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Code · Kentucky · Chapter 342 — Workers' compensation

342.803 Kentucky Employers' Mutual Insurance Authority.

227 words·~1 min read·/ky/chapter-342/342-803

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(1)The Kentucky Employers' Mutual Insurance Authority is created as a nonprofit,
independent, self-supporting de jure municipal corporation and political subdivision
of the Commonwealth which shall be a public body corporate and politic to insure
employers in the Commonwealth for workers' compensation, employers' liability
insurance and coverage required by the Federal Coal Mine Health & Safety Act, the
Jones Act, and the Longshore and Harbor Workers Act incidental to and written in
conjunction with workers' compensation. The General Assembly hereby recognizes
that the operation of a competitive state fund is a unique activity for state
government and that a corporate structure will best enable the authority to be
managed in an entrepreneurial and business-like manner. The authority shall
function in a manner similar to a governing board for a domestic mutual insurance
company and shall be subject to the provisions of KRS Chapter 304 applicable to
domestic mutual insurance companies, unless otherwise provided or exempted in
KRS 342.801 to 342.843.
(2)Except for initial funding for start-up, the authority shall be entirely self-supporting.
(3)The authority or its liabilities shall not be deemed to constitute a debt or a liability
of the Commonwealth or a pledge of the faith and credit of the Commonwealth.
(4)The authority shall provide coverage and issue policies as an insurer in the
voluntary market and as an insurer of last resort.
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