History: 1961 act entirely replaced previous provisions; P.A. 05-199 made technical changes, effective July 1, 2006.
Sec. 31-354. *(See end of section for amended version of subsection (a) and
effective date.) Second Injury Fund contributions. Duties and powers of State Treasurer. *(a) There shall be a fund to be known as the Second Injury Fund. Each employer,
other than the state, shall, within thirty days after notice given by the State Treasurer,
pay to the State Treasurer for the use of the state a sum in payment of his liability
under this chapter which shall be the special assessment premium surcharge and shall
be assessed in accordance with subsection (f) of section 31-349, sections 31-349g, 31-349h and 31-349i, this section, section 31-354b and sections 8 and 9 of public act 96-242**. Such sum shall be an amount sufficient to (1) pay the debt service on state revenue
bond obligations authorized to be issued under and for the purposes set forth in section
31-354b including reserve and covenant coverage requirements, (2) provide for costs
and expenses of operating the Second Injury Fund, and (3) pay Second Injury Fund
stipulations on claims settled by the custodian or other benefits payable out of the Second
Injury Fund and not funded through state revenue bond obligations and shall be determined in accordance with the regulations adopted pursuant to the provisions of section
31-349g. The custodian shall establish a factor for the annual special assessment premium surcharge that caps such surcharge for the fiscal years ending June 30, 1996, 1997
and 1998. In determining such factor the custodian shall consider the funding mechanism
authorized by subsection (f) of section 31-349, sections 31-349g, 31-349h and 31-349i,
this section, section 31-354b and sections 8 and 9 of public act 96-242**, recognize that
an acceptable level of employer assessment is important to the vitality of the economy of
the state and nevertheless shall assure provision of services to injured workers that
enhances their ability to return to work and improve their quality of life. In any event,
such factor shall not exceed, with respect to insured employers, a rate of fifteen per
cent on the standard premiums with respect to workers' compensation and employers'
liability policies and, with respect to self-insured employers, a comparable percentage
limitation representing their pro rata share of any special assessment premium surcharge.
Any employer who fails to pay in accordance with such regulations shall pay interest
to the State Treasurer on the sum at the rate of fifteen per cent per annum from the date
the sum should have been paid until the date of payment. The State Treasurer shall notify
each employer of the penalty provision with the notice of assessment. Effective July 1,
1993, whenever the assessment is levied, the State Treasurer shall pay to the fund, on
behalf of the state, a sum not to exceed the total amount of money expended by the fund
on behalf of state employees during the period following the last assessment. The sums
received shall be accounted for separately and apart from all other state moneys and the
faith and credit of the state of Connecticut is pledged for their safekeeping. The State
Treasurer shall be the custodian of the fund and all disbursements from the fund shall
be made by him or his deputies. The moneys of the fund shall be invested by him in
accordance with applicable law and section 8 of public act 96-242**. Interest, income
and dividends from the investments shall be credited to the fund. Each employer, each
private insurance carrier acting on behalf of any employer and each interlocal risk management agency acting on behalf of any employer shall annually, on or before April
first, report to the State Treasurer, in the form prescribed by the State Treasurer, the
amount of money expended by or on behalf of the employer in payments for the preceding calendar year. Each private insurance carrier and each interlocal risk management
agency shall submit annually, on or before April first, to the State Treasurer, in the form
prescribed by the State Treasurer, a report of the total standard earned premium collected
in the preceding calendar year and a report of the projected total standard earned premium
for the current calendar year. The fund shall be used to provide the benefits set forth in
section 31-306 for adjustments in the compensation rate and payment of certain death
benefits, in section 31-307b for adjustments where there are relapses after a return to
work, in section 31-307c for totally disabled persons injured prior to October 1, 1953,
in section 31-349 for disabled or handicapped employees and in section 31-355 for the
payment of benefits due injured employees whose employers or insurance carriers have
failed to pay the compensation, and medical expenses required by this chapter, or any
other compensation payable from the fund as may be required by any provision contained
in this chapter or any other statute and to reimburse employers or insurance carriers for
payments made under subsection (b) of section 31-307a. The assessment required by
this section is a condition of doing business in this state and failure to pay the assessment,
when due, shall result in the denial of the privilege of doing business in this state or to
self-insure under section 31-284. Any administrative or other costs or expenses incurred
by the State Treasurer in connection with carrying out the provisions of this part, including the hiring of necessary employees, shall be paid from the fund. The State Treasurer
may adopt regulations, in accordance with the provisions of chapter 54, prescribing the
practices, policies and procedures to be followed in the administration of the Second
Injury Fund.
