342.122 Special fund assessments -- Annual adjustments -- Quarterly
1,408 words·~6 min read·
/ky/342-122A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
payments -- Electronic remittance -- Reports -- Central claim registry.
(a)For calendar year 1997 and for each calendar year thereafter, for the
purpose of funding and prefunding the liabilities of the special fund,
financing the administration and operation of the Kentucky Workers'
Compensation Funding Commission, and financing the expenditures for
all programs in the Department of Workers' Claims, Occupational Safety
and Health Review Commission, Workers' Compensation Nominating
Committee, Department of Workplace Standards, except expenditures for
the Division of Wages and Hours contained in the Department of
Workplace Standards and the proportional support for general
administration and support based on an approved indirect cost allocation
plan within the Education and Labor Cabinet, as reflected in the enacted
budget of the Commonwealth and enacted by the General Assembly, the
funding commission shall impose a special fund assessment rate of nine
percent (9%) upon the amount of workers' compensation premiums
received on and after January 1, 1997, through December 31, 1997, by
every insurance carrier writing workers' compensation insurance in the
Commonwealth, by every self-insured group operating under the
provisions of KRS 342.350(4) and Chapter 304, and against the premium,
as defined in KRS 342.0011, of every employer carrying his or her own
risk.
(b)The funding commission shall, for calendar year 1998 and thereafter,
establish for the special fund an assessment rate to be assessed against
all premium received during that calendar year which shall produce
enough revenue to amortize on a level basis the unfunded liability of the
special fund as of June 30 preceding January 1 of each year, for the
period remaining until December 31, 2029. The interest rate to be used in
this calculation shall reflect the funding commission's investment
experience to date and the current investment policies of the commission.
This assessment shall be imposed upon the amount of workers'
compensation premiums received by every insurance carrier writing
workers' compensation insurance in the Commonwealth, by every
self-insured group operating under the provisions of KRS 342.350(4) and
Chapter 304, and against the premium, as defined in KRS 342.0011, of
every employer carrying its own risk. On or before October 1 of each
year, the commission shall notify each insurance carrier writing workers'
compensation insurance in the Commonwealth, every group of
self-insured employers, and each employer carrying its own risk, of the
rates which shall become effective on January 1 of each year, unless
modified by the General Assembly.
(c)All assessments imposed by this section shall be paid to the Kentucky
Workers' Compensation Funding Commission and shall be credited to the
benefit reserve fund within the Kentucky Workers' Compensation Funding
Commission.
(d)The assessments imposed in this chapter shall be in lieu of all other
assessments or taxes on workers' compensation premiums.
(a)These assessments shall be paid quarterly not later than the thirtieth day
of the month following the end of the quarter in which the premium is
received. Receipt shall be considered timely through actual physical
receipt or by postmark of the United States Postal Service. Employers
carrying their own risk and employers defined in KRS 342.630(2) shall
pay the annual assessments in four
(4)equal quarterly installments.
(b)Beginning on January 1, 2020, all assessments shall be electronically
remitted to the funding commission quarterly not later than the thirtieth
day of the month following the end of the quarter in which the premium is
received. Receipt shall be considered timely when filed and remitted
using the appropriate electronic pay system as prescribed by the funding
commission. Employers carrying their own risk and employers defined in
KRS 342.630(2) shall pay the annual assessments in four
(4)equal
quarterly installments.
(3)The assessments imposed by this section may be collected by the insurance
carrier from the insured. However, the insurance carrier shall not collect from
the employer any amount exceeding the assessments imposed pursuant to this
section. If the insurance carrier collects the assessment from an insured, the
assessment shall be collected at the same time and in the same proportion as
the premium is collected. The assessment for an insurance policy or other
evidence of coverage providing a deductible may be collected in accordance
with this chapter on a premium amount that equates to the premium that would
have applied without the deductible. Each statement from an insurance carrier
presented to an insured reflecting premium and assessment amounts shall
clearly identify and distinguish the amount to be paid for premium and the
amount to be paid for assessments. No insurance carrier shall collect from an
insured an amount in excess of the assessment percentages imposed by this
chapter. The assessment for an insurance policy or other evidence of coverage
providing a deductible may be collected in accordance with this chapter on a
premium amount that equates to the premium that would have applied without
the deductible. The percentages imposed by this chapter for an insurance
policy issued by an insurance company shall be those percentages in effect on
the annual effective date of the policy, regardless of the date that the premium
is actually received by the insurance company.
(4)A self-insured group may elect to report its premiums and to have its
assessments computed in the same manner as insurance companies. This
election may not be rescinded for at least ten
(10)years, nor may this election
be made a second time for at least another ten
(10)years, except that the
board of directors of the funding commission may, at its discretion, waive the
ten
(10)year ban on a case-by-case basis after formal petition has been made
to the funding commission by a self-insured group.
(5)The funding commission, as part of the collection and auditing of the special
fund assessments required by this section, shall annually require each
insurance carrier and each self-insured group to provide a list of employers
which it has insured or which are members and the amount collected from each
employer. Additionally, the funding commission shall require each entity paying
a special fund assessment to report the SIC code for each employer and the
amount of premium collected from each SIC code. An insurance carrier or
self-insured group may require its insureds or members to furnish the SIC code
for each of their employees. However, the failure of any employer to furnish
said codes shall not relieve the insurance carrier or self-insured group from the
obligation to furnish same to the funding commission. The Department of
Workforce Development, Education and Labor Cabinet, is hereby directed to
make available the SIC codes assigned in its records to specific employers to
aid in the reporting and recording of the special fund assessment data.
(6)Each self-insured employer, self-insured group, or insurance carrier shall
provide any information and submit any reports the Department of Revenue or
the funding commission may require to effectuate the provisions of this section.
In addition, the funding commission may enter reciprocal agreements with
other governmental agencies for the exchange of information necessary to
effectuate the provisions of this section.
(7)The special fund shall be required to maintain a central claim registry of all
claims to which it is named a party, giving each such claim a unique claim
number and thereafter recording the status of each claim on a current basis.
The registry shall be established by January 26, 1988, for all claims on which
payments were made since July 1, 1986, or which were pending adjudication
since July 1, 1986, by audit of all claim files in the possession of the special
fund.
(8)The fund heretofore designated as the subsequent claim fund is abolished, and
there is substituted therefor the special fund as set out by this section, and all
moneys and properties owned by the subsequent claim fund are transferred to
the special fund.
(9)Notwithstanding any other provisions of this section or this chapter to the
contrary, the total amount of funds collected pursuant to the assessment rates
adopted by the funding commission shall not be limited to the provisions of this
section.
(10)All assessment rates imposed for periods prior to January 1, 1997, under KRS
342.122 shall forever remain applicable to premiums received on policies with
effective dates prior to January 1, 1997, by every insurance carrier writing
workers' compensation insurance in the Commonwealth, by every self-insured
group operating under the provision of KRS 342.350(4) and Chapter 304, and
against the premium, as defined in KRS 342.0011, of every employer carrying
its own risk.