44-532.Subrogation of insurer or group-funded poolto rights and duties of employer; methods of securing payment of compensation;failure to secure; penalties; notice to director by insurers; change of statusnotice by self-insurers and group-funded pool members; eligibility toself-insure; merging employers.(a) Where the payment of compensation of the employee or the employee'sdependents is insured by a policy or policies, at the expense of theemployer, or the employer is a member of a qualified group-fundedworkers compensation pool, the insurer or the qualified group-fundedworkers compensation pool shall be subrogated to the rights and duties underthe workers compensation act of the employer so far as appropriate,including the immunities provided by K.S.A. 44-501, and amendmentsthereto.
(b) Every employer shall secure the payment of compensation to theemployer's employees by insuring in one of the following ways: (1) Byinsuring and keeping insured the payment of such compensation with aninsurance carrier authorized to transact the business of workerscompensation insurance in the state of Kansas; (2) by showing to thedirector that the employer carries such employer's own risk and is whatis known as a self-insurer and by furnishing proof to the director ofthe employer's financial ability to pay such compensation for theemployer's self; (3) by maintaining a membership in a qualified group-fundedworkers compensation pool. The cost of carrying such insuranceor risk shall be paid by the employer and not the employee.
(c) The knowing and intentional failure of an employer to secure thepayment of workers compensation to the employer's employees asrequired in subsection (b) of this section is a class A misdemeanor.
(d) In addition, whenever the director has reason to believe that anyemployer has engaged or is engaging in the knowing and intentional failure tosecure the payment of workers compensation to the employer's employees asrequired in subsection (b) of this section, the director shall issue and serveupon such employer a statement of the charges with respect thereto and shallconduct a hearing in accordance with the Kansas administrative procedure act,wherein the employer may be liable to the state for a civil penalty in anamount equal to twice the annual premium the employer would have paid had suchemployer been insured or $25,000, whichever amount isgreater.
(e) The director shall not assess such a fine against a self-employedsubcontractor for failure of the subcontractor to secure compensation for thesubcontractor personally, however, the director shall enforce the provisions ofthis section for failure of the subcontractor to secure compensation for anyother employee of the subcontractor as otherwise provided by law.
(f) Any civil penalty imposed or final action taken under thissection shallbe subject to review in accordance with the act for judicial review of agencyactions in the district court of Shawnee county.
(g) All moneys received under this section for costs assessed ormonetarypenalties imposed shall be remitted to the state treasurerin accordance with the provisions of K.S.A. 75-4215, and amendments thereto.Upon receipt of each such remittance, the state treasurer shall deposit theentire amount in the state treasury tothecredit of the workers compensation fund.
(h) (1) Every insurance carrier writing workerscompensationinsurance for any employment covered under the workers compensationact shall file, with the director or the director's designee, writtennotice of theissuance,nonrenewal or cancellation of a policy or contract of insurance, or anyendorsement, providing workers compensation coverage, within 10days after such issuance, nonrenewal or cancellation. Every suchinsurance carrier shall file, with the director, written notice of allsuch policies, contracts and endorsements in force on the effective dateof this act.
(2) Every employer covered by the workers compensation act who isa qualified self-insurer shall give written notice to the director or thedirector'sdesignee, ifsuch employer changes from a self-insurer status to insuring through aninsurance carrier or by maintaining a membership in a qualified group-fundedworkers compensation pool, such notice to be given within10 days afterthe effective date of such change. Every self-insurer shall file withthe director annually a report verifying the employer's continuingability to pay compensation to the employer's employees.
(3) Every employer covered by the workers compensation act who isa member of a qualified group-funded workers compensation pool shall givewritten notice to the director or the director's designee, if such employerchangesfrom a group-fundedworkers compensation pool to insuring through an insurance carrier or becominga self-insurer, such notice to be given within 10 days after the effectivedate of such change.
(4) The mailing of any written notice or report required by thissubsection (d) in a stamped envelope within the prescribed time shallcomply with the requirements of this subsection.
(5) The director shall provide by regulation for the forms ofwritten notices and reports required by this subsection (d).
(i) As used in this section, "qualified group-funded workerscompensationpool" means any qualified group-funded workers compensation pool under K.S.A.44-581 through 44-591, and amendments thereto, or anygroup-funded pool underthe Kansas municipal group-funded pool act which includes workers compensationand employers' liability under the workers compensation act.
