N.Y. Workers' Compensation Law § 107: Workers' compensation security fund

§ 107. Workers' compensation security fund. The purpose of the fund is

to assure to persons and funds entitled thereto the compensation and

benefits provided by this chapter for employments insured in insolvent

carriers, including the return of unearned premiums. Such fund shall be

applicable to the payment of awards for compensation or death benefits

and to the payment of benefits into the special funds created under the

provisions of subdivisions eight and nine of section fifteen and section

twenty-five-a of this chapter heretofore or hereafter made pursuant to

this chapter, and remaining unpaid, in whole or in part, by reason of

the default, after the effective date of this article, of an insolvent

carrier including the return of unearned premiums, but such fund shall

not be applicable to the payment of any amounts due under any policy of

reinsurance issued to an insurance carrier. The fund shall also be

applicable to the payment of liability claims against an employer under

the employer's liability insurance portion of the standard New York

workers' compensation and employer's liability insurance policy, but no

payment from the fund for such liability claim shall exceed the lesser

of the policy limit or one million dollars on any one claim. Expenses of

administration also shall be paid from the fund as herein provided. Such

fund shall consist of all contributions received and paid into the fund

by carriers, as herein defined, of property and securities acquired by

and through the use of moneys belonging to the fund and of interest

earned upon moneys deposited or invested as herein provided. The payment

of the return of unearned premiums and the payment of liability claims

provided for pursuant to the provisions of this section shall be made

only if the fund is determined by the superintendent of financial

services to be sufficient to satisfy all claims for compensation or

death benefits and to the payment of benefits into the special funds

created under the provisions of subdivisions eight and nine of section

fifteen and section twenty-five-a of this chapter and, provided further,

that the superintendent of financial services shall designate sufficient

assets from this fund for the payment of such claims which shall not at

any time be diverted to any other use or purpose. The fund shall be

administered by the superintendent of financial services in accordance

with the provisions of this article.