KRS 342.900: Legislative findings and declarations.

(1) The General Assembly hereby finds and declares that the establishment of self -

insurance guaranty funds is a necessary component of a complete system of

workers' compensation, to make provisions for the general welfare of workers and

their dependents, to re lieve the consequences of any industrial injury or death, and

to secure the payment of workers' compensation benefits provided by this chapter.

(2) The General Assembly further finds and declares that provision must be made for

the continuation of workers' compensation benefits otherwise delayed or terminated

due to the failure of a self -insured employer to meet obligations because of

insolvency. It is for that purpose that the General Assembly establishes mechanisms

requiring the establishment of three (3) distinct nonprofit, unincorporated guaranty

associations, one (1) of whose members shall be composed of individually self -

insured employers excluding individually self -insured coal employers and public -

sector employers; one (1) shall be composed of self-insured groups created pursuant

to KRS 342.350(4) and 304.50 -010; and one (1) shall be composed of individually

self-insured coal operators.