FAQs - Kentucky AGC Self Insurers' Fund

Minimum requirements are as follows:

All policies are subject to a $1,000.00 minimum yearly normal premium regardless of paying method (annual or monthly). Policies cancelled before the end of the year expiration date will be subject to a pro-rated minimum normal premium based on the $1,000.00 yearly minimum normal premium times the percentage of the year the policy was effective. The minimum premium and/or pro-rated minimum premium is not subject to an experience rating modification.

The Fund is still very interested in reviewing this type of submission. However, we will require some additional information as follows before considering offering a quote:

The exact date the company started business. If workers’ compensation insurance was carried, please identify the years.
Work experience of the officers of the company, and detailed prior history (i.e. 2–3 years of work experience as a Plumber).
A statement from the owner or officer stating the following: The owner, nor any of his/her employees, have ever filed a workers’ compensation claim or passed one on to another party. This statement must be signed and dated.
Are sub-contractors used? If so, how much of the total payroll can be attributed to sub-contract labor? Are any uninsured sub-contractors hired? If so, have any claims been filed by these uninsured sub-contractors? (A prospective member with less than one (1) full year of workers’ compensation experience whose estimated payroll is attributable to a use of 50% or more sub-contract, contract, casual or 1099 labor, is not eligible for Fund membership.) Prospective members may are subject to a pre-enrollment safety inspection.
It is important to note that additional information may be requested depending on each individual risk.

Yes. You must join and maintain a membership in good standing with one of the Fund’s seven (7) participating Trade Associations in order to receive and keep workers’ compensation coverage through the Fund.

The Fund’s seven (7) participating Trade Associations have various eligibility and membership requirements. Please contact the Trade Associations to find out which one is best suited for your company’s needs.

To become a member of AGC/SIF you will need to submit the following information:

Acord appliciaton with payroll and class codes, loss runs, NCCI worksheet or the prior three audits.
AGC Application
A statement of net worth and/or financial statement (Per KRS Chapter 304.50).
Prospective member has 30 days after policy inception date to provide proof of membership to one of the Fund’s seven (7) participating Trade Associations. Membership in a Trade Association must be maintained for the duration of membership in the Fund.
Soliciting Agent to the Fund is required to have proof of membership to one of the participating Trade Associations.
Prospective Members are subject to a safety inspection by the Fund’s Safety Engineer prior to admittance to the Fund.

Any prospective member who uses any of the following restricted classifications will be subject to approval by the Fund’s Excess Carrier.

106 – Tree Pruning, Spraying, Repairing – All Operations & Dr.
1710 – Stone Crushing & Drivers
1164 – Mining NOC – Not Coal – Underground & Drivers
1624 – Quarry NOC & Drivers
1803 – Stone Cutting or Polishing NOC & Dr.
3726 – Boiler Installation or Repair – Steam
5037 – Painting – Metal Structures – Over Two Stories in Height & Drivers
5040 – Iron/Steel Erection – Frame Structures
5057 – Iron/Steel Erection – NOC
5059 – Iron/Steel Erection – Frame Structures Not Over Two Stories in Height
5160 – Elevator Erection or Repair
5222 – Concrete Construction in Connection with Bridges or Culverts
5551 – Roofing – All Kinds & Drivers
5610 – Cleaners – Debris Removal
6003 – Pile Driving
6204 – Drilling NOC & Drivers
7421 – Aviation – Transportation of Personnel – In Conduct of Employer’s Business – Flying Crew
7538 – Electric Light or Power Line Construction & Drivers
7600 – Telecommunications Co. – Cable TV, or Satellite – All Other Employees & Drivers

The E-Mod will be calculated using prior years’ audits and loss runs. Note: An E-Mod of 1.25 or higher requires special acceptance from the Fund’s Excess Carrier.

The Experience Rating Plan used in workers’ compensation insurance allows each employer an opportunity to tailor the cost of their insurance premium. In essence, the plan works similar to the “safe driver” discount program in the automobile insurance industry in that losses and safety results of one employer are compared to similarly classified employers from the same state (in this case, Kentucky). The end result of this comparison is the “Experience Modifier” which can be found in bold font on the second to last line of your experience modifier worksheet(s). Simply stated, if your company has fewer accidents and losses than the industry average (in the state of Kentucky), this will most likely result in an experience modifier that is less than 1.00 which ultimately reduces the amount of premium you will pay for your workers’ compensation insurance costs. Conversely, if your company’s accidents and losses are greater than the industry average (in the state of Kentucky), your experience modifier will most likely be greater than a 1.00, resulting in increased premium costs. On the surface, the experience rating plan may seem like a reward-penalty program, but in fact, it was designed as a tool to help better predict future losses for an individual employer. Now, let’s explore some basic terms associated with the experience modification process.

