Workmen's Compensation Law 
 
 of the 
 
 STATE OF KENTUCKY 
 
 Effective August 1st, 1916 
 
Workmen's Compensation Law 
 
 of the 
 
 State of Kentucky 
 
 Reprinted, May, 1916 
 
 Copyright, 1916, by 
 
 F. ROBERTSON JONES 
 
 New York 
 
CONTENTS 
 
 PAGE 
 
 Digest of the Workmen's Compensation Law 3 
 
 Text of the Workmen's Compensation Law li 
 
Digest of the Kentucky Workmen's 
 Compensation Law* 
 
 TITLE, ETC 
 
 Senate Bill No. 40, Laws of 1916; approved March 23, 1916. Adminis- 
 trative provisions effective April i, 1916; liability provisions effective August 
 i, 1916 (81). 
 
 SYSTEM PROVIDED FOR 
 
 Compensation, elective (3), with insurance or security (63, 84-100). 
 Administered by Workmen's Compensation Board of three members, one 
 for each of three districts into which State is divided (39-45). 
 
 HOW ELECTED 
 
 Employer elects by filing written notice, in prescribed form, with the 
 Board (73). Employee elects by signing prescribed form of notice to be 
 filed with employer ( 74). In case of employments not subject to the Act, 
 employer and employees may elect to come under the Act by joint application 
 to the Board, for period stated in application ( i). 
 
 HOW ELECTION CHANGED 
 
 Employer may change his election by filing written notice with the Board, 
 by personal written notice to employees or posting same at place of business 
 for at least a week. Employee may change election by filing with employer 
 written notice of withdrawal, specifying date on which effective (76). As 
 to employments not subject to the Act, acceptance is binding for period stated 
 in application and until written revocation is filed with the Board ( i). 
 
 ALTERNATIVE LIABILITY 
 
 If employer does not elect to come under the Act, he is liable to injured 
 employee for damages, with the defenses of contributory negligence, fellow 
 servant's fault and assumption of risk abrogated (76a). If employer elects 
 to come under the Act and the employee does not, such defenses are avail- 
 able in case of action by employee (76b). 
 
 EMPLOYMENTS COVERED 
 
 All, including municipal corporations, in which five or more are regu- 
 larly employed, except domestic service, farm labor, steam railways and 
 
 * The headings of this Digest conform in substance and order with those of the "Digest 
 of Workmen's Compensation Laws in the United States and Territories" (compiled by F. 
 Robertson Jones and published by the Workmen's Compensation Publicity Bureau, 80 
 Maiden Lane, New York City) so that the former supplements the latter. 
 
 34291 
 
common carriers Bother than steam railways which are subject to a Federal 
 liability law ( 1-2). Excepted employments may be brought under the Act 
 by joint application of employer and employee (i). 
 
 EMPLOYMENT IN INTERSTATE COMMERCE 
 
 The Act does not extend to steam railways or to common carriers other 
 than steam railways for which a rule of liability is provided by Federal 
 law (i). 
 
 INJURIES COVERED 
 
 Personal injuries by accident arising out of and in the course of em- 
 ployment, unless wilfully self-inflicted or caused by wilful misconduct or 
 intoxication. Not to include disease except where it is the natural and direct 
 result of a traumatic injury by accident, nor the results of a pre-existing 
 disease ( I, 3). Special restrictions governing injuries producing hernia 
 (4a). 
 
 NOTICE OF INJURY AND CLAIM FOR COMPENSATION 
 
 Written notice, with certain particulars, must be given to employer as 
 soon as practicable after accident. Defect in notice does not invalidate claim 
 unless employer was misled to his injury. Want of notice or delay in giving 
 same does not bar claim if occasioned by mistake or other reasonable cause, 
 or if employer had knowledge of injury. Claim must be made within a year 
 after accident, death or suspension of payments (23, 33-36). 
 
 WAITING PERIOD 
 
 No compensation is payable for first two weeks of disability. Com- 
 pensation begins on first regular pay day after expiration of two weeks' 
 period (7). 
 
 MEDICAL AND SURGICAL AID 
 
 Employer must furnish medical, surgical or hospital treatment, etc., as 
 reasonably required during 90 days after injury, unless Board otherwise 
 directs within that time ; maximum $100. In case of operation for hernia, 
 maximum liability is raised to $200, and employee is entitled to 26 weeks' 
 compensation in addition. Board may under certain circumstances require 
 a change of physician. Charges for treatment are limited to those prevailing 
 in the community, and are subject to regulation by the Board. Employee who 
 unreasonably refuses to submit to treatment forfeits compensation (4-6). 
 
