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House File 2412

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  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 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 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 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 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
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