342.122 Special fund assessments -- Annual adjustments -- Annual transfers from
coal severance tax revenues -- Reports -- Central claim registry.
(1) (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 <br>administration and operation of the Kentucky Workers' Compensation <br>Funding Commission, and financing the expenditures for all programs in the <br>Labor Cabinet, except the Division of Employment Standards, Apprenticeship <br>and Mediation in the Department of Workplace Standards, as reflected in the <br>enacted budget of the Commonwealth and enacted by the General Assembly, <br>the funding commission shall impose a special fund assessment rate of nine <br>percent (9%) upon the amount of workers' compensation premiums received <br>on and after January 1, 1997, through December 31, 1997, by every insurance <br>carrier writing workers' compensation insurance in the Commonwealth, by <br>every self-insured group operating under the provisions of KRS 342.350(4) <br>and Chapter 304, and against the premium, as defined in KRS 342.0011, of <br>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 <br>received during that calendar year which, when added to the coal severance <br>tax appropriated to the special fund in accordance with paragraph (c) of this <br>section, shall produce enough revenue to amortize on a level basis the <br>unfunded liability of the special fund as of June 30 preceding January 1 of <br>each year, for the period remaining until December 31, 2029. The interest rate <br>to be used in this calculation shall reflect the funding commission's <br>investment experience to date and the current investment policies of the <br>commission. This assessment shall be imposed upon the amount of workers' <br>compensation premiums received by every insurance carrier writing workers' <br>compensation insurance in the Commonwealth, by every self-insured group <br>operating under the provisions of KRS 342.350(4) and Chapter 304, and <br>against the premium, as defined in KRS 342.0011, of every employer carrying <br>its own risk. On or before October 1 of each year, the commission shall notify <br>each insurance carrier writing workers' compensation insurance in the <br>Commonwealth, every group of self-insured employers, and each employer <br>carrying its own risk, of the rates which shall become effective on January 1 <br>of each year, unless modified by the General Assembly.
(c) In addition to the assessment imposed in paragraph (a) or (b) of this
subsection, and notwithstanding and prior to the transfer of funds to the Local <br>Government Economic Assistance Program under KRS 42.450 to 42.495, the <br>Kentucky Department of Revenue shall credit nineteen million dollars <br>($19,000,000) in coal severance tax revenues levied under KRS 143.020 to <br>the benefit reserve fund within the Kentucky Workers' Compensation Funding <br>Commission each year beginning with fiscal year 1998 and all fiscal years <br>thereafter. The annual transfer of nineteen million dollars ($19,000,000) shall <br>occur in four (4) equal quarterly payments. These transfers shall occur not
later than the last day of each quarter of each calendar year and shall consist of <br>four (4) equal payments of four million, seven hundred fifty thousand dollars <br>($4,750,000).
(d) All assessments imposed by this section shall be paid to the Kentucky
Workers' Compensation Funding Commission and shall be credited to the <br>benefit reserve fund within the Kentucky Workers' Compensation Funding <br>Commission.
(e) The assessments imposed in this chapter shall be in lieu of all other
assessments or taxes on workers' compensation premiums.
(2) 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 <br>shall be considered timely through actual physical receipt or by postmark of the <br>United States Postal Service. Employers carrying their own risk and employers <br>defined in KRS 342.630(2) shall pay the annual assessments in four (4) equal <br>quarterly installments.
