Text: SF02231 Text: SF02233 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. SURCHARGE FOR THE SECOND INJURY FUND.
1 2 1. For the fiscal period commencing July 1, 1998, and
1 3 ending June 30, 1999, the treasurer of state may assess a
1 4 surcharge on workers' compensation weekly benefits paid in the
1 5 state during the fiscal year commencing July 1, 1996. The
1 6 surcharge is payable by all self-insured employers making
1 7 weekly benefit payments and all insurers making weekly benefit
1 8 payments on behalf of insured employers. The surcharge
1 9 applies to all workers' compensation insurance policies and
1 10 self-insurance coverages of employers approved for self-
1 11 insurance by the commissioner of insurance pursuant to section
1 12 87.4 or 87.11, and to the state of Iowa, its departments,
1 13 divisions, agencies, commissions, and boards, or any political
1 14 subdivision coverages whether insured or self-insured. The
1 15 surcharge shall not apply to any reinsurance or retrocessional
1 16 transaction under section 520.4 or 520.9. The treasurer of
1 17 state shall base the surcharge for each payor upon the payor's
1 18 pro rata share of weekly benefits paid in the state during the
1 19 fiscal year commencing July 1, 1996. The treasurer may use
1 20 reports of weekly benefits paid derived from the last
1 21 completed policy or reporting year, or other consistent
1 22 allocation methodology. The surcharge is collectable by an
1 23 insurer or from its policyholders if the insured employer
1 24 fails to pay the insurer. An insurance carrier, its agent, or
1 25 a third-party administrator shall not be entitled to any
1 26 portion of the surcharge as a fee or commission for its
1 27 collection. The surcharge is not subject to any taxes,
1 28 licenses, or fees. The surcharge is not deemed to be an
1 29 assessment or tax, but shall be deemed an additional benefit
1 30 paid for injuries compensable under the second injury fund.
1 31 However, the treasurer of state shall not collect over
1 32 $870,000 in assessing the surcharge.
1 33 2. The surcharges collected pursuant to this section shall
1 34 be deposited in the second injury fund.
1 35 3. The administrative costs and expenses incurred by the
2 1 treasurer of state, the attorney general, the second injury
2 2 fund, or the department of revenue and finance, in connection
2 3 with the second injury fund, may be paid from the second
2 4 injury fund, except that administrative costs and expenses
2 5 incurred in the fiscal year commencing July 1, 1998, and
2 6 ending June 30, 1999, shall not exceed $170,000.
2 7 4. An insurer or self-insurer shall pay a surcharge
2 8 imposed by this section no later than thirty days following
2 9 the assessment.
2 10 5. a. If an insurer, policyholder, or self-insurer
2 11 withdraws from doing business in this state before the
2 12 surcharges authorized by this section become due, or fails or
2 13 neglects to pay the surcharge imposed, the treasurer of state
2 14 shall at once proceed to collect the surcharge, and may employ
2 15 such legal process as may be necessary for that purpose, and
2 16 when so collected shall deposit the surcharge into the second
2 17 injury fund. The treasurer may bring the suit in any court of
2 18 this state having jurisdiction, and reasonable attorney's fees
2 19 may be taxed as costs in the suit.
2 20 b. If the surcharges imposed by this section are not paid
2 21 or transferred when due, the insurer, policyholder, or self-
2 22 insurer responsible for the failure shall be required to pay,
2 23 as part of the surcharge, interest on the surcharge at the
2 24 rate of one and one-half percent per month for each month or
2 25 fraction of a month delinquent. If the treasurer of state
2 26 prevails in any dispute concerning the assessment of a
2 27 surcharge which has not been paid or transferred, interest
2 28 shall be paid upon the amount found due to the state at the
2 29 rate of one and one-half percent per month for each month or
2 30 fraction of a month delinquent.
2 31 c. An insurer is not liable for a surcharge which is not
2 32 paid to the insurer by the policyholder or employer provided
2 33 the insurer has made good faith efforts to collect the
2 34 surcharge from the policyholder or employer. An insurance
2 35 carrier shall report to the treasurer of state a policyholder
3 1 or employer who fails to pay a surcharge within thirty days of
3 2 its due date.
3 3 d. In any action concerning the amount of a surcharge
3 4 imposed by this section, any other surcharge shall continue to
3 5 be made based upon the amount assessed by the treasurer of
3 6 state. In the event of an overpayment, the excess amount paid
3 7 may be credited against future payments otherwise due.
3 8 e. An employer who fails to pay the surcharges imposed
3 9 under this section shall not be allowed to purchase workers'
3 10 compensation insurance coverage or to renew a self-insurance
3 11 authorization unless and until the surcharge has been paid.
3 12 6. For the purposes of this section, "insurer" includes a
3 13 self-insurance group approved by the commissioner of insurance
3 14 pursuant to section 87.4.
3 15 EXPLANATION
3 16 This bill authorizes the treasurer of state, for the fiscal
3 17 year beginning July 1, 1998, to assess a surcharge on workers'
3 18 compensation weekly benefits paid during the fiscal year
3 19 beginning July 1, 1996, to be deposited in the second injury
3 20 fund. The bill provides that the treasurer of state shall not
3 21 collect over $870,000 from any surcharge collected. The bill
3 22 also allows the attorney general and the treasurer of state to
3 23 recoup administrative expenses concerning the second injury
3 24 fund, for the fiscal year beginning July 1, 1998, but not in
3 25 an amount that exceeds $170,000.
3 26 LSB 2145SS 77
3 27 ec/cf/24.1
Text: SF02231 Text: SF02233 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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