Iowa Code

Iowa Code § 85.21 (2026)

Payments concerning liability disputes

✓ current as of July 2026

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1. The workers’ compensation commissioner may order any number or combination of alleged workers’ compensation insurance carriers and alleged employers, which are parties to a contested case or to a dispute which could culminate in a contested case, to pay all or part of the benefits due to an employee or an employee’s dependent or legal representative if any of the carriers or employers agree, or the commissioner determines after an evidentiary hearing, that one or more of the carriers or employers is liable to the employee or to the employee’s dependent or legal representative for benefits under this chapter or under chapter 85A or 85B, but the carriers or employers cannot agree, or the commissioner has not determined which carriers or employers are liable. 2. Unless waived by the carriers or employers ordered to pay benefits, the workers’ compensation commissioner shall order an employer, which is not ordered to pay benefits and which does not have in force a policy of workers’ compensation insurance issued by any carrier which is a party to the case or dispute and covering the claim made by the employee or the employee’s dependent or legal representative, to post a bond or to deposit cash with the commissioner equal to the benefits paid or to be paid by the carriers or employers ordered to pay benefits. If any employer is ordered by the commissioner to post bond or to deposit cash, the employers or carriers ordered to pay benefits are not obligated to pay benefits until the bond is posted or the cash is deposited. The commissioner may order the bond or cash deposit to be increased.\n\nTue Dec 09 22:29:51 2025 Iowa Code 2026, Chapter 85 (59, 0) §85.21, WORKERS’ COMPENSATION 6\n\n 3. When liability is finally determined by the workers’ compensation commissioner, the commissioner shall order the carriers or employers liable to the employee or to the employee’s dependent or legal representative to reimburse the carriers or employers which are not liable but were required to pay benefits. Benefits paid or reimbursed pursuant to an order authorized by this section do not require the filing of a memorandum of agreement. However, a contested case for benefits under this chapter or under chapter 85A or 85B shall not be maintained against a party to a case or dispute resulting in an order authorized by this section unless the contested case is commenced within three years from the date of the last benefit payment under the order. The commissioner may determine liability for the payment of workers’ compensation benefits under this section. [C77, 79, 81, §86.20; 82 Acts, ch 1161, §22] 98 Acts, ch 1061, §11

Notes of Decisions

Cited in 8 cases (2 in the last 5 years), 1994–2022 · leading case: United Fire & Cas. Co. v. St. Paul Fire & Marine Ins. Co., 677 N.W.2d 755 (Iowa 2004).

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United Fire & Cas. Co. v. St. Paul Fire & Marine Ins. Co., 677 N.W.2d 755 (Iowa 2004). · cites it 74× “Iowa Code § 85.21 (3). St Paul's application alleged that "claimant's industrial disability and majority of medical expenses are due to a February 19, 1998, injury while working for Coon River Bar & Grill .”

Mycogen Seeds v. Sands, 686 N.W.2d 457 (Iowa 2004). · cites it 4× “Workers’ compensation cases, such as the one here, are contested cases in which the agency is vested by Iowa Code chapter 85 with the responsibility of determining an employee’s right to benefits.”

Second Injury Fund of Iowa v. Bergeson, 526 N.W.2d 543 (Iowa 1995). · cites it 6× “The commissioner relied upon Iowa Code section 85.21 as its authority to order reimbursement.”

Zomer v. West River Farms, Inc., 666 N.W.2d 130 (Iowa 2003). · cites it 4× “Iowa Code § 85.21 . The scope of this authority is comprehensive: "In an original proceeding, all matters relevant to a dispute are subject to inquiry.”

Finch v. Schneider Specialized Carriers, Inc., 700 N.W.2d 328 (Iowa 2005). · cites it 2× “See Iowa Code § 85.21 ; accord Mycogen Seeds, 686 N.”

Am. Home Assurance v. Liberty Mut. Fire Ins. Co. (Iowa Ct. App. 2021). · cites it 77× “Iowa Code § 85.21 (3). The provision expressly limits the time for seeking reimbursement.”

Am. Home Assurance v. Liberty Mut. Fire Ins. Co. (Iowa 2022). · cites it 70× “” Iowa Code § 85.21 (1). Conversely, the commissioner does not have the authority to order an insurance carrier to provide reimbursement if they are not a party to the contested case.”

Hartman v. Clarke Cnty. Homemakers, 520 N.W.2d 323 (Iowa Ct. App. 1994). · cites it 2× “Apportionment among non-parties is contrary to Iowa Code section 85.21, which permits apportionment only among “parties to a contested case.”

— Iowa Code § 85.21(3) — 2 cases

United Fire & Cas. Co. v. St. Paul Fire & Marine Ins. Co., 677 N.W.2d 755 (Iowa 2004). “Iowa Code § 85.21 (3). St Paul's application alleged that "claimant's industrial disability and majority of medical expenses are due to a February 19, 1998, injury while working for Coon River Bar & Grill .”

Am. Home Assurance v. Liberty Mut. Fire Ins. Co. (Iowa Ct. App. 2021). “Iowa Code § 85.21 (3). The provision expressly limits the time for seeking reimbursement.”

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