KRS § 342.340 — KY Code / Title XXVII / Chapter 342 / Section 342.340
342.340 Employer to insure or provide security against liability to workers
Status: in_force

342.340 Employer to insure or provide security against liability to workers.

(1) Every employer under this chapter shall:

(a) Insure and keep insured its liability for compensation in some corporation,

association, or organization authorized to transact the business of workers'

compensation insurance in this state; or

(b) 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 in this chapter. In this 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.

(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

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, and the reasons; 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 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 undertaken pursuant to KRS 351.175.