2010 New York Code
WKC - Workers' Compensation
Article 6-A - (106 - 109-F) Workers' Compensation Security Fund
109-C - Payments from fund.

§  109-c.  Payments  from fund. 1. The final award for compensation or
  death benefits, or installments thereof, or of payment of benefits  into
  the special funds created under the provisions of subdivisions eight and
  nine  of  section  fifteen  and  section  twenty-five-a  of this chapter
  heretofore or hereafter granted pursuant to this chapter, or the payment
  of a claim made  against  an  insured  under  the  employer's  liability
  insurance   portion   of   the  insured's  standard  New  York  workers'
  compensation  and  employer's  liability  insurance  policy,  which  has
  remained  or  shall  remain due and unpaid for thirty days, by reason of
  default by an insolvent carrier, shall be paid  from  the  fund  in  the
  manner  provided  in  this section. Benefits or compensation pursuant to
  the longshore and harbor workers' compensation act shall be payable only
  with respect to coverage of risks located or  resident  in  this  state;
  provided  further  that the insolvency, bankruptcy or dissolution of the
  insured shall effect a termination of security  fund  benefits  provided
  hereunder.  The  chairman  or  any  person in interest may file with the
  superintendent of insurance an application for payment  of  compensation
  or  death  benefits,  special fund benefits or liability claims from the
  fund on a form to be prescribed and furnished by the superintendent.  If
  there  has  been  an award, final or otherwise, a certified copy thereof
  shall accompany the application. The superintendent of  insurance  shall
  thereupon certify to the commissioner of taxation and finance such award
  for payment according to the terms of the same.
    2.  Payments  from  the  fund  shall  be  made  by the commissioner of
  taxation and finance on the said certificate of  the  superintendent  of
  insurance,  and no payment shall be made by the commissioner of taxation
  and finance in excess of the amount certified.
    3. Payment of the award from the fund shall  not  give  the  fund  any
  right of recovery against the employer.
    4.  An  employer  may pay any such award or part thereof in advance of
  payment from the fund and shall thereupon be subrogated to the rights of
  the employee or other party in interest against such fund to the  extent
  of the amount so paid.
    5.  The  commissioner of taxation and finance as custodian of the fund
  shall be entitled to recover the sum of all liabilities, including  loss
  adjustment  expenses  relating  to  such  liabilities, of such insolvent
  carrier  assumed  by  such  fund  from  such  carrier,   its   receiver,
  liquidator,  rehabilitator or trustee in bankruptcy and may prosecute an
  action or other proceedings therefor. All moneys recovered in  any  such
  action  or  proceedings  shall  forthwith be placed to the credit of the
  fund by the commissioner of taxation and finance to reimburse  the  fund
  to the extent of the moneys so recovered and paid.
    6.  The  provisions  of  section  twenty-six of this chapter shall not
  apply in the case of a failure to  pay  any  compensation  when  due  by
  reason  of  the default, after the effective date of this article, of an
  insolvent carrier as defined in this  article,  and  the  provisions  of
  section  thirty-four  of  this  chapter  shall not apply to compensation
  insured by any carrier as defined in this article if the compensation is
  paid by the fund.