Download as PDF
342.801 Legislative findings and intent.
(1)
(2)
The General Assembly finds and declares that:
(a) An adequate and available workers' compensation insurance market does not
exist for employers in the Commonwealth;
(b) Approximately fifty percent (50%) of the private workers' compensation
insurance market resides in the residual market mechanism for workers'
compensation;
(c) The voluntary insurance market has declined to the point that employers in the
Commonwealth, who lack the financial capability to cover their own risk,
have few insurance options except the residual market mechanism through
which to maintain their statutorily-required workers' compensation coverage;
(d) A lack of an adequate market for workers' compensation insurance threatens
the economic welfare of the Commonwealth and its ability to create and
maintain jobs for the citizens of Kentucky;
(e) Employers in the Commonwealth and other states are required by law to
provide workers' compensation coverage to their employees and, therefore, the
General Assembly has a responsibility to ensure employers an available and
adequate insurance mechanism through which employers may discharge their
statutory duty regarding workers' compensation; and
(f) State funds have historically and traditionally been a viable participant in the
workers' compensation insurance market, that workers' compensation state
funds exist in twenty-five (25) states, and that at least seven (7) states have
created competitive state funds since 1983.
Therefore, it is the intent of the General Assembly in creating the Employers'
Mutual Insurance Authority to establish a self-supporting competitive state fund for
the purpose of providing both a market of last resort for employers in the
Commonwealth and another competitive source of insurance in the voluntary
market through which employers may secure and maintain their workers'
compensation coverage required under this chapter.
Effective: April 4, 1994
History: Created 1994 Ky. Acts ch. 181, sec. 39, effective April 4, 1994.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.