Online Log In Registration
(for existing policy-holders)



FAQS

Click a text link below to jump to that section:

Underwriting    |     Premium     |     Claims    |      Coverage     |      Payments & Payroll Report 

 

Underwriting FAQs                    

Q.
What are the minimum requirements to submit a quote for coverage through the Fund?
A.
Minimum requirements are as follows:
  1. 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.
  2. You must have a governing class code that is contractor related. Any secondary exposures which may not be contractor related must be incidental to the overall operation. Acceptable governing classifications are indicated on the Fund's rate pages.
Q.
What if I have started a new business, have never had workers' compensation insurance before or have less than four (4) years of workers' compensation insurance experience?
A.
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 (i.e. 23 years of work experience as a Mason).
  • 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 be subject to a pre-enrollment safety inspection.
  • It is important to note that additional information may be requested depending on each individual risk.
Q.
Do I have to join a Trade Association to become a member?
A.
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.
Q.
Which Trade Association do I have to join?
A.
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.
Q.
What is required to be submitted to become a member?
A.
To become a member of AGC/SIF you will need to submit the following information:
  • Audits, premium and a loss run for each of the previous four (4) years, and a "DEC" sheet for the current policy.
  • 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 may be 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
Q.
What will my e-mod be?
A.
The E-Mod will be calculated using prior years' audits and loss runs. Note: An E-Mod of 1.50 or higher requires special acceptance from the Fund's Excess Carrier.
Q.
What is an e-mod and how is it calculated?
A.
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 unfairly 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.
Q.
Is there any additional information reviewed for membership consideration?
A.
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.)
Q.
How long does it take to receive a quote?
A.
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.
Q.
What should I know if I am accepted as a member into the Fund?
A.
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). Coverage cannot be bound orally, by voice mail or by e-mail. NO EXCEPTIONS! 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 $1,600.00 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.
Q.
What is the Fund's policy on reapplying for membership?
A.
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.
Q.
What is an adverse loss ratio?
A.
Each year, the Fund determines its operating expense ratio. The operating expense ratio is the percentage of every premium dollar the Fund utilizes in running its daily operations. So, if the Fund requires $.25 cents of every premium dollar to run the daily operations of the Fund, any loss ratio above 75% would be considered adverse. For example: Company A pays the Fund $1.00 dollar in premium for 2004. Additionally, Company A incurs $.76 in losses for 2004. From the beginning, the Fund will utilize $.25 cents of the $1.00 dollar of premium for daily operations. So, Company A can incur $.75 in losses and still be an acceptable account, as the Fund will break even. Because Company A has incurred $.76 cents in losses, it is considered adverse. The Fund is now required to pay out more money than it has taken in for the year. This is an adverse situation.
Q.
How do I calculate a loss ratio?
A.
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%
Q.
What happens if my loss ratio becomes adverse?
A.
The Kentucky AGC/SIF's Watch List was amended effective 9/30/2003. The Watch List is generated on a calendar quarter basis and is used to identify Fund members with Adverse Experience. Adverse Experience is defined as a loss ratio of equal to, or greater than, a predetermined loss ratio which is established annually by the Fund. Loss Ratio is defined as total incurred losses (paid and reserved) divided by earned normal premiums. To identify adverse experience, the loss ratio is calculated using the most recent five (5) years of losses and premiums, or since the coverage effective date, whichever is less, with the current year's premium being pro-rated through the end of the current year. The Fund's Watch List contains a "Shock Loss" provision defined as a single loss occurrence that does not exceed $200,000 total incurred (claims paid + reserved amounts) and which if removed, would make the five (5) year loss ratio less than the predetermined loss ratio. If further loss ratio deterioration occurs due to increased totals incurred and subsequent to the shock loss, OR the single loss occurrence exceeds a total incurred of $200,000, either of which results in an increased overall loss ratio, consideration for a shock loss is removed and regular Watch List actions are applicable. If the "trigger loss ratio" (determined annually by the Fund) is reached or exceeded, the following actions will occur based upon the member's overall loss ratio since the policy inception date or 1987, whichever is less:
  • Overall loss ratio of 71% - 80%: Regular Warning Letter or Shock Loss Warning Letter sent to member.
  • Overall loss ratio of 81% - 90%: 150% Adder is applied to e-mod and any premium discount is removed for the period in which the adder is in effect. Exception is shock loss provision.
  • Overall loss ratio of greater than 90%: Cancellation of the worker's compensation policy for continued adverse claims. Exception is shock loss provision.
Q.
What is the Agent's Commission rate?
A.
The agent's commission rate is currently 10.0% of normal premium on new and renewal business and is paid quarterly.
Q.
Do Agents have to join a Trade Association?
A.
Yes. Agents or the agency they work for must be members of a participating Trade Association in order to write business with the Fund.
Q.
What is a dividend?
A.
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.
Q.
When are dividends paid?
A.
Historically, dividends have been paid in the month of March.
Q.
How long has the Fund paid dividends?
A.
The Fund has paid dividends to its members every year since 1994.
Q.
What do I have to do to qualify for a dividend?
A.
In order to qualify for a dividend, a Fund member must:
  1. have been a Fund Member in the year for which the dividend is being paid and;
  2. be a current member at the time in which the dividend payment is made and;
  3. have had a loss ratio of less than 100% for the year for which the dividend is being paid and;
  4. be current in all of their payment obligations to the Fund and to their Trade Association
Q.
Is there a formula for how dividends are calculated?
A.
Yes. The following formula was approved by the Kentucky Department of Insurance in November, 2005.
  1. Determine the total amount of dividend to be paid.
  2. 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.
  3. Determine the sum of all eligible employers' excesses (sum of each employers' premiums minus their losses).
  4. Determine the DRF (Dividend Return Factor) by dividing #1 result by #3 result.
  5. Determine each members' dividend by multiplying its excess by the DRF.
  6. Determine each members' Funding Commission tax refund by multiplying the dividend by the appropriate Funding Commission tax rate (ex:9%).
  7. 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)
Q.
Has the Fund ever incurred an Assessment?
A.
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
Q.
Does the Fund accept Form-4's?
A.
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.
Q.
How do I add a class code to my policy?
A.
To add a class code, please notify 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.
Q.
How do I report a name or ownership change?
A.
To report a name or ownership change, please notify 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.
Q.
How do I cancel my coverage?
A.
To cancel your workers' compensation insurance policy, please notify 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.
Q.
What is the Special Fund Tax?
A.
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.

