If you work with property insurance claims in Iowa, you may have noticed a relatively new license in the state: the insurance appraiser license.
Iowa now licenses insurance appraisers who participate in the property insurance appraisal process. The state also gives qualified professionals the option to become licensed as both an adjuster and an appraiser, including through combined licensing examinations.
But an insurance appraiser isn’t the same thing as an insurance adjuster or a real estate appraiser.
Here’s what you need to know about Iowa’s appraiser license, who qualifies, the difference between appraisers and adjusters, and how to determine which Iowa exam you should take. If you’re considering this license, it’s important to read through and understand all of the information below.
First: What Is an Insurance Appraiser in Iowa?
In this context, an insurance appraiser or property appraiser is different from a real estate appraiser who determines a property’s market value.
Iowa’s insurance appraiser license applies to professionals who participate in the appraisal process for property insurance claims.
An appraisal may be used when the policyholder and insurance company disagree about the actual cash value or amount of a covered loss. The appraisal process provides a method for resolving that dispute.
Under Iowa law, when the applicable requirements are met and appraisal is demanded, the insured and insurer each select a licensed appraiser. The two appraisers evaluate the loss and attempt to reach agreement. They also select an umpire who can become involved when the appraisers disagree.
Iowa’s insurance appraiser licensing and appraisal requirements are primarily governed by Iowa Code Chapter 522F.
Important: This insurance appraiser license is separate from Iowa’s real estate appraiser licenses and is also different from an auto damage appraiser license.
What’s the Difference Between an Insurance Adjuster and an Appraiser?
The easiest way to understand the two licenses is to look at what each professional is permitted to do.
Insurance Adjuster
An insurance adjuster investigates and handles insurance claims.
For example, an independent adjuster generally works on behalf of an insurance company or self-insured organization to investigate, negotiate, or settle property, casualty, or workers’ compensation claims.
Depending on the type of adjuster, the work can include:
- Investigating the circumstances of a loss
- Inspecting damage
- Reviewing insurance coverage
- Estimating repair costs
- Documenting a claim
- Negotiating a settlement
- Helping determine what the insurer should pay
Insurance Appraiser
An appraiser has a much narrower role.
The appraiser participates in a formal insurance appraisal process when there is a dispute over the value or amount of a property loss.
An appraiser evaluates the issues submitted for appraisal, considers the available evidence, and provides an itemized determination of the actual cash value and amount of loss.
Iowa requires appraisers to act independently and places specific restrictions on conflicts of interest, communications, compensation, and conduct during an appraisal.
There is another particularly important distinction: an individual cannot act as both an adjuster and an appraiser on the same claim.
So while you can be licensed to perform both types of work, the roles remain separate on an individual claim.
Who Needs an Iowa Appraiser License?
With limited exceptions, a person cannot act as or represent themselves as an insurance appraiser in Iowa without an Iowa appraiser license.
One statutory exception applies to a person acting as an appraiser solely for a crop hail or multiperil crop insurance claim.
The licensing requirement applies to the insurance appraisal work regulated under Iowa Code Chapter 522F.
Iowa Appraiser License Qualifications
This is especially important for anyone considering an appraiser exam prep course:
Passing the Iowa appraiser exam does not, by itself, guarantee that you qualify for an appraiser license.
Iowa requires an appraiser applicant to have experience or training in:
- Building construction
- Building repair; or
- Estimating property damage
In addition, unless the Iowa Insurance Commissioner waives the requirement based on other professional qualifications, an applicant must have at least three years of experience as one of the following:
- A licensed professional engineer
- A licensed architect
- A licensed adjuster
- A residential contractor
- A registered contractor
Equivalent licensing or registration from another state may also qualify where permitted by Iowa law.
Applicants must also demonstrate the character and competence required by the Iowa Insurance Division, and the Commissioner may require a criminal history check.
Because the Insurance Commissioner has some discretion regarding professional qualifications, applicants who are unsure whether their background satisfies Iowa’s requirements should contact the Iowa Insurance Division before taking the exam or applying for the license.
Do I Need an Iowa Adjuster License Before Becoming an Appraiser?
Not necessarily.
Being a licensed adjuster is one way to satisfy Iowa’s professional-experience requirement to be an appraiser, but it isn’t the only qualifying profession listed in the law.
For example, someone with the required experience as an architect, professional engineer, residential contractor, or registered contractor may potentially qualify for the appraiser license without first becoming an adjuster.
However, someone who wants to perform both insurance adjusting and insurance appraisal work may want to obtain both licenses.
That’s where Iowa’s combined licensing option comes in.
Iowa Adjuster + Appraiser License
Iowa allows an individual to apply concurrently for an appraiser license and an adjuster license.
Instead of taking two completely separate licensing exams, an applicant may choose a joint examination covering the responsibilities and requirements of both roles.
