Kentucky Statutes 342.910 – Rights and responsibilities of funds as to payments made, due, or recoverable
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(1) Each guaranty fund, by making payment of compensation under this chapter, has the same preference over the other debts of the principal or the principal’s estate as is given by law to the person directly entitled to the compensation.
(2) Notwithstanding subsection (1) of this section, each guaranty fund shall not be liable for the payment of any penalties or interest assessed for any act or omission on the part of any person, including but not limited to the penalties provided in this chapter.
(3) Each guaranty fund shall be a party in interest in all proceedings involving compensation claims against an insolvent member whose compensation obligations have been paid or assumed by the guaranty fund. The guaranty fund shall have the same rights and defenses as the insolvent individual self-insurer.
(4) Each guaranty fund shall have the right and obligation to obtain reimbursement from an insolvent self-insurer up to the amount of the self-insurer’s workers’ compensation obligations paid and assumed by each guaranty fund, including reasonable administrative and legal costs.
(5) Each guaranty fund shall have the right to bring an action against any person or entity to recover compensation paid and liability assumed by the guaranty fund, including but not limited to any excess insurance carrier of the insolvent member.
Effective: December 12, 1996
History: Created 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 25, effective December 12,
1996.
(2) Notwithstanding subsection (1) of this section, each guaranty fund shall not be liable for the payment of any penalties or interest assessed for any act or omission on the part of any person, including but not limited to the penalties provided in this chapter.
Terms Used In Kentucky Statutes 342.910
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Carrier: means any insurer, or legal representative thereof, authorized to insure the liability of employers under this chapter and includes a self-insurer. See Kentucky Statutes 342.0011
- Compensation: means all payments made under the provisions of this chapter representing the sum of income benefits and medical and related benefits. See Kentucky Statutes 342.0011
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means any individual, partnership, limited partnership, limited liability company, firm, association, trust, joint venture, corporation, or legal representative thereof. See Kentucky Statutes 342.0011
- Self-insurer: is a n employer who has been authorized under the provisions of this chapter to carry his own liability on his employees covered by this chapter. See Kentucky Statutes 342.0011
(3) Each guaranty fund shall be a party in interest in all proceedings involving compensation claims against an insolvent member whose compensation obligations have been paid or assumed by the guaranty fund. The guaranty fund shall have the same rights and defenses as the insolvent individual self-insurer.
(4) Each guaranty fund shall have the right and obligation to obtain reimbursement from an insolvent self-insurer up to the amount of the self-insurer’s workers’ compensation obligations paid and assumed by each guaranty fund, including reasonable administrative and legal costs.
(5) Each guaranty fund shall have the right to bring an action against any person or entity to recover compensation paid and liability assumed by the guaranty fund, including but not limited to any excess insurance carrier of the insolvent member.
Effective: December 12, 1996
History: Created 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 25, effective December 12,
1996.