(b) The State Treasurer shall establish within the Second Injury Fund three accounts
to be known as the operating account, the settlement account and the finance account
which accounts shall be held separate and apart from each other. The operating account
shall cover the costs and expenses to the state of operating the Second Injury Fund. The
settlement account shall cover actual disbursement of the settled claims whether by one-time full payments or by payments over a period of time. The finance account shall
contain such funds and be operated in the manner provided in section 31-354b.
(1949 Rev., S. 7494; 1949, 1951, S. 3056d; 1958 Rev., S. 31-221; 1959, P.A. 580, S. 12; 1961, P.A. 491, S. 80; 1967,
P.A. 842, S. 21; 1969, P.A. 696, S. 15; 1971, P.A. 351, S. 1; 1972, P.A. 136, S. 1; P.A. 77-119, S. 1; 77-554, S. 2; P.A.
79-376, S. 51; P.A. 81-469, S. 6, 8; P.A. 82-472, S. 110, 183; P.A. 85-189, S. 5; P.A. 86-21; 86-25; P.A. 87-277, S, 1, 4;
87-589, S. 58, 87; P.A. 88-29, S. 1, 2; P.A. 89-68, S. 2; P.A. 90-230, S. 54, 101; 90-311, S. 2, 3; P.A. 91-32, S. 37, 38, 41;
91-339, S. 38, 55; P.A. 93-228, S. 26, 35; 93-429, S. 3, 7; P.A. 95-277, S. 15, 16, 19; P.A. 96-242, S. 6, 10.)
**Note: Sections 8 and 9 of public act 96-242 are special in nature and therefore have not been codified but remain in
full force and effect according to their terms.
*Note: On and after July 1, 2006, subsection (a) of this section, as amended by section
10 of public act 05-199, is to read as follows:
"Sec. 31-354. Second Injury Fund contributions. Duties and powers of State
Treasurer. (a) There shall be a fund to be known as the Second Injury Fund. Each
employer, other than the state, shall, within thirty days after notice given by the State
Treasurer, pay to the State Treasurer for the use of the state a sum in payment of his
liability under this chapter which shall be calculated in accordance with the Second
Injury Fund surcharge base, as defined in section 31-349g, and shall be assessed in
accordance with subsection (f) of section 31-349, sections 31-349g, 31-349h and 31-349i, this section, section 31-354b and sections 8 and 9 of public act 96-242**. Such
sum shall be an amount sufficient to (1) pay the debt service on state revenue bond
obligations authorized to be issued under and for the purposes set forth in section 31-354b including reserve and covenant coverage requirements, (2) provide for costs and
expenses of operating the Second Injury Fund, and (3) pay Second Injury Fund stipulations on claims settled by the custodian or other benefits payable out of the Second Injury
Fund and not funded through state revenue bond obligations and shall be determined in
accordance with the regulations adopted pursuant to the provisions of section 31-349g.
