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PAG LIN 1 1 Section 1. Section 85.34, subsection 2, paragraph u, Code 1 2 1995, is amended to read as follows: 1 3 u. The loss of one arm, one hand, one foot, one leg, or 1 4 one eye, if preceded by the loss of any other arm, hand, foot, 1 5 or leg shall be compensated in the same manner as if both 1 6 losses were the result of a single accident as provided in 1 7 paragraph "s", whether or not compensation was previously paid 1 8 for the loss of the first member. 1 9 v. In all cases of permanent partial disability other than 1 10 those hereinabove described or referred to in paragraphs "a" 1 11 through"t""u" hereof, the compensation shall be paid during 1 12 the number of weeks in relation to five hundred weeks as the 1 13 disability bears to the body of the injured employee as a 1 14 whole. 1 15 Sec. 2. NEW SECTION. 85.64A ELIMINATION OF NEW CLAIMS 1 16 AGAINST THE FUND. 1 17 An employee shall not receive payment from the second 1 18 injury fund if the employee's original proceeding for workers' 1 19 compensation benefits is commenced more than ninety days after 1 20 the effective date of this Act. 1 21 Sec. 3. NEW SECTION. 85.66A REPORT ON LIABILITY OF THE 1 22 FUND AND SURCHARGE ON EMPLOYERS. 1 23 The treasurer of state shall annually examine the claims 1 24 against the second injury fund and shall determine the 1 25 outstanding liability of such claims against the second injury 1 26 fund. The treasurer of state shall annually prepare a report 1 27 of the findings of the examination and shall submit the report 1 28 to the committees of the general assembly having jurisdiction 1 29 over workers' compensation issues. If the treasurer of state 1 30 determines that insufficient funds are available in the second 1 31 injury fund to pay claims against the second injury fund, the 1 32 treasurer of state shall adopt by rule, pursuant to chapter 1 33 17A, a surcharge on employers. 1 34 1. The surcharge is payable by all self-insured employers 1 35 making weekly benefit payments and all insurers making weekly 2 1 benefit payments on behalf of insured employers. The 2 2 surcharge shall apply to all workers' compensation insurance 2 3 policies and self-insurance coverages of employers approved 2 4 for self-insurance by the commissioner of insurance pursuant 2 5 to section 87.4 or 87.11, and to the state of Iowa, its 2 6 departments, divisions, agencies, commissions, and boards, or 2 7 any political subdivision coverages whether insured or self- 2 8 insured. The surcharge shall not apply to any reinsurance or 2 9 retrocessional transaction under section 520.4 or 520.9. The 2 10 treasurer of state shall base the surcharge for each payor 2 11 upon the payor's pro rata share of weekly benefits paid in the 2 12 state during the immediately preceding fiscal year. The 2 13 commissioner of insurance may use reports of weekly benefits 2 14 paid derived from the last completed policy or reporting year, 2 15 or other consistent allocation methodology. The surcharge is 2 16 collectible by an insurer or from its policyholders if the 2 17 insured employer fails to pay the insurer. An insurance 2 18 carrier, its agent, or a third-party administrator shall not 2 19 be entitled to any portion of the surcharge as a fee or 2 20 commission for its collection. The surcharge is not subject 2 21 to any taxes, licenses, or fees. The surcharge is not deemed 2 22 to be an assessment or tax, but shall be deemed an additional 2 23 benefit paid for injuries compensable under the second injury 2 24 fund. However, the treasurer of state shall not annually 2 25 collect over seven hundred thousand dollars in assessing the 2 26 surcharge. 2 27 2. The surcharges collected to this section shall be 2 28 deposited in the second injury fund, and may be used for the 2 29 payment of claims or entering into settlements. 2 30 3. An insurer or self-insurer shall pay a surcharge 2 31 imposed by this section no later than thirty days following 2 32 the assessment. 2 33 4. a. If an insurer, policyholder, or self-insurer 2 34 withdraws from doing business in this state before the 2 35 surcharges authorized by this section become due, or fails or 3 1 neglects to pay the surcharge imposed, the treasurer of state 3 2 shall at once proceed to collect the surcharge, and may employ 3 3 such legal process as may be necessary for that purpose, and 3 4 when so collected shall deposit the surcharge into the second 3 5 injury fund. The treasurer may bring the suit in any court of 3 6 this state having jurisdiction, and reasonable attorney's fees 3 7 may be taxed as costs in the suit. 3 8 b. If the surcharges imposed by this section are not paid 3 9 or transferred when due, the insurer, policyholder, or self- 3 10 insurer responsible for the failure shall be required to pay, 3 11 as part of the surcharge, interest on the surcharge at the 3 12 rate of one and one-half percent per month for each month or 3 13 fraction of a month delinquent. If the treasurer of state 3 14 prevails in any dispute concerning the assessment of a 3 15 surcharge which has not been paid or transferred, interest 3 16 shall be paid upon the amount found due to the state at the 3 17 rate of one and one-half percent per month for each month or 3 18 fraction of a month delinquent. 3 19 c. An insurer is not liable for a surcharge which is not 3 20 paid to the insurer by the policyholder or employer provided 3 21 the insurer has made good faith efforts to collect the 3 22 surcharge from the policyholder or employer. An insurance 3 23 carrier shall report to the treasurer of state a policyholder 3 24 or employer who fails to pay a surcharge within thirty days of 3 25 its due date. 3 26 d. In any action concerning the amount of a surcharge 3 27 imposed by this section, any other surcharge shall continue to 3 28 be made based upon the amount assessed by the treasurer of 3 29 state. In the event of an overpayment, the excess amount paid 3 30 may be credited against future payments otherwise due. 3 31 e. An employers who fails to pay the surcharges imposed 3 32 under this section shall not be allowed to purchase workers' 3 33 compensation insurance coverage or to renew a self-insurance 3 34 authorization unless and until the surcharge has been paid. 3 35 5. For the purposes of this section, "insurer" includes a 4 1 self-insurance group approved by the commissioner of insurance 4 2 pursuant to section 87.4. 4 3 6. The imposition of the surcharge shall be limited to the 4 4 three fiscal years beginning after the effective date of this 4 5 Act. At the conclusion of this three-year period, and for 4 6 subsequent three-year periods until the outstanding liability 4 7 of the second injury fund is retired, the treasurer of state, 4 8 in the manner established by this section, shall examine and 4 9 report on the outstanding liability against the second injury 4 10 fund and may reimpose a surcharge. 4 11 Sec. 4. NEW SECTION. 85.66B FINAL DISPOSITION OF CLAIMS 4 12 INVOLVING THE FUND. 4 13 The industrial commissioner, in cooperation with the 4 14 treasurer of state, shall resolve claims involving the second 4 15 injury fund as soon as possible through payment methods, such 4 16 as, but not limited to, entering into lump sum settlements or 4 17 purchasing of annuities. 4 18 Sec. 5. NEW SECTION. 85.67A ADMINISTRATIVE EXPENSES OF 4 19 SPECIAL COUNSEL. 4 20 The attorney general shall not be compensated from the 4 21 second injury fund for administrative expenses incurred in 4 22 connection with the second injury fund. 4 23 Sec. 6. EFFECTIVE DATE. This Act, being deemed of 4 24 immediate importance, takes effect upon enactment. 4 25 HF 2412 4 26 kah/pk/25
Text: HF02411 Text: HF02413 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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