44-581. Group-funded workers compensation pools; requirements.
44-581
44-581. Group-funded workers compensation pools; requirements.(a) Five or more employers, regardless of domicile, who aremembers of the same bona fide trade, merchant or professional association,regardlessof domicile, which has been in existence for not less than five years andwho are engaged in the same, similar or closely related type ofbusiness may enter intoagreementsto pool their liabilities for Kansas workers compensationbenefits and employers' liability.
(b) Five or more employers, regardless of domicile,who aremembers of the same bona fide trade, merchant or professional association,regardless ofdomicile, which hasbeen in existence for not less than five years andwho are engaged indissimilar types of businesses for which the commissioner ofinsurance finds an accurate predictionof loss can be made,may enter intoagreementsto pool their liabilities for Kansas workers compensationbenefits andemployers' liability.
(c) Allsuch arrangements shall be known as group-fundedworkers compensation pools, which shall not be deemed to be insurance orinsurancecompanies and shall not be subject to the provisions of chapter 40 of theKansas Statutes Annotated, except as otherwise provided herein.
(d) For purposes of this section:
(1) "Same, similar or closely relatedtype of business" means, but is not limited to, a business in which theprincipal payroll is in a manual classification or combination ofclassifications representing occupations which contribute to an essential partof the end product or service which is the primary business interest of themembership of the bona fide trade, merchant or professional association; and
(2) "principal payroll" means not less than 51% of the total payrollforthepreceding policy year or, in the case of an employer who has no preceding full-year's payroll, not less than 51% of estimated annual payroll; principalpayroll or estimated annual payroll shall not include the annual payroll ofthose employees set forth in the standard exceptions contained in the rulespromulgated by the national council on compensation insurance.
History: L. 1983, ch. 166, § 1;L. 1993, ch. 286, § 71;L. 1995, ch. 49, § 3; July 1.