               

Premium FAQs                    

Q.
When is my premium due?
A.
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.
Q.
What if I have no payroll for a particular month(s)?
A.
If you have no payroll, a monthly report must be submitted by the 10th of each month showing zero payroll and premium due.
Q.
Is there a specific payment structure that applies to monthly payors?
A.
Yes. Payroll report and payment are 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 27th 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. Members who do not pay their monthly payments on time result in increased business expenses to the Fund. To help maintain the Fund's low competitive rates, please pay promptly!
Q.
Who do I make my check out to?
A.
Checks should be made payable to KY AGC/SIF and please include your policy number with any correspondence.
Q.
Where do I mail my annual bill, monthly report and payment or zero report?
A.
See Online Payment and Payroll Report Filing FAQs for online options. Kentucky AGC Self Insurers' Fund PO Box 713104 Chicago, IL 60677-0304.
Q.
How do I report overtime?
A.
Calculate overtime hours worked at the straight time rate.
Q.
How do I complete my monthly payroll report?
A.
Complete your monthly payroll report by doing the following:
  1. Enter payroll amount in column 3 for each code and classification.
  2. 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).
  3. Add the premium column down, this will be the "Total Manual Premium".
  4. 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.
  5. Discount: If a discount applies, multiply the Total Standard Premium by the discount rate to get the Total Normal Premium.
  6. 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.
  7. 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.
Q.
What payroll is to be included on my Payroll Reports?
A.
Gross payroll including:
  1. Wages or salaries including retroactive wages or salaries
  2. Total cash received by employees for commissions and draws against commissions
  3. Bonuses including stock bonus plans
  4. Pay for holidays, vacations, or periods of sickness
  5. The rental value of an apartment or a house provided for an employee based on comparable accommodations
  6. Payments to employees on any basis other than time worked, such as piece work, profit sharing or incentive plans
  7. The value of lodging, other than an apartment or a house as in (5) above, provided as a part of pay
  8. The value of meals received by employees as a part of pay to the extent shown in the payroll records
  9. 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.
  10. 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
  11. Davis-Bacon wages or wages from a similar prevailing wage law paid to employees as listed in their gross pay before deductions. (Prevailing wages)
  12. Annuity plans
  13. The value of store certificates, merchandise, credits or any other substitute for money received by employees as part of their pay.
Q.
What payroll is to be excluded on my Payroll Reports?
A.
Please exclude the following from your Payroll Report:
  1. Tips and other gratuities received by employees
  2. Payments by an employer to group insurance or group pension plans for employees. (These payments would not show up in an employees's gross payroll before deductions.)
  3. Dismissal or severance payments except for time worked or accrued vacation
  4. Payments for active military duty
  5. Expense reimbursements to employees to the extent that an employer's records substantiate that the expense was incurred as a valid business expense
  6. Supper money for late work
  7. Work uniform allowances
  8. 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
  9. Employer provided prerequisites("perks") such as:
    • An automobile
    • An airplane flight
    • An incentive vacation (i.e. contest winner)
    • A discount on property or services
    • Club memberships
    • Tickets to entertainment events
  10. Premium Overtime
  11. 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.
Q.
Do I need to report payroll on Independent Contractors, Subcontractors, and Contract Labor?
A.
The AGC/SIF charges 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.
Q.
How is premium calculated for Uninsured Subcontractors?
A.
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:
  1. 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.
  2. 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.
