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
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