(1) Every employer under this chapter shall:
(a) Insure and keep insured its liability for compensation in some corporation,
association, or organization authorized to transact the business of workers'
compensation insurance in this state; or
(b) Furnish to the commissioner satisfactory proof of its financial ability to pay
directly the compensation in the amount and manner and when due as
provided in this chapter. In this case, the commissioner shall require the
deposit of an acceptable security, indemnity, or bond to secure, to the extent
the commissioner directs, the payment of compensation liabilities as they are
incurred. A public sector self-insured employer shall not be required to
deposit funds as security, indemnity, or bond to secure the payment of
liabilities under this chapter, if the public employer has authority to raise
taxes, notwithstanding provisions of KRS 68.245, 132.023, 132.027, and
160.470 relating to recall and reconsideration of local taxes; raise tuition;
issue bonds; raise fees or fares for services provided; or has other authority to
generate funds for its operation.
(2) Every employer subject to this chapter shall file, or have filed on its behalf, with the
department, as often as may be necessary, evidence of its compliance with the
provisions of this section and all others relating hereto. Any insurance carrier or
self-insured group providing workers' compensation insurance coverage for a
Kentucky location shall file on behalf of the employer, with the commissioner,
evidence of the employer's compliance with this chapter. Evidence of compliance
filed with the department may include a named additional insured who has been
provided proof of workers' compensation insurance coverage by the employer. The
filing shall be made within ten (10) days after the issuance of a policy, endorsement
to a policy, or similar documentation of coverage. Every employer who has
complied with the foregoing provision and has subsequently canceled its insurance
or its membership in an approved self-insured group, as the case may be, shall
immediately notify, or have notice given on its behalf to the department of the
cancellation, the date, and the reasons; and every insurance carrier or self-insured
group shall in like manner notify the commissioner upon the cancellation, lapse,
termination, expiration by reason of termination of policy period, or nonrenewal of
any policy issued by it or termination of any membership agreement, whichever is
applicable under the provisions of this chapter, except that the carrier or self-
insured group need not set forth its reasons unless requested by the commissioner.
The above filings are to be made on the forms prescribed by the commissioner.
Termination of any policy of insurance issued under the provisions of this chapter
shall take effect no greater than ten (10) days prior to the receipt of the notification
by the commissioner unless the employer has obtained other insurance and the
commissioner is notified of that fact by the insurer assuming the risk. Upon
determination that any employer under this chapter has failed to comply with these
provisions, the commissioner shall promptly notify interested government agencies
of this failure and, with particular reference to employers engaged in coal mining,
the commissioner shall promptly report any failures to the Department for Natural
Resources so that appropriate action may be undertaken pursuant to KRS 351.175.
Effective: July 15, 2014
History: Amended 2014 Ky. Acts ch. 80, sec. 3, effective July 15, 2014. -- Amended
2010 Ky. Acts ch. 24, sec. 1820, effective July 15, 2010. -- Amended 2008 Ky. Acts
ch. 38, sec. 1, effective July 15, 2008. -- Amended 2007 Ky. Acts ch. 93, sec. 1,
effective March 23, 2007. -- Amended 2005 Ky. Acts ch. 7, sec. 41, effective March
1, 2005. -- Amended 1994 Ky. Acts ch. 181, Part 11, sec. 36, effective April 4, 1994.
-- Amended 1990 Ky. Acts ch. 16, sec. 1, effective July 13, 1990. -- Amended 1982
Ky. Acts ch. 426, sec. 2, effective July 15, 1982. -- Amended 1970 Ky. Acts ch. 16,
sec. 4. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from
Ky. Stat. sec. 4946.
2024-2026 Budget Reference. See State/Executive Branch Budget, 2024 Ky. Acts ch.
175, Pt. III, 21 at 1935.
Notes of Decisions
Cited in
44
cases (
4 in the last 5 years), 1949–2025 · leading case:
Mcdonald's Corp. v. Ogborn, 309 S.W.3d 274 (Ky. Ct. App. 2009).
Mcdonald's Corp. v. Ogborn, 309 S.W.3d 274 (Ky. Ct. App. 2009).
· cites it 5× “at 06417-06421, 06510-06585, and 10635-11001), but failed to find any proof that McDonald's complied with KRS 342.340. 8 . Ogborn “clocked out” at 4:44 p.”
Blackstone Mining Co. v. Travelers Ins. Co., 351 S.W.3d 193 (Ky. 2011).
· cites it 4× “KRS 342.340. Moreover, KRS 342.365 requires that a carrier issuing a policy against liability under [the Act] must agree to pay promptly "all benefits conferred by this chapter and all installments of the compensation that may be awarded or agreed upon" and that the carrier's…”
Travelers Indem. Co. v. Reker, 100 S.W.3d 756 (Ky. 2003).
· cites it 4× “690(2) authorizes an injured worker to "maintain an action at law or admiralty" for damages against an employer who has failed to secure payment of compensation as required by KRS 342.340. KRS 342.197(3) authorizes a civil action for damages against an employer who has…”
Gen. Elec. Co. v. Cain, 236 S.W.3d 579 (Ky. 2007).