E-mod Terms

Code: Describes the overall operation of a business. (i.e. 5645 – Carpentry detached one or two family dwellings) ELR: The expected loss rate, or ELR, is the amount of expected losses by classification per $100 of payroll. These factors are state specific (KY) and are actuarially determined by the National Council on Compensation Insurance (NCCI) and approved by Kentucky’s Department of Insurance. D-Ratio: The discount ratio, or D-Ratio, is the factor that is used to determine what amount of the expected losses (see above) for each code are expected primary losses. Payroll: The payroll column identifies your audited payroll by class code for each applicable year. However, if audited payroll has not been finalized (audited premium paid or refunded), your reported payroll is used. Expected Losses: Expected Losses are as the term suggests, the amount of losses that are expected based on your class code and payroll amount. To determine the expected losses the ELR rate is multiplied by the payroll and then divided by one hundred (100). Expected Primary Losses: Expected Primary Losses are those losses that are expected to be primary. To calculate this value, multiply the expected losses by the D-Ratio. (Of note: a primary loss is the first $18,500 of a loss.) Claim Data: This section represents the employer’s loss experience over a specific period of time. In some cases, claims that have a total incurred of $2,000 or less are grouped together for reporting purposes. Additionally, medical-only losses are reduced by 70% for purposes of the experience modification calculation. Actual Incurred Losses: Actual Incurred Losses are the actual dollars spent to pay a claim. In the case of an open claim, this figure will also include the reserve amounts which are dollars that the insurance company expects to pay for future payments on the claim. Actual incurred losses are compared to expected losses. Actual Primary Losses: For losses that are less than $18,500, the full amount is considered to be the primary value. For losses that are greater than $18,500, only the first $18,500 is considered to be primary. Actual primary losses are compared to expected primary losses.

Conclusion on E-Mods

In the insurance business there is a saying: If you eliminate frequency (# of claims) you eliminate severity (the cost of the claim). Simple but true. Such truth is evident by the fact that the experience rating plan gives greater weight to the frequency (again, # of claims) than it does to the severity (again, the cost of these claims). Why? Because frequency is a better predictor of losses than is severity. In fact, the way the experience modification plan is structured, there is an economic incentive for the employer to avoid losses BUT does not nfairly penalize an employer for a high dollar accident. So, what does all of this mean? It means that emphasizing safety in the workplace could ultimately reduce the number of claims and consequently keep your premium dollars where they belong – in your pocket. Note: The above information is to be considered only as a general overview of the experience modification factor calculation process and is intended for informational purposes only. Finally, the Kentucky AGC/SIF would like to acknowledge the National Council on Compensation Insurance (NCCI) for their indirect contribution to this informational guide.

Yes. The following situations are reviewed on every submission.

Own, operate or lease an aircraft/watercraft
Exposure to flammables, explosives, caustics or fumes
Exposure to radioactive materials
Work performed underground or above 15 feet
Work performed on barges, vessels or docks
Engagement in any other type of business
Use of ANY sub-contractors (Certificates of Insurance required)
Subletting without CI’s
Formal safety program in operation
Is group/individual transportation provided
Employees under 16 or over 60 years of age
Part-time employees or seasonal help
Employees with physical handicaps
Work out of state (The AGC/SIF provides out of state workers’ compensation coverage for regularly employed Kentucky employees ONLY. No coverage in the states of Florida, Illinois, New Jersey or New York.)
Sponsorship of athletic teams, etc
Requirement of pre-employment physicals
Previous declination, cancellation or non-renewal prior to application to the AGC/SIF If so, what was the reason?
Any previous OSHA violations and subsequent fines
Any exposure to asbestos (The Fund does not cover asbestos-related operations.)
Any exposure to coal (The Fund does not cover coal-related operations such as hauling or mining.)

The time it takes to receive a quote is based in large part on the Fund receiving the necessary underwriting information as outlined above. There is no definitive time table.

So you’ve been accepted to the Fund! Congratulations! Now what?