The custodian shall establish a factor for the annual surcharge that caps such surcharge
for the fiscal years ending June 30, 1996, 1997 and 1998. In determining such factor
the custodian shall consider the funding mechanism authorized by subsection (f) of
section 31-349, sections 31-349g, 31-349h and 31-349i, this section, section 31-354b
and sections 8 and 9 of public act 96-242**, recognize that an acceptable level of employer assessment is important to the vitality of the economy of the state and nevertheless
shall assure provision of services to injured workers that enhances their ability to return
to work and improve their quality of life. In any event, such factor shall not exceed,
with respect to insured employers, a rate of fifteen per cent on the Second Injury Fund
surcharge base with respect to workers' compensation and employers' liability policies
and, with respect to self-insured employers, a comparable percentage limitation representing their pro rata share of any assessment. Any employer or any insurance company
acting as collection agent for the custodian of the Second Injury Fund who fails to pay
in accordance with such regulations shall pay a penalty to the State Treasurer of fifteen
per cent or a minimum of fifty dollars on the unpaid assessment or surcharge. Interest
at the rate of six per cent per annum shall be charged on any amounts owed on assessment
audits or surcharge audits. For self-insured employers interest shall accrue thirty days
after notice from the Second Injury Fund of the unpaid audit assessment. For insurance
companies, the interest shall accrue from the date of the notice of audit errors or deficiencies as determined by the date postmarked by the United States Postal Service. The State
Treasurer shall notify each employer of the penalty or interest provision with the notice
of assessment. Any partial payments made to the fund shall be first applied to any unpaid
penalty, then to any unpaid interest and the remainder, if any, to the unpaid assessment
or surcharge. Interest or penalties shall be applied if assessment or surcharge reports or
payments are postmarked by the United States Postal Service after the designated due
date. The sums received shall be accounted for separately and apart from all other state
moneys and the faith and credit of the state of Connecticut is pledged for their safekeeping. The State Treasurer shall be the custodian of the fund and all disbursements from
the fund shall be made by the Treasurer or the Treasurer's deputies. The moneys of the
fund shall be invested by the Treasurer in accordance with applicable law and section
8 of public act 96-242**. Interest, income and dividends from the investments shall be
credited to the fund. Each employer, each private insurance carrier acting on behalf
of any employer and each interlocal risk management agency acting on behalf of any
employer shall annually, on or before April first, report to the State Treasurer, in the
form prescribed by the State Treasurer, the amount of money expended by or on behalf
of the employer in payments for the preceding calendar year. Each private insurance
carrier, each self-insurance group and each interlocal risk management agency shall
submit annually, on or before April first, to the State Treasurer, in the form prescribed
by the State Treasurer, a report of the total Second Injury Fund surcharge base collected
in the preceding calendar year and a report of the projected total Second Injury Fund
surcharge base for the current calendar year. The fund shall be used to provide the
benefits set forth in section 31-306 for adjustments in the compensation rate and payment
of certain death benefits, in section 31-307b for adjustments where there are relapses
after a return to work, in section 31-307c for totally disabled persons injured prior to
October 1, 1953, in section 31-349 for disabled or handicapped employees and in section
31-355 for the payment of benefits due injured employees whose employers or insurance
carriers have failed to pay the compensation, and medical expenses required by this
chapter, or any other compensation payable from the fund as may be required by any
provision contained in this chapter or any other statute and to reimburse employers or
insurance carriers for payments made under subsection (b) of section 31-307a. The
assessment required by this section is a condition of doing business in this state and
failure to pay the assessment, when due, shall result in the denial of the privilege of
doing business in this state or to self-insure under section 31-284. Any administrative
or other costs or expenses incurred by the State Treasurer in connection with carrying
out the provisions of this part, including the hiring of necessary employees, shall be
paid from the fund. The State Treasurer may adopt regulations, in accordance with the
provisions of chapter 54, prescribing the practices, policies and procedures to be followed in the administration of the Second Injury Fund."
(1949 Rev., S. 7494; 1949, 1951, S. 3056d; 1958 Rev., S. 31-221; 1959, P.A. 580, S. 12; 1961, P.A. 491, S. 80; 1967,
P.A. 842, S. 21; 1969, P.A. 696, S. 15; 1971, P.A. 351, S. 1; 1972, P.A. 136, S. 1; P.A. 77-119, S. 1; 77-554, S. 2; P.A.
