Iowa Insurance Division

Regulatory Authority

The Iowa Insurance Division is the state agency responsible for regulating all insurance activities in Iowa. Operating under the Iowa Code Title XIII (Commerce), the Division ensures that insurance companies operate fairly, producers are qualified, and consumers are protected.

Commissioner Structure

Commissioner Doug Ommen

• Appointed by: Governor of Iowa
• Term: Serves at pleasure of Governor (no fixed term)
• Current Term: Assumed office January 2017, current term ends January 12, 2027
• Authority: General control over all aspects of insurance business in Iowa

Exam Tip: Remember that Iowa's Insurance Commissioner is APPOINTED by the Governor, not elected by voters. This differs from some states where the Insurance Commissioner is an elected official.

Division Responsibilities

The Iowa Insurance Division has broad regulatory authority over:

1. Company Regulation

   • License and supervise insurance companies doing business in Iowa
   • Review and approve policy forms
   • Regulate rates (with Iowa's competitive rating system)
   • Conduct financial examinations of insurers
   • Monitor solvency and financial condition

2. Producer Regulation

   • License insurance producers (agents and brokers)
   • Enforce continuing education requirements
   • Investigate complaints and disciplinary actions
   • Maintain producer database and records

3. Consumer Protection

   • Investigate consumer complaints
   • Enforce unfair trade practice laws
   • Provide consumer education and assistance
   • Handle market conduct examinations

4. Rate & Form Approval

   • Review insurance rates for adequacy and fairness
   • Approve policy forms and endorsements
   • Ensure compliance with Iowa insurance law
   • Monitor competitive rating practices

Iowa Code Structure

Iowa's insurance laws are codified in Iowa Code Title XIII - Commerce:

Chapter 505: Insurance Division

Establishes the Insurance Division, Commissioner's powers, and general regulatory authority.

Key Provisions:

• Commissioner appointment and duties
• Division structure and staff
• General regulatory powers
• Administrative procedures

Chapter 506: Domestic Insurance Companies

Governs Iowa-based insurance companies (domestic insurers).

Key Provisions:

• Capital and surplus requirements
• Premium-to-surplus ratio (3:1 maximum)
• Corporate governance requirements
• Dividend and distribution restrictions

Important: A domestic property/casualty insurer cannot cause the ratio of its net written premiums to its surplus to exceed 3:1 without Commissioner approval.

Chapter 507: Examination of Insurance Companies

Provides authority for examining insurance companies operating in Iowa.

Key Provisions:

• Examination frequency and procedures
• Financial condition reviews
• Market conduct examinations
• Reporting requirements

Chapter 507B: Insurance Trade Practices

Prohibits unfair methods of competition and deceptive practices.

Key Provisions:

• Unfair claim settlement practices
• Misrepresentation and false advertising
• Discrimination in rates or coverage
• Rebating and inducements
• Penalties for violations

We'll cover Chapter 507B in detail in Chapter 4: Ethics & Professional Conduct.

Contact Information

Iowa Insurance Division Headquarters

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

Phone Numbers:

• Main Office: (515) 725-0690
• Producer Licensing: (515) 725-0690
• Consumer Advocate: (515) 281-5705

Email:

• Producer Licensing: producerlicensing@iid.iowa.gov
• General Inquiries: iid@iid.iowa.gov

Office Hours: Monday - Friday 8:00 AM - 4:30 PM Central Time

Website: iid.iowa.gov

National Association of Insurance Commissioners (NAIC)

Iowa participates actively in the NAIC, with Commissioner Ommen serving on national committees. The NAIC develops model laws and regulations that Iowa may adopt.

Enforcement Authority

The Iowa Insurance Division has significant enforcement powers:

Administrative Actions

• License suspension or revocation
• Cease and desist orders
• Fines and penalties up to $50,000 per violation
• Restitution orders for harmed consumers

Market Conduct Authority

• Examine company practices
• Investigate complaint patterns
• Enforce trade practice laws
• Order corrective actions

Criminal Referrals

• Refer fraud cases to prosecutors
• Coordinate with Attorney General
• Report violations to law enforcement

Iowa's Competitive Rating System

Unlike some states with strict rate regulation, Iowa uses a competitive rating system:

• Insurers file rates but don't need prior approval
• Commissioner monitors for unfair discrimination
• Competition generally determines rates
• Commissioner may disapprove discriminatory rates

This system encourages market competition while protecting consumers from unfair practices.