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PAG LIN 1 1 Section 1. Section 85.22, subsection 2, paragraph b, Code 1 2 1997, is amended to read as follows: 1 3 b. A sum sufficient to pay the employer the present worth, 1 4 computed at the interest rate provided in section535.3 for1 5court judgments and decrees85.30, of the future payments of 1 6 compensation for which the employer is liable, but the sum is 1 7 not a final adjudication of the future payments which the 1 8 employee is entitled to receive and if the sum received by the 1 9 employer is in excess of the amount required to pay the 1 10 compensation, the excess shall be paid to the employee. 1 11 Sec. 2. Section 85.26, subsection 2, Code 1997, is amended 1 12 to read as follows: 1 13 2. An award for payments or an agreement for settlement 1 14 provided by section 86.13 for benefits under this chapter or 1 15 chapter 85A or 85B, where the amount has not been commuted, 1 16 may be reviewed upon commencement of reopening proceedings by 1 17 the employer or the employee within three years from the date 1 18 of the last payment of weekly benefits made under the award or 1 19 agreement. If an award for payments or agreement for 1 20 settlement as provided by section 86.13 for benefits under 1 21 this chapter or chapter 85A or 85B has been made and the 1 22 amount has not been commuted, or if a denial of liability is 1 23 not filed with the industrial commissioner and notice of the 1 24 denial is not mailed to the employee,on forms prescribedin 1 25 the form and manner required by the commissioner, within six 1 26 months of the commencement of weekly compensation benefits, 1 27 the commissioner may at any time upon proper application make 1 28 a determination and appropriate order concerning the 1 29 entitlement of an employee to benefits provided for in section 1 30 85.27. The failure to file a denial of liability does not 1 31 constitute an admission of liability under this chapter or 1 32 chapter 85A, 85B, or 86. 1 33 Sec. 3. Section 85.30, Code 1997, is amended to read as 1 34 follows: 1 35 85.30 MATURITY DATE AND INTEREST. 2 1 Compensation payments shall be made each week beginning on 2 2 the eleventh day after the injury, and each week thereafter 2 3 during the period for which compensation is payable, and if 2 4 not paid when due, there shall be added to the weekly 2 5 compensation payments, interest at the rateprovided in2 6section 535.3 for court judgments and decreesof ten percent 2 7 per year. 2 8 Sec. 4. Section 85.47, Code 1997, is amended to read as 2 9 follows: 2 10 85.47 BASIS OF COMMUTATION. 2 11 When the commutation is ordered, the industrial 2 12 commissioner shall fix the lump sum to be paid at an amount 2 13 which will equal the total sum of the probable future payments 2 14 capitalized at their present value and upon the basis of 2 15 interest at the rate provided in section535.3 for court2 16judgments and decrees85.30. Upon the payment of such amount 2 17 the employer shall be discharged from all further liability on 2 18 account of the injury or death, and be entitled to a duly 2 19 executed release, upon filing which the liability of the 2 20 employer under any agreement, award, finding, or judgment 2 21 shall be discharged of record. 2 22 Sec. 5. Section 85.48, Code 1997, is amended to read as 2 23 follows: 2 24 85.48 PARTIAL COMMUTATION. 2 25 When partial commutation is ordered, the industrial 2 26 commissioner shall fix the lump sum to be paid at an amount 2 27 which will equal the future payments for the period commuted, 2 28 capitalized at their present value upon the basis of interest 2 29 at the rate provided in section535.3 for court judgments and2 30decrees85.30, with provisions for the payment of weekly 2 31 compensation not included in the commutation, subject to the 2 32 law applicable to such unpaid weekly payments; all remaining 2 33 payments, if any, to be paid at the same time as though the 2 34 commutation had not been made. 2 35 Sec. 6. Section 86.11, Code 1997, is amended to read as 3 1 follows: 3 2 86.11 REPORTS OF INJURIES. 3 3 Every employer shall hereafter keep a record of all 3 4 injuries, fatal or otherwise, alleged by an employee to have 3 5 been sustained in the course of the employee's employment and 3 6 resulting in incapacity for a longer period than one day. If 3 7 the injury results only in temporary disability, causing 3 8 incapacity for a longer period than three days except as 3 9 provided in section 86.36 then within four days thereafter, 3 10 not counting Sundays and legal holidays, the employer or 3 11 insurance carrier having had notice or knowledge of the 3 12 occurrence of such injury and resulting disability, shall file 3 13 awrittenreport with the industrial commissioneron forms to3 14be procured fromin the form and manner required by the 3 15 commissionerfor that purpose. If such injury to the employee 3 16 results in permanent total disability, permanent partial 3 17 disability or death, then the employer or insurance carrier 3 18 upon notice or knowledge of the occurrence of the employment 3 19 injury, shall file a report with the industrial commissioner, 3 20 within four days after having notice or knowledge of the 3 21 permanent injury to the employee or the employee's death. The 3 22 report to the industrial commissioner of injury shall be 3 23 without prejudice to the employer or insurance carrier and 3 24 shall not be admitted in evidence or used in any trial or 3 25 hearing before any court, the industrial commissioner or a 3 26 deputy industrial commissioner except as to the notice under 3 27 section 85.23. 