CHAPTER 522BLICENSING OF INSURANCE PRODUCERSReferred to in 8A.438, 87.4, 296.7, 321A.3, 331.301, 364.4, 423.3, 505.8, 505.28, 505.29, 507A.10, 507B.4, 508A.5, 508E.2, 514B.19, 514K.2, 515.115, 515I.2, 515I.11, 515I.12, 518.16, 522A.3, 522D.3, 522E.2, 522E.8, 522E.9, 522E.12, 523A.502, 523H.1, 537A.10, 669.14, 670.7, 714H.4
522B.1Definitions.
522B.2License required.
522B.3Exceptions to licensing.
522B.4Application for examination.
522B.5Application for license.
522B.5ACriminal history check.
522B.6License.
522B.7Nonresident licensing.
522B.8Exemption from examination.
522B.9Assumed names.
522B.10Temporary licensing.
522B.11License denial, nonrenewal, or revocation limitation on duties and responsibilities of insurance producers.
522B.12Commissions.
522B.13Appointments.
522B.14Notification to commissioner of termination — penalties.
522B.15Reciprocity.
522B.16Reporting of actions.
522B.16ADuties of licensees.
522B.16BWritten consent to engage or participate in business of insurance.
522B.17Cease and desist orders — penalties.
522B.17AInjunctive relief.
522B.18Rules.
522B.1Definitions.As used in this chapter, unless the context otherwise requires:1.  “Business entity” means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.2.  “Commissioner” means the commissioner of insurance.3.  “Exclusive insurance producer” means a licensed insurance producer whose contract with an insurer requires the insurance producer to act as an agent only for that insurer or a group of insurers under common ownership or control or other insurers authorized by that insurer.4.  “Home state” means the District of Columbia and any state or territory of the United States in which an insurance producer maintains the producer’s principal place of residence or principal place of business and is licensed to act as an insurance producer.5.  “Insurance” means any of the lines of authority an insurer is authorized to sell in this state.6.  “Insurance producer” means a person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance.7.  “Insurer” means a person engaged in the business of insurance who is regulated under chapter 508, 512B, 515, or 520.8.  “License” means a document issued pursuant to this chapter by the commissioner authorizing a person to act as an insurance producer for the lines of authority specified in the document. A license by itself does not create any authority, actual, apparent, or inherent, in the holder to represent or commit an insurer.9.  “Limited lines insurance” means any authority granted by the home state which restricts the authority of the license to less than the total authority prescribed in the associated major lines pursuant to section 522B.6, subsection 2, paragraphs “a” through “f”, and any other line of insurance that the commissioner may deem it necessary to recognize for the purposes of complying with section 522B.7, subsection 4.10.  “Limited lines producer” means a person licensed by the commissioner to sell, solicit, or negotiate limited lines insurance.11.  “Negotiate” means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers.12.  “Person” means an individual or a business entity.13.  “Policy owner” means a person who is identified as the legal owner of an insurance policy or contract under the terms of the insurance policy or contract, or who is otherwise vested with legal title to the insurance policy or contract through a valid assignment completed in accordance with the terms of the insurance policy or contract and is properly recorded as the legal owner of the policy or contract in the records of the insurer. “Policy owner” does not include a person who has a mere beneficial interest in an insurance policy or contract.14.  “Producer database” means the national database of insurance producers maintained by the national association of insurance commissioners, its affiliates, or subsidiaries.15.  “Sell” means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurer.16.  “Solicit” or “solicitation” means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company.17.  “Terminate” means the cancellation of the relationship between an insurance producer and the insurer or the termination of an insurance producer’s authority to transact insurance.18.  “Uniform application” means the current version of the national association of insurance commissioners uniform application for resident and nonresident insurance producer licensing.19.  “Uniform business entity application” means the current version of the national association of insurance commissioners uniform business entity application for resident and nonresident business entities.2001 Acts, ch 16, §15, 37, 2002 Acts, ch 1111, §35, 2002 Acts, ch 1119, §75, 2014 Acts, ch 1108, §1Referred to in 515.106, 518.16A, 518A.42, 533C.103522B.2License required.1.  A person shall not sell, solicit, or negotiate insurance in this state for any line of insurance unless the person is licensed as an insurance producer for that line of insurance as provided in this chapter.2.  A person offering to the public, for a fee or commission, to engage in the business of offering any advice, counsel, or service with respect to the benefits, advantages, or disadvantages promised under any policy of insurance must also be licensed as an insurance producer.2001 Acts, ch 16, §16,37Referred to in 522B.17A522B.3Exceptions to licensing.1.  Nothing in this chapter shall be construed to require an insurer to obtain an insurance producer license. For the purposes of this section, “insurer” does not mean an officer, director, employee, subsidiary, or affiliate of the insurer.2.  A license as an insurance producer shall not be required of any of the following:a.  An officer, director, or employee of an insurer or of an insurance producer, provided that the officer, director, or employee does not receive any commission on policies written or sold to insure risks residing, located, or to be performed in this state, and one of the following applies:(1)  The activities of the officer, director, or employee are executive, administrative, managerial, clerical, or a combination of these, and are only indirectly related to the sale, solicitation, or negotiation of insurance.