The date we receive the deposit check (certified or agency check) and all requested additional information is the date coverage is bound (unless a later coverage date is requested). All policies provide coverage through December 31st of each year and are automatically renewed on January 1st. All other members are on a January 1st through December 31st policy period with automatic renewal on January 1st or until cancellation date.
Policies with annual normal premium under $2,500.00 must be on an annual billing basis.
New members must tender a 25% deposit before coverage begins. The deposit is based on your normal annual premium that has been modified and discounted. This deposit is not used as premium, but is maintained in escrow until such time the member leaves the Fund. Upon clearance of all additional premiums due to the Fund and satisfactory compliance with all obligations (audits after cancellation), the deposit will be returned (minus any amounts due the Fund).
The 25% deposit must be on account with the Fund at all times. Amounts of deposit may be reviewed and updated on a yearly basis.
All members are required to pay a $100.00 surcharge yearly. The surcharge is collected once every calendar year. New members are required to pay the surcharge upon acceptance into the Fund. The amount due is not pro-ratable. The gross amount of $100.00 is required regardless of the date in the year joined. The surcharge is not considered premium and is not added to payments received for premium obligations.
If accepted on a monthly pay basis, the first month’s premium is due within 30 days of acceptance. Should your deposit and/or premium check be returned for insufficient funds, all further checks must be certified. Failure to comply with the aforementioned policy may result in cancellation.

Reapplication for membership to the Fund does not constitute a reinstatement of any previous policies with the Fund. All former Fund Members REAPPLYING for membership to the Fund will be subject to identical underwriting criteria reserved for new applicants. Additionally, any premium disputes arising from a previous policy must be resolved in order to proceed with a quote. Finally, all former Fund members cancelled for continuous adverse claims experience must wait a minimum of two years before reapplying.

A loss ratio is calculated by dividing incurred losses by normal premium. Normal Premium = $17,000 Incurred Losses = $4,000 Loss Ratio = 4,000/17,000 or 23%

The agent’s commission rate is currently 20% for new business and 10.0% renewal rate of normal premium on new and renewal business and is paid quarterly.

Yes. Agents or the agency they work for must be members of a participating Trade Association in order to write business with the Fund.

A dividend is a share of surplus allocated to a policyholder in a participating insurance policy. If the Fund takes in an excess amount of premium over liabilities for a given policy year, the excess premium may be distributed in the form of a dividend to those members who qualify. The Fund waits four (4) years to return a dividend for a given policy year. In doing so, the Fund can more accurately determine the level of liabilities in a given policy year. Once the liabilities have been accurately determined, the Board of Trustees reviews the feasibility of a dividend distribution.

Historically, dividends have been paid in the month of March.

The Fund has paid dividends to its members every year since 1994.

In order to qualify for a dividend, a Fund member must:

have been a Fund Member in the year for which the dividend is being paid and;
be a current member at the time in which the dividend payment is made and;
have had a loss ratio of less than 100% for the year for which the dividend is being paid and;
be current in all of their payment obligations to the Fund and to their Trade Association

Yes. The following formula was approved by the Kentucky Department of Insurance in November, 2005.

Determine the total amount of dividend to be paid.
Determine employers that are eligible for a dividend:
- Must be current members (must be current in all of their obligations to the Fund and to the association to which they belong).
- Their premium exceeds their losses (paid and reserved) for the dividend year.
Determine the sum of all eligible employers’ excesses (sum of each employers’ premiums minus their losses).
Determine the DRF (Dividend Return Factor) by dividing #1 result by #3 result.
Determine each members’ dividend by multiplying its excess by the DRF.
Determine each members’ Funding Commission tax refund by multiplying the dividend by the appropriate Funding Commission tax rate (ex:9%).
Determine the total amount to be returned to each member by adding #5 and #6. EX: Total Dividend to be paid = $8,500,000 Sum of all eligible employers’ excesses = $15,000,000
DRF = 0.5667 (8,500,000/15,000,000)
Member’s excess = $5,000
Member’s dividend = $2,833.50 (0.5667 * $5,000)
Tax refund = $255.02 (assume 9% Funding Commission rate for dividend year) Member’s total dividend refund = $3,088.52 ($2,833.50 + $255.02)

Since its inception in May of 1979, the Kentucky AGC/SIF has never assessed its members. However, each operating group self-insured fund is required to have a functional and approved Assessment plan. The Fund’s Assessment Plan was approved by the Kentucky Department of Insurance in November of 2005. ASSESSMENT PLAN:

Determine the total amount of the assessment to be levied by Trustee Resolution.
Determine the loss ratio for the entire Fund for the year of the assessment (FLR)
Determine each member’s loss ratio (Total Incurred/Premium). (MLR)
Apply the following formula to determine each member’s assessment: (0.3+MLR)/(FLR)*(Member Premium/Total Fund Premium)*Total Assessment.

EX: Total assessment = $10,000,000 Fund loss ratio = 1.2 (120%)
Member loss ratio = .5% (50%)
Member’s premium = $20,000
Total Fund premium = $60,000,000 Member’s Assessment = (0.3+.5)/(1.2)(20,000/60,000,000)(10,000,000) = $2,222.22
EX #2: (0% loss ratio) = (0.3)/(1.2)(20,000/60,000,000)(10,000,000) = $833.33

The Kentucky AGC/SIF does NOT accept ANY waivers, Form-4’s, or other contractual agreements that waive workers’ compensation insurance coverage on any individual. An exception to this are Forms-4’s on owners or officers of a corporation, not employees and the rejection notice on the owners or officers must be on file with the Kentucky Department of Workers’ Claims to be valid.

