N.Y. Workers' Compensation Law § 88-c: Coverage of state employees

§ 88-c. Coverage of state employees. Notwithstanding any other

provisions of law to the contrary and except as set forth in section two

hundred and twelve-a of this chapter, the liability of the state for the

payment of compensation under this chapter heretofore existing or

hereinafter arising shall be secured by an insuring agreement to be

entered into between the department of civil service and the state

insurance fund wherein the state, from moneys appropriated therefor,

shall pay in advance to the fund on a periodic basis the actual costs to

the fund for the meeting and paying, as the same become due and payable,

all obligations incurred under this chapter by the state as an employer.

Notwithstanding any law to the contrary, the fund may on an actuarially

sound basis provide to the state insurance for any portion of the

obligations of the state as employer under this chapter with respect to

injuries or deaths resulting from accidents arising out of and in the

course of employment on or after April first, nineteen hundred

eighty-one. All such payments made by the state and paid into the state

fund shall constitute a separate account in the fund to be used solely

for the purpose of discharging all compensation obligations of the state

pursuant to the provisions of this chapter and in accordance with the

insuring agreement as provided in this section. Any portion of the

account may be invested in the same manner as the assets of the fund as

provided in section eighty-seven of this article. The liability of the

fund for the payment of any claims or the meeting of any obligations of

the state as an employer as provided in this chapter shall not exceed

the moneys paid into such separate account and any increments or

diminutions thereof. The agreement shall further provide that the fund

shall render all services and make all reasonable expenditures necessary

or required for the processing, defense and payment of all claims under

this chapter, including the protection of liens, subrogation, credit and

other rights of the state as an employer or the fund as an insurer, in

situations where the employees' injuries or deaths were caused by

culpability of third parties. Except to the extent that the state

obtains insurance on an actuarially sound basis pursuant to the

provisions of this section, the provisions of section eighty-six of this

chapter with respect to the maintenance of reserves for the purpose of

meeting anticipated compensation losses, shall not in any manner be

applicable to claims of employees of the state with respect to injuries

or deaths resulting from accidents arising out of and in the course of

employment prior to April first, nineteen hundred eighty-one, or to an

insuring agreement entered into between the state insurance fund and the

department of civil service in accordance with the provisions of this

section.