Iowa to Assess for Second Injury Fund; Workers’ Comp Rate Hike Proposed

Sufficient funds are not available to meet the liabilities of Iowa’s Second Injury Fund, so the state is imposing a $4 million assessment on insurers and self-insured employers in Iowa. Notices were mailed from the Iowa Insurance Division Aug. 16. The assessment is due by Sept. 30.

The insurance division also reported that the National Council on Compensation Insurance Inc. has made a rate filing in Iowa that proposes a 4.7 percent increase in the workers’ compensation insurance rates that became effective Jan. 1, 2010.

The Iowa Insurance Division said assigned risk rates have been changed from 120 percent of voluntary rates to 125 percent of voluntary rates, which results in a proposed increase of 9.1 percent. The filing has a proposed effective date of Jan. 1, 2011.