79-376, S. 51; P.A. 81-469, S. 6, 8; P.A. 82-472, S. 110, 183; P.A. 85-189, S. 5; P.A. 86-21; 86-25; P.A. 87-277, S, 1, 4;
87-589, S. 58, 87; P.A. 88-29, S. 1, 2; P.A. 89-68, S. 2; P.A. 90-230, S. 54, 101; 90-311, S. 2, 3; P.A. 91-32, S. 37, 38, 41;
91-339, S. 38, 55; P.A. 93-228, S. 26, 35; 93-429, S. 3, 7; P.A. 95-277, S. 15, 16, 19; P.A. 96-242, S. 6, 10; P.A. 05-199,
S. 10.)
**Note: Sections 8 and 9 of public act 96-242 are special in nature and therefore have not been codified but remain in
full force and effect according to their terms.
History; 1959 act created second injury and compensation assurance fund and transferred assets of second injury fund
to it on October 1, 1959; 1961 act entirely replaced previous provisions; 1967 act required that fund be maintained at one-hundred-thousand-dollar level rather than fifty-thousand-dollar level; 1969 act required self-insurers to pay one and one-half per cent rather than one per cent of their liability payments for preceding year, increased level at which to be maintained
to two hundred and fifty thousand dollars, specified uses to which fund is to be put and required payment of assessment
as a condition of doing business in state; 1971 act made provisions applicable to mutual insurance companies; 1972 act
required payment of assessment within thirty days after notice by treasurer rather than "annually on or before July first",
increased payments to not more than two per cent of preceding year's liability payments and replaced requirements re two-hundred-fifty-thousand-dollar level to be maintained in fund with provision allowing treasurer to make assessments to
cover expenditure and maintain fund at five-hundred-thousand-dollar level; P.A. 77-119 increased assessment rate to three
and one-half per cent; P.A. 77-554 specified that funds be used for adjustments in compensation rate; P.A. 79-376 replaced
"workmen's compensation" with "workers' compensation"; P.A. 81-469 provided that the amount of money expended by
a carrier in payment of the state's liabilities under this chapter shall be exempted when calculating the payment due under
section; P.A. 82-472 made a technical correction; P.A. 85-189 provided that each employer, other than the state and certain
municipalities, is liable for assessments levied by the state treasurer to fund the second injury and compensation assurance
fund; P.A. 86-21 provided that assessments shall be levied by the state treasurer against employers on whose behalf the
second injury fund has made payments pursuant to Sec. 31-355; P.A. 86-25 increased the maximum assessment from three
and one-half to five per cent and increased the fund's minimum reserve from five hundred thousand to one million dollars;
P.A. 87-277 added provision re payment from fund of costs or expenses incurred by treasurer in carrying out provisions
of part E of chapter 568; P.A. 87-589 changed effective date of P.A. 87-277 from July 1, 1988, to July 1, 1987; P.A. 88-29 added an interest penalty to be imposed on any employer who fails to make payment of an assessment when due to the
second injury fund under the Workers' Compensation Act; P.A. 89-68 provided that the fund shall be used to provide the
benefits set forth in Subsec. (c) of Sec. 31-306; P.A. 90-230 corrected an omission; P.A. 90-311 removed the exemption
from payment for municipalities participating in interlocal risk management agencies, effective July 1, 1991; P.A. 91-32
made technical changes; P.A. 91-339 added provisions re payments to the fund by the treasurer on behalf of the state and
deleted reference to dependency allowance; P.A. 93-228 raised the amount of money to be contributed to the second injury
fund by the state treasurer on behalf of the state from five per cent of expenditures to the total amount of expenditures,
effective July 1, 1993; P.A. 93-429 authorized the state treasurer to adopt regulations re administrative practices, policies
and procedures for the second injury fund, effective July 1, 1993; P.A. 95-277 added a requirement that each private
insurance carrier and each interlocal risk management agency annually submit to the Treasurer a report of the total standard
earned premium collected in the preceding calendar year, effective June 29, 1995, and replaced provisions detailing funding
of Second Injury Fund by employer contributions with provision authorizing Treasurer to develop such policies re determination of employers' contributions through regulations, effective January 1, 1996; P.A. 96-242 made existing language
Subsec. (a) and made technical change concerning the reference to the State Treasurer, added provisions on the special
assessment premium surcharge, specified April first as annual report deadline and required report to include projected
total standard earned premium and added Subsec. (b) requiring State Treasurer to establish three accounts within the Second
Injury Fund, effective June 6, 1996; P.A. 05-199 amended Subsec. (a) by substituting "calculated in accordance with the
Second Injury Fund surcharge base" for "the special assessment premium surcharge" and "Second Injury Fund surcharge
base" for "standard premiums", subjecting insurance companies acting as collection agents for fund to penalty for failure
to pay assessment, changing penalty to fifteen per cent or minimum of fifty dollars on unpaid assessment or surcharge,
and interest at six per cent per annum on amounts owed on assessment or surcharge audits, to accrue thirty days after notice
of unpaid audit assessment from fund for self-insured employers and from date of notice of audit errors or deficiencies for
insurance companies, requiring Treasurer to notify employers of interest provision with notice of assessment, deleting
requirement that State Treasurer, upon levy of assessment, pay to fund sum not to exceed total amount of money expended
on behalf of state employees during period following last assessment, providing for application of partial payments, requiring each self-insurance group to submit annual report to Treasurer of projected total Second Injury Fund surcharge base
for current calendar year and making technical changes, effective July 1, 2006.
