2009 Kentucky Revised Statutes CHAPTER 342 WORKERS' COMPENSATION 342.340 Employer to insure or provide security against liability to workers -- Notification required.
342.340 Employer to insure or provide security against liability to workers --
Notification required.
(1) Every employer under this chapter shall either insure and keep insured its liability
for compensation hereunder in some corporation, association, or organization <br>authorized to transact the business of workers' compensation insurance in this state <br>or shall furnish to the commissioner satisfactory proof of its financial ability to pay <br>directly the compensation in the amount and manner and when due as provided for <br>in this chapter. In the latter case, the commissioner shall require the deposit of an <br>acceptable security, indemnity, or bond to secure, to the extent the commissioner <br>directs, the payment of compensation liabilities as they are incurred. A public sector <br>self-insured employer shall not be required to deposit funds as security, indemnity, <br>or bond to secure the payment of liabilities under this chapter, if the public <br>employer has authority to raise taxes, notwithstanding provisions of KRS 68.245, <br>132.023, 132.027, and 160.470 relating to recall and reconsideration of local taxes; <br>raise tuition; issue bonds; raise fees or fares for services provided; or has other <br>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 <br>provisions of this section and all others relating hereto. Any insurance carrier or <br>self-insured group providing workers' compensation insurance coverage for a <br>Kentucky location shall file on behalf of the employer, with the commissioner, <br>evidence of the employer's compliance with this chapter. Evidence of compliance <br>filed with the department may include a named additional insured who has been <br>provided proof of workers' compensation insurance coverage by the employer. The <br>filing shall be made within ten (10) days after the issuance of a policy, endorsement <br>to a policy, or similar documentation of coverage. Every employer who has <br>complied with the foregoing provision and has subsequently canceled its insurance <br>or its membership in an approved self-insured group, as the case may be, shall <br>immediately notify, or have notice given on its behalf to the department of the <br>cancellation, the date thereof, and the reasons therefor; and every insurance carrier <br>or self-insured group shall in like manner notify the commissioner upon the <br>cancellation, lapse, termination, expiration by reason of termination of policy <br>period, or nonrenewal of any policy issued by it or termination of any membership <br>agreement, whichever is applicable under the provisions of this chapter, except that <br>the carrier or self-insured group need not set forth its reasons therefor unless <br>requested by the commissioner. The above filings are to be made on the forms <br>prescribed by the commissioner. Termination of any policy of insurance issued <br>under the provisions of this chapter shall take effect no greater than ten (10) days <br>prior to the receipt of the notification by the commissioner unless the employer has <br>obtained other insurance and the commissioner is notified of that fact by the insurer <br>assuming the risk. Upon determination that any employer under this chapter has <br>failed to comply with these provisions, the commissioner shall promptly notify <br>interested government agencies of this failure and, with particular reference to <br>employers engaged in coal mining, the commissioner shall promptly report any
failures to the Department for Natural Resources so that appropriate action may be <br>undertaken pursuant to KRS 351.175.
(3) The Department of Workers' Claims shall notify a named additional insured at the
address listed on the evidence of coverage under a workers' compensation insurance <br>policy upon the cancellation, lapse, termination, expiration, or nonrenewal of a <br>workers' compensation insurance policy issued by the insurance carrier. The notice <br>required in this subsection shall be provided by the department no later than ten (10) <br>days after the insurance notice is provided to the commissioner as required in <br>subsection (2) of this section.
Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 1820, effective July 15, 2010. --
Amended 2008 Ky. Acts ch. 38, sec. 1, effective July 15, 2008. -- Amended 2007 <br>Ky. Acts ch. 93, sec. 1, effective March 23, 2007. -- Amended 2005 Ky. Acts ch. 7, <br>sec. 41, effective March 1, 2005. -- Amended 1994 Ky. Acts ch. 181, Part 11, <br>sec. 36, effective April 4, 1994. -- Amended 1990 Ky. Acts ch. 16, sec. 1, effective <br>July 13, 1990. -- Amended 1982 Ky. Acts ch. 426, sec. 2, effective July 15, 1982. -- <br>Amended 1970 Ky. Acts ch. 16, sec. 4. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, <br>effective October 1, 1942, from Ky. Stat. sec. 4946.
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