To add a class code, please notify the your agent or the Fund Office in writing. Please be advised, however, that certain class codes may require approval, or special acceptance, from the Fund’s Excess Insurance Carrier.

To report a name or ownership change, please notify your agent or the Fund Office in writing. Please be advised, however, that ownership changes may require a new policy, depending on the nature of the ownership change.

To cancel your workers’ compensation insurance policy, please notify your agent or the Fund Office in writing. Please notify the Fund Office of the impending cancellation ahead of desired date, as the Fund Office will not backdate cancellations. You can download the cancelation form from here: https://kyagcsif.com/wp-content/uploads/2024/11/Policy-Cancellation-Request-Form-1.pdf

The Special Fund Tax is determined by the Kentucky Funding Commission on an annual basis. The Special Fund was originally created as a means of relieving employers of the burden of paying for a disability that was pre-existing, dormant, or non-disabling. (Kentucky Workers’ Compensation Law Annotated: CompEd, Inc., 2004) However, despite the abolishment of the Special Fund in 1996, the existing liability must be paid by Kentucky employers.

For annual payors, premium is due by the 10th of February of each year. For monthly payors, premium is due by the 10th of each month based upon your prior month’s payroll figures.

If you have no payroll, a monthly report must be submitted by the 10th of each month showing zero payroll and premium due.

Yes. Payroll report and payment are due in the Fund Office for the previous month’s payroll on the 10th of each month. By the 20th of each month, if payroll and payment due have not been received, a delinquent notice will be issued to the member. By the 30th of each month, if payroll report and payment due have not been received, a thirty (30) day CANCELLATION NOTICE will be issued to the member.

Checks should be made payable to KY AGC/SIF and please include your policy number with any correspondence.

See Online Payment and Payroll Report Filing FAQs for online options.

If mailing:

Kentucky AGC Self Insurers’ Fund

PO Box 713104

Chicago, IL 60677-0304.

Calculate overtime hours worked at the straight time rate.

Complete your monthly payroll report by doing the following:

Enter payroll amount in column 3 for each code and classification.
To calculate premium, take Payroll X Rate equals Premium (an easy way to do this as the rate is per $100.00 of payroll is to move the decimal point of the payroll over two (2) places to the left and then multiply it by the rate).
Add the premium column down, this will be the “Total Manual Premium”.
The next step is to multiply the Total Manual Premium by the Experience Modification. One of the following three examples will apply:

If the Exp. Mod. is a 1.00, the Total Manual Premium and the Total Standard Premium will be the same.
If the Exp. Mod. is more than a 1.00, multiply the Total Manual Premium by the Exp. Mod. Do not add or subtract this amount, the figure calculated is what the Total Standard Premium is and should be greater than the Total Manual Premium.
If the Exp. Mod. is less than a 1.00, multiply the Total Manual Premium by the Exp. Mod. Do not add or subtract this amount, the figure calculated is what the Total Standard Premium is and should be less than the Total Manual Premium.

Discount: If a discount applies, multiply the Total Standard Premium by the discount rate to get the Total Normal Premium.
KY Assessment Tax: The KY Assessment Tax is determined annually by the KY WC Funding Commission. Multiply the Total Normal Premium by the KY Assessment Rate for your total payment due.
If the Total Amount Due and the amount of the check are not the same, please explain why there is a difference, so that we may process your account accordingly. Please Note: Monthly reporting is a payment plan only. The amount of payroll reported, use of classifications, and assignment of employees, casual laborers, or uninsured subcontractors to classifications are subject to change at audit.

Gross payroll including:

Wages or salaries including retroactive wages or salaries
Total cash received by employees for commissions and draws against commissions
Bonuses including stock bonus plans
Pay for holidays, vacations, or periods of sickness
The rental value of an apartment or a house provided for an employee based on comparable accommodations
Payments to employees on any basis other than time worked, such as piece work, profit sharing or incentive plans
The value of lodging, other than an apartment or a house as in (5) above, provided as a part of pay
The value of meals received by employees as a part of pay to the extent shown in the payroll records
Payment by an employer of amounts that would have been withheld from employees to meet statutory obligations for insurance or pension plans such as the Federal Social Security Act or Medicare.
Payments for salary reduction, employee savings plans, retirement or cafeteria plans (IRC 125) which are made through employee-authorized salary reductions from the employee’s gross pay
Davis-Bacon wages or wages from a similar prevailing wage law paid to employees as listed in their gross pay before deductions. (Prevailing wages)
Annuity plans
The value of store certificates, merchandise, credits or any other substitute for money received by employees as part of their pay.

