Iowa Property & Casualty Insurance Exam 2026

Welcome to your FREE Iowa Property & Casualty (P&C) Insurance exam preparation guide. This comprehensive study resource covers Iowa-specific insurance laws, regulations, and requirements you need to pass your state licensing exam.

Note: This guide covers Iowa state-specific content. You should also study national Property & Casualty insurance concepts, as approximately 73% of the exam tests general insurance knowledge.

Why Get Licensed in Iowa?

Iowa is an important insurance market with unique opportunities:

• Agricultural Insurance Hub: Iowa's farming economy creates significant agricultural insurance opportunities
• No Pre-License Education: One of the easiest states to enter the insurance profession
• Lower Barriers: $49 exam fee and minimal requirements compared to other states
• Growing Market: Iowa's economy supports diverse insurance needs across rural and urban areas
• Triennial Renewal: License renews every 3 years (longer than many states' 2-year cycles)
• Lower Minimum Auto Liability: 20/40/15 requirements among the lowest in the nation

What This Guide Covers

This FREE study guide includes:

✓ Iowa Insurance Law & Regulations - Iowa Insurance Division, Iowa Code Chapters 505-507B, producer licensing ✓ Property Insurance - Homeowners, farm property, commercial property, tornado/severe weather risks ✓ Auto & Casualty Insurance - Iowa's 20/40/15 liability requirements, agricultural liability ✓ Iowa-Specific Topics - Agricultural insurance, Iowa FAIR Plan, comparative fault rules ✓ Ethics & Professional Conduct - Iowa Code 507B unfair trade practices, producer responsibilities ✓ Practice Questions - Quiz questions with detailed explanations in each chapter

Exam Format & Requirements

Exam Structure

Exam Costs (2026)

• P&C Exam Fee: $49 (one of the lowest in the nation)
• Fingerprinting/Background Check: $34.35 (required as of June 2, 2025)
• License Application Fee: $50
• Transaction Fee: $5.60
• Total Initial Cost: Approximately $139

Pre-License Education

Iowa has NO mandatory pre-license education requirement for Property & Casualty insurance - a significant advantage compared to states requiring 20-40 hours of coursework. However, most successful candidates spend 40-60 hours studying exam content and taking practice tests.

Exam Tip: While Iowa doesn't require pre-license courses, the exam is comprehensive and challenging. Plan to study both national P&C concepts AND Iowa-specific laws thoroughly. The 70% passing score means you can only miss 45 questions out of 150.

New Requirement: Fingerprinting (Effective June 2, 2025)

Beginning June 2, 2025, Iowa requires resident insurance applicants to provide state and federal criminal history checks and fingerprints in order to obtain a license. This is done through Fieldprint locations across Iowa.

• Fee: $34.35
• Processing Time: Allow 3-5 business days
• Required For: All new resident producer licenses
• Not Required For: Non-resident licensees from states with reciprocal agreements

Exam Content Areas

National Content (73% of exam - 110 questions)

The national portion covers general P&C insurance principles:

1. General Insurance Principles (15-20%)

   • Risk and insurance fundamentals
   • Policy structure and provisions
   • Insurable interest and indemnity
   • Insurance companies and operations
   • Reinsurance and risk pooling

2. Property Insurance (25-30%)

   • Homeowners policies (HO-2, HO-3, HO-4, HO-6, HO-8)
   • Dwelling policies (DP-1, DP-2, DP-3)
   • Commercial property (Building and Personal Property, BOP)
   • Farm property and agricultural coverage
   • Inland marine and personal articles

3. Casualty Insurance (25-30%)

   • Auto insurance coverage types (liability, physical damage, UM/UIM)
   • General liability insurance (CGL)
   • Commercial liability policies
   • Workers' compensation (mandatory for 1+ employees in Iowa)
   • Agricultural liability

4. Other Insurance Lines (20-25%)

   • Professional liability and errors & omissions
   • Commercial lines overview
   • Bonds and surety
   • Risk management
   • Umbrella and excess liability

Iowa State Content (27% of exam - 40 questions)

