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342.801 Legislative findings and intent.
(1) 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' <br>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, <br>have few insurance options except the residual market mechanism through <br>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 <br>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 <br>General Assembly has a responsibility to ensure employers an available and <br>adequate insurance mechanism through which employers may discharge their <br>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 <br>funds exist in twenty-five (25) states, and that at least seven (7) states have <br>created competitive state funds since 1983.
(2) 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 <br>the purpose of providing both a market of last resort for employers in the <br>Commonwealth and another competitive source of insurance in the voluntary <br>market through which employers may secure and maintain their workers' <br>compensation coverage required under this chapter.
Effective: April 4, 1994 <br>History: Created 1994 Ky. Acts ch. 181, sec. 39, effective April 4, 1994.
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