Iowa Insurance Appraisal Law

Required. Appraisers and umpires must hold an Iowa license (§522F.3, §522F.8). Licensing runs through the Iowa Insurance Division: Pearson VUE exam, NIPR application, fingerprints and a background check. Licensed appraisers and licensed umpires each need at least 24 CE credits, including 2 hours of ethics, every two-year license term.

Contingency fees prohibited. An appraiser or umpire "shall not charge any party on a basis dependent on the outcome" of the award, or through barter, gifts or favors (§522F.6(2), §522F.11(3)). No fee is owed if the appraiser or umpire abandons the appraisal before the award. Each party pays its own appraiser and an equal share of umpire fees and appraisal costs.

Competent and disinterested; conflicts disclosed. Each appraiser attests in writing that they are competent and disinterested (§522F.14(2)), discloses any potential conflict within five business days of being hired, and withdraws within five business days if a conflict arises (§522F.7(2)). Conflicts include a personal financial interest in the outcome. An appraiser may not act, or have ever acted, as an adjuster or umpire on the same claim (§522F.7(11)).

State umpire list; Division selects if no agreement. Within 15 calendar days of their selection, the appraisers agree on an umpire from the state umpire list. A party or appraiser may object for good cause within five business days (§522F.12). If the appraisers cannot agree, the Insurance Division randomly selects an umpire from the list, and a judge gives that selection deference (§522F.14(3)).

Covered peril must be stated; case law not yet reviewed. Chapter 522F requires each side to provide a scope of loss of a covered peril, and the award must state the covered peril (§522F.14). AUA has not yet reviewed Iowa case law on causation in appraisal.

Policy terms still apply. Payment of an award is subject to the policy's limits, terms, deductibles and prior payments, and the insurer must explain in writing any item specifically denied under the policy (§522F.16(2)).

Binding; paid within 60 days. The umpire's written itemized award must list ACV and amount of loss by coverage type and be signed by the umpire and at least one appraiser (§522F.14(5)). Unless the parties agree otherwise in writing, the award is binding and paid within 60 days; an insurer's motion to vacate for good cause must be filed within 30 days (§522F.16).

20 / 15 / 45 / 45 / 60 days. Select appraisers within 20 days of the demand; agree on an umpire within 15 days; appraisers submit within 45 days of the umpire's selection; umpire issues the award within 45 days of the submissions; insurer pays within 60 days of the award (§522F.14, §522F.16).