Court of Appeals Concludes that Insurer Must Obtain an Order Under Section 85.21 to Receive Reimbursement from Prior Insurer
In American Home Assurance v. Liberty Mutual Fire Insurance Co. , No. 20-0769 (Iowa App. July 21, 2021), claimant filed for workers' compensation benefits and was awarded those benefits against American Home, which American home paid. Claimant later filed a review-reopening petition, at which point American Home discovered it was not the insurer on the claim as of the time of injury. American then filed an application for payment of benefits under 85.21. Claimant later filed a petition for contribution under section 85.21, seeking repayment of all benefits paid from Liberty Mutual, the insurer on the claim as of the time of injury. Liberty argued that they were only responsible for benefits paid after an 85.21 order had been issued. The deputy found Liberty was on the hook for all benefits paid, but the commissioner partially reversed, finding that "because American Home failed to seek an Iow Code section 85.21 consent order prior to the arbitration hearing, Libe...