Sec. 31-355. *(See end of section for amended version and effective date.)
Hearings; awards. Payments from Second Injury Fund on employer's failure to
comply with award. Civil action for reimbursement. Insolvent insurer. (a) The
commissioner shall give notice to the Treasurer of all hearing of matters which may
involve payment from the Second Injury Fund, and may make an award directing the
Treasurer to make payment from the fund.
(b) When an award of compensation has been made under the provisions of this
chapter against an employer who fails or is unable to pay medical and surgical aid or
hospital and nursing service required under this chapter or any type of compensation
for disability, or both, whether for total or partial disability of a permanent or temporary
nature, death benefit, funeral expense, or any adjustment in compensation required by
this chapter, and whose insurer fails or is unable to pay the compensation, such compensation shall be paid from the Second Injury Fund. The commissioner, on a finding of
failure or inability to pay compensation, shall give notice to the Treasurer of the award,
directing the Treasurer to make payment from the fund. Whenever liability to pay compensation is contested by the Treasurer, the Treasurer shall file with the commissioner,
on or before the twenty-eighth day after he has received an order of payment from the
commissioner, a notice in accordance with a form prescribed by the chairman of the
Workers' Compensation Commission stating that the right to compensation is contested,
the name of the claimant, the name of the employer, the date of the alleged injury or
death and the specific grounds on which the right to compensation is contested. A copy
of the notice shall be sent to the employee. The commissioner shall hold a hearing on
such contested liability at the request of the Treasurer or the employee in accordance
with the provisions of this chapter. If the Treasurer fails to file the notice contesting
liability within the time prescribed in this section, the Treasurer shall be conclusively
presumed to have accepted the compensability of such alleged injury or death from the
Second Injury Fund and shall have no right thereafter to contest the employee's right to
receive compensation on any grounds or contest the extent of the employee's disability.
(c) The employer and the insurer, if any, shall be liable to the state for any payments
made out of the fund in accordance with this section or which the state has by award
become obligated to make from the fund, together with cost of attorneys' fees as fixed
by the court. If reimbursement is not made, or a plan for payment to the fund has not
been agreed to by the Treasurer and employer, within ninety days of any payment from
the fund, the Attorney General shall bring a civil action, in the superior court for the
judicial district where the award was made, to recover all amounts paid by the fund
pursuant to the award, plus double damages together with reasonable attorney's fees
and costs as taxed by the court. Any amount paid to the Treasurer by the employer or
insurer after the filing of an action, but prior to its completion, shall be subject to an
interest charge of eighteen per cent per annum, calculated from the date of original
payment from the fund.
(d) Any recovery made under this section, including any recovery for costs or attorney's fees, shall be paid into the fund. Any administrative or other costs or expenses
incurred by the Attorney General in connection with carrying out the purposes of this
section, including the hiring of necessary employees, shall be paid from the fund. The
Treasurer shall adopt regulations, in accordance with the provisions of chapter 54, which
describe what constitutes a proper and sufficient "plan for payment to the fund" for the
purposes of this section.
