If an insurance carrier, self-insured group, or self-insured employer providing workers'
compensation coverage engages in claims settlement practices in violation of this chapter,
or the provisions of KRS 304.12-230, the commissioner of the Department of Workers'
Claims shall fine the insurance company, self-insured group, or self-insured employer the
sum of one thousand dollars ($1,000) to five thousand dollars ($5,000) for each violation
and if they have a pattern of violations, the commissioner may revoke the certificate of
self-insurance or request the commissioner of insurance to revoke the certificate of
authority of the insurance carrier or the self-insured group.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1809, effective July 15, 2010. --
Amended 2005 Ky. Acts ch. 7, sec. 40, effective March 1, 2005. -- Created 1996 (1st
Extra. Sess.) Ky. Acts ch. 1, sec. 80, effective December 12, 1996.
Notes of Decisions
Travelers Indem. Co. v. Reker, 100 S.W.3d 756 (Ky. 2003).
· cites it 90× “The Court of Appeals reversed, concluding that KRS 342.267, when read together with KRS 304.”
Hitachi Auto. Prods. USA, Inc. v. Craig, 279 S.W.3d 123 (Ky. 2008).
· cites it 11× “The decision implicitly rejected the claimant’s arguments that conduct by the employer’s insurance carrier violated KRS 342.267 and 803 ICAR 25:240, that the violations reasonably induced a tardy filing, and that they estopped the employer from asserting a limitations defense.”
Kentucky Employers Mut. Ins. v. Coleman, 236 S.W.3d 9 (Ky. 2007).
· cites it 2× “Tackett alleges that the Executive Director's investigation led to the issuance of a show cause order against KEMI on the grounds that there was reason to believe that it had engaged in multiple instances of unfair claims settlement practices in violation of KRS 342.267 and 803…”
Lane v. S & S Tire, Inc., No. 15, 182 S.W.3d 501 (Ky. 2006).
· cites it 4× “Alvarado’s report and letter provided a reasonable basis for the employer to refuse to pay voluntary benefits and to defend against the claim, the ALJ denied the request.”
Richey v. Perry Arnold, Inc., 391 S.W.3d 705 (Ky. 2012).
“Lowther was imposed under KRS 342.267 based on the employer’s failure to meet the time constraints for paying the claim and its failure to pay a claim in which liability was clear.”
Kentucky Associated Gen. Contractors Self-Ins. Fund v. Lowther, 330 S.W.3d 456 (Ky. 2010).
“020 and the regulations require an employer to file a medical dispute and motion to reopen within 30 days of receiving a final utilization review decision denying pre-authorization or to pay for the proposed procedure.”
Mitchell v. TFE Grp., 276 S.W.3d 814 (Ky. 2009).
· cites it 10× “320 nor any other statute authorizes an attorney’s fee in a proceeding under KRS 342.267. We affirm. The claimant sought benefits for a work-related knee injury.”
Ky. Associated Gen. Contractors v. Lowther, 330 S.W.3d 456 (Ky. 2010).
“The appellants' failure to comply with the statute and regulations supports the finding that they committed unfair claims settlement practices as well as the resulting fine.”
Kentucky Employers Mut. Ins. v. Justin Thele (Ky. 2023).
“Michael Wayne Alvey Chairman of benefits ordered pursuant to an interlocutory order without prior approval of the ALJ shall constitute grounds for a violation of the Unfair Claims Settlement Practices Act at KRS 342.267, and for sanctions pursuant to KRS 342.”
Justin Thele v. Kentucky Employers Mut. Ins. (Ky. 2023).
“Michael Wayne Alvey Chairman of benefits ordered pursuant to an interlocutory order without prior approval of the ALJ shall constitute grounds for a violation of the Unfair Claims Settlement Practices Act at KRS 342.267, and for sanctions pursuant to KRS 342.”
Kentucky Employers' Mut. Ins. v. Justin Thele (Ky. Ct. App. 2024).
“Failure to pay benefits under an interlocutory order or termination of benefits ordered pursuant to an interlocutory order without prior approval of the ALJ shall constitute grounds for a violation of the Unfair Claims Settlement Practices Act at KRS 342.267, and for sanctions…”
Justin Thele v. Kentucky Employers' Mut. Ins. (Ky. Ct. App. 2024).
“Failure to pay benefits under an interlocutory order or termination of benefits ordered pursuant to an interlocutory order without prior approval of the ALJ shall constitute grounds for a violation of the Unfair Claims Settlement Practices Act at KRS 342.267, and for sanctions…”
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