Free Workers Compensation Study Guide
Iowa Casualty exam — Workers Compensation.
Iowa's workers' compensation law is Iowa Code chapter 85. Occupational disease is in chapter 85A, and the insurance requirement is in chapter 87. Benefits and disputes are handled by the workers' compensation commissioner. The insurance commissioner decides whether an employer may self-insure (Iowa Code 87.11). The national guide covers the general concepts: the exclusive-remedy bargain, Parts One and Two of the policy, payroll-and-class-code rating and experience mods. These notes cover the Iowa rules the exam tests.
Who must be covered
Covered employers must insure their liability (Iowa Code 87.1). The only alternative is being relieved by the insurance commissioner on proof of solvency or a deposit of security (Iowa Code 87.11).
Penalties for not insuring:
- Willfully and knowingly doing business without coverage is a class D felony (Iowa Code 87.14A).
- An uninsured employer must post a sign telling employees it has no coverage (Iowa Code 87.2).
- The workers' compensation commissioner notifies a noncomplying employer. If it doesn't comply within 15 days, the commissioner refers it to the attorney general (Iowa Code 87.19).
Who is excluded or treated specially:
- Domestic and casual workers are excluded unless they earned $1,500 or more from the employer in the 12 months before the injury (Iowa Code 85.1(1)–(2)).
- Farm workers are covered when the employer's cash payroll to non-exempt workers was $2,500 or more in the previous year. Family members are exempt (Iowa Code 85.1(3)).
- Corporate officers: up to four (president, vice president, secretary, treasurer) may reject coverage in writing (Iowa Code 85.1(5), 87.22).
- Owners: proprietors, partners and LLC members working full time may elect coverage by buying a policy that names them (Iowa Code 85.1A).
Iowa has no monopolistic state fund. Employers insure with private carriers or self-insure.
What is covered
- Covered: injuries on the employer's premises, or wherever the employer's business requires the employee to be (Iowa Code 85.61(8)).
- Not covered: injuries from an idiopathic or unexplained fall from a level surface onto the same level surface.
- No compensation for injuries caused by willful intent to injure, or by intoxication that was a substantial factor (Iowa Code 85.16). A positive test creates a presumption the employee can rebut.
- Occupational diseases are compensated under chapter 85A (Iowa Code 85.61(5)).
- Exclusive remedy: benefits are the exclusive remedy against the employer, and against co-employees except for gross negligence (Iowa Code 85.20).
Benefits
| Benefit | Iowa rule |
|---|---|
| Rate | 80% of average spendable weekly earnings, subject to statutory maximums (Iowa Code 85.31, 85.34) |
| Waiting period | Payments start on the 4th day. If disability lasts more than 14 days, the first three days are paid in the third week (Iowa Code 85.32) |
| Payment timing | Weekly payments are due starting the 11th day after injury, with interest if late (Iowa Code 85.30) |
| Healing period | Paid from the first day of disability until return to work or medical stabilization (Iowa Code 85.34(1)) |
| Scheduled permanent partial | Weeks set by statute. Thumb 60, index finger 35, eye 140, hand 190, arm 250 (Iowa Code 85.34(2)) |
| Unscheduled permanent partial | Based on 500 weeks and the loss of earning capacity (Iowa Code 85.34(2)(v)) |
| Medical | The employer furnishes reasonable care and chooses the provider. A dissatisfied employee may seek alternate care (Iowa Code 85.27) |
| Death | Surviving spouse for life or until remarriage. On remarriage with no children entitled, a two-year lump sum. Children to 18, or to 25 if actually dependent (full-time students are presumed dependent) (Iowa Code 85.31) |
| Burial | Up to 12 times the statewide average weekly wage (Iowa Code 85.28) |
Notice and deadlines
- Notice of injury: no compensation unless the employer knew or was notified within 90 days of the injury (Iowa Code 85.23).
- Filing a claim: within two years of the injury. If weekly benefits were paid, within three years of the last payment (Iowa Code 85.26).
Common exam traps
- Iowa pays 80% of spendable weekly earnings, not 66⅔% of gross wages.
- Benefits start on day 4. The first 3 days are paid back once disability passes 14 days.
- Notice is due within 90 days. Claims must be filed within 2 years, or 3 years from the last payment.
- Willful failure to insure is a class D felony.
- Up to four corporate officers may reject coverage. Proprietors and partners may elect in.
- The employer chooses the doctor in Iowa.
- An idiopathic fall on a level surface is not compensable.
Practice Workers Compensation questions All Casualty topics
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