An applicant who passes the joint exam and satisfies all of the other licensing requirements for both professions (including the appraiser experience requirement) can be licensed as both an adjuster and an appraiser.
Iowa currently offers three combined examinations:
- Independent Adjuster & Appraiser — Exam 12-IA-23
- Staff Adjuster & Appraiser — Exam 12-IA-27
- Public Adjuster & Appraiser — Exam 12-IA-26
The type of combined license you pursue depends on the type of adjusting work you intend to perform.
Independent Adjuster + Appraiser
An independent adjuster generally contracts with insurers or self-insurers to investigate, negotiate, or settle claims rather than working as an employee of the insurer.
Someone licensed as both an independent adjuster and appraiser can potentially work in either professional capacity, subject to Iowa’s laws and conflict-of-interest requirements.
However, holding both licenses does not mean you can switch roles during the same claim. Iowa law specifically prohibits an appraiser from acting as, or having previously acted as, an adjuster or umpire on the same claim.
Staff Adjuster + Appraiser
A staff adjuster is directly employed by an insurer or self-insurer to investigate, negotiate, or settle claims.
Iowa currently makes staff adjuster licensing optional. However, an individual who wants both credentials can take the state’s Staff Adjuster & Appraiser examination.
Public Adjuster + Appraiser
A public adjuster represents the insured rather than the insurance company in connection with a first-party property insurance claim.
Iowa offers a combined Public Adjuster & Appraiser examination, but public adjusters are subject to additional licensing requirements governing matters such as contracts, financial responsibility, fees, and conduct. Please note that AdjusterPro’s course does not prepare you for the public adjuster or appraiser licensing exam.
Which Iowa Appraiser Exam Should I Take?
The correct exam depends on the work you plan to perform.
If you only need the insurance appraiser license, Iowa offers:
Appraiser — Exam 12-IA-24
If you want to become both an independent adjuster and an appraiser, the combined exam is:
Independent Adjuster & Appraiser — Exam 12-IA-23
Iowa also offers the Public Adjuster & Appraiser (12-IA-26) and Staff Adjuster & Appraiser (12-IA-27) exams.
Make sure you choose the exam that corresponds with the license or licenses you intend to obtain.
Iowa Appraiser and Adjuster + Appraiser Exam Information
Iowa’s insurance licensing exams are administered by Pearson VUE.
According to the current Pearson VUE Iowa Insurance Division Candidate Handbook:
| Exam | Code | Exam Time | Exam Fee |
|---|---|---|---|
| Appraiser | 12-IA-24 | 1 hour | $44 |
| Independent Adjuster & Appraiser | 12-IA-23 | 2 hours | $44 |
| Public Adjuster & Appraiser | 12-IA-26 | 2 hours | $44 |
| Staff Adjuster & Appraiser | 12-IA-27 | 2 hours | $44 |
Exam fees and testing requirements can change, so candidates should confirm current information with Pearson VUE when scheduling.
Iowa appraiser exam results are valid for 90 calendar days, making it important to complete the application process promptly after passing.
What Is Covered on the Iowa Appraiser Exam?
Iowa law requires the appraiser examination to test an applicant’s knowledge of:
- The insurance appraisal process
- Duties and responsibilities of an appraiser
- Iowa insurance laws
- Iowa insurance rules
Candidates should also understand relevant general insurance concepts and terminology as well as the Iowa-specific rules governing appraisals and appraiser conduct.
The combined adjuster/appraiser exams expand on that material to include the duties and responsibilities of an adjuster and the laws and regulations applicable to that type of adjuster license.
How to Get an Iowa Insurance Appraiser License
Although individual circumstances can vary, the basic process is:
Step 1: Determine Whether You Meet Iowa’s Qualifications
Before investing time in exam preparation, review the professional qualification requirements in Iowa Code §522F.3.
Remember that Iowa generally requires relevant construction, repair, or property damage estimating knowledge plus three years of qualifying professional experience, unless the experience requirement is waived by the Commissioner based on other professional qualifications. If you have questions about your experience, we recommend reaching out to the Iowa Insurance Division directly.
Step 2: Choose the Appropriate License
Determine whether you need:
- Appraiser only
- Adjuster only
- Independent Adjuster + Appraiser
- Staff Adjuster + Appraiser
- Public Adjuster + Appraiser
If you plan to perform independent adjusting as well as insurance appraisal work, for example, the combined Independent Adjuster & Appraiser path may make more sense than pursuing only the appraiser credential.
Step 3: Prepare for the Iowa Licensing Exam
Review the applicable Iowa exam content and prepare for both the general insurance concepts and Iowa-specific laws and regulations you’ll encounter on the exam. Make sure you prepare for the correct exam and license you’re pursuing.
