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House Journal: Page 1376: Wednesday, April 8, 1998

38     2.  Prior to each fiscal year commencing on or
39   after July 1, 1999, the commissioner of insurance
40   shall conduct an examination of the outstanding
41   liabilities of the second injury fund and shall make a
42   determination as to whether sufficient funds will be
43   available in the second injury fund to pay the
44   liabilities of the fund for each of the next two
45   fiscal years.  If the commissioner of insurance
46   determines sufficient funds will be available, the
47   commissioner shall not impose a surcharge on employers
48   during the next succeeding fiscal year.  If the
49   commissioner determines sufficient funds will not be
50   available, the commissioner shall impose by rule,

Page 2  

 1   pursuant to chapter 17A, a surcharge on employers
 2   during the next succeeding fiscal year for payment to
 3   the treasurer of state for the second injury fund
 4   pursuant to the requirements of this section.
 5     3.  If the commissioner of insurance determines
 6   that a surcharge on employers shall be imposed during
 7   any applicable fiscal year, the surcharge imposed
 8   shall comply with and be subject to all of the
 9   following requirements:
10     a.  The surcharge shall apply to all workers'
11   compensation insurance policies and self-insurance
12   coverages of employers approved for self-insurance by
13   the commissioner of insurance pursuant to section 87.4
14   or 87.11, and to the state of Iowa, its departments,
15   divisions, agencies, commissions, and boards, or any
16   political subdivision coverages whether insured or
17   self-insured.  The surcharge shall not apply to any
18   reinsurance or retrocessional transaction under
19   section 520.4 or 520.9.
20     b.  In determining the surcharge for any applicable
21   fiscal year, the commissioner of insurance shall
22   provide that all insured and self-insured employers be
23   assessed, in total, an amount the commissioner
24   determines is sufficient, together with the moneys in
25   the second injury fund, to meet the outstanding
26   liabilities of the second injury fund.
27     c.  The total assessment amount used in calculating
28   the surcharge shall be allocated between self-insured
29   employers and insured employers based on paid losses
30   for the preceding calendar year.  The portion of the
31   total aggregate assessment that shall be collected
32   from self-insured employers shall be equal to that
33   proportion of total paid losses during the preceding
34   calendar year, which the total compensation payments
35   of all self-insured employers bore to the total
36   compensation payments made by all self-insured
37   employers and insurers on behalf of all insured

© 1998 Cornell College and League of Women Voters of Iowa

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Last update: Tue Apr 21 13:40:06 CDT 1998
URL: /DOCS/GA/77GA/Session.2/HJournal/01300/01376.html
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