The Iowa-specific portion covers:

1. Iowa Insurance Regulations (30-35% of state portion)

   • Iowa Insurance Division authority and structure
   • Commissioner Doug Ommen (appointed by Governor)
   • Producer licensing requirements and processes
   • Continuing education (36 CE hours every 3 years, including 3 ethics)
   • Iowa Code Chapters 505 (Insurance Division), 506 (Domestic Companies), 507 (Examinations)

2. Iowa-Specific Insurance Laws (25-30% of state portion)

   • Iowa Code Chapter 507B - Insurance Trade Practices (unfair practices)
   • Prohibited practices and penalties
   • Producer responsibilities and duties
   • Consumer protection laws
   • Policy cancellation and non-renewal rules

3. Iowa Auto Insurance Requirements (20-25% of state portion)

   • Minimum liability: 20/40/15 (among lowest in U.S.)
   • Uninsured/underinsured motorist coverage (offered but not mandatory)
   • Modified comparative fault system (51% rule)
   • Financial responsibility law
   • SR-22 certificate requirements

4. Iowa Property & Casualty Provisions (15-20% of state portion)

   • Iowa FAIR Plan (insurer of last resort)
   • Agricultural property and liability insurance considerations
   • Severe weather coverage (tornadoes, derechos, hail)
   • Flood insurance through NFIP (Mississippi/Missouri river risks)
   • Premium to surplus ratio (3:1 limit for domestic insurers)

How to Use This Study Guide

Recommended Study Plan

Week 1-2: Foundations & Property Insurance

• Study general insurance principles and property insurance
• Focus on policy types, coverage, and exclusions
• Complete all practice questions in each section
• Pay special attention to Iowa's agricultural insurance needs
• Review key takeaways and summaries

Week 3-4: Casualty Insurance & Auto Coverage

• Study casualty insurance and auto coverage
• Master Iowa's 20/40/15 minimum requirements
• Understand comparative fault and liability concepts
• Study workers' compensation (mandatory for 1+ employees)
• Complete all practice questions

Week 5: Iowa-Specific Laws & Regulations

• Focus exclusively on Iowa Insurance Division structure
• Memorize Iowa Code Chapter 507B prohibited practices
• Study licensing, CE requirements, and renewal process
• Review Iowa FAIR Plan and unique state provisions
• Practice Iowa-specific quiz questions

Week 6: Review & Practice Testing

• Review all key takeaways from each chapter
• Retake all quiz questions
• Focus on weak areas identified during study
• Take full-length practice exams
• Review Iowa's unique requirements (20/40/15, triennial renewal, no pre-license)

Study Tips for Iowa P&C Exam

1. Understand Iowa's Unique Aspects

   • NO pre-licensing education requirement (unlike most states)
   • 20/40/15 auto minimums (lower than most states)
   • Triennial (3-year) renewal cycle
   • Agricultural insurance importance
   • Modified comparative fault (51% rule)

2. Master National Concepts First

   • 73% of the exam is national content
   • Focus on policy structures and coverage types
   • Understand ISO forms (HO-3, DP-3, etc.)
   • Know liability coverage principles

3. Memorize Iowa-Specific Numbers

   • 20/40/15 auto liability minimums
   • 36 CE hours every 3 years (including 3 ethics hours)
   • 3:1 premium-to-surplus ratio for domestic insurers
   • 70% passing score (105 correct out of 150)
   • $49 exam fee

4. Focus on Agricultural Insurance

   • Iowa is a major agricultural state
   • Farm property and liability coverage is heavily tested
   • Understand crop insurance basics
   • Know agricultural equipment and livestock considerations

5. Study Iowa Code Chapters

   • Chapter 505: Insurance Division
   • Chapter 506: Domestic Insurance Companies
   • Chapter 507: Examination of Insurance Companies
   • Chapter 507B: Insurance Trade Practices (unfair practices)

Next Steps After Passing

1. Apply for License (Within 90 Days)

After passing the exam, you have 90 days to apply for your license through the National Insurance Producer Registry (NIPR):