  3. If an experience modification has been established for the contractor, such experience modification shall be applied to the premium developed for the uninsured subcontractor.
  4. 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.
  5. 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.
Q.
Are there any other special reporting procedures?
A.
For ACTIVE CORPORATE OFFICERS, include actual wages paid or:
  1. INCLUDE a minimum payroll amount of $46,800.00 per year for Executive Officers (i.e. President, Vice President, etc.) who receive no salary or less than the minimum.
  2. EXCLUDE Executive Officers' payroll which EXCEEDS $192,400 per year ($3,700.00 per week). Applies only to Executive Officers.
    • PARTNERS and SOLE PROPRIETORS who ELECT coverage must report a flat $47,700.00 per year.
    • 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.

               

Claims FAQs                    

Q.
How do I file a claim?
A.
To file a new claim, please do so using any of the following methods: If you elect to file your claim via email, please utilize the Worker's Compensation First Report of Injury Form 1A-1.
Q.
How do I obtain a Form IA-1 (First Report of Injury)?
A.
Click here to download a Form IA-1.
Q.
Who should I contact if I have a question?
A.
If you have questions on a claim that was filed after 10/1, please contact us at 1-855-397-0134.

               

Coverage FAQs                    

Q.
Where can I find the Fund's Workers' Compensation and Employers' Liability Policy?
A.
All members are mailed 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 mailed individually to each Fund Member and is not available on this site.
Q.
Does the Fund provide Out of State Coverage?
A.
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.
Q.
What is the definition of a Regularly Employed Kentucky Employee?
A.
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).
Q.
What if I need an out of state policy?
A.
Effective 1/1/2010 in response to ever-changing market conditions, the Kentucky AGC/SIF partnered with the Safety National Casualty Corporation (Safety National) 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
    • Detailed description of the job or work being performed out-of-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 the Fund Office Underwriting Department at (502) 245-2007 or (800) 928-7135.
Q.
What is the Fund's policy on coverage of uninsured subcontractors?
A.
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.
Q.
Does the Fund accept Form-4's?
A.
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.
Q.
Does the Fund provide workers' compensation coverage on Sole Proprietors and Partnerships?
A.
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 $47,700 (2022) 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.
Q.
What if my company changes its entity status?
A.
If your company has any change as to the type of company that it is (sole proprietorship, partnership, corporation, LLC, etc.,) 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.
Q.
Does the Fund cover Officers/Members of Limited Liability Companies (LLC's)?
A.
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 $47,700 (2022) for the owner or for each member who elects coverage.
Q.
Does the Fund cover Officers of a Corporation?
A.
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 2022 are:
  • Minimum: $900.00/week or $46,800.00/year (amounts change yearly)
  • Maximum: $3,700.00/week or $192,400.00/year (amounts change yearly)
If you are on a monthly reporting basis, begin excluding payroll on your monthly reports for officers after they receive $192,400.00 in the year.
Q.
What if an Officer(s) does NOT want to be included for coverage under the policy?
A.
Instructions for Officers Written Notice of Rejection or "Form-4":
  1. 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.
  2. 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.
  3. 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.
Q.
As an Officer of a Corporation, can I withdraw my Rejection Notice?
A.
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.
Q.
Are Volunteer Laborers eligible for workers' compensation benefits?
A.
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.
Q.
Does the Fund provide Longshore and Harbor Workers' Compensation Coverage?
A.
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.).
Q.
What is "incidental exposure" relative to Longshore and Harbor Workers' Compensation Coverage?
A.
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.
Q.
Does the Fund have Excess Insurance?
A.
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.

