it is not, until Marcus leaves his staff position. The statute contains no exception for employer consent or for work done for unrelated insurers.

Reference: Iowa Code 522C.11(17)

Correct answer: A. 15 business days of the date of the inquiry

Section 522C.11(11) requires an adjuster to respond to an inquiry from an insurer or an insured about a claim within 15 business days unless good cause exists for delay, and to reply within 15 business days to all pertinent communications that reasonably suggest a response is expected. Do not confuse this with the insurer's own duty under rule 191-15.42 to acknowledge a new claim within 15 days.

Reference: Iowa Code 522C.11(11)

Correct answer: C. June 1, 2031

Section 522C.11(8) requires an adjuster to keep all documentation relating to estimates and coverage determinations for at least five years from the date the settlement is completed, so June 1, 2026 plus five years is June 1, 2031. Section 522C.12 separately requires usual and customary records to be kept at the place of business for five years from the date of the transaction and open to Division inspection.

Reference: Iowa Code 522C.11(8); 522C.12(1)

Correct answer: B. Not accept, because she cannot act in both roles on one claim

Section 522C.11(16) states that an independent adjuster shall not act as an independent adjuster and a public adjuster on the same claim, and the reverse also applies. Closing the file, insurer consent and a compliant fee do not cure the conflict. Related rules in 522C.11(13) and (14) also bar an adjuster from serving as the appraiser or the umpire on a claim the adjuster is adjusting.

Reference: Iowa Code 522C.11(13), (14) and (16)

Correct answer: D. A prohibited conflict of interest regardless of the amount

Section 522C.11(19)(b) lists as a conflict of interest any direct or indirect financial interest or other valuable consideration, regardless of form or amount, paid to an adjuster for referring an insured to an appraiser, umpire, construction company, contractor, salvage company or attorney. Disclosure or a dollar cap does not make it permissible. Owning part of a business that repairs property on the claim is also a conflict.

Reference: Iowa Code 522C.11(19)(a) to (c)

Correct answer: A. Both the insured and the insurer, in a timely manner

Section 522C.11(22) requires an adjuster to produce a detailed written estimate to repair or replace covered damages and provide a copy to both the insured and the insurer in a timely manner. Section 522C.11(21) adds that an adjuster may not represent that damage occurred at a property unless the adjuster has inspected the damaged areas. The Division may inspect records but does not receive every estimate.

Reference: Iowa Code 522C.11(21) and (22)

Correct answer: C. A violation, since negotiating claims requires a license

Section 522C.11(4) bars a public or independent adjuster from permitting an unlicensed employee or representative to conduct business that requires a license under the chapter, and negotiating claims for insurers is independent adjusting under 522C.2(11). The assistant could lawfully gather facts or take photographs, because 522C.4(2)(c) exempts people employed only to obtain facts or give technical help to a licensed adjuster.

Reference: Iowa Code 522C.11(4); 522C.4(2)(c)

Correct answer: D. Prohibited, because only consumers may initiate contact for 72 hours

For at least 72 hours after a catastrophic disaster, which includes a governor's disaster emergency proclamation, section 522C.11(2) bars a public adjuster from offering, attempting to offer or entering into a contract in person or by telephone unless the consumer initiated it. After a public hearing, the commissioner may extend the period by another 72 hours. Outside that window, solicitation is still barred from 8:00 p.m. to 9:00 a.m. under 522C.11(3).

Reference: Iowa Code 522C.2(4); 522C.11(2) and (3)