KEMI works with agents throughout Kentucky and in other states to meet the needs of our customers. If you can’t find the answer to your question here, contact us and we will be happy to serve you.

Questions from Agents

What constitutes a complete submission?
  • Fully completed Acord 130 or Online Application via KEMI.com
  • Three years of currently valued loss runs from the previous carrier if prior coverage existed.
  • Last three completed payroll audits (if previously insured by a self-insured group fund)
  • Corporations and Limited Liability Companies must be active, and in good standing, with the Kentucky Secretary of State.
  • Federal identification (FEIN) numbers are required for businesses operating as Partnerships, Corporations and Limited Liability Companies.

For coal mine submissions, the following forms are also required (forms require Adobe Acrobat Reader and open in separate window, please have pop up blockers disabled):

In the event multiple submissions are received, the agency submitting the first complete submission will be recognized as the Agent of Record.

What payroll does an employer use for included sole proprietors, partners or corporate officers?

Effective January 1, 2022, the payroll amount for an included sole proprietor, partner, or member of an LLC is $47,700. For included officers of a corporation, the minimum payroll is $46,800; the maximum payroll is $192,400. These amounts are based on NCCI Basic Manual Rules and are subject to change.

What are KEMI's payment plan options?

Applicants may be eligible for a payment plan. If an applicant is interested in a payment plan, contact us.

On what date does the policy become effective?

The earliest possible effective date of coverage is the day following receipt of: properly completed applications, compliance with all underwriting requests/requirements, and the required premium.

1. If post office postmark — the date following postmark.
2. If postage meter — the date received by KEMI.
3. If carrier other than U.S. Mail — the date received by KEMI.
4. If hand delivered by agent, applicant, or courier — the date following date received by KEMI.
5. If submitting an online application — the date after submission.

Only KEMI can bind coverage.

Are employees covered while working in another state?

The KEMI workers’ compensation policy provides coverage for Kentucky benefits as provided by the extraterritorial provisions of the Kentucky Workers’ Compensation Act, KRS 342.670.

Can an employer be charged for outside labor and subcontractors?

The Kentucky Workers’ Compensation Act requires an employer to provide coverage to employees, including employees of any uninsured subcontractor. KEMI will collect premium from the employer for anyone considered to be an employee or an employee of an uninsured subcontractor.

We will not charge premium for an individual deemed to be an independent contractor. These individuals are not covered under the Act. A KEMI underwriter or auditor will gather information to determine if an individual meets the standards of an independent contractor.

For more information on the audit process, contact KEMI’s Audit Team.

Can a waiver of subrogation be added to a policy?

All waivers of subrogation for worker’s compensation insurance are prohibited in the Commonwealth of Kentucky per KRS 342.700 (3).

What is a KEMI independent contractor questionnaire?

The Independent Contractor Questionnaire (ICQ) is a tool utilized by KEMI to assist in the determination of an employment relationship. Policyholders must be aware they may be charged for subcontractors/contractors at the audit if the forms and supporting documentation do not disprove an employee relationship. Supporting documentation, including contracts, invoices, and business cards will be necessary.  Obtaining Workers’ Compensation Certificates of Insurance on subcontractors is the best way to avoid charges and potential liability. 

Note: The ICQ is merely a tool. It is not a substitute for coverage. Simply filling out and signing the form does not mean an individual is considered an independent contractor. The ICQ form must be filled out by the worker/contractor in its entirety for each relevant policy period.

Click here for the Independent Contractor Questionnaire.

What is the new independent contractor review process effective 1/1/22?

Please review the Revised Independent Contractor Review Process.

Note: The ICQ is merely a tool. It is not a substitute for coverage. Simply filling out and signing the form does not mean an individual is considered an independent contractor. The ICQ form must be filled out by the worker/contractor in its entirety for each relevant policy period.

Click here for the Independent Contractor Questionnaire.

How can a business obtain their Drug-Free Workplace Certification from the state of Kentucky to be eligible for a premium credit through KEMI?

Applications for certification of the drug-free workplace are currently being accepted by the state of Kentucky. To learn more about this certification, click here. If the program is certified by the state of Kentucky, the business must submit proof of the certification to KEMI to receive a credit on its workers’ compensation premium. The program and certification must remain in place for the entire policy term to earn the premium credit.

What is required to obtain a copy of the policyholder audit worksheets?

To request audit worksheets, submit one of the following:

  • Written request signed by an officer/owner of the business; or
  • A completed Audit Worksheet Release Form signed by an officer/owner of the policyholder
What is the Special Fund Assessment?

The Special Fund Assessment is imposed by the Commonwealth of Kentucky to fund and pre-fund the liabilities of the Special Fund and help finance the state workers’ compensation program (including the Kentucky Department of Workers’ Claims and portions of the Kentucky Department of Labor).

Insurance carriers are required by Kentucky statute to add the Special Fund assessment to the total premium charged to an employer for workers’ compensation coverage. The full amount of the assessment is transferred by the carrier to the Kentucky Workers’ Compensation Funding Commission on a quarterly basis.

What is needed to cancel a policy?

To request policy cancellation, submit one of the following:

  • Completed Acord Form 35 – Cancellation Request/Policy Release
  • Written notice which should include the effective date of cancellation and the reason for cancellation. The notice must be signed by an officer/owner of the policyholder; or
  • Click here and complete the KEMI Policy Cancellation Request Form