Please exclude the following from your Payroll Report:

Tips and other gratuities received by employees
Payments by an employer to group insurance or group pension plans for employees. (These payments would not show up in an employee’s gross payroll before deductions.)
Dismissal or severance payments except for time worked or accrued vacation
Payments for active military duty
Expense reimbursements to employees to the extent that an employer’s records substantiate that the expense was incurred as a valid business expense
Supper money for late work
Work uniform allowances
Sick pay paid to an employee by a third party such as an insured’s group insurance carrier which is paying disability income benefits to a disabled person
Employer provided prerequisites(“perks”) such as:

An automobile
An airplane flight
An incentive vacation (e., contest winner)
A discount on property or services
Club memberships
Tickets to entertainment events

Premium Overtime
Payments by an Employer into third-party pension trusts for the Davis-Bacon Act or a similar prevailing wage law may be excluded, provided the pension trust is qualified under IRC Sections 401(a) and 501(a). Note: 401(k) and IRC 125 plan contributions by EMPLOYEES are still INCLUDED for premium computations.

The AGC/SIF charges a premium on every subcontractor who has not provided our member with a Certificate of Workers’ Compensation Insurance for the period worked. There are no waivers, Form-4’s, or other contractual agreements that can be submitted that are acceptable to the Fund. Only valid certificates for the time period the work is performed will exclude these subcontractors. This includes, but is not limited to, sole proprietorships and partnerships with no employees, other subcontractors, independent contractors, and contract/casual laborers with no employees and/or no certificates of workers’ compensation insurance. See your policy, Part Five-Premium, Section C, #2 located on page 6.

If the contractor does not provide satisfactory evidence that the subcontractor had workers’ compensation insurance in force covering the period the work was performed, additional premium shall be charged as follows. The full subcontract price will be used for premium computation purposes unless:

A complete payroll record of the employees of the uninsured subcontractor is provided. If provided, the actual payroll will be based on the classifications which would have applied if the employees of the subcontractor had been employees of the contractor. Note: Subcontractors working for your Uninsured Subcontractors are not automatically covered under your AGC/SIF Workers’ Compensation policy. Please contact the Fund Office for clarification if needed.
If invoices submitted to the contractor from the uninsured subcontractor discloses that a definite amount of the full subcontract price represents payroll, such amount shall be the payroll for the additional premium computation. In contracts for labor and material, the payroll shall not be less than 50% of the subcontract price. Invoices must be on the subcontractor’s own letterhead, providing actual breakdowns. Only actual invoices are acceptable, not letters stating or estimating material costs. Estimated percentage breakdowns are not acceptable. Additional premium will be based on the classifications which would have applied if the employees of the subcontractor had been employees of the contractor.
If an experience modification has been established for the contractor, such experience modification shall be applied to the premium developed for the uninsured subcontractor.
Contract or Casual Laborers: All workers hired and paid without tax deductions are considered contract laborers or casual laborers. If an accident occurs, these laborers may be eligible for Workers’ Compensation benefits. As a result of this, additional premium is developed based on total amounts paid to these laborers. Additional premium will be based on the same classifications which apply to your employees based on work performed.
If your company hires a subcontractor from OUT-OF-STATE, a certificate of insurance from the subcontractor must specify coverage for the state of Kentucky (if the work was performed in Kentucky). If not, the subcontractor will be treated as an uninsured subcontractor.

For ACTIVE CORPORATE OFFICERS, include actual wages paid or:

INCLUDE a minimum payroll amount of $52,000.00 per year for Executive Officers (i.e. President, Vice President, etc.) who receive no salary or less than the minimum.This amount can change each year. Please contact the Fund Office to verify.
EXCLUDE Executive Officers’ payroll which EXCEEDS $213,200.00 per year ($4,100.00 per week). Applies only to Executive Officer This amount can change each year. Please contact the Fund Office to verify.

PARTNERS and SOLE PROPRIETORS who ELECT coverage must report a flat $900.00 per year. This amount can change each year. Please contact the Fund Office to verify.
Overtime: Figure workers’ compensation premium due on all overtime hours worked BUT at the STRAIGHT TIME rate. For any questions that may arise, refer to either your Fund Facts or your Manual.

If there is ever any question if an item is to be included or excluded, please contact the Fund Office.

To file a new claim, please do so using any of the following methods:

Online: Report a Claim Online, Use Access Code: claim
Email: [email protected]
Phone: (855) 397-0134
Fax: (866) 222-8765

If you elect to file your claim via email, please utilize the Worker’s Compensation First Report of Injury Form 1A-1.

