{"data":{"id":"us-ky/krs-342.122","jurisdiction":"us-ky","citation":"KRS 342.122","heading":"Special fund assessments -- Annual adjustments -- Quarterly payments --","body":"Electronic remittance -- Reports -- Central claim registry.\n(1) (a) For calendar year 1997 and for each calendar year thereafter, for the purpose\nof funding and prefunding the liabilities of the special fund, financing the\nadministration and operation of the Kentucky Workers' Compensation\nFunding Commission, and financing the expenditures for all programs in the\nDepartment of Workers' Claims, Occupational Safety and Health R eview\nCommission, Workers' Compensation Nominating Committee, Department of\nWorkplace Standards, except expenditures for the Division of Wages and\nHours contained in the Department of Workplace Standards and the\nproportional support for general administrat ion and support based on an\napproved indirect cost allocation plan within the Department of Workers'\nClaims and the Education and Labor Cabinet, as reflected in the enacted\nbudget of the Commonwealth and enacted by the General Assembly, the\nfunding commiss ion shall impose a special fund assessment rate of nine\npercent (9%) upon the amount of workers' compensation premiums received\non and after January 1, 1997, through December 31, 1997, by every insurance\ncarrier writing workers' compensation insurance in t he Commonwealth, by\nevery self -insured group operating under the provisions of KRS 342.350(4)\nand Chapter 304, and against the premium, as defined in KRS 342.0011, of\nevery employer carrying his or her own risk.\n(b) 1. The funding commission shall, for cal endar year 1998 and thereafter,\nestablish for the special fund an assessment rate to be assessed against\nall premium received during that calendar year which shall produce\nenough revenue to amortize on a level basis the unfunded liability of the\nspecial fu nd as of June 30 preceding January 1 of each year, for the\nperiod remaining until December 31, 2029. The special fund assessment\nimposed by the funding commission shall continue to be assessed to\nfinance the administration and operation of the Kentucky Wor kers'\nCompensation Funding Commission under subsection (1)(a) of this\nsection, and financing the expenditures for all programs in the\nDepartment of Workers' Claims, Occupational Safety and Health\nReview Commission, Department of Workplace Standards, exclud ing\nexpenditures for the Division of Wages and Hours contained in the\nDepartment of Workplace Standards and the proportional support for\ngeneral administration and support based on an approved indirect cost\nallocation plan within the Department of Workers'  Claims and the\nEducation and Labor Cabinet.\n2. For the purpose of establishing the assessment rate after the liabilities of\nthe special fund have been funded or prefunded, the Workers'\nCompensation Funding Commission, the Department of Workers'\nClaims, th e Occupational Safety and Health Review Commission, the\nDepartment of Workplace Standards, excluding the Division of Wages\nand Hours contained within the Department of Workplace Standards,\nand the Education and Labor Cabinet, shall each submit a budget to the\ncommissioner for approval. The commissioner shall submit a combined\nbudget request for use of the special fund assessment, subject to the\napproval of the Workers' Compensation Funding Commission, to the\nchairs of the House Standing Committee on Appropr iations and\nRevenue and the Senate Standing Committee on Appropriations and\nRevenue. The combined budgets of the Occupational Safety and Health\nReview Commission, Department of Workplace Standards, and the\nproportional support for the general administratio n and approved\nindirect cost allocation to the Education and Labor Cabinet, shall not\nexceed fifty percent (50%) of the total combined budget submitted by\nthe commissioner.\n3. The interest rate to be used in this calculation shall reflect the funding\ncommission's investment experience to date and the current investment\npolicies of the commission. This assessment shall be imposed upon the\namount of workers' compensation premiums received by every\ninsurance carrier writing workers' compensation insurance in t he\nCommonwealth, by every self -insured group operating under the\nprovisions of KRS 342.350(4) and Chapter 304, and against the\npremium, as defined in KRS 342.0011, of every employer carrying its\nown risk. On or before October 1 of each year, the commission  shall\nnotify each insurance carrier writing workers' compensation insurance in\nthe Commonwealth, every group of self -insured employers, and each\nemployer carrying its own risk, of the rates which shall become effective\non January 1 of each year, unless modified by the General Assembly.\n(c) All assessments imposed by this section shall be paid to the Kentucky\nWorkers' Compensation Funding Commission and shall be credited to the\nbenefit reserve fund within the Kentucky Workers' Compensation Funding\nCommission.\n(d) The assessments imposed in this chapter shall be in lieu of all other\nassessments or taxes on workers' compensation premiums.\n(2) (a) These assessments shall be paid quarterly not later than the thirtieth day of the\nmonth following the end of the qu arter in which the premium is received.\nReceipt shall be considered timely through actual physical receipt or by\npostmark of the United States Postal Service. Employers carrying their own\nrisk and employers defined in KRS 342.630(2) shall pay the annual\nassessments in four (4) equal quarterly installments.\n(b) Beginning on January 1, 2020, all assessments shall be electronically remitted\nto the funding commission quarterly not later than the thirtieth day of the\nmonth following the end of the quarter in which the premium is received.