Welcome to the Iowa Insurance Guaranty Association (IIGA) Web site. We hope this site will be helpful in providing information regarding the IIGA and how it protects Iowa residents in the event a property and casualty insurance company becomes insolvent.

The IIGA only provides coverage in the event a property and casualty insurer becomes insolvent.

The term “property and casualty insurance” generally refers to auto, homeowner, liability, and workers compensation insurance.

The IIGA does not cover the insolvency of life, health or annuity insurers. Holders of policies or annuities issued by those companies are covered by the Iowa Life & Health Insurance Guaranty Association, For information go to www.ialifega.org.


The Iowa Insurance Guaranty Association was created by the Iowa Legislature in 1970. That law is set forth in Chapter 515B of the Iowa Code. The IIGA is composed of all property and casualty insurers who are admitted to do business in Iowa (the members), regardless of their state of incorporation.


When a member is declared insolvent by a court order, the Association is charged with providing protection, subject to the terms of the law, to Iowa residents who are insured by the insolvent insurer or have claims against those insureds.

The funds the IIGA uses to pay the policy obligations of insolvent insurers is derived solely from assessments made on member insurers. The IIGA receives no public funds or tax revenues.

Since its inception in 1970 and through December 31, 2023, the Association has assessed member insurers almost $60 million and paid benefits and associated expenses of about $75 million.

When the IIGA pays claims, it has a right to receive distributions from the Estate of the insolvent insurer.  These distributions represent the difference between the assessments ($60 million) and benefits paid ($70 million).


The Association is only responsible for claims against an insolvent insurer that was admitted to do business in Iowa at the time the policy was issued or when the insured event occurred.

It excludes non-admitted insurers or so called Excess and Surplus Lines insurers, as well as county or state mutual insurance associations organized under Chapter 518 or 518A or fraternal benefit societies organized under Chapter 521B.

State and County Mutual Insurance Associations have their own guaranty association organized under Chapter 518C, Code of Iowa.


The Association covers all policies of direct insurance but excludes:

  1. Life, annuity, health or disability insurance
  2. Mortgage and financial guarantee insurance
  3. Fidelity & Surety bonds
  4. Credit Insurance
  5. Insurance warranty or service contracts
  6. Title Insurance
  7. Ocean Marine Insurance
  8. Transactions with affiliates or other persons which do not include the transfer of insurance risk
  9. Insurance provided by, guaranteed or reinsured by the government


Persons who hold a covered claim are eligible to receive benefits if:

  1. The claimant or insured is a resident of Iowa at the time of the insured event; or
  2. The claim is a first party claim by an insured for damages to property permanently located in Iowa.


A covered claim is an unpaid claim, against the insolvent insurer or its insured which claim was within the coverage of an eligible insurance policy. It also includes claims for unearned premiums.


A covered claim, except one for workers compensation benefits and unearned premium, is limited to the lesser of:

  1. $500,000 or
  2. The policy limit of the insolvent insured’s policy.

Workers Compensation claims are limited by the amount allowed as benefits under the Iowa Workers Compensation law, Chapter 85 et seq., Code of Iowa.

Claims for unearned premiums are covered up to $10,000 per policy subject to a $100 deductible.


The following are excluded from the definition of Covered Claim and will not be paid by the Association:

  1. Amount due another insurer or reinsurer
  2. Amounts within an insureds deductible or self-insured retention
  3. An unearned premium claim based on a retro-rating or experience rating plan, or one subject to adjustment after termination of the policy
  4. Amounts due an Attorney or other person who furnished services to the insolvent insurer
  5. Fines, penalties, interest, or punitive or exemplary damages
  6. A claim under a policy with a deductible or self insured retention of $200,000 or more
  7. A claim by a person whose net worth exceeds the limits set by the guaranty law of that person’s state of residence
  8. Amounts owed to an affiliate of the insolvent insurer


If a person has a covered claim and also has coverage for that claim under another policy of insurance, they must first collect from that other insurance policy before a claim is presented to the Association.

The Association is entitled to deduct from its covered claim limits the amounts recovered or recoverable under the other insurance policy.

If a person has a claim that is covered by the Iowa Association and is also covered by the Association of another state, the Association where the person resides is primarily liable for the claim.

The secondarily liable Association is entitled to credit for the amount paid by the primarily liable Association.


All property and casualty insurers who are admitted to do business in Iowa, as a condition of their admission, are automatically Members of the Association.

The Members elect a Board of nine Directors, subject to the approval of the Iowa Insurance Commissioner. The Board Members, who serve without compensation, are employees of various member insurers and are selected to fairly represent all members.

The Board of Directors have adopted a Plan of Operation, approved by the Commissioner, and retained a General Counsel who also serves as the Chief Administrator of the Association.


Funds the Association uses to pay covered claims are initially derived by assessing member insurers. The assessments may not exceed 2% of each member’s net direct written premiums in any one year.

As the Association pays covered claims, it is entitled to file a claim for reimbursement against the estate of the insolvent insurer and receive such dividends as the estate pays its creditors.


The foregoing is intended only as a brief summary of the Association, its responsibilities and funding.

For further detailed information, see Chapter 515B, Code of Iowa.