(2)  The function of the officer, director, or employee relates to underwriting, loss control, inspection, or the processing, adjusting, investigating, or settling of a claim on a contract of insurance.(3)  The officer, director, or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers where the person’s activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation, or negotiation of insurance.b.  A person who performs any of the following services and who is not paid a commission for the performance of such service:(1)  Secures and furnishes information for the purpose of group life insurance, group property and casualty insurance, group annuities, or group or blanket accident and health insurance.(2)  Secures and furnishes information for the purpose of enrolling individuals under plans, issuing certificates under plans, or otherwise assisting in administering plans.(3)  Performs administrative services related to mass marketed property and casualty insurance.c.  An employer or association, or an officer, director, or employee of such employer or association, or the trustees of an employee trust plan, to the extent that such employer, association, officer, director, employee, or trustee is engaged in the administration or operation of a program of employee benefits for the employer’s or association’s own employees or the employees of its subsidiaries or affiliates, which program involves the use of insurance issued by an insurer, as long as such employer, association, officer, director, employee, or trustee is not in any manner compensated, directly or indirectly, by the insurer issuing the contracts.d.  An employee of an insurer, or an organization employed by an insurer, who engages in the inspection, rating, or classification of risks or in the supervision of the training of insurance producers and who is not individually engaged in the sale, solicitation, or negotiation of insurance.e.  A person whose activities in this state are limited to advertising without the intent to solicit insurance in this state through communications in printed publications or other forms of electronic mass media whose distribution is not limited to residents of the state, provided that the person does not sell, solicit, or negotiate insurance that would insure risks residing, located, or to be performed in this state.f.  A person who is not a resident of this state who sells, solicits, or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract, provided that that person is otherwise licensed as an insurance producer to sell, solicit, or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state.g.  A salaried full-time employee who counsels or advises the employee’s employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer, provided that the employee does not sell or solicit insurance or receive a commission.h.  A licensed attorney providing surety bonds incident to the attorney’s practice.i.  A person selling transportation tickets of a common carrier of persons or property when that person also sells, in connection with and related to the transportation ticket, a trip and accident insurance policy or an insurance policy on personal effects being carried as baggage.2001 Acts, ch 16, §17,37; 2002 Acts, ch 1050, §47; 2002 Acts, ch 1119, §76
See also §522A.3
522B.4Application for examination.1.  A resident individual applying for an insurance producer license shall pass a written examination unless exempt pursuant to section 522B.8. The examination shall test the knowledge of the individual concerning the lines of authority for which application is made, the duties and responsibilities of an insurance producer, and the insurance laws and regulations of this state. The commissioner shall adopt rules pursuant to chapter 17A related to development and conduct of the examination.2.  The commissioner may make arrangements, including contracting with an outside testing service or other appropriate entity, for administering examinations and collecting fees.3.  An individual applying for an examination shall remit a nonrefundable fee as established by rule of the commissioner.4.  An individual who fails to appear for the examination as scheduled or fails to pass the examination shall reapply for an examination and remit all required fees and forms before being rescheduled for another examination.2001 Acts, ch 16, §18,37Referred to in 522B.6522B.5Application for license.1.  A person applying for a resident insurance producer license shall make application to the commissioner on the uniform application, meet all requirements pursuant to section 522B.5A, and declare under penalty of refusal, suspension, or revocation of the license that all statements made in the application are true, correct, and complete to the best of the individual’s knowledge and belief. Before approving the application, the commissioner shall find all of the following:a.  The individual is at least eighteen years of age.b.  The individual has not committed any act that is a ground for denial, suspension, or revocation as set forth in section 522B.11.c.  The individual has paid the license fee of fifty dollars.d.  The individual has successfully passed the examinations for the lines of authority for which the person has applied.e.  In order to protect the public interest, the individual has the requisite character and competence to receive a license as an insurance producer.2.  A business entity acting as an insurance producer may elect to obtain an insurance producer license. Application shall be made using the uniform business entity application. Prior to approving the application, the commissioner shall find both of the following:a.  The business entity has paid the appropriate fees.b.  The business entity has designated a licensed producer responsible for the business entity’s compliance with the insurance laws and rules of this state.3.  The commissioner may require any documents reasonably necessary to verify the information contained in an application.4.  Fees collected under this section shall be deposited as provided in section 505.7.2001 Acts, ch 16, §19, 37, 2009 Acts, ch 181, §90, 2020 Acts, ch 1016, §6Referred to in 522B.6, 522B.8
Subsection 1, unnumbered paragraph 1 amended