3 28 Sec. 7. Section 86.13, unnumbered paragraph 1, Code 1997, 3 29 is amended to read as follows: 3 30 If an employer or insurance carrier pays weekly 3 31 compensation benefits to an employee, the employer or 3 32 insurance carrier shall file with the industrial commissioner 3 33on forms prescribedin the form and manner required by the 3 34 industrial commissioner a notice of the commencement of the 3 35 payments. The payments establish conclusively that the 4 1 employer and insurance carrier have notice of the injury for 4 2 which benefits are claimed but the payments do not constitute 4 3 an admission of liability under this chapter or chapter 85, 4 4 85A, or 85B. 4 5 Sec. 8. Section 87.11, unnumbered paragraph 3, Code 1997, 4 6 is amended to read as follows: 4 7 If an employer becomes insolvent and a debtor under 11 4 8 U.S.C., on or after January 1, 1990, this paragraph applies. 4 9 The commissioner of insurance may request of the industrial 4 10 commissioner that all future payments of workers' compensation 4 11 weekly benefits, medical expenses, or other payments pursuant 4 12 to chapter 85, 85A, 85B, 86, or 87 be commuted to a present 4 13 lump sum. The industrial commissioner shall fix the lump sum 4 14 of probable future medical expenses and weekly compensation 4 15 benefits, or other benefits payable pursuant to chapter 85, 4 16 85A, 85B, 86, or 87, capitalized at their present value upon 4 17 the basis of interest at the rate provided in section535.34 18for court judgments and decrees85.30. The commissioner of 4 19 insurance shall be discharged from all further liability for 4 20 the commuted workers' compensation claim upon payment of the 4 21 present lump sum to either the claimant, or a licensed insurer 4 22 for purchase of an annuity or other periodic payment plan for 4 23 the benefit of the claimant. 4 24 Sec. 9. Section 515B.5, subsection 2, paragraph h, Code 4 25 Supplement 1997, is amended to read as follows: 4 26 h. Request that all future payments of workers' 4 27 compensation weekly benefits, medical expenses, or other 4 28 payments under chapter 85, 85A, 85B, 86, or 87 be commuted to 4 29 a present lump sum and upon the payment of which, either to 4 30 the claimant or to a licensed insurer for purchase of an 4 31 annuity or other periodic payment plan for the benefit of the 4 32 claimant, the employer and the association shall be discharged 4 33 from all further liability for the workers' compensation 4 34 claim. Notwithstanding the provisions of section 85.45, any 4 35 future payment of medical expenses, weekly compensation 5 1 benefits, or other payment by the association under this 5 2 chapter pursuant to chapter 85, 85A, 85B, 86, or 87, is deemed 5 3 an undue expense, hardship, or inconvenience upon the employer 5 4 for purposes of a full commutation pursuant to section 85.45, 5 5 subsection 2, and the industrial commissioner shall fix the 5 6 lump sum of the probable future medical expenses and weekly 5 7 compensation benefits capitalized at their present value upon 5 8 the basis of interest at the rate provided in section535.35 9for court judgments and decrees85.30. 5 10 Sec. 10. Section 535.3, subsection 1, Code Supplement 5 11 1997, is amended to read as follows: 5 12 1. Interest shall be allowed on all money due on judgments 5 13 and decrees of courts at a rate calculated according to 5 14 section 668.13, except for interest due pursuant to section5 1585.30 for which the rate shall be ten percent per year. 5 16 EXPLANATION 5 17 The bill provides that the rate of interest used for 5 18 converting future workers' compensation benefits for 5 19 subrogation, full and partial commutations, insolvent 5 20 employers relieved from insurance, and payments by the 5 21 insurance guaranty association to a lump sum shall be at the 5 22 same rate of interest as applied to unpaid workers' 5 23 compensation benefits pursuant to Code section 85.30. Current 5 24 law provides that the interest rate applied for purposes of 5 25 section 85.30 shall be 10 percent per year. 5 26 The bill also eliminates the requirement that first reports 5 27 of injury reports filed with the Industrial Commissioner be 5 28 filed in written form. 5 29 LSB 3258DP 77 5 30 ec/jw/5.1
Text: SSB02002 Text: SSB02004 Text: SSB02000 - SSB02099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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