{"data":{"id":"us-ky/krs-342.340","jurisdiction":"us-ky","citation":"KRS 342.340","heading":"Employer to insure or provide security against liability to workers.","body":"(1) Every employer under this chapter shall:\n(a) Insure and keep insured its liability for compensation in some corporation,\nassociation, or organization authorized to transact the business of workers'\ncompensation insurance in this state; or\n(b) Furnish to the commissioner satisfactory proof of its financial ability to pay\ndirectly the compensation in the amount and manner and when due as\nprovided in this chapter. In this case,  the commissioner shall require the\ndeposit of an acceptable security, indemnity, or bond to secure, to the extent\nthe commissioner directs, the payment of compensation liabilities as they are\nincurred. A public sector self -insured employer shall not be re quired to\ndeposit funds as security, indemnity, or bond to secure the payment of\nliabilities under this chapter, if the public employer has authority to raise\ntaxes, notwithstanding provisions of KRS 68.245, 132.023, 132.027, and\n160.470 relating to recall  and reconsideration of local taxes; raise tuition;\nissue bonds; raise fees or fares for services provided; or has other authority to\ngenerate funds for its operation.\n(2) Every employer subject to this chapter shall file, or have filed on its behalf, with the\ndepartment, as often as may be necessary, evidence of its compliance with the\nprovisions of this section and all others relating hereto. Any insurance carrier or\nself-insured group providing workers' compensation insurance coverage for a\nKentucky loca tion shall file on behalf of the employer, with the commissioner,\nevidence of the employer's compliance with this chapter. Evidence of compliance\nfiled with the department may include a named additional insured who has been\nprovided proof of workers' compe nsation insurance coverage by the employer. The\nfiling shall be made within ten (10) days after the issuance of a policy, endorsement\nto a policy, or similar documentation of coverage. Every employer who has\ncomplied with the foregoing provision and has su bsequently canceled its insurance\nor its membership in an approved self -insured group, as the case may be, shall\nimmediately notify, or have notice given on its behalf to the department of the\ncancellation, the date, and the reasons; and every insurance ca rrier or self -insured\ngroup shall in like manner notify the commissioner upon the cancellation, lapse,\ntermination, expiration by reason of termination of policy period, or nonrenewal of\nany policy issued by it or termination of any membership agreement, w hichever is\napplicable under the provisions of this chapter, except that the carrier or self -\ninsured group need not set forth its reasons unless requested by the commissioner.\nThe above filings are to be made on the forms prescribed by the commissioner.\nTermination of any policy of insurance issued under the provisions of this chapter\nshall take effect no greater than ten (10) days prior to the receipt of the notification\nby the commissioner unless the employer has obtained other insurance and the\ncommissioner is notified of that fact by the insurer assuming the risk. Upon\ndetermination that any employer under this chapter has failed to comply with these\nprovisions, the commissioner shall promptly notify interested government agencies\nof this failure and, wi th particular reference to employers engaged in coal mining,\nthe commissioner shall promptly report any failures to the Department for Natural\nResources so that appropriate action may be undertaken pursuant to KRS 351.175.","path":["KRS Chapter 342"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43318","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:31Z","sha256":"ae8d7182fa2fb07417c5ef41ebefc2c8e06b8bbd9c80a739be48f0e4d4d23a1d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-342.335","next":"us-ky/krs-342.342"},"notice":"GroundRules: Original legal text. Not legal advice."}