87.11 - RELIEF FROM INSURANCE -- PROCEDURES UPON EMPLOYER'S INSOLVENCY.
87.11 RELIEF FROM INSURANCE -- PROCEDURES UPON
EMPLOYER'S INSOLVENCY.
1. a. When an employer coming under this chapter furnishes
satisfactory proofs to the insurance commissioner of such employer's
solvency and financial ability to pay the compensation and benefits
as by law provided and to make such payments to the parties when
entitled thereto, or when such employer deposits with the insurance
commissioner security satisfactory to the insurance commissioner as
guaranty for the payment of such compensation, such employer shall be
relieved of the provisions of this chapter requiring insurance; but
such employer shall, from time to time, furnish such additional proof
of solvency and financial ability to pay as may be required by such
insurance commissioner. Such security shall be held in trust for the
sole purpose of paying compensation and benefits and is not subject
to attachment, levy, execution, garnishment, liens, or any other form
of encumbrance. However, the insurance commissioner shall be
reimbursed from the security for all costs and fees incurred by the
insurance commissioner in resolving disputes involving the security.
A political subdivision, including a city, county, community college,
or school corporation, that is self-insured for workers' compensation
is not required to submit a plan or program to the insurance
commissioner for review and approval.
b. If an approved self-insured employer discontinues its
self-insured status or enters bankruptcy proceedings, the
self-insured employer or its successor in interest may petition the
commissioner of insurance for release of its security. The
commissioner shall release the security upon a finding of both of the
following:
(1) The employer has not been self-insured pursuant to this
chapter for at least four years.
(2) Ten years have elapsed from the date of the last open claim,
claim activity, or claim payment involving the self-insured employer
or its successor in interest, whichever is later.
c. The commissioner shall release the security upon a finding
that a self-insured employer presents acceptable replacement
security.
2. An employer seeking relief from the insurance requirements of
this chapter shall pay to the insurance division of the department of
commerce the following fees:
a. A fee of one hundred dollars, to be submitted annually
along with an application for relief.
b. A fee of one hundred dollars for issuance of the
certificate relieving the employer from the insurance requirements of
this chapter.
c. A fee of fifty dollars, to be submitted with each filing
required by the commissioner of insurance, including but not limited
to the annual and quarterly financial statements, and material change
statements.
3. a. If an employer becomes insolvent and a debtor under 11
U.S.C., on or after January 1, 1990, the commissioner of insurance
may request of the workers' compensation commissioner that all future
payments of workers' compensation weekly benefits, medical expenses,
or other payments pursuant to this chapter or chapter 85, 85A, 85B,
or 86, be commuted to a present lump sum. The workers' compensation
commissioner shall fix the lump sum of probable future medical
expenses and weekly compensation benefits, or other benefits payable
pursuant to this chapter or chapter 85, 85A, 85B, or 86, capitalized
at their present value upon the basis of interest at the rate
provided in section 535.3 for court judgments and decrees. The
commissioner of insurance shall be discharged from all further
liability for the commuted workers' compensation claim upon payment
of the present lump sum to either the claimant, or a licensed insurer
for purchase of an annuity or other periodic payment plan for the
benefit of the claimant.
b. The commissioner of insurance shall not be required to pay
more for all claims of an insolvent self-insured employer than is
available for payment of such claims from the security given under
this section.
4. Notwithstanding contrary provisions of section 85.45, any
future payment of medical expenses, weekly compensation benefits, or
other payments by the commissioner of insurance from the security
given under this section, pursuant to this chapter or chapter 85,
85A, 85B, or 86, shall be deemed an undue expense, hardship, or
inconvenience upon the employer for purposes of a full commutation
pursuant to section 85.45, subsection 1, paragraph "b".
5. Financial statements provided to the commissioner of insurance
pursuant to this section may be held as confidential, proprietary
trade secrets pursuant to section 22.7, subsection 3, upon the
request of the employer, subject to rules adopted by the commissioner
of insurance, and are not subject to disclosure or examination under
chapter 22. Section History: Early Form
[S13, § 2477-m49; C24, 27, 31, 35, 39, § 1477; C46, 50, 54,
58, 62, 66, 71, 73, 75, 77, 79, 81, § 87.11; 82 Acts, ch 1003, § 1]
Section History: Recent Form
91 Acts, ch 160, §3, 4; 98 Acts, ch 1061, § 11; 99 Acts, ch 114,
§4; 2001 Acts, ch 69, §1; 2005 Acts, ch 168, §15, 23; 2007 Acts, ch
137, §1; 2008 Acts, ch 1032, §196
Referred to in § 85.65A, 87.11D, 87.11E, 87.21, 91C.2, 507.14