2023 New York Laws › WKC - Workers' Compensation › Article 6 - State Insurance Fund. › 88-C - Coverage of State Employees.

§  88-c.  Coverage  of  state  employees.  Notwithstanding  any  other
  provisions of law to the contrary and except as set forth in section two
  hundred and twelve-a of this chapter, 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.