Federal court upholds Iowa’s insurance adjuster laws

The Gazette, Cedar Rapids, IowaGazette

DES MOINES — A federal appeals court has upheld Iowa laws restricting residential contractors from acting as public insurance adjusters, while allowing part of an Iowa roofing contractor’s First Amendment challenge to continue.

The 8th Circuit Court of Appeals ruled Aug. 12 that Iowa’s public-adjuster statutes are constitutional.

But the three-judge panel reversed a lower court’s dismissal of an “as-applied” First Amendment challenge brought by Shamrock Hills, which does business as Shamrock Roofing and Construction, sending that portion of the case back to federal district court for further proceedings.

Storm damage can leave homeowners navigating both insurance claims and repairs. Iowa law seeks to prevent conflicts of interest by prohibiting residential contractors from serving as both the repair contractor and public adjuster on the same project. Public adjusters represent policyholders in negotiating or settling insurance claims and must be licensed under state law.

Contractors who violate the restrictions can face penalties of up to $40,000 per violation.

Shamrock sued the state, Iowa Insurance Division and state insurance officials after receiving two warning notices alleging the company engaged in activity consistent with unlicensed public adjusting. The contractor argued the laws violated the First Amendment and were unconstitutionally vague.

The appeals court largely rejected Shamrock’s challenge, finding the laws have legitimate applications regulating conduct such as assessing property damage, preparing estimates and submitting insurance claims.

But the appeals court found the lower court failed to properly consider whether Iowa violated Shamrock’s free-speech rights when officials applied the laws to statements in which the company offered to help customers navigate insurance claims. The appeals court said those applications regulated speech and must undergo stricter constitutional scrutiny.

Iowa Attorney General Brenna Bird characterized the decision Thursday as a victory for homeowners.

“Owning a home is a dream for many Iowans, but that dream can turn into a nightmare if they are scammed by people who are supposed to be there to help when their home needs repairs,” Bird said in a statement. “Iowa’s public adjusting laws are written to protect homeowners.”

The case now returns to the U.S. District Court for the Southern District of Iowa for further consideration of Shamrock’s “as-applied” First Amendment claim.

July unemployment rate holds steady

Iowa’s unemployment rate held steady at 3.2% in July for the third consecutive month, while the number of Iowans working and participating in the labor force declined, according to Iowa Workforce Development.

The rate was unchanged from May and June and down from 3.5% in July 2025. The U.S. unemployment rate fell to 4.1% in July.

The number of unemployed Iowans declined by 600 to 54,700 in July. But the number of working Iowans also fell, dropping by 2,200 from June to about 1.67 million and by 3,100 compared to last year at this time.

Iowa’s labor force participation rate — the share of working-age residents who are employed or looking for work — fell from 67.3% in June to 67.1% in July. Iowa Workforce Development said 2,800 people left the labor force during the month, mostly because of retirements.

"Iowa’s July report is largely consistent with what we’ve seen for the last several months,” Iowa Workforce Development Executive Director Beth Townsend said in a statement. “Most industries showed little change in hiring with a notable exception in construction, which gained 900 jobs. We also saw a significant number of Iowans retiring in July. Between this and 58,000 posted jobs on IowaWORKS.gov, there remain plenty of great career opportunities, whether you are looking for your first job or your next one.”

Iowa employers shed 3,100 nonfarm jobs in July, bringing total employment to about 1.58 million. Local government accounted for 1,700 of those losses, largely because K-12 schools began summer break. Private-sector employment declined by 1,000 jobs.

Construction led private-sector gains, adding 900 jobs in July and 3,300 over the past year. Accommodation and food services added 500 jobs during the month, while professional, scientific and technical services gained 400. Retail lost 1,300 jobs.

Over the past year, Iowa’s total nonfarm employment has declined by 1,800 jobs. Trade and transportation industries recorded the largest losses, shedding 5,000 jobs, while manufacturing employment declined by 2,100.

Health care and social assistance posted the strongest year-over-year growth, adding 4,800 jobs, followed by construction with 3,300 and finance and insurance with 1,200.

No forms for unclaimed property

Some Iowans with unclaimed property could soon receive money from the state without having to file a claim under a new initiative announced by State Treasurer Roby Smith.

Smith announced the “Money Match” program at the Iowa State Fair. The initiative, part of the Great Iowa Treasure Hunt, will use data from the Iowa Department of Revenue to verify the identities of some owners of unclaimed property and automatically return qualifying funds.

“Since taking office, I’ve worked hard to modernize the way the Great Iowa Treasure Hunt returns lost money back to owners and heirs,” Smith said in a statement. “Money Match is that next step. With this new initiative, we are streamlining the process to return funds for many Iowans.”

Eligible recipients will receive a letter notifying them that they have been matched with unclaimed property. A few weeks later, the state plans to mail the recipient a warrant, which functions like a check, without requiring the person to submit a claim.

Not all unclaimed property will be eligible for the automatic process. More complicated cases — involving estates, businesses, trusts, securities and certain individual claims — will continue to require the traditional claims process.

The Treasurer’s Office said the new initiative does not eliminate the need for Iowans to search the Great Iowa Treasure Hunt database, given that some property will not qualify for Money Match.

The Great Iowa Treasure Hunt holds unclaimed money and property turned over to the state, including forgotten checks and bank accounts, utility refunds and contents of safe deposit boxes. The Treasurer’s Office estimates one in seven Iowans has funds held by the program.