\nReceipt shall be considered timely when filed and remitted using the\nappropriate electronic pay system as prescribed by the funding commission.\nEmployers carrying their own risk and employers defined in KRS 342.630(2)\nshall pay the annual assessments in four (4) equal quarterly installments.\n(3) The assessments imposed by this section may be collected by the insurance carrier\nfrom the insured. However, the insurance carrier shall not collect from the employer\nany amount exceeding the assessments imposed pursuant to this section. If th e\ninsurance carrier collects the assessment from an insured, the assessment shall be\ncollected at the same time and in the same proportion as the premium is collected.\nThe assessment for an insurance policy or other evidence of coverage providing a\ndeductible may be collected in accordance with this chapter on a premium amount\nthat equates to the premium that would have applied without the deductible. Each\nstatement from an insurance carrier presented to an insured reflecting premium and\nassessment amounts shall clearly identify and distinguish the amount to be paid for\npremium and the amount to be paid for assessments. No insurance carrier shall\ncollect from an insured an amount in excess of the assessment percentages imposed\nby this chapter. The assessment  for an insurance policy or other evidence of\ncoverage providing a deductible may be collected in accordance with this chapter\non a premium amount that equates to the premium that would have applied without\nthe deductible. The percentages imposed by this c hapter for an insurance policy\nissued by an insurance company shall be those percentages in effect on the annual\neffective date of the policy, regardless of the date that the premium is actually\nreceived by the insurance company.\n(4) A self-insured group m ay elect to report its premiums and to have its assessments\ncomputed in the same manner as insurance companies. This election may not be\nrescinded for at least ten (10) years, nor may this election be made a second time\nfor at least another ten (10) years,  except that the board of directors of the funding\ncommission may, at its discretion, waive the ten (10) year ban on a case -by-case\nbasis after formal petition has been made to the funding commission by a self -\ninsured group.\n(5) The funding commission, as part of the collection and auditing of the special fund\nassessments required by this section, shall annually require each insurance carrier\nand each self -insured group to provide a list of employers which it has insured or\nwhich are members and the amount collected from each employer. Additionally, the\nfunding commission shall require each entity paying a special fund assessment to\nreport the SIC code for each employer and the amount of premium collected from\neach SIC code. An insurance carrier or self -insured group may require its insureds\nor members to furnish the SIC code for each of their employees. However, the\nfailure of any employer to furnish said codes shall not relieve the insurance carrier\nor self -insured group from the obligation to furnish same to the funding\ncommission. The Department of Workforce Development, Education and Labor\nCabinet, is hereby directed to make available the SIC codes assigned in its records\nto specific employers to aid in the reporting and recording of the special fund\nassessment data.\n(6) Each self -insured employer, self -insured group, or insurance carrier shall provide\nany information and submit any reports the Department of Revenue or the funding\ncommission may require to effectuate the provisions of this section. In addi tion, the\nfunding commission may enter reciprocal agreements with other governmental\nagencies for the exchange of information necessary to effectuate the provisions of\nthis section.\n(7) The special fund shall be required to maintain a central claim registr y of all claims\nto which it is named a party, giving each such claim a unique claim number and\nthereafter recording the status of each claim on a current basis. The registry shall be\nestablished by January 26, 1988, for all claims on which payments were ma de since\nJuly 1, 1986, or which were pending adjudication since July 1, 1986, by audit of all\nclaim files in the possession of the special fund.\n(8) The fund heretofore designated as the subsequent claim fund is abolished, and there\nis substituted therefor the special fund as set out by this section, and all moneys and\nproperties owned by the subsequent claim fund are transferred to the special fund.\n(9) Notwithstanding any other provisions of this section or this chapter to the contrary,\nthe total amount o f funds collected pursuant to the assessment rates adopted by the\nfunding commission shall not be limited to the provisions of this section.\n(10) All assessment rates imposed for periods prior to January 1, 1997, under KRS\n342.122 shall forever remain appl icable to premiums received on policies with\neffective dates prior to January 1, 1997, by every insurance carrier writing workers'\ncompensation insurance in the Commonwealth, by every self -insured group\noperating under the provision of KRS 342.350(4) and C hapter 304, and against the\npremium, as defined in KRS 342.0011, of every employer carrying its own risk.","path":["KRS Chapter 342"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56773","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:30Z","sha256":"687974f5bc93a828a150c2ad3ed9ee151f04c796bb3d612d49066d579b0d55d8","source_id":"us-ky","stale":false,"prev":"us-ky/krs-342.121","next":"us-ky/krs-342.1221"},"notice":"GroundRules: Original legal text. Not legal advice."}