Click here to download a Form IA-1.

Please call our claims department at 502-515-1320 or send an email to [email protected].

Choosing either of these options will mean that you, as the employer, have elected to pay any medical bills that result from the work-related injury. Record Only is typically chosen when the injury was minor enough to not require any medical attention. The claim type can always be changed later.

If you choose to handle the claim yourself rather than open it up and have an adjustor assigned, please note that you are still entitled to only pay the worker’s comp rate for any medical bills. You can send us the bill and we will let you know the correct rate of pay.

The medical providers will still need to know that this is a worker’s comp claim and NOT a self-pay account. When they ask for the billing information, you will provide your own contact information instead of Sedgwick’s. Sedgwick will deny bills sent to them on a File Down which can cause confusion for the employer and provider.

Access to the best possible care in a timely manner is important. Please use our preferred provider tool to get connected with medical professionals who are best suited to help

This is important information to have, and the online form will not let you continue without entering the loss location. If you are filling out the PDF version and emailing or faxing it in, please reach out to the injured employee to determine the incident location before submitting the first report of injury, or as soon as you can after submitting.

This is up to the employer. Lost time benefits will take effect starting on the 8^th day off work. If/when the injured worker is off work for 14 or more days, the first 7 days will then be reimbursed. If you are concerned about a break in paychecks and decide to continue paying wages, just make sure to advise us of the pay through dates so that we can pick up where you left off to avoid any overpayments or overlap.

All members agents are emailed a policy but to view the Kentucky AGC/SIF’s Workers’ Compensation and Employers’ Liability Policy, click here. Note that the Information Page which contains other specific information is emailed individually to each agent.

Since January 1, 1994, the Kentucky AGC/SIF has afforded Out-of-State Workers’ Compensation Coverage for its members without the 30-day limitation imposed in prior years but with the continuing requirement that its members must use Regularly Employed Kentucky Employees, with no exceptions. Please note that this is not 3A coverage, state requirements may require a 3A policy in place. Please contact your agent for additional information.

An employee who is a resident of Kentucky and/or employed by a resident Kentucky employer or is hired from a resident Kentucky union hall and performs work within the scope of said employment for said employer for a minimum period of eight (8) hours in the Commonwealth of Kentucky prior to performing any work in any other state, with said period evidenced by payroll records from said employer. This statement shall not conflict with KRS 342.670(1) (a, b, c, or d).

The Kentucky AGC/SIF partnered with the Midwest Employers Casualty to provide an OUT-OF-STATE (OOS)/CROSS-BORDERS PROGRAM solution for its membership population. In order to obtain access to the program, the following general underwriting criteria must be met:
Must be a member of the Kentucky AGC/SIF (or plan to join)
Class codes contemplated for the OOS/Cross-Borders program must be the same as those class codes contemplated by the member’s Fund policy
Members must have a loss ratio of ≤ 60% for the past three (3) years (exceptions may be considered on a case-by-case basis)
Designated states only
Limited out-of-state exposure (generally 40% or less of total annualized payroll)
In order to begin procuring a quote for the OOS/Cross-Borders program, the following information will be needed:
A completed ACORD application signed acord app
Detailed description of the job or work being performed out-of-state
Out of state jobsite address
Total number of employees by state
Proposed effective date
Estimated payroll by class code
Three years of Kentucky and applicable out-of-state experience
Large loss details on all losses over $50,000
Current workers’ compensation Experience Mod
Loss control report for the most recent inspection
Should you have any questions regarding the OOS/Cross-Borders program, please contact your agent. contact the Fund Office Underwriting Department

Workers’ Compensation coverage for uninsured subcontractors is provided under the AGC/SIF policy issued to the AGC/SIF member with premium charged accordingly for the coverage of the uninsured subcontractor to the AGC/SIF member. This can also include Independent Contractors and Contract Labor. Please also refer to the Premium FAQ’s for how premium is charged for Independent Contractors, Subcontractors and Contract Labor.

The Kentucky AGC/SIF does NOT accept ANY waivers, Form-4’s, or other contractual agreements that waive workers’ compensation insurance coverage on any individual or company. An exception to this are Forms-4’s on owners or officers of a corporation, not employees and the rejection notice on the owners or officers must be on file with the Kentucky Department of Workers’ Claims to be valid.

Not automatically. Action by the owner/partner must be taken before they are covered under the policy. If coverage is desired, an ELECTION NOTICE must be filled out and submitted to the Fund Office to afford coverage. If this coverage is elected, the premium will be based on a flat standard payroll amount of $52,900 (2024) for the owner or for each partner who elects coverage. This flat payroll amount is used regardless of the actual amount paid to you by your company. Please note that the flat standard payroll amount is actuarily determined annually by the National Council on Compensation Insurance and subsequently approved by the State of Kentucky. If there are questions concerning the current year’s flat payroll amount, please call the Fund Office.