 COMPENSATION FOR TOTAL DISABILITY 
 
 65 per cent of average weekly earnings, maximum $12, minimum $5, 
 weekly, maximum period eight years, maximum amount $5,ooo, including 
 partial disability payments, if any. Certain severe injuries deemed to con- 
 stitute permanent total disability (16). 
 
COMPENSATION FOR PARTIAL DISABILITY 
 65 per cent of loss of earning power, maximum $12 weekly, maximum 
 period 335 weeks, including period of total disability payments, if any. 
 Special schedule of compensation for loss of certain members, etc. Em- 
 ployee's refusal to accept suitable employment during partial disability, unless 
 justified, forfeits compensation for period of refusal ( 17-19). 
 
 COMPENSATION FOR DEATH 
 
 If death results from accident within two years, in all cases, reasonable 
 burial expenses, maximum $75. In addition, to total dependents, 65 per cent 
 of average weekly earnings, maximum amount $4,000, maximum period 335 
 weeks, including period of disability payments, if any. To partial dependents, 
 payments based on foregoing schedule and proportioned to measure of de- 
 pendency, maximum amount and period same as above. Compensation to 
 cease upon death or marriage of dependent. If no dependents, $100 to per- 
 sonal representative of deceased (12, 15). 
 
 EFFECT OF PREVIOUS DISABILITY 
 
 If previously injured employee sustains subsequent injury resulting in 
 a condition to which both injuries contribute, employer in whose employment 
 the later injury is received is liable for compensation based on such resulting 
 condition, less amount payable for prior injury (20). 
 
 AVERAGE WAGES HOW COMPUTED 
 
 Average weekly wages to be based on earnings while working at full time. 
 If employee at the time of injury is employed at higher wages tha.n earlier 
 in the year (unless such employment is seasonal), only such higher wages 
 to be considered in computing average weekly earnings (24). 
 
 WHO ARE DEPENDENTS 
 
 Certain persons presumed to be wholly dependent; in other cases, de- 
 pendency to be determined in accordance with facts at time of accident. 
 Dependents are limited to parents, spouse, father-in-law, mother-in-law, grand- 
 parents, child, grandchild, brother, sister, or one living in household of 
 employee at time of accident. Partial dependency may be determined by 
 proportion of employee's earnings contributed to dependent during year 
 preceding injury; otherwise Board may fix degree of dependency. Pay- 
 ment of death benefits to supposed dependent or to one subsequent in right 
 releases employer in absence of written notice of prior claim (12-15). 
 
 NON-RESIDENT ALIENS 
 
 Non-resident alien dependents are excluded from benefits of the Act, 
 except widows and children, who are entitled to one-half the amount pro- 
 vided for residents; and employer may at any time commute such payments 
 to the then value thereof (22). 
 
MEDICAL EXAMINATION 
 
 Injured employee must submit to medjcal examination at reasonable 
 times and places upon request of employer or Board. Employee may have 
 his own physician present. Refusal to submit forfeits right to compensation 
 for period of continuance. Employer's physician may visit employee at 
 reasonable times (37). Board may appoint physician for this purpose upon 
 application of either party (58). Special regulations governing examination 
 for hernia (4a). 
 
 SETTLEMENT OF CLAIMS AND DISPUTES 
 Terms of compensation may be settled by agreement, subject to approval 
 of Board (48) ; otherwise, upon application of either party as soon as pos- 
 sible after disagreement, by the Board or a member thereof or a referee 
 authorized by the Board (49, 50, 60). If first hearing was not held before 
 full Board, application for review may be made to the Board within seven days 
 after award (51). 
 
 RIGHT OF APPEAL 
 
 Board's award is final as to questions of fact; but either party may 
 within 20 days file a petition for a review by the Circuit Court upon certain 
 specified grounds. Where amount involved is sufficient under existing laws, 
 judgment of Circuit Court may be reviewed by Court of Appeals (52-55). 
 
 MODIFICATION OF AGREEMENTS AND AWARDS 
 Upon its own motion or upon application of any party interested, the 
 Board may at any time review award and end, diminish or increase payments 
 on the ground of changed conditions (21). 
 
 COMMUTATIONS 
 
 After six months' payments, upon application of either party and notice 
 to the other, if Board finds it for the best interests of either party and that 
 it will no subject the employer or insurer to undue risk of overpayment, future 
 compensation may be commuted to a lump sum equal to the present value of 
 probable future payments discounted at 5 per cent, per annum. The Board 
 may direct such payments to be made to a trustee, thus discharging employer 
 and insurer (26-27). 
 
 PREFERENCE 
 
 The right of compensation has the same preference or priority for the 
 whole thereof against the assets of the employer as is allowed for unpaid 
 wages for labor (31). 
 
