Iowa Property & Casualty Insurance License Exam — All Questions
3 questions
What are Iowa's minimum required auto liability limits (bodily injury per person / per accident / property damage)?
- a.$25,000 / $50,000 / $15,000
- b.$20,000 / $40,000 / $15,000✓
- c.$25,000 / $50,000 / $25,000
- d.$15,000 / $30,000 / $10,000
Iowa sets minimum liability of $20,000 for bodily injury to one person, $40,000 per accident, and $15,000 for property damage (20/40/15), per Iowa Code 321A.1 (the definition of 'proof of financial responsibility'). Higher limits are available; confirm current figures with the Iowa Insurance Division.
How does Iowa assign responsibility for auto accident claims?
- a.A no-fault state, where each driver's PIP pays their own injuries regardless of fault.
- b.A state that requires no auto liability coverage at all.
- c.A choice state, where drivers annually elect tort or no-fault.
- d.A traditional at-fault (tort) state, where the at-fault driver's liability coverage responds to the other party's claims.✓
Iowa follows a traditional at-fault (tort) system rather than no-fault: the driver who causes a crash is liable, and that driver's liability coverage pays the other party's injury and property claims up to the 20/40/15 minimums (Iowa Code 321A.1 (the definition of 'proof of financial responsibility')). It does not mandate personal injury protection (PIP).
Uninsured/underinsured motorist coverage on a Iowa auto policy primarily provides what?
- a.Uninsured motorist coverage that protects the insured when an at-fault driver has no or too little insurance.✓
- b.A federal reinsurance pool that reimburses all crash losses.
- c.A guarantee that premiums can never increase after a claim.
- d.Coverage that pays the at-fault driver's own liability judgments.
Uninsured/underinsured motorist (UM/UIM) coverage protects the policyholder and passengers when the responsible driver is uninsured or underinsured. Iowa regulates how UM/UIM is offered and rejected; producers should confirm the current offer-and-waiver rules with the Iowa Insurance Division.