law
Mandatory E&O Insurance (Iowa)
Under Iowa Code 543B.47, errors and omissions coverage is a condition of licensure for every active Iowa licensee and firm. The Commission contracts a group policy with limits of at least $100,000 per claim and $100,000 annual aggregate, or a licensee may buy independent coverage meeting the minimums; self-insurance does not qualify. Coverage must be continuous. Proof must be produced within 20 calendar days of an audit request. Inactive licensees are exempt.
- Exam tip
- E&O does not apply to inactive licensees, and buying a policy after an audit notice does not cure a lapse. The audit response deadline is 20 days.
- Example
- A licensee's coverage lapses for two months. When audited, she buys a policy, but the earlier gap in continuous coverage remains a violation.
Related terms & state variants
Sources
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Last verified: 2026-10-23