(j) A private firm shall not be eligible to apply to become aself-insurerunless it has been in continuous operation for at least five years or ispurchasing an existing self-insured Kansas firm, plant or facility and theoperation of the purchased firm, plant or facility: (1) Has been in continuousoperation in Kansas for at least 10 years; (2) has generated an after-taxprofit of at least $1,000,000 annually for the preceding three consecutiveyears; and (3) has a ratio of debt to equity of not greater than 3.5 to 1. Asused in this subsection, "debt" means the sum of long-term borrowing maturingin excess of one year plus the current portion of long-term borrowing plusshort-term financial institution borrowing plus commercial paper borrowing, and"equity" means the sum of the book value ofstock plus paid-in capital plus retained earnings.The method for calculating the amount of security required of self-insuredsshall be reviewed by an actuary every five years, beginning in fiscal year1997. The costs for these actuarial studies shall be paid from the workerscompensation fee fund.
(k) A corporation or other entity whose current identity isattributable toa merger or other transformation whereby the whole or a substantial part of aprevious entity's assets and income have been transferred to it, and itsliabilities have not increased beyond the financial review requirements of thedirector, which qualified under its previous identity as a self-insurer underother provisions of this statute, and amendments thereto, may apply for renewalas a self-insurer under its new name. The director may grant the applicationfor renewal if satisfied that the new entity meets all necessary financialcriteria for renewal that would have been applied to the previous self-insuredentity. An application under these provisions shall be limited to an entityseeking renewal based upon the prior self-insured status of another entity orentities.
44-532.Subrogation of insurer or group-funded poolto rights and duties of employer; methods of securing payment of compensation;failure to secure; penalties; notice to director by insurers; change of statusnotice by self-insurers and group-funded pool members; eligibility toself-insure; merging employers.(a) Where the payment of compensation of the employee or the employee'sdependents is insured by a policy or policies, at the expense of theemployer, or the employer is a member of a qualified group-fundedworkers compensation pool, the insurer or the qualified group-fundedworkers compensation pool shall be subrogated to the rights and duties underthe workers compensation act of the employer so far as appropriate,including the immunities provided by K.S.A. 44-501, and amendmentsthereto.
(b) Every employer shall secure the payment of compensation to theemployer's employees by insuring in one of the following ways: (1) Byinsuring and keeping insured the payment of such compensation with aninsurance carrier authorized to transact the business of workerscompensation insurance in the state of Kansas; (2) by showing to thedirector that the employer carries such employer's own risk and is whatis known as a self-insurer and by furnishing proof to the director ofthe employer's financial ability to pay such compensation for theemployer's self; (3) by maintaining a membership in a qualified group-fundedworkers compensation pool. The cost of carrying such insuranceor risk shall be paid by the employer and not the employee.
(c) The knowing and intentional failure of an employer to secure thepayment of workers compensation to the employer's employees asrequired in subsection (b) of this section is a class A misdemeanor.
(d) In addition, whenever the director has reason to believe that anyemployer has engaged or is engaging in the knowing and intentional failure tosecure the payment of workers compensation to the employer's employees asrequired in subsection (b) of this section, the director shall issue and serveupon such employer a statement of the charges with respect thereto and shallconduct a hearing in accordance with the Kansas administrative procedure act,wherein the employer may be liable to the state for a civil penalty in anamount equal to twice the annual premium the employer would have paid had suchemployer been insured or $25,000, whichever amount isgreater.
(e) The director shall not assess such a fine against a self-employedsubcontractor for failure of the subcontractor to secure compensation for thesubcontractor personally, however, the director shall enforce the provisions ofthis section for failure of the subcontractor to secure compensation for anyother employee of the subcontractor as otherwise provided by law.
(f) Any civil penalty imposed or final action taken under thissection shallbe subject to review in accordance with the act for judicial review of agencyactions in the district court of Shawnee county.
(g) All moneys received under this section for costs assessed ormonetarypenalties imposed shall be remitted to the state treasurerin accordance with the provisions of K.S.A. 75-4215, and amendments thereto.Upon receipt of each such remittance, the state treasurer shall deposit theentire amount in the state treasury tothecredit of the workers compensation fund.
(h) (1) Every insurance carrier writing workerscompensationinsurance for any employment covered under the workers compensationact shall file, with the director or the director's designee, writtennotice of theissuance,nonrenewal or cancellation of a policy or contract of insurance, or anyendorsement, providing workers compensation coverage, within 10days after such issuance, nonrenewal or cancellation. Every suchinsurance carrier shall file, with the director, written notice of allsuch policies, contracts and endorsements in force on the effective dateof this act.
