342.760 Uninsured employers' fund.

388 words·~2 min read·/ky/chapter-342/342-760

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)There is hereby authorized in the Education and Labor Cabinet an uninsured

employers' fund for the purpose of making payments in accordance with the

provisions of subsection

(4)of this section. The secretary of the Education and

Labor Cabinet shall be the custodian of the fund, and all moneys and securities

in the fund shall be held in trust by the secretary of the Education and Labor

Cabinet and shall not be considered a part of the general funds of the state.

(2)The secretary of the Education and Labor Cabinet is authorized to disburse

moneys from the fund only upon written order of the administrative law judge or

the board.

(3)All amounts collected as fines and penalties under this chapter shall be paid

into the uninsured employers' fund.

(4)The uninsured employers' fund shall be responsible for the payment of

compensation when there has been default in the payment of compensation

due to the failure of an employer to secure payment of compensation as

provided by this chapter. Such employer shall be liable for payment into the

fund of all the amounts authorized to be paid therefrom under the authority of

this subsection including reimbursement of the special fund of all liability

apportioned to it and for the purposes of enforcing this liability the Education

and Labor Cabinet, for the benefit of the fund, shall be subrogated to all the

rights of the person receiving such compensation from the fund. This provision

shall apply to all pending claims upon which a final order has not been entered.

(5)In furtherance of this purpose, the Attorney General shall appoint a member or

members of his or her staff or special counsel to represent the fund in all

proceedings brought to enforce claims against or on behalf of the fund.

Necessary expenses for this purpose including salaries of said staff or special

counsel shall be borne by the fund. The Education and Labor Cabinet shall be

responsible for the administration of the uninsured employers' fund and shall

be charged with the conservation of the assets of the fund.

(6)On December 29, 1987, the liabilities of the uninsured employers' fund and its

assets remaining in the State Treasury shall be transferred to the uninsured

employers' fund created within the Education and Labor Cabinet pursuant to

this section.