87.4 - GROUP AND SELF-INSURED PLANS -- TAX EXEMPTION -- PLAN APPROVAL.
87.4 GROUP AND SELF-INSURED PLANS -- TAX EXEMPTION --
PLAN APPROVAL.
1. For the purpose of complying with this chapter, groups of
employers by themselves or in an association with any or all of their
workers, may form insurance associations as hereafter provided,
subject to such reasonable conditions and restrictions as may be
fixed by the insurance commissioner; and membership in such mutual
insurance organization as approved, together with evidence of the
payment of premiums due, shall be evidence of compliance with this
chapter.
2. A self-insurance association formed under this section and an
association comprised of cities or counties, or both, or the
association of Iowa fairs or a fair as defined in section 174.1, or
community colleges as defined in section 260C.2 or school
corporations, or both, or other political subdivisions, which have
entered into an agreement under chapter 28E for the purpose of
establishing a self-insured program for the payment of workers'
compensation benefits are exempt from taxation under section 432.1.
3. A plan shall be submitted to the commissioner of insurance for
review and approval prior to its implementation. The commissioner
shall adopt rules for the review and approval of a self-insured group
plan provided under this section. The rules shall include but are
not limited to the following:
a. Procedures for submitting a plan for approval including
the establishment of a fee schedule to cover the costs of conducting
the review.
b. Establishment of minimum financial standards to ensure the
ability of the plan to adequately cover the reasonably anticipated
expenses.
4. A self-insured program for the payment of workers'
compensation benefits established by an association comprised of
cities or counties, or both, or the association of Iowa fairs or a
fair as defined in section 174.1, or community colleges, as defined
in section 260C.2, or other political subdivisions, which have
entered into an agreement under chapter 28E, is not insurance, and is
not subject to regulation under chapters 505 through 523C.
Membership in such an association together with payment of premiums
due relieves the member from obtaining insurance as required in
section 87.1. Such an association is not required to submit its plan
or program to the commissioner of insurance for review and approval
prior to its implementation and is not subject to rules or rates
adopted by the commissioner relating to workers' compensation group
self-insurance programs. Such a program is deemed to be in
compliance with this chapter.
5. The workers' compensation premium written on a municipality
which is a member of an insurance pool which provides workers'
compensation insurance coverage to a statewide group of
municipalities, as defined in section 670.1, shall not be considered
in the determination of any assessments levied pursuant to an
agreement established under section 515A.15. Section History: Early Form
[S13, § 2477-m42; C24, 27, 31, 35, 39, § 1470; C46, 50, 54,
58, 62, 66, 71, 73, 75, 77, 79, 81, § 87.4] Section History: Recent Form
85 Acts, ch 251, §1; 88 Acts, ch 1112, §201, 202; 89 Acts, ch 83,
§19; 90 Acts, ch 1067, § 1, 2; 95 Acts, ch 185, § 1; 97 Acts, ch 37,
§ 5; 2000 Acts, ch 1023, §1, 2; 2008 Acts, ch 1032, § 201; 2008 Acts,
ch 1139, §1; 2008 Acts, ch 1191, §121, 122
Referred to in § 85.65A, 258.10, 515A.15