522B.5ACriminal history check.1.  In determining eligibility for licensure, the commissioner is authorized to require an applicant pursuant to subsection 2 to provide to the commissioner the applicant’s fingerprints and reasonable fees required to perform a state criminal history check through the department of public safety, division of criminal investigation, and a national criminal history check through the federal bureau of investigation. By submitting such fingerprints, the applicant authorizes the commissioner to do all of the following: a.  Submit the applicant’s fingerprints to the department of public safety, division of criminal investigation, for submission to the federal bureau of investigation for the purpose of conducting a national criminal history check.b.  Receive the results of the state and national criminal history checks.2.  The commissioner is authorized to require a state and national criminal history check on each applicant that applies for any of the following:a.  An initial license in Iowa as a resident insurance producer.b.  An initial license or an additional line of authority under a nonresident insurance producer license if a state and national criminal history check has not already been completed.c.  A renewal, reinstatement, or reissuance of a license if the license of a producer has been revoked or suspended pursuant to section 522B.11, the license of a public adjuster has been revoked or suspended pursuant to section 522C.6, or the license of a viatical settlement provider or viatical settlement broker has been revoked or suspended pursuant to section 508E.4.d.  An initial license as a viatical settlement provider or viatical settlement broker in this state.e.  An initial license as a public adjuster in this state.3.  The commissioner shall require an applicant pursuant to subsection 2 to submit a full set of fingerprints and any other required identifying information to the commissioner on a form prescribed by the department of public safety.4.  The commissioner may contract with a third-party vendor for the collection and transmission of an applicant’s fingerprints for the purpose of conducting a state and national criminal history check. The commissioner may agree to reasonable fees to be charged by the third-party vendor and may require such reasonable fees to be paid by the applicant directly to the third-party vendor.5.  The results of a criminal history check conducted pursuant to this section shall not be considered a public record pursuant to chapter 22. An applicant’s fingerprints and any criminal history check information shall not be subject to subpoena, other than a subpoena issued in a criminal action or investigation, shall be confidential by law and privileged, and shall not be subject to discovery or be admissible in evidence in a private civil action.2020 Acts, ch 1016, §7Referred to in 508E.3, 522B.5, 522C.5
NEW section
522B.6License.1.  A person who meets the requirements of sections 522B.4 and 522B.5, unless otherwise denied licensure pursuant to section 522B.11, shall be issued an insurance producer license. An insurance producer license is valid for three years.2.  An insurance producer may qualify for a license in one or more of the following lines of authority:a.  Life insurance providing coverage on human lives, including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income.b.  Accident and health or sickness insurance providing coverage for sickness, bodily injury, or accidental death, and may include benefits for disability income.c.  Property insurance providing coverage for the direct or consequential loss or damage to property of any kind.d.  Casualty insurance providing coverage against legal liability, including that for death, injury, or disability, or damage to real or personal property.e.  Variable life and variable annuity products insurance coverage provided under variable life insurance contracts and variable annuities.f.  Personal lines property and casualty insurance sold to individuals and families primarily for noncommercial purposes.g.  Excess and surplus lines insurance provided by certain nonadmitted insurers pursuant to chapter 515I.h.  Credit insurance, including credit life, credit disability, credit property, credit unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, guaranteed automobile protection insurance, and any other form of insurance offered in connection with an extension of credit that is limited to partially or wholly extinguishing a credit obligation and that the commissioner determines should be designated a form of credit insurance.i.  Any other line of insurance permitted under state law or by rule.3.  An insurance producer license remains in effect unless revoked or suspended as long as all required fees are paid and continuing education requirements for resident individual insurance producers are met by any applicable due date. Resident individual insurance producers are required to complete continuing education requirements in order to be eligible for license renewal unless exempted from such requirements under this chapter or by rule.4.  An individual insurance producer who allows the producer’s license to lapse, within twelve months from the due date of the renewal fee, may have the same license reinstated without the necessity of passing a written examination upon the payment of a reinstatement fee as specified by rule of the commissioner. Such reinstatement fee shall be in addition to the required renewal fee.5.  A licensed insurance producer who is unable to comply with license renewal procedures due to military service or some other extenuating circumstance may request a waiver of those procedures. Such insurance producer may also request a waiver of any examination requirement or any other penalty or sanction imposed for failure to comply with renewal procedures.6.  The license shall contain the licensee’s name, address, personal identification number, and the date of issuance, the lines of authority, the expiration date, and any other information the commissioner deems necessary.7.  A licensee shall inform the commissioner by any means acceptable to the commissioner of a change of legal name or address within thirty days of the change. Failure to timely inform the commissioner of a change in legal name or address may result in a penalty as specified in section 522B.17.8.  