KRS 342.803: Kentucky Employers' Mutual Insurance Authority.

(1) The Kentucky Employers' Mutual Insurance Authority is created as a nonprofit,

independent, self-supporting de jure municipal corporation and political subdivision

of the Commonwealth which shall be a public body corporate and politic to insure

employers in the Commonwealth for workers' compensation, employers' liability

insurance and coverage required by the Federal Coal Mine Health & Safety Act, the

Jones Act, and the Longshore and Harbor Workers Act incidental to and written in

conjunction with workers' c ompensation. The General Assembly hereby recognizes

that the operation of a competitive state fund is a unique activity for state

government and that a corporate structure will best enable the authority to be

managed in an entrepreneurial and business -like manner. The authority shall

function in a manner similar to a governing board for a domestic mutual insurance

company and shall be subject to the provisions of KRS Chapter 304 applicable to

domestic mutual insurance companies, unless otherwise provided or exempted in

KRS 342.801 to 342.843.

(2) Except for initial funding for start-up, the authority shall be entirely self-supporting.

(3) The authority or its liabilities shall not be deemed to constitute a debt or a liability

of the Commonwealth or a pledge of the faith and credit of the Commonwealth.

(4) The authority shall provide coverage and issue policies as an insurer in the

voluntary market and as an insurer of last resort.