House Amendment 8436 PAG LIN 1 1 Amend Senate File 2337, as passed by the Senate, as 1 2 follows: 1 3 #1. Page 1, by inserting before line 1 the 1 4 following: 1 5 <Section 1. Section 87.4, Code 2007, is amended to 1 6 read as follows: 1 7 87.4 GROUP AND SELF=INSURED PLANS == TAX EXEMPTION 1 8 == PLAN APPROVAL. 1 9 For the purpose of complying with this chapter, 1 10 groups of employers by themselves or in an association 1 11 with any or all of their workers, may form insurance 1 12 associations as hereafter provided, subject to such 1 13 reasonable conditions and restrictions as may be fixed 1 14 by the insurance commissioner; and membership in such 1 15 mutual insurance organization as approved, together 1 16 with evidence of the payment of premiums due, shall be 1 17 evidence of compliance with this chapter. 1 18 A self=insurance association formed under this 1 19 section and an association comprised of cities or 1 20 counties, or both, or the association of county fairs 1 21 or a fair as defined in section 174.1, or community 1 22 colleges as defined in section 260C.2 or school 1 23 corporations, or both, or other political 1 24 subdivisions, which have entered into an agreement 1 25 under chapter 28E for the purpose of establishing a 1 26 self=insured program for the payment of workers' 1 27 compensation benefits are exempt from taxation under 1 28 section 432.1. 1 29 A plan shall be submitted to the commissioner of 1 30 insurance for review and approval prior to its 1 31 implementation. The commissioner shall adopt rules 1 32 for the review and approval of a self=insured group 1 33 plan provided under this section. The rules shall 1 34 include, but are not limited to, the following: 1 35 1. Procedures for submitting a plan for approval 1 36 including the establishment of a fee schedule to cover 1 37 the costs of conducting the review. 1 38 2. Establishment of minimum financial standards to 1 39 ensure the ability of the plan to adequately cover the 1 40 reasonably anticipated expenses. 1 41 A self=insured program for the payment of workers' 1 42 compensation benefits established by an association 1 43 comprised of cities or counties, or both, or the 1 44 association of county fairs or a fair as defined in 1 45 section 174.1, or community colleges, as defined in 1 46 section 260C.2, or other political subdivisions, which 1 47 have entered into an agreement under chapter 28E, is 1 48 not insurance, and is not subject to regulation under 1 49 chapters 505 through 523C. Membership in such an 1 50 association together with payment of premiums due 2 1 relieves the member from obtaining insurance as 2 2 required in section 87.1. Such an association is not 2 3 required to submit its plan or program to the 2 4 commissioner of insurance for review and approval 2 5 prior to its implementation and is not subject to 2 6 rules or rates adopted by the commissioner relating to 2 7 workers' compensation group self=insurance programs. 2 8 Such a program is deemed to be in compliance with this 2 9 chapter. 2 10 The workers' compensation premium written on a 2 11 municipality which is a member of an insurance pool 2 12 which provides workers' compensation insurance 2 13 coverage to a statewide group of municipalities, as 2 14 defined in section 670.1, shall not be considered in 2 15 the determination of any assessments levied pursuant 2 16 to an agreement established under section 515A.15.> 2 17 #2. Title page, line 1, by inserting after the 2 18 word <insurance> the following: <and to 2 19 self=insurance>. 2 20 #3. By renumbering as necessary. 2 21 2 22 2 23 2 24 HOFFMAN of Crawford 2 25 SF 2337.303 82 2 26 av/rj/21130 -1-