· cites it 3× “payment of compensation” as required by KRS 342.340. In its judgments, the circuit court found in favor of all of the owners, holding that they were “contractors” immune from tort liability, that the exclusive remedy provision was not unconstitutional, and that each owner had…”
Wymer v. JH Props., Inc., 50 S.W.3d 195 (Ky. 2001).
· cites it 2× “KRS 342.340(1). At the time of Wymer's injury, a company identified as "Alexsis" was the third-party administrator of Jewish's workers' compensation self-insurance.”
Travelers Ins. Co. v. Duvall, 884 S.W.2d 665 (Ky. 1994).
· cites it 9× “KRS 342.340(1). Failure to comply will result in Board notification to any interested government agencies of said failure so that appropriate action may be taken according to KRS 351.”
Brown v. Indiana Ins. Co., 184 S.W.3d 528 (Ky. 2005).
· cites it 2× “630(1), had failed either to purchase a policy of workers' compensation insurance or to qualify as a self-insurer as required by KRS 342.340(1). Under that circumstance, KRS 342.”
Kentucky Ins. Guar. Ass'n v. Jeffers Ex Rel. Jeffers, 13 S.W.3d 606 (Ky. 2000).
· cites it 2× “The full amount of a covered claim for benefits arising from a workers' compensation insurance policy purchased to satisfy the requirements of KRS 342.340; 2. An amount not exceeding then thousand dollars ($10,000) per policy for a covered claim for the return of unearned…”
Bradley v. Commonwealth, 301 S.W.3d 27 (Ky. 2009).
· cites it 3× “” When an employer defaults on its compensation liability due to its failure to comply with KRS 342.340, 10 KRS 342.760(4) holds the UEF responsible for paying benefits and subro-gates the UEF “to all the rights of the person receiving such compensation from the fund.”
AIG/AIU Ins. Co. v. South Akers Mining Co., 192 S.W.3d 687 (Ky. 2006).
· cites it 2× “Consistent with this purpose, KRS 342.340(1) requires every employer that is subject to Chapter 342 to insure its “liability for compensation” with an authorized carrier or to furnish proof of its financial ability to self-insure.”
Davis v. Turner, 519 S.W.2d 820 (Ky. Ct. App. 1975).
· cites it 6× “690, obviously refer to the providing of insurance or security as required by KRS 342.340, the obligation to so provide is not conditioned on any election by an employer but is automatically imposed on all employers mandatorily made subject to the Act by KRS 342.”
Custard Ins. Adjusters, Inc. v. Aldridge, 57 S.W.3d 284 (Ky. 2001).
· cites it 2× “360—charges the insurer with the employer’s notice or knowledge of the injury; provides that “jurisdiction of the insured for the purpose of this chapter shall be jurisdiction of the insurer;” and provides that “the insurer shall in all things be bound by and subject to the…”
— Ky. Rev. Stat. § 342.340(1) — 17 cases
Mcdonald's Corp. v. Ogborn, 309 S.W.3d 274 (Ky. Ct. App. 2009).
“at 06417-06421, 06510-06585, and 10635-11001), but failed to find any proof that McDonald's complied with KRS 342.340. 8 . Ogborn “clocked out” at 4:44 p.”
Wymer v. JH Props., Inc., 50 S.W.3d 195 (Ky. 2001).
“KRS 342.340(1). At the time of Wymer's injury, a company identified as "Alexsis" was the third-party administrator of Jewish's workers' compensation self-insurance.”
Blackstone Mining Co. v. Travelers Ins. Co., 351 S.W.3d 193 (Ky. 2011).
“KRS 342.340. Moreover, KRS 342.365 requires that a carrier issuing a policy against liability under [the Act] must agree to pay promptly "all benefits conferred by this chapter and all installments of the compensation that may be awarded or agreed upon" and that the carrier's…”
Brown v. Indiana Ins. Co., 184 S.W.3d 528 (Ky. 2005).
“630(1), had failed either to purchase a policy of workers' compensation insurance or to qualify as a self-insurer as required by KRS 342.340(1). Under that circumstance, KRS 342.”
Travelers Indem. Co. v. Reker, 100 S.W.3d 756 (Ky. 2003).
“690(2) authorizes an injured worker to "maintain an action at law or admiralty" for damages against an employer who has failed to secure payment of compensation as required by KRS 342.340. KRS 342.197(3) authorizes a civil action for damages against an employer who has…”
— Ky. Rev. Stat. § 342.340(2) — 3 cases
Travelers Ins. Co. v. Duvall, 884 S.W.2d 665 (Ky. 1994).
“KRS 342.340(1). Failure to comply will result in Board notification to any interested government agencies of said failure so that appropriate action may be taken according to KRS 351.”
Davis v. Turner, 519 S.W.2d 820 (Ky. Ct. App. 1975).
“690, obviously refer to the providing of insurance or security as required by KRS 342.340, the obligation to so provide is not conditioned on any election by an employer but is automatically imposed on all employers mandatorily made subject to the Act by KRS 342.”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.