KRS 342.801: Legislative findings and intent.

(1) The General Assembly finds and declares that:

(a) An adequate and available workers' compensation insurance market does not

exist for employers in the Commonwealth;

(b) Approximately fifty percent (50%) of the private workers' compensation

insurance market resides in the residual market mechanism for workers'

compensation;

(c) The voluntary insurance market has declined to the point that employers in the

Commonwealth, who lack the financial capability to cover their own risk,

have few insurance options exce pt the residual market mechanism through

which to maintain their statutorily-required workers' compensation coverage;

(d) A lack of an adequate market for workers' compensation insurance threatens

the economic welfare of the Commonwealth and its ability to create and

maintain jobs for the citizens of Kentucky;

(e) Employers in the Commonwealth and other states are required by law to

provide workers' compensation coverage to their employees and, therefore, the

General Assembly has a responsibility to ensure employers an available and

adequate insurance mechanism through which employers may discharge their

statutory duty regarding workers' compensation; and

(f) State funds have historically and traditionally been a viable participant in the

workers' compensati on insurance market, that workers' compensation state

funds exist in twenty -five (25) states, and that at least seven (7) states have

created competitive state funds since 1983.

(2) Therefore, it is the intent of the General Assembly in creating the Employ ers'

Mutual Insurance Authority to establish a self -supporting competitive state fund for

the purpose of providing both a market of last resort for employers in the

Commonwealth and another competitive source of insurance in the voluntary

market through wh ich employers may secure and maintain their workers'

compensation coverage required under this chapter.