85.65A PAYMENTS TO SECOND INJURY FUND -- SURCHARGE ON
EMPLOYERS.
1. For purposes of this section, unless the context otherwise
requires:
a. "Insured employers" means employers who are commercially
insured for purposes of workers' compensation coverage or who have
been self-insured for less than twenty-four months as of the first
day of the fiscal year in which a surcharge is imposed pursuant to
this section.
b. "Self-insured employers" means employers who have been
self-insured for purposes of workers' compensation coverage for at
least twenty-four months as of the first day of the fiscal year in
which a surcharge is imposed pursuant to this section.
2. Prior to each fiscal year commencing on or after July 1, 1999,
the commissioner of insurance shall conduct an examination of the
outstanding liabilities of the second injury fund and shall make a
determination as to whether sufficient funds will be available in the
second injury fund to pay the liabilities of the fund for each of the
next two fiscal years. If the commissioner of insurance determines
sufficient funds will be available, the commissioner shall not impose
a surcharge on employers during the next succeeding fiscal year. If
the commissioner determines sufficient funds will not be available,
the commissioner shall impose by rule, pursuant to chapter 17A, a
surcharge on employers during the next succeeding fiscal year for
payment to the treasurer of state for the second injury fund pursuant
to the requirements of this section.
3. If the commissioner of insurance determines that a surcharge
on employers shall be imposed during any applicable fiscal year, the
surcharge imposed shall comply with and be subject to all of the
following requirements:
a. The surcharge shall apply to all workers' compensation
insurance policies and self-insurance coverages of employers approved
for self-insurance by the commissioner of insurance pursuant to
section 87.4 or 87.11, and to the state of Iowa, its departments,
divisions, agencies, commissions, and boards, or any political
subdivision coverages whether insured or self-insured. The surcharge
shall not apply to any reinsurance or retrocessional transaction
under section 520.4 or 520.9.
b. In determining the surcharge for any applicable fiscal
year, the commissioner of insurance shall provide that all insured
and self-insured employers be assessed, in total, an amount the
commissioner determines is sufficient, together with the moneys in
the second injury fund, to meet the outstanding liabilities of the
second injury fund.
c. The total assessment amount used in calculating the
surcharge shall be allocated between self-insured employers and
insured employers based on paid losses for the preceding calendar
year. The portion of the total aggregate assessment that shall be
collected from self-insured employers shall be equal to that
proportion of total paid losses during the preceding calendar year,
which the total compensation payments of all self-insured employers
bore to the total compensation payments made by all self-insured
employers and insurers on behalf of all insured employers during the
preceding calendar year. The portion of the total aggregate
assessment that is not to be collected from self-insured employers
shall be collected from insured employers.
d. The method of assessing self-insured employers a surcharge
shall be based on paid losses. The method of assessing insured
employers a surcharge shall be by insurers collecting assessments
from insured employers through a surcharge based on premium.
e. Assessments collected through imposition of a surcharge
pursuant to this section shall not constitute an element of loss for
the purpose of establishing rates for workers' compensation insurance
but shall for the purpose of collection be treated as separate costs
by insurers. The surcharge is collectible by an insurer and
nonpayment of the surcharge shall be treated as nonpayment of premium
and the insurer shall retain all cancellation rights inuring to it
for nonpayment of premium. An insurance carrier, its agent, or a
third-party administrator shall not be entitled to any portion of the
surcharge as a fee or commission for its collection. The surcharge
is not subject to any taxes, licenses, or fees. The surcharge is not
deemed to be an assessment or tax, but shall be deemed an additional
benefit paid for injuries compensable under this division.
4. The commissioner of insurance shall adopt rules, pursuant to
chapter 17A, concerning the requirements of this section.
Section History: Recent Form
98 Acts, ch 1113, §2, 7; 2003 Acts, ch 140, §3, 6; 2008 Acts, ch
1137, §2, 3
Referred to in § 85.67, 86.12
85.65A PAYMENTS TO SECOND INJURY FUND -- SURCHARGE ON
EMPLOYERS.