If your company has any change as to the type of company that it is (sole proprietorship, partnership, corporation, LLC, etc.,) CONTACT YOUR AGENT CONTACT THE FUND OFFICE IMMEDIATELY. Failure to do so could result in additional premiums being assessed for officers who did not want to be covered under the policy, no coverage provided for an owner, or other unintended consequences.We will need a new AGC application completed and signed by the owners.

Officers/members are NOT COVERED AUTOMATICALLY. For officers/members to be covered, an Election Notice must be filled out and submitted to the Fund Office. If this coverage is elected, the premium will be based on a flat standard payroll amount of $52,900 (2024) for the owner or for each member who elects coverage.

If your company is incorporated, the officers of a corporation become employees of that company and are automatically included for coverage and premium development. The minimum and maximum payroll that can be used for premium computation purposes for 2024 are:

Minimum: $52,000/year (amounts change yearly)
Maximum: $213,200/year (amounts change yearly)

If you are on a monthly reporting basis, begin excluding payroll on your monthly reports for officers after they receive $213,200 in the year.

Instructions for Officers Written Notice of Rejection or “Form-4”:

Pursuant to KRS 342.395, a Rejection Notice does not become effective until the original of the Form-4 is received and accepted for filing by the Department of Insurance. The only way for an officer to reject workers’ compensation coverage is by the use of the Form-4. The mailing address is: Department of Workers’ Claims, ATTENTION: Enforcement Branch, Prevention Park, 657 Chamberlin Avenue, Frankfort, KY 40601. Also, please send a copy to the Fund Office.
The employer must keep file copies of all Rejection Notices signed by current officers. The Department of Insurance has the authority to conduct an investigation at any time.
To be accepted by the Department of Insurance, a Form-4 must be complete in all respects and the date of the officer’s signature and the date of the notary’s signature must be the same.

An officer has the right to withdraw the rejection of coverage by notifying the employer of his or her decision to withdraw the rejection. A Form-5 must be filed with the Department of Insurance. Please notify the Fund Office of this change so we may verify the date of filing.

All Volunteer Laborers may be eligible for workers’ compensation insurance benefits if a work-related injury occurs. Therefore, payroll must be reported and premium paid on Volunteer Laborers based on the average wages paid to your regular employees who perform similar or like work. Please contact the Fund Office should you have any questions regarding Volunteer Laborers.

The Fund provides Longshore and Harbor Workers’ Compensation Coverage for those Fund Members with INCIDENTAL EXPOSURE ONLY (Longshore and Harbor Workers’ Compensation Coverage requires prior approval by the Fund’s excess insurance carrier.).

For purposes of this limited scope of coverage, the Fund defines an “incidental exposure” as a work-related exposure comprising no more than 10% of the total annualized payroll for the policy year in which the exposure exists.

Yes. The Kentucky AGC/SIF purchases Statutory Excess insurance to protect it from specific catastrophic losses and Employers’ Liability with four and a half million dollars per occurrence with no aggregate limit. This, in effect, guarantees the Fund a stop loss threshold for specific occurrences in a given year and generally satisfies the underlying limit requirements of most umbrella carriers for employers’ liability.

Anyone who has a current Kentucky AGC/SIF policy in good standing can submit their monthly payroll reports online and make their workers’ compensation premium payment online by electronic check, Visa, MasterCard, Discover, or American Express credit or debit card. Customers must first register on the site.

Monthly Members Payroll Report Filing Options:

Mail-in Option: Enter and submit your monthly payroll report online and mail your check to the KYAGCSIF that same day. This saves the time it takes to manually complete the form and avoids any premium calculation errors.
Electronic Check Payment Option: Enter and submit your monthly payroll report online and pay the workers’ compensation premium due online by electronic check (ACH).
Credit Card Payment Option: Enter and submit your monthly payroll report online and pay the workers’ compensation premium due online by credit card or debit card.
“Zero Report” Option: Submit “Zero” ($0) reports if your payroll for the month was $0.00.

Annual Members Payment Options:

Electronic Check Payment Option: Enter and submit your monthly payroll report online and pay the workers’ compensation premium due online by electronic check (ACH).
Credit Card Payment Option: Pay your annual bill for workers’ compensation insurance premium online by credit card or debit card.

Audit Payment Options:

Electronic Check Payment Option: Enter and submit your monthly audit payment online by electronic check (ACH).
Credit Card Payment Option: Enter and submit your audit payment by credit card or debit card.