               

Payments & Payroll Report FAQs                    

Q.
Can anyone use the Kentucky Associated General Contractors Self Insurers' Fund's (KYAGCSIF) site for online submission of monthly payroll reports and payment of workers' compensation premium?
A.
Anyone who has a current Kentucky AGC/SIF policy in good standing, and access to the Internet can submit their monthly payroll reports online and make their workers' compensation premium payment online by electronic check, Visa or MasterCard credit or debit card. Customers must first register on the site.
Q.
What payment/payroll report filing options are available to me when I register my KYAGCSIF policy online?
A.
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 (Visa or MasterCard only).
  • "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.
Q.
What other options are available to me when I register my KYAGCSIF policy online?
A.
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).
Q.
What information do I need in order to register my KYAGCSIF policy so I can submit "Zero" ($0) reports, submit monthly payroll reports, make online payments, and view reports concerning my workers' compensation policy?
A.
You will need your KYAGCSIF policy number, and the current address and phone number associated with the policy. You will also need to have a valid email address.
Q.
Will I receive confirmation when I register my KYAGCSIF account?
A.
Yes. An email confirmation will be sent to the address you provide during registration.
Q.
What payment methods are accepted for online premium payments?
A.
The KYAGCSIF accepts electronic check payment and Visa or MasterCard credit cards or debit cards. A 4% fee applies to the total amount due on all credit card or debit card transactions.
Q.
Who processes the online MasterCard or Visa credit and debit card payments for the KYAGCSIF?
A.
Visa or MasterCard 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.
Q.
Who processes the online electronic check payments for the KYAGCSIF?
A.
The KYAGCSIF processes all electronic check (ACH) payments directly through its bank. All transactions have a secure passage for transaction data via a 128-bit Secure Sockets Layer (SSL) Internet Protocol (IP) connection. No checking/banking account information is stored on the website allowing an additional layer of security.
Q.
What confirmation do I receive when I submit my payroll report or premium payment?
A.
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.
Q.
Can I retrieve my confirmation if I did not record it at the time I submitted my payroll report or premium payment?
A.
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.
Q.
Can I submit my payroll report or make payment online if my workers' compensation coverage has been cancelled?
A.
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.
Q.
When will my payroll report submission or online payment post to my KYAGCSIF policy?
A.
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.
Q.
Can I view my payroll report submission or payment immediately after I have submitted it online?
A.
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.
Q.
What do I do if I accidentally submit my payroll report and premium payment for a particular month more than once during the month or I accidentally pay my annual bill twice?
A.
You are limited to submitting payroll reports or paying your annual bill to only once per day for each month. However, if you were to submit a transaction outside of those time limitations, we ask that you contact us right away if you suspect that you submitted a transaction in error. 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).
Q.
Which browsers are supported by the KYAGCSIF's website?
A.
The KYAGCSIF's website supports all modern web browsers and mobile environments. If you have trouble viewing our website please contact us.
Q.
What if I experience a problem?
A.
Please contact the Fund Office at (502) 245-2007 and ask for Internet Assistance M-F 8:30 AM to 4:30 PM, EST.