(2) Every employer covered by the workers compensation act who isa qualified self-insurer shall give written notice to the director or thedirector'sdesignee, ifsuch employer changes from a self-insurer status to insuring through aninsurance carrier or by maintaining a membership in a qualified group-fundedworkers compensation pool, such notice to be given within10 days afterthe effective date of such change. Every self-insurer shall file withthe director annually a report verifying the employer's continuingability to pay compensation to the employer's employees.
(3) Every employer covered by the workers compensation act who isa member of a qualified group-funded workers compensation pool shall givewritten notice to the director or the director's designee, if such employerchangesfrom a group-fundedworkers compensation pool to insuring through an insurance carrier or becominga self-insurer, such notice to be given within 10 days after the effectivedate of such change.
(4) The mailing of any written notice or report required by thissubsection (d) in a stamped envelope within the prescribed time shallcomply with the requirements of this subsection.
(5) The director shall provide by regulation for the forms ofwritten notices and reports required by this subsection (d).
(i) As used in this section, "qualified group-funded workerscompensationpool" means any qualified group-funded workers compensation pool under K.S.A.44-581 through 44-591, and amendments thereto, or anygroup-funded pool underthe Kansas municipal group-funded pool act which includes workers compensationand employers' liability under the workers compensation act.
(j) A private firm shall not be eligible to apply to become aself-insurerunless it has been in continuous operation for at least five years or ispurchasing an existing self-insured Kansas firm, plant or facility and theoperation of the purchased firm, plant or facility: (1) Has been in continuousoperation in Kansas for at least 10 years; (2) has generated an after-taxprofit of at least $1,000,000 annually for the preceding three consecutiveyears; and (3) has a ratio of debt to equity of not greater than 3.5 to 1. Asused in this subsection, "debt" means the sum of long-term borrowing maturingin excess of one year plus the current portion of long-term borrowing plusshort-term financial institution borrowing plus commercial paper borrowing, and"equity" means the sum of the book value ofstock plus paid-in capital plus retained earnings.The method for calculating the amount of security required of self-insuredsshall be reviewed by an actuary every five years, beginning in fiscal year1997. The costs for these actuarial studies shall be paid from the workerscompensation fee fund.
(k) A corporation or other entity whose current identity isattributable toa merger or other transformation whereby the whole or a substantial part of aprevious entity's assets and income have been transferred to it, and itsliabilities have not increased beyond the financial review requirements of thedirector, which qualified under its previous identity as a self-insurer underother provisions of this statute, and amendments thereto, may apply for renewalas a self-insurer under its new name. The director may grant the applicationfor renewal if satisfied that the new entity meets all necessary financialcriteria for renewal that would have been applied to the previous self-insuredentity. An application under these provisions shall be limited to an entityseeking renewal based upon the prior self-insured status of another entity orentities.
44-532.Subrogation of insurer or group-funded poolto rights and duties of employer; methods of securing payment of compensation;failure to secure; penalties; notice to director by insurers; change of statusnotice by self-insurers and group-funded pool members; eligibility toself-insure; merging employers.(a) Where the payment of compensation of the employee or the employee'sdependents is insured by a policy or policies, at the expense of theemployer, or the employer is a member of a qualified group-fundedworkers compensation pool, the insurer or the qualified group-fundedworkers compensation pool shall be subrogated to the rights and duties underthe workers compensation act of the employer so far as appropriate,including the immunities provided by K.S.A. 44-501, and amendmentsthereto.
(b) Every employer shall secure the payment of compensation to theemployer's employees by insuring in one of the following ways: (1) Byinsuring and keeping insured the payment of such compensation with aninsurance carrier authorized to transact the business of workerscompensation insurance in the state of Kansas; (2) by showing to thedirector that the employer carries such employer's own risk and is whatis known as a self-insurer and by furnishing proof to the director ofthe employer's financial ability to pay such compensation for theemployer's self; (3) by maintaining a membership in a qualified group-fundedworkers compensation pool. The cost of carrying such insuranceor risk shall be paid by the employer and not the employee.
(c) The knowing and intentional failure of an employer to secure thepayment of workers compensation to the employer's employees asrequired in subsection (b) of this section is a class A misdemeanor.
