KRS 304.13-400: Deductible workers' compensation policy.

(1) Each insurer, including those participating in a residual market mechanism,

authorized to write workers' compensation insurance in the Commonwealth shall

offer, as a part of the policy or as an optional endorsement to the policy, deductibles

optional to th e employer policyholder for the payment of workers' compensation

benefits pursuant to KRS Chapter 342.

(2) Deductible amounts offered pursuant to subsection (1) of this section shall be fully

disclosed to the employer policyholder in writing and shall rang e in amounts from

one hundred dollars ($100) to ten thousand dollars ($10,000) per compensable

occurrence under KRS Chapter 342. The employer policyholder exercising the

deductible option shall choose only one (1) deductible amount.

(3) (a) If the employer policyholder chooses a deductible policy pursuant to

subsections (1) and (2) of this section, the insurer shall pay the deductible

amount initially and the employer policyholder shall be liable to the insurer, at

the time and in the manner prescribed by t he insurer, for the amount of the

deductible paid by the insurer for benefits paid pursuant to KRS Chapter 342.

(b) Failure by the employer policyholder to reimburse the insurer as required by

this subsection shall be treated by the insurer in the same man ner as non -

payment of premiums. In addition, failure of the employer policyholder to

reimburse the insurer as required shall constitute noncompliance with KRS

342.340 for purposes of KRS 342.402.