 ASSIGNMENTS AND EXEMPTIONS 
 
 Claim for compensation is not assignable, and is exempt from claims of 
 creditors (32). 
 
HOW COMPENSATION IS SECURED 
 
 Assenting employer is required to insure his liability for compensation in 
 some authorized corporation or association, or furnish the Board with satis- 
 factory proof of financial ability to make payments direct and deposit accept- 
 able bond, indemnity or other security (63). 
 
 METHOD OF PAYMENT AND PROCEEDINGS TO COLLECT 
 
 Compensation is payable directly to employee or dependent by employer 
 or insurer, on regular pay days, with interest at 6 per cent, per annum on 
 each instalment from time it is due until paid (7). The Board may, upon 
 application of either party, order payments made monthly or quarterly 
 (25). Any party in interest may file in Circuit Court a certified copy of 
 memorandum of agreement approved by the Board, or of the Board's award, 
 whereupon the Court must render judgment in accordance therewith, which 
 may be enforced as other judgments duly rendered ( 56). 
 
 ATTORNEYS' LIENS AND FEES 
 
 Fees of attorneys, physicians, etc., are subject to approval of the Board. 
 Attorney's fee is limited to 15 per cent, of amount of recovery up to $1,000 
 and 10 per cent, of any recovery in excess of $1,000. The Board may deny 
 or reduce fee upon proof of solicitation of employment (59). 
 
 MINORS AND INCOMPETENT PERSONS 
 
 Minors of legal working age are deemed sui juris for purpose of Act; 
 but lump sum awarded must be paid to guardian ( n). Compensation of 
 insane person is to be paid to committee (28). No limitation of time is to 
 run against mentally incompetent person or minor dependent while he is 
 without a guardian, committee or next friend (38). Guardian or personal 
 representative of minor illegally employed may claim compensation or sue 
 for damages (30). 
 
 WHERE INJURY IS CAUSED BY THIRD PARTY 
 Where injury is caused by third party, employee may elect to claim com- 
 pensation from employer or to sue third party for damages, but may not 
 collect from both. If compensation is awarded, employer is subrogated to 
 employee's right of action against third party (9). 
 
 PRINCIPAL AND SUB-CONTRACTOR 
 
 A principal, intermediate or sub-contractor is liable for compensation to 
 injured employees of a sub-contractor if injury occurs on premises under the 
 control or management of the former, but is entitled to indemnity from sub- 
 contractor. Claim must be presented in the first place to immediate employer, 
 and in case of full recovery, claim against principal or intermediate contractor 
 s barred ( 10). 
 
SUITS FOR DAMAGES 
 
 If both employer and employee have elected to come under the Act, the 
 employer is released from all other liability for injury sustained by employee, 
 except that where injury results from deliberate intention of employer, em- 
 ployee or dependents may elect to take compensation or to sue for damages 
 as before Act was passed (3). Same option exists in case of injury to 
 minor illegally employed (30), or where employer has failed to file with the 
 Board required evidence of compliance with provision for securing com- 
 pensation (63). 
 
 ACCIDENT PREVENTION 
 
 If accident is due to employer's intentional failure to install safety ap- 
 pliance, etc., compensation is to be increased 15 per cent. If due to em- 
 ployee's intentional failure to use the same, or to obey reasonable safety 
 regulation, compensation is to be reduced 15 per cent. (29). Directors 
 of Employees' Insurance Association must make and enforce reasonable 
 rules for prevention of accidents on premises of subscribers (99). 
 
 REPORTS REQUIRED 
 
 Assenting employers must report to the Board all injuries causing absence 
 from work for more than one day, within a week after occurrence and 
 knowledge thereof, on blank forms provided, and make supplementary 
 report upon termination of disability or after sixty days (61). Such em- 
 ployers must file with the Board at time of election, and annually thereafter, 
 evidence of compliance with provisions for securing compensation (63). 
 Employers carrying their own risks must file with the Board reports under 
 oath on their pay-rolls for the six months ending October 31, 1916, for the 
 eight months ending June 30, 1917, and annually thereafter. Similar report 
 must be made by insurance companies on amount of premiums received within 
 the State (83). 
 
 POSTING NOTICES 
 
 Assenting employer must post conspicuously at his place of business, 
 notice of acceptance in form prescribed by the Board. Employer withdraw- 
 ing his acceptance may, in lieu of personal written notice to employees, post 
 notice of withdrawal conspicuously at place of business (76). 
 
