2013 Kentucky Revised Statutes
CHAPTER 342 - WORKERS' COMPENSATION
342.340 Employer to insure or provide security against liability to workers -- Notification required.
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<![CDATA[342.340 Employer to insure or provide security against liability to workers -Notification required.
(1)
(2)
Every employer under this chapter shall either insure and keep insured its
liability for compensation hereunder in some corporation, association, or
organization authorized to transact the business of workers' compensation
insurance in this state or shall furnish to the commissioner satisfactory proof of
its financial ability to pay directly the compensation in the amount and manner
and when due as provided for in this chapter. In the latter case, the
commissioner shall require the deposit of an acceptable security, indemnity, or
bond to secure, to the extent the commissioner directs, the payment of
compensation liabilities as they are incurred. A public sector self-insured
employer shall not be required to deposit funds as security, indemnity, or bond
to secure the payment of liabilities under this chapter, if the public employer
has authority to raise taxes, notwithstanding provisions of KRS 68.245,
132.023, 132.027, and 160.470 relating to recall and reconsideration of local
taxes; raise tuition; issue bonds; raise fees or fares for services provided; or
has other authority to generate funds for its operation.
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 provisions of this section and all others relating hereto. Any insurance
carrier or self-insured group providing workers' compensation insurance
coverage for a Kentucky location shall file on behalf of the employer, with the
commissioner, evidence of the employer's compliance with this chapter.
Evidence of compliance filed with the department may include a named
additional insured who has been provided proof of workers' compensation
insurance coverage by the employer. The filing shall be made within ten (10)
days after the issuance of a policy, endorsement to a policy, or similar
documentation of coverage. Every employer who has complied with the
foregoing provision and has subsequently canceled its insurance or its
membership in an approved self-insured group, as the case may be, shall
immediately notify, or have notice given on its behalf to the department of the
cancellation, the date thereof, and the reasons therefor; and every insurance
carrier or self-insured group shall in like manner notify the commissioner upon
the cancellation, lapse, termination, expiration by reason of termination of
policy period, or nonrenewal of any policy issued by it or termination of any
membership agreement, whichever is applicable under the provisions of this
chapter, except that the carrier or self-insured group need not set forth its
reasons therefor unless requested by the commissioner. The above filings are
to be made on the forms prescribed by the commissioner. Termination of any
policy of insurance issued under the provisions of this chapter shall take effect
no greater than ten (10) days prior to the receipt of the notification by the
commissioner unless the employer has obtained other insurance and the
commissioner is notified of that fact by the insurer assuming the risk. Upon
determination that any employer under this chapter has failed to comply with
these provisions, the commissioner shall promptly notify interested government
agencies of this failure and, with particular reference to employers engaged in
coal mining, the commissioner shall promptly report any failures to the
Department for Natural Resources so that appropriate action may be
(3)
undertaken pursuant to KRS 351.175.
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 policy upon the cancellation, lapse, termination, expiration, or
nonrenewal of a workers' compensation insurance policy issued by the
insurance carrier. The notice required in this subsection shall be provided by
the department no later than ten (10) days after the insurance notice is
provided to the commissioner as required in subsection (2) of this section.
Effective:July 15, 2010
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 Ky. Acts ch. 93, sec. 1, effective March 23, 2007. -- Amended 2005 Ky.
Acts ch. 7, sec. 41, effective March 1, 2005. -- Amended 1994 Ky. Acts ch. 181,
Part 11, sec. 36, effective April 4, 1994. -- Amended 1990 Ky. Acts ch. 16,
sec. 1, effective July 13, 1990. -- Amended 1982 Ky. Acts ch. 426, sec. 2,
effective July 15, 1982. -- Amended 1970 Ky. Acts ch. 16, sec. 4. -- Recodified
1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat.
sec. 4946.
2012-2014 Budget Reference. See State/Executive Branch Budget, 2012 Ky. Acts
ch. 144, Pt. III, 23 at 1240.
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