1. For purposes of this section, unless the context otherwise
requires:
a. "Insured employers" means employers who are commercially
insured for purposes of workers' compensation coverage or who have
been self-insured for less than twenty-four months as of the first
day of the fiscal year in which a surcharge is imposed pursuant to
this section.
b. "Self-insured employers" means employers who have been
self-insured for purposes of workers' compensation coverage for at
least twenty-four months as of the first day of the fiscal year in
which a surcharge is imposed pursuant to this section.
2. Prior to each fiscal year commencing on or after July 1, 1999,
the commissioner of insurance shall conduct an examination of the
outstanding liabilities of the second injury fund and shall make a
determination as to whether sufficient funds will be available in the
second injury fund to pay the liabilities of the fund for each of the
next two fiscal years. If the commissioner of insurance determines
sufficient funds will be available, the commissioner shall not impose
a surcharge on employers during the next succeeding fiscal year. If
the commissioner determines sufficient funds will not be available,
the commissioner shall impose by rule, pursuant to chapter 17A, a
surcharge on employers during the next succeeding fiscal year for
payment to the treasurer of state for the second injury fund pursuant
to the requirements of this section.
3. If the commissioner of insurance determines that a surcharge
on employers shall be imposed during any applicable fiscal year, the
surcharge imposed shall comply with and be subject to all of the
following requirements:
a. The surcharge shall apply to all workers' compensation
insurance policies and self-insurance coverages of employers approved
for self-insurance by the commissioner of insurance pursuant to
section 87.4 or 87.11, and to the state of Iowa, its departments,
divisions, agencies, commissions, and boards, or any political
subdivision coverages whether insured or self-insured. The surcharge
shall not apply to any reinsurance or retrocessional transaction
under section 520.4 or 520.9.
b. In determining the surcharge for any applicable fiscal
year, the commissioner of insurance shall provide that all insured
and self-insured employers be assessed, in total, an amount the
commissioner determines is sufficient, together with the moneys in
the second injury fund, to meet the outstanding liabilities of the
second injury fund.
c. The total assessment amount used in calculating the
surcharge shall be allocated between self-insured employers and
insured employers based on paid losses for the preceding calendar
year. The portion of the total aggregate assessment that shall be
collected from self-insured employers shall be equal to that
proportion of total paid losses during the preceding calendar year,
which the total compensation payments of all self-insured employers
bore to the total compensation payments made by all self-insured
employers and insurers on behalf of all insured employers during the
preceding calendar year. The portion of the total aggregate
assessment that is not to be collected from self-insured employers
shall be collected from insured employers.
d. The method of assessing self-insured employers a surcharge
shall be based on paid losses. The method of assessing insured
employers a surcharge shall be by insurers collecting assessments
from insured employers through a surcharge based on premium.
e. Assessments collected through imposition of a surcharge
pursuant to this section shall not constitute an element of loss for
the purpose of establishing rates for workers' compensation insurance
but shall for the purpose of collection be treated as separate costs
by insurers. The surcharge is collectible by an insurer and
nonpayment of the surcharge shall be treated as nonpayment of premium
and the insurer shall retain all cancellation rights inuring to it
for nonpayment of premium. An insurance carrier, its agent, or a
third-party administrator shall not be entitled to any portion of the
surcharge as a fee or commission for its collection. The surcharge
is not subject to any taxes, licenses, or fees. The surcharge is not
deemed to be an assessment or tax, but shall be deemed an additional
benefit paid for injuries compensable under this division.
4. The commissioner of insurance shall adopt rules, pursuant to
chapter 17A, concerning the requirements of this section.
Section History: Recent Form
98 Acts, ch 1113, §2, 7; 2003 Acts, ch 140, §3, 6; 2008 Acts, ch
1137, §2, 3
Referred to in § 85.67, 86.12
85.65A PAYMENTS TO SECOND INJURY FUND -- SURCHARGE ON
EMPLOYERS.
