The parties to a contested case or persons who are involved in a dispute which could culminate in a contested case may enter into a settlement of any claim arising under this chapter or chapter 85A, 85B, or 86, providing for final disposition of the claim, provided that no final disposition affecting rights to future benefits may be had when the only dispute is the degree of disability resulting from an injury for which an award for payments or agreement for settlement under section 86.13 has been made. The settlement shall be in writing and submitted to the workers' compensation commissioner for approval.
The parties may agree that settlement proceeds, which are paid in a lump sum, are intended to compensate the injured worker at a given monthly or weekly rate over the life expectancy of the injured worker. If such an agreement is reached, neither the weekly compensation rate which either has been paid, or should have been paid, throughout the case, nor the maximum statutory weekly rate applicable to the injury shall apply. Instead, the rate set forth in the settlement agreement shall be the rate for the case.
The settlement shall not be approved unless evidence of a bona fide dispute exists concerning any of the following:
1. The claimed injury arose out of or in the course of the employment.
2. The injured employee gave notice under section 85.23.
3. Whether or not the statutes of limitations as provided in section 85.26 have run. When the issue involved is whether or not the statute of limitations of section 85.26, subsection 2, has run, the final disposition shall pertain to the right to weekly compensation unless otherwise provided for in subsection 7 of this section.
4. The injury was caused by the employee's willful intent to injure the employee's self or to willfully injure another.
5. Intoxication, which did not arise out of and in the course of employment but which was due to the effects of alcohol or another narcotic, depressant, stimulant, hallucinogenic, or hypnotic drug not prescribed by an authorized medical practitioner, was a substantial factor in causing the employee's injury.
6. The injury was caused by the willful act of a third party directed against the employee for reasons personal to such employee.
7. This chapter or chapter 85A, 85B, 86 or 87 applies to the party making the claim.
8. A substantial portion of the claimed disability is related to physical or mental conditions other than those caused by the injury.
Approval by the workers' compensation commissioner shall be binding on the parties and shall not be construed as an original proceeding. Notwithstanding any provisions of this chapter and chapters 85A, 85B, 86 and 87, an approved settlement shall constitute a final bar to any further rights arising under this chapter and chapters 85A, 85B, 86 and 87. Such payment shall not be construed as the payment of weekly compensation.
[C75, 77, 79, 81, § 85.35]
83 Acts, ch 105, § 4; 89 Acts, ch 60, §2; 98 Acts, ch 1061, § 11; 2001 Acts, ch 87, §3
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