KRS § 342.1243 — KY Code / Title XXVII / Chapter 342 / Section 342.1243
342.1243 Transfer of the administration, assets, and liabilities of the Kentucky coal workers' pneumoconiosis fund -- Assessments on employers -- Abolition of fund
Status: in_force

342.1243 Transfer of the administration, assets, and liabilities of the Kentucky coal

workers' pneumoconiosis fund -- Assessments on employers -- Abolition of

fund.

(1) Notwithstanding any provisions of this chapter or any other provisions to the

contrary, the Kentucky coal workers' pneumoconiosis fund shall have no liability

for income benefits for coal workers' pneumoconiosis claims filed or reopened on or

after July 1, 2017.

(2) Notwithstanding any provisions of this chapter or any other provisions to the

contrary, as soon as practically possible after July 1, 2017, all of the assets and

liabilities of the Kentucky coal workers' pneumoconiosis fund shall be transferred

from the Kentucky Workers' Compensation Funding Commission and Division of

Workers' Compensation Funds to the Kentucky Employers' Mutual Insurance

Authority through a loss portfolio transfer agreement. The Kentucky Employers'

Mutual Insurance Authority shall have full authority and responsibility over the

Kentucky coal workers' pneumoconiosis fund's claims and shall administer the

claims as permitted pursuant to KRS Chapter 342.

(3) Notwithstanding the provisions of KRS 342.1242, the Workers' Compensation

Funding Commission shall impose an assessment at an annual rate of fourteen

percent (14%) upon the amount of workers' compensation premiums received on or

after January 1, 2017, through December 31, 2017, by every insurance carrier

writing workers' compensation insurance in the Commonwealth and by every self-

insured group operating under the provisions of KRS 342.350(4) and KRS Chapter

304, from employers engaged in the severance or processing of coal. Likewise, on

or after January 1, 2017, through December 31, 2017, an assessment at the rate of

fourteen percent (14%) of premium shall be paid by every employer engaged in the

severance or processing of coal who is carrying his or her own risk.

(4) Notwithstanding the provisions of KRS 342.1242, the Workers' Compensation

Funding Commission shall impose an assessment at an annual rate of fourteen

percent (14%) upon the amount of workers' compensation premiums received on or

after January 1, 2018, through December 31, 2018, by every insurance carrier

writing workers' compensation insurance in the Commonwealth and by every self-

insured group operating under the provisions of KRS 342.350(4) and Chapter 304,

from employers engaged in the severance or processing of coal. Likewise, on or

after January 1, 2018, through December 31, 2018, an assessment at the rate of

fourteen percent (14%) of premium shall be paid by every employer engaged in the

severance or processing of coal who is carrying his or her own risk.

(5) Notwithstanding the provisions of KRS 342.1242, in addition to the assessments in

subsection (3) and (4) of this section, for the calendar years of 2017 and 2018, an

assessment at the rate of fifteen cents ($0.15) per ton shall be imposed upon the

total annual amount of tons of coal severed by every entity engaged in the severance

of coal as required pursuant to KRS Chapter 143.

(6) The assessments imposed by this section shall supersede any assessment imposed

pursuant to KRS 342.1242 for the calendar years of 2017 and 2018. Any amount

paid and collected that exceeds the assessment imposed by this section in calendar

year 2017 shall be reimbursed to the employer or credited to the employer's account

subject to the preference of the employer.

(7) Assessments pursuant to this section and KRS 342.1242 that are collected by the

Kentucky Worker's Compensation Funding Commission shall be transferred to the

Kentucky Employers' Mutual Insurance Authority.

(8) When the Kentucky Workers' Compensation Funding Commission and the

Kentucky Employers' Mutual Insurance Authority have determined final audits are

closed and the liability of the fund is fully funded, then the authority for imposing

assessment rates pursuant to this section and KRS 342.1242 shall cease to exist.

When all distributions pursuant to KRS 342.1242(8) have been completed, the

Kentucky coal workers' pneumoconiosis fund shall be abolished. Any funds

collected, following the abolition of the Kentucky coal workers' pneumoconiosis

fund, from subrogation or otherwise, after the final distribution shall be transferred

to the Kentucky coal employers self-insurance guaranty fund.