(d) In addition, whenever the director has reason to believe that anyemployer has engaged or is engaging in the knowing and intentional failure tosecure the payment of workers compensation to the employer's employees asrequired in subsection (b) of this section, the director shall issue and serveupon such employer a statement of the charges with respect thereto and shallconduct a hearing in accordance with the Kansas administrative procedure act,wherein the employer may be liable to the state for a civil penalty in anamount equal to twice the annual premium the employer would have paid had suchemployer been insured or $25,000, whichever amount isgreater.
(e) The director shall not assess such a fine against a self-employedsubcontractor for failure of the subcontractor to secure compensation for thesubcontractor personally, however, the director shall enforce the provisions ofthis section for failure of the subcontractor to secure compensation for anyother employee of the subcontractor as otherwise provided by law.
(f) Any civil penalty imposed or final action taken under thissection shallbe subject to review in accordance with the act for judicial review of agencyactions in the district court of Shawnee county.
(g) All moneys received under this section for costs assessed ormonetarypenalties imposed shall be remitted to the state treasurerin accordance with the provisions of K.S.A. 75-4215, and amendments thereto.Upon receipt of each such remittance, the state treasurer shall deposit theentire amount in the state treasury tothecredit of the workers compensation fund.
(h) (1) Every insurance carrier writing workerscompensationinsurance for any employment covered under the workers compensationact shall file, with the director or the director's designee, writtennotice of theissuance,nonrenewal or cancellation of a policy or contract of insurance, or anyendorsement, providing workers compensation coverage, within 10days after such issuance, nonrenewal or cancellation. Every suchinsurance carrier shall file, with the director, written notice of allsuch policies, contracts and endorsements in force on the effective dateof this act.
(2) Every employer covered by the workers compensation act who isa qualified self-insurer shall give written notice to the director or thedirector'sdesignee, ifsuch employer changes from a self-insurer status to insuring through aninsurance carrier or by maintaining a membership in a qualified group-fundedworkers compensation pool, such notice to be given within10 days afterthe effective date of such change. Every self-insurer shall file withthe director annually a report verifying the employer's continuingability to pay compensation to the employer's employees.
(3) Every employer covered by the workers compensation act who isa member of a qualified group-funded workers compensation pool shall givewritten notice to the director or the director's designee, if such employerchangesfrom a group-fundedworkers compensation pool to insuring through an insurance carrier or becominga self-insurer, such notice to be given within 10 days after the effectivedate of such change.
(4) The mailing of any written notice or report required by thissubsection (d) in a stamped envelope within the prescribed time shallcomply with the requirements of this subsection.
(5) The director shall provide by regulation for the forms ofwritten notices and reports required by this subsection (d).
(i) As used in this section, "qualified group-funded workerscompensationpool" means any qualified group-funded workers compensation pool under K.S.A.44-581 through 44-591, and amendments thereto, or anygroup-funded pool underthe Kansas municipal group-funded pool act which includes workers compensationand employers' liability under the workers compensation act.
(j) A private firm shall not be eligible to apply to become aself-insurerunless it has been in continuous operation for at least five years or ispurchasing an existing self-insured Kansas firm, plant or facility and theoperation of the purchased firm, plant or facility: (1) Has been in continuousoperation in Kansas for at least 10 years; (2) has generated an after-taxprofit of at least $1,000,000 annually for the preceding three consecutiveyears; and (3) has a ratio of debt to equity of not greater than 3.5 to 1. Asused in this subsection, "debt" means the sum of long-term borrowing maturingin excess of one year plus the current portion of long-term borrowing plusshort-term financial institution borrowing plus commercial paper borrowing, and"equity" means the sum of the book value ofstock plus paid-in capital plus retained earnings.The method for calculating the amount of security required of self-insuredsshall be reviewed by an actuary every five years, beginning in fiscal year1997. The costs for these actuarial studies shall be paid from the workerscompensation fee fund.
(k) A corporation or other entity whose current identity isattributable toa merger or other transformation whereby the whole or a substantial part of aprevious entity's assets and income have been transferred to it, and itsliabilities have not increased beyond the financial review requirements of thedirector, which qualified under its previous identity as a self-insurer underother provisions of this statute, and amendments thereto, may apply for renewalas a self-insurer under its new name. The director may grant the applicationfor renewal if satisfied that the new entity meets all necessary financialcriteria for renewal that would have been applied to the previous self-insuredentity. An application under these provisions shall be limited to an entityseeking renewal based upon the prior self-insured status of another entity orentities.