Registering online gives you several options:

View your monthly premium payment history for the current and previous years.
View all years of your loss runs.
Download your monthly payroll report form.
Get an ESTIMATED dividend return (only available from November through March).

You will need your KYAGCSIF policy number, the Last 4 digits of FEIN/SSN,and the trade association of which you are a member. You will also need to have a valid email address.

Yes. An email confirmation will be sent to the address you provide during registration.

The KYAGCSIF accepts electronic check payment and Visa, Mastercard, Discover, and American Express credit cards or debit cards. A 4% fee applies to the total amount due on all credit card or debit card transactions.

Credit card or debit card payments are processed through a third-party vendor, Authorize.Net. The Authorize.Net Payment Gateway is a secure Internet bridge between the Kentucky AGC/SIF and the credit card payment processing networks. Authorize.Net provides fast, reliable and secure passage for transaction data via a 128-bit Secure Sockets Layer (SSL) Internet Protocol (IP) connection and manages the complex routing of payment information to the appropriate credit card processors. No credit or debit card information is stored on the website allowing an additional layer of security.

You will have an opportunity to print the electronic check, credit card or debit card confirmation page as a receipt after completion of your transaction. A copy of your completed monthly payroll report or annual bill will be generated for you to print for your records. You will also receive an email confirming your monthly payroll report submission and online payment or annual bill online payment.

No. We encourage you to print the credit card or debit card confirmation page, the printable version of your monthly payroll report or annual bill, and the email receipt that will be sent to the address you currently have on file with the KYAGCSIF.

Yes. However, payroll reports and payments will only be accepted through the date that you have coverage, and submitting payroll reports or payment does NOT reinstate nor extend your workers’ compensation insurance coverage. You must receive written notice from the KYAGCSIF specifically stating that your workers’ compensation coverage has been reinstated. No such notice can be obtained from this website.

A “Zero” ($0) report submitted online will be posted the next business day. A monthly payroll report submitted followed by mailing your check that day for premium due will be posted upon our receipt of your check.
A monthly payroll report submitted online and paid by electronic check, credit card or debit card or an annual bill paid by electronic check, credit card or debit card will be posted within 2-3 business days.

If you were to submit a transaction in error, we ask that you contact us right away. We may be able to correct the mistake if you notify us immediately that you accidentally made a duplicate submission. If you do not contact us or if we are unable to correct the mistake, your payment will be credited to your total paid (absent the 4% handling fee) and will be adjusted at the time of audit (year-end or cancellation).

The KYAGCSIF’s website supports all modern web browsers and mobile environments. If you have trouble viewing our website, please contact us.

Please contact the Fund Office at (502) 415-7878 and ask for Internet Assistance M-F 8:00 AM to 5:00 PM, EST.

The Department of Insurance requires all members to complete an annual audit, whether the policy is an annual estimated or monthly filer. The audit ensures members are correctly charged for their coverage. Any adjustments could result in an additional amount due or a refund.

The Fund currently utilizes the auditing firms of Davies Group (previously Afirm) and EXL to complete all audits.

An auditor will make contact via appointment letter or phone to schedule a time to complete the audit or collect the necessary records. We currently offer phone, virtual, and physical audits. If you have a preference, or if your records are unable to be sent electronically, please contact our office at 502-415-7878 or [email protected] and we will do our best to assign the audit type to fit your needs.

Adjustments could be related to an over or underestimation of the annual policy, errors in monthly reporting, proper class code assignment, improper treatment of officers or owners, the adjustment of the estimated discount factor, or uninsured labor.

Yes, all class codes are subject to audit.

In the state of Kentucky, the officers of a corporation are automatically included, unless a Form 4 rejection notice has been received by the state and a copy of such provided to The Fund office. Sole proprietors, partners, and LLC members are automatically excluded in Kentucky. However, they may choose to elect coverage. Please contact your agent or The Fund office for additional information.

At the beginning of the year or at policy inception an estimated discount is applied based on the estimated standard premium amount. At audit, the applicable discount is applied based on the audited standard premium. The discount scale can be found in The Fund Facts located under the “Forms” tab.

Yes, to exclude subcontract labor including independent contractors, sole proprietors, partnerships, etc. from the audit, the auditor must review a workers compensation certificate with valid Kentucky coverage applicable to the audit period. The Fund does not accept waivers of any kind.

If your company hires a contractor from out-of-state, a certificate of insurance from the contractor must specify coverage for the state of Kentucky (if the work was performed in Kentucky). If not, the contractor will be treated as an uninsured contractor.

Please contact your agent or The Fund office (502-415-7878 or [email protected]) within two weeks with missing certificates or dispute concerns with supporting documentation. The information will be reviewed and, if necessary, reopened with the auditing company for corrections.