TITLE 39. LABOR

CHAPTER 71. WORKERS' COMPENSATION

Part 23. Compensation Plan Number Three

Purpose Of Separation Of State Fund Liability As Of July 1, 1990, And Of Separate Funding Of Claims Before And On Or After That Date

39-71-2351. Purpose of separation of state fund liability as of July 1, 1990, and of separate funding of claims before and on or after that date. (1) The legislature has determined that it is necessary to the public welfare to make workers' compensation insurance available to all employers through the state fund as the guaranteed market. In previous years of making this insurance available, and prior to July 1, 1990, the state fund incurred an unfunded liability. The legislature determined that the most cost-effective and efficient way to provide a source of funding for and to ensure payment of the unfunded liability and the best way to administer the unfunded liability was to separate the liability of the state fund on the basis of whether a claim is for an injury resulting from an accident that occurred before July 1, 1990, or an accident that occurs on or after that date.

(2) The legislature further determines that in order to prevent the creation of a new unfunded liability with respect to claims for injuries for accidents that occur on or after July 1, 1990, certain duties of the state fund should be clarified and regulation of the state fund, effective January 1, 2016, and subject to 33-1-115 and 39-71-2375, should be under Title 33, which governs plan No. 2 and plan No. 3 insurers operating in this state.

History: En. Sec. 1, Ch. 4, Sp. L. May 1990; amd. Sec. 5, Ch. 797, L. 1991; amd. Sec. 1, Ch. 637, L. 1993; amd. Sec. 22, Ch. 276, L. 1997; amd. Sec. 19, Ch. 320, L. 2015.