1. For purposes of this section, unless the context otherwise
requires:
a. "Insured employers" means employers who are commercially
insured for purposes of workers' compensation coverage or who have
been self-insured for less than twenty-four months as of the first
day of the fiscal year in which a surcharge is imposed pursuant to
this section.
b. "Self-insured employers" means employers who have been
self-insured for purposes of workers' compensation coverage for at
least twenty-four months as of the first day of the fiscal year in
which a surcharge is imposed pursuant to this section.
2. Prior to each fiscal year commencing on or after July 1, 1999,
the commissioner of insurance shall conduct an examination of the
outstanding liabilities of the second injury fund and shall make a
determination as to whether sufficient funds will be available in the
second injury fund to pay the liabilities of the fund for each of the
next two fiscal years. If the commissioner of insurance determines
sufficient funds will be available, the commissioner shall not impose
a surcharge on employers during the next succeeding fiscal year. If
the commissioner determines sufficient funds will not be available,
the commissioner shall impose by rule, pursuant to chapter 17A, a
surcharge on employers during the next succeeding fiscal year for
payment to the treasurer of state for the second injury fund pursuant
to the requirements of this section.
3. If the commissioner of insurance determines that a surcharge
on employers shall be imposed during any applicable fiscal year, the
surcharge imposed shall comply with and be subject to all of the
following requirements:
a. The surcharge shall apply to all workers' compensation
insurance policies and self-insurance coverages of employers approved
for self-insurance by the commissioner of insurance pursuant to
section 87.4 or 87.11, and to the state of Iowa, its departments,
divisions, agencies, commissions, and boards, or any political
subdivision coverages whether insured or self-insured. The surcharge
shall not apply to any reinsurance or retrocessional transaction
under section 520.4 or 520.9.
b. In determining the surcharge for any applicable fiscal
year, the commissioner of insurance shall provide that all insured
and self-insured employers be assessed, in total, an amount the
commissioner determines is sufficient, together with the moneys in
the second injury fund, to meet the outstanding liabilities of the
second injury fund.
c. The total assessment amount used in calculating the
surcharge shall be allocated between self-insured employers and
insured employers based on paid losses for the preceding calendar
year. The portion of the total aggregate assessment that shall be
collected from self-insured employers shall be equal to that
proportion of total paid losses during the preceding calendar year,
which the total compensation payments of all self-insured employers
bore to the total compensation payments made by all self-insured
employers and insurers on behalf of all insured employers during the
preceding calendar year. The portion of the total aggregate
assessment that is not to be collected from self-insured employers
shall be collected from insured employers.
d. The method of assessing self-insured employers a surcharge
shall be based on paid losses. The method of assessing insured
employers a surcharge shall be by insurers collecting assessments
from insured employers through a surcharge based on premium.
e. Assessments collected through imposition of a surcharge
pursuant to this section shall not constitute an element of loss for
the purpose of establishing rates for workers' compensation insurance
but shall for the purpose of collection be treated as separate costs
by insurers. The surcharge is collectible by an insurer and
nonpayment of the surcharge shall be treated as nonpayment of premium
and the insurer shall retain all cancellation rights inuring to it
for nonpayment of premium. An insurance carrier, its agent, or a
third-party administrator shall not be entitled to any portion of the
surcharge as a fee or commission for its collection. The surcharge
is not subject to any taxes, licenses, or fees. The surcharge is not
deemed to be an assessment or tax, but shall be deemed an additional
benefit paid for injuries compensable under this division.
4. The commissioner of insurance shall adopt rules, pursuant to
chapter 17A, concerning the requirements of this section.
Section History: Recent Form
98 Acts, ch 1113, §2, 7; 2003 Acts, ch 140, §3, 6; 2008 Acts, ch
1137, §2, 3
Referred to in § 85.67, 86.12
