2012 New York Consolidated Laws
WKC - Workers' Compensation
Article 6 - (76 - 100) State Insurance Fund.
88-C - Coverage of state employees.

 
    §  88-c.  Coverage  of  state  employees.  Notwithstanding  any  other
  provisions of law to the contrary, the liability of the  state  for  the
  payment  of  compensation  under  this  chapter  heretofore  existing or
  hereinafter arising shall be secured by  an  insuring  agreement  to  be
  entered  into  between  the  department  of  civil service and the state
  insurance fund wherein the state,  from  moneys  appropriated  therefor,
  shall pay in advance to the fund on a periodic basis the actual costs to
  the fund for the meeting and paying, as the same become due and payable,
  all obligations incurred under this chapter by the state as an employer.
  Notwithstanding  any law to the contrary, the fund may on an actuarially
  sound basis provide to the  state  insurance  for  any  portion  of  the
  obligations  of the state as employer under this chapter with respect to
  injuries or deaths resulting from accidents arising out of  and  in  the
  course   of  employment  on  or  after  April  first,  nineteen  hundred
  eighty-one. All such payments made by the state and paid into the  state
  fund  shall  constitute a separate account in the fund to be used solely
  for the purpose of discharging all compensation obligations of the state
  pursuant to the provisions of this chapter and in  accordance  with  the
  insuring  agreement  as  provided  in  this  section. Any portion of the
  account may be invested in the same manner as the assets of the fund  as
  provided  in  section eighty-seven of this article. The liability of the
  fund for the payment of any claims or the meeting of any obligations  of
  the  state  as  an employer as provided in this chapter shall not exceed
  the moneys paid  into  such  separate  account  and  any  increments  or
  diminutions  thereof.  The agreement shall further provide that the fund
  shall render all services and make all reasonable expenditures necessary
  or required for the processing, defense and payment of all claims  under
  this chapter, including the protection of liens, subrogation, credit and
  other  rights  of the state as an employer or the fund as an insurer, in
  situations where the  employees'  injuries  or  deaths  were  caused  by
  culpability  of  third  parties.  Except  to  the  extent that the state
  obtains  insurance  on  an  actuarially  sound  basis  pursuant  to  the
  provisions of this section, the provisions of section eighty-six of this
  chapter  with  respect to the maintenance of reserves for the purpose of
  meeting anticipated compensation losses, shall  not  in  any  manner  be
  applicable  to claims of employees of the state with respect to injuries
  or deaths resulting from accidents arising out of and in the  course  of
  employment  prior  to April first, nineteen hundred eighty-one, or to an
  insuring agreement entered into between the state insurance fund and the
  department of civil service in accordance with the  provisions  of  this
  section.