Iowa Adds Preneed Seller and Sales Agent Licenses to Electronic Licensing Channels

Effective February 13, 2026, the Iowa Insurance Division will introduce new Preneed Seller and Sales Agent license classes for electronic processing through NIPR gateway systems. These licenses will be visible in the Producer Database and available across resident, non-resident, and no-home-state licensing and renewal transactions. The update brings new application requirements, review workflows, affiliation rules, and fee structures that will impact both business entities and individual applicants operating in Iowa’s preneed market.

Overview of Iowa’s New Licensing Offering

Beginning February 13, 2026, Iowa will add Preneed Seller and Sales Agent license classes to its electronic licensing framework. These licenses will display on the Producer Database (PDB) and support submissions through Resident Licensing (RL), Resident Licensing Renewals (RLR), Non-Resident Licensing (NRL), Non-Resident Renewals (NRR), No Home State Licensing (NRLNHS), and No Home State Renewals (NRRNHS).

This change enables electronic processing for initial applications and renewals while expanding the visibility of preneed-related credentials within national producer records. Appointment and termination transactions are not impacted by this update.

License Classes, Eligibility, and Application Rules

The new implementation introduces two distinct license classes:

• Preneed Seller (Business Entity)
• Sales Agent (Individual)

Preneed Seller applicants must designate at least one affiliated Sales Agent who holds an active Iowa license. Business entity applications must list a minimum of one owner, partner, officer, or director, with ownership totaling 100 percent. Sales Agent applicants must be at least 18 years old and, if not a U.S. citizen, provide valid work authorization documentation.

Both Preneed Seller and Sales Agent applications will defer for state review, with limited exceptions for applicants already holding an active Iowa Insurance Producer license.

Fees, Renewals, and Compliance Considerations

Iowa has established straightforward fee structures for the new license classes:

• Preneed Seller (Business Entity)
  • License/Reinstatement: $25
  • Renewal: $15
• Sales Agent (Individual)
  • License, Renewal, or Reinstatement: $10

There is no renewal grace period for either license class, and late renewals require reapplication rather than penalty fees. Renewal applications for Sales Agents will defer for state verification of Continuing Education compliance unless the applicant is actively licensed as an Iowa resident Insurance Producer.

Producer Database and Operational Impact

Both license classes will display on the Producer Database and generate PDB alerts, increasing visibility for compliance teams and regulators. Preneed Seller applications may include multiple designated responsible licensed producers (DRLPs), provided they meet Iowa licensing requirements.

Organizations operating in the preneed space should review internal workflows, affiliation tracking, and renewal timelines ahead of the February 2026 effective date to ensure alignment with Iowa’s updated licensing framework.

Summary

Iowa’s addition of Preneed Seller and Sales Agent licenses represents a significant step toward expanded electronic licensing and improved regulatory transparency. With new eligibility rules, review requirements, and fee structures, affected entities and individuals should prepare early to avoid processing delays. Understanding how these licenses interact with existing producer credentials will be essential for maintaining compliance and uninterrupted operations in Iowa’s preneed market.