In order to assist with the commissioner’s duties, the commissioner may contract with a nongovernmental entity, including the national association of insurance commissioners or any affiliate or subsidiary the national association of insurance commissioners oversees, to perform any ministerial functions, including the collection of fees, related to producer licensing that the commissioner deems appropriate.2001 Acts, ch 16, §20, 37, 2002 Acts, ch 1050, §48, 2002 Acts, ch 1119, §77, 2007 Acts, ch 137, §23, 2007 Acts, ch 152, §82, 2012 Acts, ch 1025, §20, 22Referred to in 522B.1522B.7Nonresident licensing.1.  Unless denied licensure pursuant to section 522B.11, a nonresident person shall receive a nonresident insurance producer license if all of the following apply:a.  The person is currently licensed as an insurance producer and is in good standing in the person’s home state.b.  The person has submitted the proper request for licensure and has paid the required fees.c.  The person has submitted or transmitted to the commissioner the application for licensure that the person submitted to the person’s home state, or in lieu of such application, a completed uniform application.d.  The person’s home state awards nonresident insurance producer licenses to residents of this state on the same basis.2.  The commissioner may verify the insurance producer’s licensing status through the producer database.3.  A nonresident insurance producer who moves from one state to another state or a resident insurance producer who moves from this state to another state shall file a change of address and provide certification from the new resident state within thirty days of the change of legal residence. No fee or license application is required. The certification may be obtained through the producer database.4.  Notwithstanding any other provision of this chapter, a person licensed as a limited lines insurance producer in the person’s home state shall receive a nonresident limited lines insurance producer license, pursuant to subsection 1, granting the same scope of authority as granted under the license issued by such person’s home state.2001 Acts, ch 16, §21,37Referred to in 522B.1, 522B.15522B.8Exemption from examination.1.  An individual who applies for an insurance producer license in this state who was previously licensed for the same lines of authority in another state shall not be required to complete an examination. This exemption is only available if the person is currently licensed in that other state or if the request for licensure is received within ninety days of the cancellation of the applicant’s previous license and if the prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state. The certification may be obtained through the producer database.2.  A person licensed as an insurance producer in another state who moves to this state shall make application within ninety days of establishing legal residence to become a resident licensee pursuant to section 522B.5. An examination shall not be required of that person to obtain an insurance producer license for any line of authority previously held in the prior state except where the commissioner determines otherwise by regulation.2001 Acts, ch 16, §22,37Referred to in 522B.4522B.9Assumed names.An insurance producer doing business under any name other than the insurance producer’s legal name is required to notify the commissioner prior to using the assumed name.2001 Acts, ch 16, §23,37522B.10Temporary licensing.1.  The commissioner may issue a temporary insurance producer license for a period not to exceed one hundred eighty days without requiring an examination if the commissioner deems that the temporary license is necessary for the servicing of an insurance business in the following cases:a.  To the surviving spouse or court-appointed personal representative of a licensed insurance producer who dies or becomes mentally or physically disabled, to allow adequate time for the sale of the insurance business owned by the insurance producer, for the recovery or return of the insurance producer to the business, or for the training and licensing of new personnel to operate the insurance producer’s business.b.  To a member or employee of a business entity licensed as an insurance producer, upon the death or disability of an individual designated in the business entity application or the license.c.  To the designee of a licensed insurance producer entering active service in the armed forces of the United States.d.  In any other circumstance where the commissioner deems that the public interest will best be served by the issuance of a temporary license.2.  The commissioner may by order limit the authority of any temporary licensee in any way deemed necessary to protect insureds and the public. The commissioner may require the temporary licensee to have a suitable sponsor who is a licensed insurance producer or insurer and who assumes responsibility for all acts of the temporary licensee and may impose other similar requirements designed to protect insureds and the public. The commissioner may by order revoke a temporary license if the interest of insureds or the public is endangered. A temporary license shall not continue after the owner or the personal representative disposes of the business.2001 Acts, ch 16, §24,37522B.11License denial, nonrenewal, or revocation limitation on duties and responsibilities of insurance producers.1.  The commissioner may place on probation, suspend, revoke, or refuse to issue or renew an insurance producer’s license or may levy a civil penalty as provided in section 522B.17 for any one or more of the following causes:a.  Providing incorrect, misleading, incomplete, or materially untrue information in the license application.b.  Violating any insurance laws, or violating any regulation, subpoena, or order of the commissioner or of a commissioner of another state.c.  Obtaining or attempting to obtain a license through misrepresentation or fraud.d.  Improperly withholding, misappropriating, or converting any moneys or properties received in the course of doing insurance business.e.  Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance.f.  Having been convicted of a felony.g.  Having admitted or been found to have committed any unfair insurance trade practice or fraud.h.  Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this state or elsewhere.i.  Having an insurance producer license, or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory.j.  Forging another’s name to an application for insurance or to any document related to an insurance transaction.k.  Improperly using notes or any other reference material to complete an examination for an insurance license.l.  Knowingly accepting insurance business from an individual who is not licensed.m.  Failing to comply with an administrative or court order imposing a child support obligation.n.  Failing to comply with an administrative or court order related to repayment of loans to the college student aid commission.o.  Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax.p.  Failing or refusing to cooperate in an investigation by the commissioner.q.  Is the subject of an order of the securities administrator of this state or any other state, province, district, or territory, denying, suspending, revoking, or otherwise taking action against a registration as a broker-dealer, agent, investment adviser, or investment adviser representative.r.  Using an insurance producer’s license for the principal purpose of procuring, receiving, or forwarding applications for insurance of any kind, or placing, or effecting such insurance directly or indirectly upon or in connection with the property of the licensee or the property of a relative, employer, or employee of the licensee, or upon or in connection with property for which the licensee or a relative, employer, or employee of the licensee is an agent, custodian, vendor, bailee, trustee, or payee.2.  If the commissioner does not renew a license or denies an application for a license, the commissioner shall notify the applicant or licensee and advise, in writing, the licensee or applicant of the reason for the nonrenewal of the license or denial of the application for a license. The licensee or applicant may request a hearing on the nonrenewal or denial. A hearing shall be conducted according to section 507B.6.3.  The license of a business entity may be suspended, revoked, or refused if the commissioner finds, after hearing, that an individual licensee’s violation was known or should have been known by a partner, officer, or manager acting on behalf of the business entity and the violation was not reported to the commissioner and corrective action was not taken.4.  In addition to, or in lieu of, any applicable denial, suspension, or revocation of a license, a person, after hearing, may be subject to a civil penalty as provided in section 522B.17.5.  The commissioner may conduct an investigation of any suspected violation of this chapter pursuant to section 507B.6 and may enforce the provisions and impose any penalty or remedy authorized by this chapter and chapter 507B against any person who is under investigation for, or charged with, a violation of either chapter even if the person’s license has been surrendered or has lapsed by operation of law.6.a.  In order to assure a free flow of information for accomplishing the purposes of this section, all complaint files, investigation files, other investigation reports, and other investigative information in the possession of the commissioner or the commissioner’s employees or agents that relates to licensee discipline are privileged and confidential, and are not subject to discovery, subpoena, or other means of legal compulsion for their release to a person other than the licensee, and are not admissible in evidence in a judicial or administrative proceeding other than the proceeding involving licensee discipline. A final written decision of the commissioner in a disciplinary proceeding is a public record.b.  Investigative information in the possession of the commissioner or the commissioner’s employees or agents that relates to licensee discipline may be disclosed, in the commissioner’s discretion, to appropriate licensing authorities within this state, the appropriate licensing authority in another state, the District of Columbia, or a territory or country in which the licensee is licensed or has applied for a license.c.  If the investigative information in the possession of the commissioner or the commissioner’s employees or agents indicates a crime has been committed, the information shall be reported to the proper law enforcement agency.d.  Pursuant to the provisions of section 17A.19, subsection 6, upon an appeal by the licensee, the commissioner shall transmit the entire record of the contested case to the reviewing court.e.  Notwithstanding the provisions of section 17A.19, subsection 6, if a waiver of privilege has been involuntary and evidence has been received at a disciplinary hearing, the court shall issue an order to withhold the identity of the individual whose privilege was waived.7.a.  Unless an insurance producer holds oneself out as an insurance specialist, consultant, or counselor and receives compensation for consultation and advice apart from commissions paid by an insurer, the duties and responsibilities of an insurance producer are limited to those duties and responsibilities set forth in Sandbulte v.Farm Bureau Mut.Ins.Co.,343 N.W.2d 457 (Iowa 1984).b.  The general assembly declares that the holding of Langwith v.Am.Nat’l Gen.Ins.Co., 793 N.W. 2d 215 (Iowa 2010) is abrogated to the extent that it overrules Sandbulte and imposes higher or greater duties and responsibilities on insurance producers than those set forth in Sandbulte.c.  Notwithstanding the holding in Pitts v.Farm Bureau Life Ins.Co., 818 N.W.2d 91 (Iowa 2012), an insurance producer, while acting within the scope and course of the license provided for by this chapter, is not in the business of supplying information to others unless the requirements of paragraph “a” relating to expanded duties and responsibilities are met.d.  