§ 522C.7 — Financial responsibility

Iowa § 522C.7

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 522C: LICENSING OF ADJUSTERS

Text

1. Prior to issuance of a license under section 522C.5A, 522C.5B, 522C.5C, or 522C.5D, an
applicantshallsecureevidenceoffinancialresponsibilitythroughasuretybondasprescribed
by the commissioner. The surety bond shall be executed and issued by an insurer authorized
to issue surety bonds in this state and meet the following requirements:
a. The surety bond shall be a minimum of fifty thousand dollars.
b. The surety bond shall be in favor of the state and specifically authorize recovery by
the commissioner on behalf of any person in this state who sustains damages as the result of
an adjuster’s erroneous act, failure to act, fraud, or unfair or deceptive act or practice under
chapter 507B.
c. The surety bond shall not be terminated without prior written notice filed with the
division a minimum of thirty calendar days prior to termination.
2. The division may request that an adjuster provide evidence of financial responsibility
at any time the division deems relevant.
3. An adjuster shall immediately notify the division if the adjuster’s evidence of financial
responsibility terminates in violation of subsection 1, paragraph “c”, or becomes impaired,
and the adjuster’s license shall become inactive until the adjuster provides the division with
evidence of financial responsibility.