Step 4: Schedule and Pass Your Pearson VUE Exam
Iowa insurance licensing exams are administered through Pearson VUE.
After passing, remember that appraiser examination results are valid for only 90 days.
Step 5: Apply for Your License
Iowa Insurance Division directs appraiser applicants to apply through the National Insurance Producer Registry (NIPR).
Appraiser applicants must also complete the Iowa Insurance Division’s Appraiser Attestation Form.
Depending on the license sought and the applicant’s circumstances, additional documentation or a criminal history check may be required.
How Does the Iowa Insurance Appraisal Process Work?
Understanding the basic process helps explain why Iowa created specific requirements for appraisers.
When the statutory requirements apply and a policyholder and insurer disagree about the actual cash value or amount of loss, either party may demand an appraisal in writing.
Generally:
- Each party selects an appraiser. After receiving the written appraisal demand, the claimant and insurer generally have 20 calendar days to select an appraiser from the Iowa Insurance Division’s appraiser list.
- The appraisers select an umpire. Within 15 calendar days of the appraisers being selected, the two appraisers generally must agree on an umpire from the state’s licensed umpire list.
- The appraisers evaluate the loss. Iowa law generally gives the appraisers 45 calendar days after the umpire is selected to appraise the loss and state the actual cash value and amount of loss for each item.
- Disagreements can go to the umpire. The umpire considers the disputed items when the appraisers cannot agree.
- A written, itemized award is produced. Iowa law establishes requirements for what must be included in the final appraisal award.
These requirements make an Iowa insurance appraisal a formal process rather than simply another property inspection or estimate.
Iowa Appraiser Rules and Standards of Conduct
Licensed insurance appraisers in Iowa are subject to specific standards of conduct and requirements governing how they perform appraisal work. These include rules related to conflicts of interest, independence, communications, compensation, appraisal procedures, written appraisals, and other professional responsibilities.
If you plan to work as an insurance appraiser in Iowa, it’s important to understand and follow all current state requirements that apply to your work.
For complete requirements, refer directly to:
- Iowa Code Chapter 522F – Licensing and Regulation of Appraisers and Umpires: This is the primary state law governing insurance appraisers, including licensing, appraisal procedures, standards of conduct, compensation, conflicts of interest, and other requirements.
- Iowa Code § 522F.7 – Appraisers: Standards of Conduct: This section specifically addresses the standards licensed appraisers must follow when performing appraisal work.
- Iowa Insurance Division – Appraisers: The Division’s appraiser resource page provides current licensing information, continuing education requirements, forms, and other state resources.
Because laws and regulatory requirements can change, appraisers should refer to the Iowa Insurance Division and current Iowa Code for the most up-to-date requirements.
Iowa Appraiser License Renewal and Continuing Education
An Iowa appraiser license is valid for two years.
The initial appraiser license fee and renewal fee are currently $50 for a two-year license.
If someone applies concurrently for both an adjuster and appraiser license, Iowa law provides that the applicant pays only the applicable fee under one of the two licensing chapters rather than both license fees.
Licensed Iowa appraisers must currently complete 24 hours of continuing education during each two-year license term, including two hours of ethics, to qualify for renewal.
Renewal is completed through NIPR.
Should You Get the Appraiser License or the Adjuster + Appraiser Licenses?
It depends on the type of work you intend to perform.
If you only plan to participate in Iowa’s insurance property appraisal process and already satisfy the state’s professional qualification requirements, the standalone Appraiser license and 12-IA-24 exam may be appropriate.
If you also intend to investigate, negotiate, or settle insurance claims as an independent adjuster, obtaining both credentials may give you the authority to perform either type of work when appropriate.
In that situation, Iowa’s Independent Adjuster & Appraiser exam (12-IA-23) provides a combined testing path.
Remember, however, that being licensed for both roles does not allow you to serve as both the adjuster and appraiser on the same claim.
Prepare for Your Iowa Appraiser Licensing Exam
AdjusterPro offers exam preparation designed specifically for Iowa’s new insurance appraiser licensing requirements.
Iowa Appraiser Exam Prep prepares candidates for the standalone 12-IA-24 Appraiser exam, with coverage of general insurance concepts and Iowa laws, rules, terminology, and requirements applicable to insurance appraisers.
For candidates pursuing both credentials, our Iowa Independent Adjuster & Appraiser Exam Prep prepares students for the combined 12-IA-23 exam and the Staff Adjuster & Appraiser 12-IA-27 exam. (Our courses are not for those pursuing the public adjusting or appraising side.)
Before enrolling, make sure you meet Iowa’s professional qualification requirements and select the course that corresponds with the license or licenses you intend to obtain.
Licensing requirements, fees, and examination procedures can change. Candidates should verify current requirements with the Iowa Insurance Division and Pearson VUE before applying or scheduling an examination.