Neither an insurance producer nor an insurer has a duty to change the beneficiary of an insurance policy or contract unless clear written evidence of the policy owner’s intent to change a beneficiary of the policy or contract is presented to the insurance producer or insurer in the manner required by the policy or contract prior to the payment of any insurance benefits under the policy or contract. Such evidence shall be provided in the same manner as a claim for benefits under the policy or contract.e.  An insurance producer owes any duties and responsibilities referred to in this subsection only to the policy owner, a person in privity of contract with the insurance producer, and the principal in an agency relationship with the insurance producer. If a person to whom an insurance producer owes duties and responsibilities is deceased or incapacitated, a direct and specifically identified beneficiary referenced in a written instrument required by the insurer and delivered to the insurance producer prior to the death or incapacity may enforce the insurance producer’s duties and responsibilities. An insurance producer does not owe any duty or responsibility to a person who was a direct and specifically identified beneficiary if the policy owner changes the beneficiary in the manner required by the policy or contract to remove the person as a beneficiary.2001 Acts, ch 16, §25, 37, 2004 Acts, ch 1110, §60 – 62, 2008 Acts, ch 1123, §42, 2011 Acts, ch 70, §45, 2014 Acts, ch 1108, §2, 2015 Acts, ch 108, §8, 2017 Acts, ch 54, §62Referred to in 505.8, 522B.5, 522B.5A, 522B.6, 522B.7, 522B.14, 522B.16A522B.12Commissions.1.  An insurer or insurance producer shall not pay a commission, service fee, brokerage, or other valuable consideration to a person for selling, soliciting, or negotiating insurance in this state if that person is required to be licensed under this chapter and is not so licensed.2.  A person shall not accept a commission, service fee, brokerage, or other valuable consideration for selling, soliciting, or negotiating insurance in this state if that person is required to be licensed under this chapter and is not so licensed.3.  Renewal or other deferred commissions may be paid to a person for selling, soliciting, or negotiating insurance in this state if the person was required to be licensed under this chapter at the time of the sale, solicitation, or negotiation and was so licensed at that time.4.  An insurer or insurance producer may pay or assign a commission, service fee, brokerage, or other valuable consideration to an insurance agency or to a person who does not sell, solicit, or negotiate insurance in this state, unless the payment would violate chapter 507B.2001 Acts, ch 16, §26,37; 2007 Acts, ch 152, §83522B.13Appointments.1.  An individual insurance producer who acts as an agent of an insurer must be appointed by that insurer. An insurance producer who is not acting as an agent of an insurer need not be appointed. A business entity is not required to be appointed.2.  The appointing insurer, for the purpose of appointing an insurance producer as its agent, shall file, in a format approved by the commissioner, a notice of appointment within thirty days from the date the agency contract is executed or the first insurance application is submitted.3.  An insurer shall pay an appointment fee, in the amount and method of payment set forth by rule of the commissioner, for each insurance producer appointed by the insurer.4.  An insurer shall remit a renewal appointment fee in the manner and amount as set forth by rule of the commissioner.2001 Acts, ch 16, §27,37522B.14Notification to commissioner of termination — penalties.1.  An insurer or authorized representative of the insurer that terminates the appointment, employment, contract, or other insurance business relationship with an insurance producer shall notify the commissioner within thirty days following the effective date of the termination, using a format prescribed by the commissioner, if the reason for termination is one of the reasons set forth in section 522B.11, or the insurer has knowledge the insurance producer was found by a court, government body, or self-regulatory organization authorized by law to have engaged in any of the activities set forth in section 522B.11. Upon request of the commissioner, the insurer or authorized representative of the insurer shall provide additional information, documents, records, or other data pertaining to the termination or activity of the insurance producer.2.  An insurer or authorized representative of the insurer that terminates the appointment, employment, contract, or other insurance business relationship with an insurance producer for any reason not set forth in section 522B.11 shall notify the commissioner within thirty days following the effective date of the termination, using a format prescribed by the commissioner. Upon request of the commissioner, the insurer shall provide additional information, documents, records, or other data pertaining to the termination.3.  The insurer or the authorized representative of the insurer shall promptly notify the commissioner using a format prescribed by the commissioner if, upon further review or investigation, the insurer or authorized representative of the insurer discovers additional information that would have been reportable to the commissioner pursuant to subsection 1, had the insurer then known of its existence.4.  Within fifteen days after making the notification required by this section, the insurer shall mail a copy of the notification to the insurance producer at the insurance producer’s last known address. If the insurance producer is terminated for any of the reasons set forth in section 522B.11, the insurer shall provide a copy of the notification to the insurance producer at the insurance producer’s last known address by restricted certified mail, as defined in section 618.15, or by overnight delivery using a nationally recognized carrier.5.  Within thirty days after the insurance producer has received the original or additional notification, the insurance producer may file written comments concerning the substance of the notification with the commissioner. The insurance producer, by the same means, shall simultaneously send a copy of the comments to the reporting insurer, and the comments shall become a part of the commissioner’s record and accompany every copy of a report distributed or disclosed for any reason about the insurance producer, as permitted under subsection 8.6.a.  