(e) Notwithstanding the provisions of subsections (a) to (d), inclusive, of this section, whenever the employer's insurer has been determined to be insolvent, as defined
in section 38a-838, payments required under this section shall be the obligation of the
Connecticut Insurance Guaranty Association pursuant to the provisions of sections 38a-836 to 38a-853, inclusive.
(1959, P.A. 580, S. 13; 1961, P.A. 491, S. 81; 1969, P.A. 696, S. 16; P.A. 85-349, S. 2; P.A. 86-35, S. 1; P.A. 87-277,
S. 2, 4; 87-589, S. 58, 87; P.A. 91-32, S. 39, 41; 91-207, S. 1, 9; P.A. 92-31, S. 6, 7.)
*Note: On and after July 1, 2006, this section, as amended by section 11 of public
act 05-199, is to read as follows:
"Sec. 31-355. Hearings; awards. Payments from Second Injury Fund on employer's failure to comply with award. Civil action for reimbursement. Insolvent
insurer. Settlements and agreements. Failure of uninsured employer to pay. (a)
The commissioner shall give notice to the Treasurer of all hearing of matters that may
involve payment from the Second Injury Fund, and may make an award directing the
Treasurer to make payment from the fund.
(b) When an award of compensation has been made under the provisions of this
chapter against an employer who failed, neglected, refused or is unable to pay any type
of benefit coming due as a consequence of such award or any adjustment in compensation
required by this chapter, and whose insurer failed, neglected, refused or is unable to pay
the compensation, such compensation shall be paid from the Second Injury Fund. The
commissioner, on a finding of failure or inability to pay compensation, shall give notice
to the Treasurer of the award, directing the Treasurer to make payment from the fund.
Whenever liability to pay compensation is contested by the Treasurer, the Treasurer
shall file with the commissioner, on or before the twenty-eighth day after the Treasurer
has received an order of payment from the commissioner, a notice in accordance with
a form prescribed by the chairman of the Workers' Compensation Commission stating
that the right to compensation is contested, the name of the claimant, the name of the
employer, the date of the alleged injury or death and the specific grounds on which the
right to compensation is contested. A copy of the notice shall be sent to the employee.
The commissioner shall hold a hearing on such contested liability at the request of
the Treasurer or the employee in accordance with the provisions of this chapter. If the
Treasurer fails to file the notice contesting liability within the time prescribed in this
section, the Treasurer shall be conclusively presumed to have accepted the compensability of such alleged injury or death from the Second Injury Fund and shall have no right
thereafter to contest the employee's right to receive compensation on any grounds or
contest the extent of the employee's disability.
(c) The employer and the insurer, if any, shall be liable to the state for any payments
made out of the fund in accordance with this section or which the Treasurer has by
award become obligated to make from the fund, together with cost of attorneys' fees
as fixed by the court. If reimbursement is not made, or a plan for payment to the fund
has not been agreed to by the Treasurer and employer, not later than ninety days after
any payment from the fund, the Attorney General shall bring a civil action, in the superior
court for the judicial district where the award was made, to recover all amounts paid by
the fund pursuant to the award, plus double damages together with reasonable attorney's
fees and costs as taxed by the court. Any amount paid to the Treasurer by the employer
or insurer after the filing of an action, but prior to its completion, shall be subject to an
interest charge of eighteen per cent per annum, calculated from the date of original
payment from the fund.
(d) Any recovery made under this section, including any recovery for costs or attorney's fees, shall be paid into the fund. Any administrative or other costs or expenses
incurred by the Attorney General in connection with carrying out the purposes of this
section, including the hiring of necessary employees, shall be paid from the fund. The
Treasurer shall adopt regulations, in accordance with the provisions of chapter 54, which
describe what constitutes a proper and sufficient "plan for payment to the fund" for the
purposes of this section.
(e) Notwithstanding the provisions of subsections (a) to (d), inclusive, of this section, whenever the employer's insurer has been determined to be insolvent, as defined
in section 38a-838, payments required under this section shall be the obligation of the
Connecticut Insurance Guaranty Association pursuant to the provisions of sections 38a-836 to 38a-853, inclusive.
