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This entry was published on 2014-09-22
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SECTION 107
Workers' compensation security fund
Workers' Compensation (WKC) CHAPTER 67, ARTICLE 6-A
§ 107. Workers' compensation security fund. The purpose of the fund is
to assure to persons and funds entitled thereto the compensation and
benefits provided by this chapter for employments insured in insolvent
carriers, including the return of unearned premiums. Such fund shall be
applicable to the payment of awards for compensation or death benefits
and to the payment of benefits into the special funds created under the
provisions of subdivisions eight and nine of section fifteen and section
twenty-five-a of this chapter heretofore or hereafter made pursuant to
this chapter, and remaining unpaid, in whole or in part, by reason of
the default, after the effective date of this article, of an insolvent
carrier including the return of unearned premiums, but such fund shall
not be applicable to the payment of any amounts due under any policy of
reinsurance issued to an insurance carrier. The fund shall also be
applicable to the payment of liability claims against an employer under
the employer's liability insurance portion of the standard New York
workers' compensation and employer's liability insurance policy, but no
payment from the fund for such liability claim shall exceed the lesser
of the policy limit or one million dollars on any one claim. Expenses of
administration also shall be paid from the fund as herein provided. Such
fund shall consist of all contributions received and paid into the fund
by carriers, as herein defined, of property and securities acquired by
and through the use of moneys belonging to the fund and of interest
earned upon moneys deposited or invested as herein provided. The payment
of the return of unearned premiums and the payment of liability claims
provided for pursuant to the provisions of this section shall be made
only if the fund is determined by the superintendent of financial
services to be sufficient to satisfy all claims for compensation or
death benefits and to the payment of benefits into the special funds
created under the provisions of subdivisions eight and nine of section
fifteen and section twenty-five-a of this chapter and, provided further,
that the superintendent of financial services shall designate sufficient
assets from this fund for the payment of such claims which shall not at
any time be diverted to any other use or purpose. The fund shall be
administered by the superintendent of financial services in accordance
with the provisions of this article.