342.340 Employer to insure or provide security against liability to workers.
537 words·~2 min read·
/ky/chapter-342/342-340A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)Every employer under this chapter shall:
(a)Insure and keep insured its liability for compensation in some corporation,
association, or organization authorized to transact the business of workers'
compensation insurance in this state; or
(b)Furnish to the commissioner satisfactory proof of its financial ability to pay
directly the compensation in the amount and manner and when due as
provided in this chapter. In this case, the commissioner shall require the
deposit of an acceptable security, indemnity, or bond to secure, to the extent
the commissioner directs, the payment of compensation liabilities as they are
incurred. A public sector self-insured employer shall not be required to
deposit funds as security, indemnity, or bond to secure the payment of
liabilities under this chapter, if the public employer has authority to raise
taxes, notwithstanding provisions of KRS 68.245, 132.023, 132.027, and
160.470 relating to recall and reconsideration of local taxes; raise tuition;
issue bonds; raise fees or fares for services provided; or has other authority to
generate funds for its operation.
(2)Every employer subject to this chapter shall file, or have filed on its behalf, with the
department, as often as may be necessary, evidence of its compliance with the
provisions of this section and all others relating hereto. Any insurance carrier or
self-insured group providing workers' compensation insurance coverage for a
Kentucky location shall file on behalf of the employer, with the commissioner,
evidence of the employer's compliance with this chapter. Evidence of compliance
filed with the department may include a named additional insured who has been
provided proof of workers' compensation insurance coverage by the employer. The
filing shall be made within ten
(10)days after the issuance of a policy, endorsement
to a policy, or similar documentation of coverage. Every employer who has
complied with the foregoing provision and has subsequently canceled its insurance
or its membership in an approved self-insured group, as the case may be, shall
immediately notify, or have notice given on its behalf to the department of the
cancellation, the date, and the reasons; and every insurance carrier or self-insured
group shall in like manner notify the commissioner upon the cancellation, lapse,
termination, expiration by reason of termination of policy period, or nonrenewal of
any policy issued by it or termination of any membership agreement, whichever is
applicable under the provisions of this chapter, except that the carrier or self-
insured group need not set forth its reasons unless requested by the commissioner.
The above filings are to be made on the forms prescribed by the commissioner.
Termination of any policy of insurance issued under the provisions of this chapter
shall take effect no greater than ten
(10)days prior to the receipt of the notification
by the commissioner unless the employer has obtained other insurance and the
commissioner is notified of that fact by the insurer assuming the risk. Upon
determination that any employer under this chapter has failed to comply with these
provisions, the commissioner shall promptly notify interested government agencies
of this failure and, with particular reference to employers engaged in coal mining,
the commissioner shall promptly report any failures to the Department for Natural Resources so that appropriate action may be undertaken pursuant to KRS 351.175.