(f) Notwithstanding subsection (b) of this section, the commissioner may approve
a stipulated settlement for benefits between an injured worker and the Treasurer under
this chapter at any time prior to or after the issuance of a finding and award against the
employer if the commissioner determines that it is in the best interest of the injured
workers to do so. Notice of the proposed settlement shall be sent to the employer by
certified mail, return receipt requested, to the employer's last known address on file
with the Secretary of the State or local postal authority. The commissioner shall hold a
hearing on such proposed settlement at the request of the employer in accordance with
the provisions of this chapter. If the employer does not file with the Workers' Compensation Commission a written objection to the proposed settlement not later than twenty-eight days after the date of the notice to the employer of the proposed settlement, the
employer shall be deemed to have consented to the proposed settlement and may not
thereafter contest the terms of the settlement in any forum. Where payment has been
ordered under this subsection, the terms of such order shall have the same status and be
governed by the same provisions as an award issued pursuant to subsection (b) of this
section.
(g) Nothing in this section shall preclude the Treasurer from entering into an
agreement with the employer for the reimbursement of expenses, costs or benefits paid
by the fund. The Treasurer, the uninsured employer, the injured worker, or the injured
worker's beneficiaries, or a third party who is liable under section 31-293 may enter
into a settlement agreement to finally or partially settle the rights and liabilities of any
or all parties under this chapter, subject to the approval of the commissioner.
(h) When a finding and award of compensation has been made against an uninsured
employer who fails to pay it, that compensation shall be paid from the Second Injury
Fund, and if there are further claims for any related, reasonable and necessary treatment,
payment shall by provided to the claimant without a subsequent finding and award."
(1959, P.A. 580, S. 13; 1961, P.A. 491, S. 81; 1969, P.A. 696, S. 16; P.A. 85-349, S. 2; P.A. 86-35, S. 1; P.A. 87-277,
S. 2, 4; 87-589, S. 58, 87; P.A. 91-32, S. 39, 41; 91-207, S. 1, 9; P.A. 92-31, S. 6, 7; P.A. 05-199, S. 11.)
History: 1961 act entirely replaced previous provisions; 1969 act specified benefits to be considered as "compensation";
P.A. 85-349 required the attorney general to bring a civil action for reimbursement of the payments made by the fund, and
assessed an interest charge of eighteen per cent on delinquent payments; P.A. 86-35 provided (1) any recovery of moneys
pursuant to this section shall be paid into the second injury fund, (2) outside counsel may be used for reimbursement
procedures and paid for from the fund, (3) the treasurer may agree to a reimbursement payment plan in lieu of civil action,
and (4) payments due from an insolvent workers' compensation insurer shall be the obligation of the Connecticut Insurance
Guaranty Association; P.A. 87-277 deleted provision re payment from fund of compensation for outside counsel and
substituted provision re payment from fund of costs or expenses incurred by attorney general in carrying out purposes of
section; P.A. 87-589 changed effective date of P.A. 87-277 from July 1, 1988 to July 1, 1987; P.A. 91-32 made technical
changes, added new Subsec. (a), divided existing Subsec. (a) into Subsecs. (b) to (d), inclusive, and redesignated existing
Subsec. (b) as Subsec. (e); P.A. 91-207 amended Subsec. (b) by adding provisions re notice whenever liability to pay
compensation is contested by the treasurer; P.A. 92-31 made technical changes in Subsec. (b); P.A. 05-199 made technical
changes in Subsecs. (a) to (c), amended Subsec. (b) to impose liability on Second Injury Fund for employer and insurer
who neglected or refused to pay award of compensation and replace references to specific unpaid benefits with "any type
of benefit coming due as a consequence of such award", added Subsec. (f) re approval by commissioner of stipulated
settlement between injured worker and Treasurer, added Subsec. (g) re settlement agreements and added Subsec. (h) re
payment from fund of award of compensation against uninsured employer and payment of further claims without subsequent
finding and award, effective July 1, 2006.