70A.17 - PAYROLL DEDUCTION FOR ADDITIONAL INSURANCE COVERAGE.
70A.17 PAYROLL DEDUCTION FOR ADDITIONAL INSURANCE
COVERAGE.
1. The state officer in charge of any of the state payroll
systems shall deduct from the wages or salaries of a state officer or
employee an amount specified by the officer or employee for payment
to any company authorized to do business in this state for the
purpose of purchasing insurance if all of the following conditions
are met:
a. At least five hundred state officers or employees request
the deduction to purchase insurance from the same company.
b. The request for the payroll deduction is made by the state
officer or employee in writing to the officer in charge of the
program.
c. The pay period during which the deduction is made, the
frequency, and the amount of the deduction are compatible with the
payroll system.
d. The insurance coverage to be purchased is not provided by
the state.
e. The company providing the insurance enters into a written
agreement with the state delineating each party's rights and
responsibilities.
2. The moneys deducted under this section shall be paid to the
company designated by the requesting state officers or employees.
The deduction may be made even though the compensation paid to an
officer or employee is reduced to an amount below the minimum
prescribed by law. Payment to an officer or employee of compensation
less the deduction shall constitute a full discharge of claims and
demands for services rendered by the officer or employee during the
period covered by the payment. The request for the deduction may be
withdrawn at any time by filing a written notification of withdrawal
with the state officer in charge of any of the state payroll systems.
3. The department of administrative services reserves the right
to terminate an insurance company's participation in the program if
the department receives complaints regarding the actions of the
insurance company or its agents in relation to the program and such
termination would be in the best interest of the state officers and
employees; the department makes a determination that the insurance
company has engaged in a pattern or practice of unfair, misleading,
or fraudulent acts and such termination would be in the best interest
of the state officers and employees; or the commissioner of insurance
determines that the company has engaged in practices that would
otherwise disqualify the company from providing insurance coverage in
Iowa.
4. The department is authorized to establish and collect an
administrative fee as deemed necessary and appropriate in an amount
not to exceed the state's actual cost of providing the payroll
deduction service. Section History: Recent Form
2004 Acts, ch 1103, §75