(1) The General Assembly finds and declares that there is a need to protect employees of workers’ compensation self-insured employers who had claims for injuries that occurred prior to the creation of the workers’ compensation self-insurance guaranty funds under this chapter. The General Assembly further finds that there may be instances in which the security of a former self-insured employer is insufficient to pay the entire workers’ compensation claim of an injured employee who was injured prior to March 1, 1997.
(2) There is hereby established the self-insurance fund for the purpose of making payments to workers’ compensation claimants injured prior to March 1, 1997, when the security of a former self-insured employer has been depleted.
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Terms Used In Kentucky Statutes 342.920

  • Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Attorney: means attorney-at-law. See Kentucky Statutes 446.010
  • Board: means the Workers' Compensation Board. See Kentucky Statutes 342.0011
  • Commissioner: means the commissioner of the Department of Workers' Claims under the direction and supervision of the secretary of the Education and Labor Cabinet. See Kentucky Statutes 342.0011
  • Compensation: means all payments made under the provisions of this chapter representing the sum of income benefits and medical and related benefits. See Kentucky Statutes 342.0011
  • Department: means the Department of Workers' Claims in the Education and
    Labor Cabinet. See Kentucky Statutes 342.0011
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Year: means calendar year. See Kentucky Statutes 446.010

(3) (a) The commissioner shall be:
1. Authorized to disburse moneys from the fund in accordance with written orders of an administrative law judge or the board; and
2. Responsible for administration of the fund and conservation of the assets of the fund.
(b) The commissioner may hire an administrator to oversee the payment of claims as provided in this section.
(4) Notwithstanding any provision of the Kentucky Revised Statutes to the contrary, all amounts collected after July 12, 2006, as fines and penalties under KRS § 342.267 and KRS § 342.990 shall be paid into the self-insurance fund.
(5) The self-insurance fund shall be responsible for the payment of compensation when there has been a default in the payment of compensation by a self-insured employer and the security held by the Department of Workers’ Claims has been completely depleted.
(6) The Department of Workers’ Claims shall appoint an attorney on its staff or special counsel to represent the self-insurance fund in all proceedings brought to enforce claims against or on behalf of the self-insurance fund. Necessary expenses for this purpose including salaries or special counsel shall be borne by the self-insurance fund.
(7) Any party seeking reopening under KRS § 342.125 or action on a claim involving the self-insurance fund shall name the self-insurance fund in its action.
(8) (a) The Workers’ Compensation Funding Commission shall hold, invest, and reinvest the funds collected for the self-insurance fund;
(b) The funding commission shall have the same authority and duties with regard to the self-insurance fund as described in KRS § 342.1223; and
(c) The funding commission shall disburse moneys of the fund as requested by the commissioner of the Department of Workers’ Claims pursuant to subsection (3) of this section.
(9) Amounts in the self-insurance fund not expended at the close of the fiscal year shall not lapse but shall be carried forward to the next fiscal year. Any interest earnings
of the self-insurance fund shall become part of the fund and shall not lapse.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1861, effective July 15, 2010. — Created
2006 Ky. Acts ch. 245, sec. 1, effective July 12, 2006.