In the absence of actual malice, an insurer, the authorized representative of the insurer, an insurance producer, the commissioner, or an organization of which the commissioner is a member and that compiles the information and makes it available to other commissioners or regulatory or law enforcement agencies shall not be subject to civil liability. A civil cause of action of any nature shall not arise against any of these entities or their respective agents or employees, as a result of any statement or information required by or provided pursuant to this section or any information relating to any statement that may be requested in writing by the commissioner from an insurer or insurance producer; or a statement by a terminating insurer or insurance producer to an insurer or insurance producer limited solely and exclusively to whether a termination for cause under subsection 1 was reported to the commissioner, provided that the propriety of any termination for cause under subsection 1 is certified in writing by an officer or authorized representative of the insurer or insurance producer terminating the relationship.b.  In any action brought against a person that may have immunity under this section for making any statement required by this section or providing any information relating to any statement that may be requested by the commissioner, the party bringing the action shall plead specifically in any allegation that this section does not apply because the person making the statement or providing the information did so with actual malice. This section shall not abrogate or modify any existing statutory or common law privileges or immunities.7.a.  Any document, material, or other information in the control or possession of the insurance division that is furnished by an insurer, insurance producer, or an employee or agent of such insurer or insurance producer acting on behalf of the insurer or insurance producer, or obtained by the commissioner in an investigation pursuant to this section is considered a confidential record and shall not be subject to subpoena, or subject to discovery, or admissible in evidence in any private civil action. However, the commissioner is authorized to use such document, material, or other information in the furtherance of any regulatory or legal action brought as a part of the commissioner’s duties.b.  Neither the commissioner nor any person who received any document, material, or other information while acting under the authority of the commissioner shall be permitted or required to testify in any private civil action concerning any confidential document, material, or information subject to this section.8.a.  The commissioner may share documents, materials, or other information, including the confidential and privileged documents, materials, or information subject to subsection 7, with other state, federal, and international regulatory agencies, with the national association of insurance commissioners, its affiliates or subsidiaries, and with state, federal, and international law enforcement authorities, provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material, or other information.b.  The commissioner may receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information, from the national association of insurance commissioners, its affiliates or subsidiaries, and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information.c.  The commissioner may enter into agreements governing sharing and use of information consistent with this subsection.9.  A waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information shall not occur as a result of disclosure to the commissioner or sharing of information received under this section.10.  Nothing in this chapter shall prohibit the commissioner from releasing information regarding final, adjudicated actions that are considered public records subject to examination and copying under chapter 22 to a database or other clearinghouse service maintained by the national association of insurance commissioners, or an affiliate or subsidiary of the national association of insurance commissioners.11.  An insurer, the authorized representative of the insurer, or an insurance producer that fails to report as required under this section, or that is found to have reported with actual malice by a court of competent jurisdiction, after notice and hearing, may have its license or certificate of authority suspended or revoked and may be penalized as provided in section 522B.17.2001 Acts, ch 16, §28, 37, 2001 Acts, ch 176, §72, 2012 Acts, ch 1023, §157522B.15Reciprocity.1.  The commissioner shall waive any requirements for a nonresident license applicant with a valid license from such applicant’s home state, except for the requirements imposed by section 522B.7, if the applicant’s home state awards nonresident licenses to residents of this state on the same basis.2.  A nonresident insurance producer’s satisfaction of the producer’s home state’s continuing education requirements for licensed insurance producers shall constitute satisfaction of this state’s continuing education requirements if the nonresident insurance producer’s home state recognizes the satisfaction of its continuing education requirements imposed upon insurance producers from this state on the same basis.2001 Acts, ch 16, §29,37522B.16Reporting of actions.1.  An insurance producer shall report to the commissioner any administrative action taken against the insurance producer in another jurisdiction or by another governmental agency in this state within thirty days of the final disposition of the matter. This report shall include a copy of the order, consent to the order, and other relevant legal documents.2.  Within thirty days of the initial pretrial hearing date, an insurance producer shall report to the commissioner any criminal prosecution of the insurance producer taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents.2001 Acts, ch 16, §30, 37, 2002 Acts, ch 1050, §49, 2018 Acts, ch 1041, §127522B.16ADuties of licensees.1.  