§ 88-c. Coverage of state employees. Notwithstanding any other
provisions of law to the contrary and except as set forth in section two
hundred and twelve-a of this chapter, the liability of the state for the
payment of compensation under this chapter heretofore existing or
hereinafter arising shall be secured by an insuring agreement to be
entered into between the department of civil service and the state
insurance fund wherein the state, from moneys appropriated therefor,
shall pay in advance to the fund on a periodic basis the actual costs to
the fund for the meeting and paying, as the same become due and payable,
all obligations incurred under this chapter by the state as an employer.
Notwithstanding any law to the contrary, the fund may on an actuarially
sound basis provide to the state insurance for any portion of the
obligations of the state as employer under this chapter with respect to
injuries or deaths resulting from accidents arising out of and in the
course of employment on or after April first, nineteen hundred
eighty-one. All such payments made by the state and paid into the state
fund shall constitute a separate account in the fund to be used solely
for the purpose of discharging all compensation obligations of the state
pursuant to the provisions of this chapter and in accordance with the
insuring agreement as provided in this section. Any portion of the
account may be invested in the same manner as the assets of the fund as
provided in section eighty-seven of this article. The liability of the
fund for the payment of any claims or the meeting of any obligations of
the state as an employer as provided in this chapter shall not exceed
the moneys paid into such separate account and any increments or
diminutions thereof. The agreement shall further provide that the fund
shall render all services and make all reasonable expenditures necessary
or required for the processing, defense and payment of all claims under
this chapter, including the protection of liens, subrogation, credit and
other rights of the state as an employer or the fund as an insurer, in
situations where the employees' injuries or deaths were caused by
culpability of third parties. Except to the extent that the state
obtains insurance on an actuarially sound basis pursuant to the
provisions of this section, the provisions of section eighty-six of this
chapter with respect to the maintenance of reserves for the purpose of
meeting anticipated compensation losses, shall not in any manner be
applicable to claims of employees of the state with respect to injuries
or deaths resulting from accidents arising out of and in the course of
employment prior to April first, nineteen hundred eighty-one, or to an
insuring agreement entered into between the state insurance fund and the
department of civil service in accordance with the provisions of this
section.