1. Complete fingerprinting at Fieldprint location ($34.35)
2. Allow 3 business days for exam results to transfer to NIPR
3. Submit application through NIPR online system
4. Pay $50 application fee + $5.60 transaction fee
5. Receive license within 5-7 business days

2. Maintain Your License

• Renewal Period: Every 3 years
• Continuing Education: 36 hours total, including 3 ethics hours
• Renewal Fee: Varies (check Iowa Insurance Division website)
• CE Deadline: Must complete CE before submitting renewal

3. Stay Compliant

• Keep contact information updated with Iowa Insurance Division
• Complete CE on time (penalties for late completion)
• Report any address changes within 30 days
• Understand unfair trade practices under Iowa Code 507B
• Maintain errors & omissions insurance (recommended)

Contact Information

Iowa Insurance Division

Mailing Address: Iowa Insurance Division 1963 Bell Avenue, Suite 100 Des Moines, IA 50315

Phone: (515) 725-0690 Email: producerlicensing@iid.iowa.gov Website: iid.iowa.gov

Producer Licensing Hours: Monday - Friday, 8:00 AM - 4:30 PM Central Time

Pearson VUE Testing

Website: pearsonvue.com/ia/insurance Phone: (800) 274-2912 Schedule Exam: Online at Pearson VUE website

Exam Day Tips

What to Bring

✓ Government-issued photo ID (driver's license, passport) ✓ Exam confirmation number from Pearson VUE ✓ Arrive 30 minutes early for check-in

What NOT to Bring

✗ Study materials, notes, or books ✗ Cell phones or electronic devices ✗ Calculators (not permitted on P&C exam) ✗ Food, drinks, or gum ✗ Bags, purses, or backpacks

During the Exam

• Read each question carefully (watch for words like "NOT" or "EXCEPT")
• Eliminate obviously wrong answers first
• Manage your time: 150 questions in 150 minutes = 1 minute per question
• Flag difficult questions and return to them
• Don't leave questions blank - there's no penalty for guessing
• Review your answers if time permits

After the Exam

• You'll receive your pass/fail result immediately after completing the exam
• Printed score report provided at testing center
• Exam results automatically transmitted to Iowa Insurance Division within 3 business days
• If you fail, you can retake the exam after 24 hours
• No limit on number of retake attempts

Why This Exam Matters

Career Opportunities in Iowa

Iowa's insurance market offers diverse career paths:

Agricultural Insurance Specialist

• Iowa is #1 in corn and #1 in pork production nationally
• Specialized knowledge of farm insurance is highly valuable
• Growing need for crop, livestock, and equipment coverage

Independent Insurance Agent

• Represent multiple carriers
• Serve local communities across Iowa
• Build your own client base and commission structure

Captive Agent

• Work for major carriers like State Farm, Nationwide, Farm Bureau
• Strong training and support systems
• Established brand recognition

Commercial Lines Underwriter

• Assess business risks and determine coverage
• Work for insurance carriers or MGA's
• Higher earning potential with experience

Claims Adjuster

• Investigate and settle insurance claims
• Important role after Iowa's frequent severe weather events
• Field adjusters in high demand after tornado/hail seasons

Iowa's Insurance Industry

Iowa has a robust insurance sector:

• Principal Financial Group - headquartered in Des Moines
• Farm Bureau Financial Services - major Iowa presence
• Nationwide Insurance - large Des Moines operations center
• Hundreds of independent agencies across the state
• Growing insurtech startups in Iowa's tech corridors

Ready to Begin?

This comprehensive guide provides everything you need to pass the Iowa Property & Casualty insurance exam. Work through each chapter systematically, complete all practice questions, and focus on both national concepts and Iowa-specific regulations.

Remember: Iowa's exam has NO pre-licensing requirement, making it one of the most accessible states to enter the insurance profession. However, the exam is comprehensive and requires thorough preparation. Take advantage of this FREE resource and commit to studying consistently.

Let's get started with Chapter 1: Iowa P&C Regulation & Licensing!