An insurance producer has a continuing duty and obligation to keep, at the insurance producer’s place of business, usual and customary records pertaining to transactions undertaken by the insurance producer. All such records shall be kept available and open for inspection by the commissioner or the commissioner’s representative at any time during regular business hours, provided that the commissioner or the commissioner’s representative is not entitled to inspect any records prepared in anticipation of litigation or that are subject to any privilege recognized in chapter 622. Such records shall be maintained for a minimum of three years following the completion of an insurance transaction.2.  An insurance producer who willfully fails to comply with this section commits a violation of this chapter and is subject to sanctions under section 522B.11.2004 Acts, ch 1110, §63522B.16BWritten consent to engage or participate in business of insurance.1.  A person who is prohibited by 18 U.S.C. §1033 from engaging or participating in the business of insurance because that person has been convicted of a crime under that statute or of a felony involving dishonesty or breach of trust may apply to the commissioner for written consent to engage or participate in the business of insurance in this state.2.  The commissioner, by rule, shall establish a procedure and standards for issuing such a written consent.3.  The commissioner shall not issue an insurance producer license to an applicant who has been convicted of a crime as set forth in subsection 1 unless the applicant has first obtained a written consent from the commissioner to engage or participate in the business of insurance in this state.4.  The commissioner shall not renew or issue an insurance producer license to an insurance producer licensee who has been convicted of a crime as set forth in subsection 1 unless that licensee has first obtained a written consent from the commissioner to engage or participate in the business of insurance in this state.2006 Acts, ch 1117, §115522B.17Cease and desist orders — penalties.1.  An insurer or insurance producer who, after hearing, is found to have violated this chapter may be ordered to cease and desist from engaging in the conduct resulting in the violation and may be assessed a civil penalty pursuant to chapter 507B.2.  A person who, after hearing, is found to have violated this chapter by acting as an agent of an insurer or otherwise selling, soliciting, or negotiating insurance in this state, or offering to the public advice, counsel, or services with regard to insurance, who is not properly licensed may be ordered to cease and desist from engaging in the conduct resulting in the violation and may be assessed a civil penalty according to the provisions of chapter 507A.3.  If a person does not comply with an order issued pursuant to this section, the commissioner may petition a court of competent jurisdiction to enforce the order. The court shall not require the commissioner to post a bond in an action or proceeding under this section. If the court finds, after notice and opportunity for hearing, that the person is not in compliance with an order, the court may adjudge the person to be in civil contempt of the order. The court may impose a civil penalty against the person for contempt in an amount not less than three thousand dollars but not greater than ten thousand dollars for each violation and may grant any other relief that the court determines is just and proper in the circumstances.2001 Acts, ch 16, §31,37; 2005 Acts, ch 70, §48Referred to in 505.8, 522B.6, 522B.11, 522B.14, 522B.17A522B.17AInjunctive relief.1.  An association with at least twenty-five insurance producer members may bring an action in district court to enjoin a person from selling, soliciting, or negotiating insurance in violation of section 522B.2. However, before bringing an action in district court to enjoin a person pursuant to this section, an association shall file a complaint with the insurance division alleging that the person is selling, soliciting, or negotiating insurance in violation of section 522B.2.2.  If the division makes a determination to proceed administratively against the person for a violation of section 522B.2, the complainant shall not bring an action in district court against the person pursuant to this section based upon the allegations contained in the complaint filed with the division.3.  If the division does not make a determination to proceed administratively against the person for a violation of section 522B.2, the division shall issue, on or before ninety days from the date of filing of the complaint, a release to the complainant that permits the complainant to bring an action in district court pursuant to this section.4.  The filing of a complaint with the division pursuant to this section tolls the statute of limitations pursuant to section 614.1 as to the alleged violation for a period of one hundred twenty days from the date of filing the complaint.5.  Any action brought in district court by a complainant against a person pursuant to this section, based upon the allegations contained in the complaint filed with the division, shall be brought within one year after the ninety-day period following the filing of the complaint with the division, or the date of the issuance of a release by the division, whichever is earlier.6.  If the court finds that the person is in violation of section 522B.2 and enjoins the person from selling, soliciting, or negotiating insurance in violation of that section, the court’s findings of fact and law, and the judgment and decree, when final, shall be admissible in any proceeding initiated pursuant to section 522B.17 by the commissioner against the person enjoined and the person enjoined shall be precluded from contesting in that proceeding the court’s determination that the person sold, solicited, or negotiated insurance in violation of section 522B.2.2005 Acts, ch 70, §49522B.18Rules.The commissioner may adopt reasonable rules according to chapter 17A as are necessary or proper to carry out the purposes of this chapter.2001 Acts, ch 16, §32,37