44-566a. Workers compensation fund; annual assessment; administration; actions against fund, parties, settlement; liabilities of fund; annual report; actuarial review.
44-566a
44-566a. Workers compensation fund; annualassessment; administration; actions against fund, parties, settlement;liabilities of fund; annual report; actuarial review.(a) There is hereby created in the state treasury the workers compensationfund. The commissioner of insurance shall beresponsible for administering the workers compensation fund, and allpayments from the workers compensation fund shall be upon warrants of thedirector of accounts and reports issued pursuant to vouchers approved bythe commissioner of insurance or a person or persons designated by thecommissioner. The commissioner of insurance annually shall report to thegovernor and the legislature the receipts and disbursements from theworkers compensation fund during the preceding fiscal year.
(b) (1) On June 1 of each year, the commissioner of insuranceshall impose an assessment against all insurance carriers, self-insurers andgroup-funded workers compensation pools insuring thepayment of compensation under the workers compensation act,and the same shall be due and payable to the commissioner on the followingJuly 1, the proceeds of which shall be credited to the workers compensationfund. The total amount of each such assessment shall be equal to an amountsufficient, in the opinion of the commissioner of insurance, to pay allamounts, including attorney fees and costs, which may be required tobe paid from such fund during the current fiscal year, lessthe amount of the estimated unencumbered balance in the workerscompensation fund as of the June 30 immediately preceding the date theassessment is due and payable under this section. The total amount of eachsuch assessment shall beapportioned among those upon whom it is imposed, such that each isassessed an amount that bears the same relation to such total assessmentas the amount of money paid or payable in workers compensation claimsby such insurance carrier, self-insurer or group-funded workerscompensation pool in the immediately precedingcalendar year bears to all such claims paid or payable during suchcalendar year.The commissioner of insurance may establish experience-based rates ofassessments under this subsection and make adjustments in the assessmentsimposed under this subsection based on the success of accident preventionprograms under K.S.A. 44-5,104, and amendments thereto, and otheremployer safetyprograms.
(2) The commissioner of insurance shall remit all moneys received by orfor such commissioner under this subsection to the state treasurer inaccordance with the provisions of K.S.A. 75-4215, and amendments thereto.Uponreceipt of each such remittance, the state treasurershalldeposit theentire amount in the state treasury to the credit of the workerscompensation fund.
(c) (1) Whenever the workers compensation fund may be made liable forthe payment of any amounts in proceedings under theworkers compensation act, the commissioner of insurance, in the capacity ofadministrator of such fund, shall be impleaded in such proceedings andshall represent and defend the workers compensation fund. The commissionerof insurance shall be deemed impleaded in any suchproceedings whenever written notice of the proceedings setting forth thenature of the liability asserted against the workerscompensation fund, is given to the commissioner of insurance. The commissionerof insurance may be made a party in this manner by any party to theproceedings. A copy of the written notice shall be given to the directorand to all other parties to the proceedings.
(2) The administrative law judge shall dismiss theworkers compensation fund from any proceeding where theadministrative law judge has determinedthat there is insufficient evidence to indicate involvement by the workerscompensation fund.
(3) In any case in which the workers compensation fund has been impleaded bythe employer or insurance carrier and where an award has been entered decidingall of theissues in the employee's claim against the employer, but not deciding theissues between the employer and the fund, the fund may file an application withthe administrative law judge requesting that the fund be dismissed from thecase withprejudice. The employer shall have a period of six months from the filing ofthe application in which to complete the employer's evidence on the fund issuesandsubmit the case to the administrative law judge for decision. The fund shallthenhave a period of 60 days after the submission of the employer's evidence tosubmit its own evidence concerning the fund issues in the case. If theemployerfails to do so, the administrative law judge shall dismiss the fund from thecase with prejudice on the judge's own motion.
(d) The commissioner of insurance, in the capacity of administratorof the workers compensation fund, may makesettlements of any amounts which may be payable from theworkers compensation fund with regard to any claim under theworkers compensation act, subject to the approval of the director.
(e) The workers compensation fund shall be liable for:
(1) Payment of awards to handicapped employees in accordance withthe provisions of K.S.A. 44-569, and amendments thereto, forclaims arisingprior to July 1, 1994;
(2) payment of workers compensation benefits to an employee who isunable to receive such benefits from such employee's employer under theconditions prescribed by K.S.A. 44-532a, and amendmentsthereto;
(3) reimbursement of an employer or insurance carrier pursuant tothe provisions of K.S.A. 44-534a, and amendments thereto,subsection (d) of K.S.A. 44-556, and amendments thereto, subsection(c) of K.S.A. 44-569, and amendments thereto, and K.S.A. 44-569a, andamendmentsthereto;
(4) payment of the actual expenses of the commissioner of insurancewhich are incurred for administering the workers compensation fund,subject to the provisions of appropriations acts; and
(5) any other payments or disbursements provided by law.
(f) If it is determined that the workers compensation fund is not liableas described in subsection (e), attorney feesincurred by the workers compensation fund may be assessed against the partywho has impleaded the workers compensation fund other than impleadingspursuant to K.S.A. 44-532a, and amendments thereto.
(g) The commissioner of insurance shall provide for theimplementation of the workerscompensation fund as provided in this section and shall beresponsible for ensuring the fund's adequacy to meet and pay claimsawarded against it.
(h) The commissioner of insurance shall make an annual report to thelegislative coordinating council, senate committee on commerce and housecommittee on commerce and labor during January of each year. Thereport shall include recommendations to the legislature on the advisability ofcontinuation or termination of the workers compensation fund or any provisionsof the workers compensation act relating thereto, an analysis of the federalAmericans with disabilities act and its effect on the workers compensation fundand recommendations on ways to reduce claim and operational costs of theworkers compensation fund.
(i) The commissioner of insurance, or the commissioner's designee, shallprovide any consulting actuarial firm contracting with the director of workerscompensation or the legislative coordinating council with such information ormaterials pertaining to the workers compensation fund deemed necessary by theactuarial firm for performing the requirements of any actuarial reviews of theworkers compensation fund for the director of workers compensation or thelegislative coordinating council notwithstanding any confidentialityprohibition, restriction or limitation imposed on such information or materialsby any other law. The consulting actuarial firm and all employees and formeremployees thereof shall be subject to the same duty of confidentiality imposedby law on other persons or state agencies with regard to information andmaterials so provided and shall be subject to any civil or criminal penaltiesimposed by law for violations of such duty of confidentiality. Any reports ofthe consulting actuarial firm shall be made in a manner in which will notreveal directly or indirectly the name of any persons or entities or individualreserve information involved in claims against the workers compensation fund.Information provided to the actuary shall not be subject to discovery, subpoenaor other means of legal compulsion in any civil proceedings and shall bereturned by the actuary to the commissioner of insurance.
History: L. 1974, ch. 203, § 46;L. 1975, ch. 260, § 3;L. 1977, ch. 179, § 1;L. 1979, ch. 156, § 14;L. 1980, ch. 146, § 14;L. 1982, ch. 213, § 6;L. 1983, ch. 166, § 15;L. 1984, ch. 182, § 1;L. 1988, ch. 380, § 1;L. 1990, ch. 28, § 16;L. 1993, ch. 286, § 61;L. 1996, ch. 79, § 13;L. 1997, ch. 125, § 15;L. 2001, ch. 5, § 137;L. 2006, ch. 59, § 1; July 1.