(3) The assessments imposed by this section may be collected by the insurance carrier
from its insured. However, the insurance carrier shall not collect from the employer <br>any amount exceeding the assessments imposed pursuant to this section. If the <br>insurance carrier collects the assessment from an insured, the assessment shall be <br>collected at the same time and in the same proportion as the premium is collected. <br>The assessment for an insurance policy or other evidence of coverage providing a <br>deductible may be collected in accordance with this chapter on a premium amount <br>that equates to the premium that would have applied without the deductible. Each <br>statement from an insurance carrier presented to an insured reflecting premium and <br>assessment amounts shall clearly identify and distinguish the amount to be paid for <br>premium and the amount to be paid for assessments. No insurance carrier shall <br>collect from an insured an amount in excess of the assessment percentages imposed <br>by this chapter. The assessment for an insurance policy or other evidence of <br>coverage providing a deductible may be collected in accordance with this chapter on <br>a premium amount that equates to the premium that would have applied without the <br>deductible. The percentages imposed by this chapter for an insurance policy issued <br>by an insurance company shall be those percentages in effect on the annual effective <br>date of the policy, regardless of the date that the premium is actually received by the <br>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 <br>rescinded for at least ten (10) years, nor may this election be made a second time for <br>at least another ten (10) years, except that the board of directors of the funding <br>commission may, at its discretion, waive the ten (10) year ban on a case-by-case <br>basis after formal petition has been made to the funding commission by a self-<br>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 <br>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 <br>funding commission shall require each entity paying a special fund assessment to <br>report the SIC code for each employer and the amount of premium collected from <br>each SIC code. An insurance carrier or self-insured group may require its insureds <br>or members to furnish the SIC code for each of their employees. However, the <br>failure of any employer to furnish said codes shall not relieve the insurance carrier <br>or self-insured group from the obligation to furnish same to the funding <br>commission. The Office of Employment and Training, Education and Workforce <br>Development Cabinet, is hereby directed to make available the SIC codes assigned <br>in its records to specific employers to aid in the reporting and recording of the <br>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 <br>commission may require to effectuate the provisions of this section. In addition, the <br>funding commission may enter reciprocal agreements with other governmental <br>agencies for the exchange of information necessary to effectuate the provisions of <br>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 <br>thereafter recording the status of each claim on a current basis. The registry shall be <br>established by January 26, 1988, for all claims on which payments were made since <br>July 1, 1986, or which were pending adjudication since July 1, 1986, by audit of all <br>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 <br>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 <br>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 <br>effective dates prior to January 1, 1997, by every insurance carrier writing workers' <br>compensation insurance in the Commonwealth, by every self-insured group <br>operating under the provision of KRS 342.350(4) and Chapter 304, and against the <br>premium, as defined in KRS 342.0011, of every employer carrying its own risk.
Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 1787, effective July 15, 2010; and ch. 58,
sec. 1, effective July 15, 2010. -- Amended 2009 Ky. Acts ch. 11, sec. 80, effective <br>June 25, 2009. -- Amended 2006 Ky. Acts ch. 211, sec. 157, effective July 12, 2006; <br>and ch. 124, sec. 1, effective April 4, 2006. -- Amended 2005 Ky. Acts ch. 85, <br>sec. 681, effective June 20, 2005; and ch. 7, sec. 37, effective March 1, 2005 -- <br>Amended 2002 Ky. Acts ch. 215, sec. 1, effective July 15, 2002. -- Amended 1998 <br>Ky. Acts ch. 579, sec. 7, effective July 15, 1998. -- Amended 1996 (1st Extra. Sess.) <br>Ky. Acts ch. 1, sec. 4, effective December 12, 1996. -- Amended 1996 Ky. Acts <br>ch. 271, sec. 23, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 181, Part 10,
sec. 33, effective April 4, 1994. -- Amended 1990 Ky. Acts ch. 33, sec. 2, effective <br>March 7, 1990. -- Amended 1988 Ky. Acts ch. 297, sec. 1, effective July 15, 1988. -- <br>Amended 1987 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 13, effective October 26, 1987. <br>-- Amended 1984 Ky. Acts ch. 414, sec. 35, effective June 13, 1984. -- Amended <br>1982 Ky. Acts ch. 278, sec. 19, effective July 15, 1982. -- Amended 1978 Ky. Acts <br>ch. 256, sec. 2, effective June 17, 1978. -- Amended 1976 (1st Extra. Sess.) Ky. Acts <br>ch. 26, sec. 3, effective January 1, 1977. -- Amended 1974 Ky. Acts ch. 65, sec. 1 <br>and ch. 74, Art. II, sec. 9(1). -- Amended 1972 Ky. Acts ch. 78, sec. 23. -- Amended <br>1964 Ky. Acts ch. 192, sec. 13. -- Amended 1962 Ky. Acts ch. 276, sec. 2. -- <br>Amended 1960 Ky. Acts ch. 147, sec. 11. -- Created 1946 Ky. Acts ch. 23, secs. 4 to <br>7.
Legislative Research Commission Note (7/15/2010). This section was amended by
2010 Ky. Acts chs. 24 and 58, which do not appear to be in conflict and have been <br>codified together.
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