KRS 342.1231: Payment for assessment, penalty and interest, and expenses -- Procedure

for protesting special fund assessments -- Expenses of audits, how paid --

Mailing of assessment notice -- Documents relevant to reports and audits --

Notice and payment of refund -- Penalty for late payment.

(1) The funding commission may mail to the assessment payer a notice of any

assessment assessed by it. The assessment shall be final if not protested in writing

to the funding commission within thirty (30) days fro m the date of notice. Payment

for the assessment, penalty and interest, and expenses shall be received by the

funding commission within thirty (30) days from the date the notice becomes final.

The protest shall be accompanied by a supporting statement sett ing forth the

grounds upon which the protest is made. Upon written request, the funding

commission may extend the time for filing the supporting statement if it appears the

delay is necessary and unavoidable. The refusal of such extension may be reviewed

in the same manner as a protested assessment.

(2) After a timely protest has been filed, the assessment payer may request a conference

with the funding commission. The request shall be granted in writing stating the

date and time set for the conference. The assessment payer may appear in person or

by representative. Further conferences may be held by mutual agreement.

(3) After considering the assessment payer's protest, including any matters presented at

the final conference, the funding commission shall issue a final ruling on any matter

still in controversy, which shall be mailed to the assessment payer. The ruling shall

state that it is a final ruling of the funding commission, generally state the issues in

controversy, the funding commission's position t hereon and set forth the procedure

for prosecuting an appeal to the Board of Claims pursuant to KRS 49.220.

(4) The assessment payer may request in writing a final ruling at any time after filing a

timely protest and supporting statement. When a final ruli ng is requested, the

funding commission shall issue such ruling within sixty (60) days or at the next

board of directors meeting, whichever is later, from the date the request is received

by the funding commission.

(5) After a final ruling has been issued, the assessment payer may appeal to the Board

of Claims pursuant to KRS 49.220.

(6) The expenses incurred by the funding commission in conducting audits required in

this chapter shall be paid by the audited entities in accordance with administrative

regulations promulgated by the funding commission.

(7) Notwithstanding any provision to the contrary, a notice of assessment under

subsection (1) of this section shall not be collected unless the notice of assessment

is mailed to the assessment payer not later t han five (5) years from the due date of

the quarterly premium report or the date the amended quarterly premium report is

filed, whichever is later. A quarterly premium report shall not be amended later than

one (1) year after the due date of the quarterly premium report.

(8) Assessment payers shall preserve, retain, and provide all documents relevant to

quarterly premium reports and subject to audits to the funding commission upon

request during the completion of the audit.

(9) (a) The funding commission ma y mail the assessment payer notice of a refund

amount to be returned to an insured. The insurance carrier shall pay the

amount of the refund to the insured within sixty (60) days from the date of

notice sent by the funding commission. If, after good -faith efforts, the refund

cannot be returned to the insured, the refund amount shall be remitted to the

funding commission within thirty (30) days from the last date of attempting

the refund.

(b) If a refund amount to an insured is unpaid on the date on which it is due, then

that amount shall bear a penalty of one and one-half percent (1.5%) per month

from that due date. The funding commission shall have the authority to waive

part or all of the penalty where failure to pay is shown, to the satisfaction of

the funding commission, to be for a reasonable cause.

(10) "Assessment payer" as used in this section means insurance carrier, self -insured

group, and self-insured employer.