 CONTRACTING OUT 
 
 Subject to approval of Board, employer may agree with employees upon 
 system of compensation, benefit or insurance in lieu of that provided by the 
 Act, but benefits must be at least equivalent to those under the Act, and if 
 contributions from employees are required, additional benefits must be con- 
 ferred commensurate with such contributions. Such substitute system may 
 be terminated by the Board upon reasonable notice for good cause (66). 
 With this exception, no contract, regulation, etc., may operate to relieve 
 employer from liability under Act (8a). 
 
INSURANCE 
 General Provisions. 
 
 Insurance policies must provide that notice to insured is notice to 
 insurer ; that they are a direct obligation to beneficiaries, not affected by want 
 of notice, and are otherwise subject to provisions of Act. Policies must be 
 approved as to form by Commissioner of Insurance, and must cover full 
 liability under the Act unless employer has a certificate of self-insurance 
 covering part of his risk (67-71). Companies writing compensation in- 
 surance are subject to a tax of 4 per cent.- on premiums received within the 
 State, to defray expenses of administering Act. Similar tax, based on amount 
 of pay-roll, is levied on employers who carry their own risks (83). 
 
 Stock Companies. 
 
 Employer may insure his liability for compensation with any authorized 
 corporation (63). 
 
 Mutual Insurance. 
 
 Employers are authorized to form mutual insurance associations or 
 reciprocal or inter-insurance exchanges, subject to regulation by the Board 
 (65). 
 
 State Insurance. 
 
 There is no genuine state insurance, but the Act provides for the organ- 
 ization by the state of the Kentucky Employees' Insurance Association, a 
 mutual scheme similar to that in Massachusetts and Texas, which, when 
 organized, stands on an equal footing with private associations. Policies may 
 not be issued until at least 50 employers, having not less than 5,000 employees, 
 have subscribed (84-100). 
 
 Regulation of Rates. 
 
 Rates of compensation insurance must be fair, reasonable and adequate, 
 with due allowance for merit rating; and discrimination is forbidden. Rates 
 must be approved by the Board before policy may be issued ; and all basic and 
 merit rating schedules must be filed with the Board for its approval (72). 
 Premiums, assessments, etc., proposed by Kentucky Employees' Insurance 
 Association must be filed with Insurance Department and approved by Com-, 
 missioner (97-98). 
 
 PENALTIES 
 
 For failure to report accidents, $25 fine (61). Fraud in connection with 
 claim for compensation is a misdemeanor, punishable by $50 to $500 fine or 
 from 10 to 90 days' imprisonment (62). Destruction, concealment or 
 alteration of employee's notice of acceptance is a misdemeanor, punishable by 
 $50 to $200 fine or from 10 to 90 days' imprisonment (75). Deducting 
 any portion of insurance cost from employees' wages is a misdemeanor, 
 punishable by $100 fine (77). Acting as agent for insurance company 
 
10 
 
 which has been suspended from doing business, or making false statement in 
 report of such insurance company's business, is a misdemeanor, punishable 
 by $100 to $1,000 fine or from 10 to 90 days' imprisonment, or both (83 [5]). 
 
 EXTRA-TERRITORIAL EFFECT 
 
 Act extends to injuries sustained outside the state by employees hired 
 within the state, in the absence of express written agreement to the con- 
 trary (8). 
 
 CONSTITUTIONALITY 
 
 If any part -of Act is held invalid, it shall not affect the Act as a whole 
 or any other part thereof (102). 
 
 MISCELLANEOUS PROVISIONS 
 
 Municipal pension associations or funds are not disturbed by the Act 
 
 (2). 
 
TEXT OF THE LAW 
 
 SENATE BILL NO. 40, LAWS OF 1916 
 
 AN ACT to provide an elective system of workmen's compensation for in- 
 dustrial accidents, prescribing the manner of election and the rights and 
 liabilities of employers, employes and third parties; making provision 
 for medical and surgical care of injured employes; establishing rates 
 of compensation for personal injuries or death; providing methods of 
 insuring and securing the payments of such compensation ; making minors 
 sui juris for certain purposes; creating a board to administer this act, 
 prescribing the duties powers and rights thereof and imposing a tax 
 upon insurance premiums, also a tax upon employers who carry their 
 own risk for the maintenance of such board and providing a system 
 of appeal to the courts from the decisions of such board; prescribing 
 certain penalties, with an emergency clause, and appropriating certain 
 sums to meet the expenses of putting this act into effect, and repealing 
 all laws and parts of laws in conflict herewith, to the extent of such 
 conflict. 
 
 Be it Enacted by the General Assembly of the Commonwealth of Kentucky: 
 
 i. This act shall apply to all employers having five or more employes 
 regularly engaged in the same occupation or business and to their employes, 
 except that it shall not apply to domestic employment, agriculture, steam 
 railways, or such common carriers, other than steam railways, for which a 
 rule of liability is provided by the laws of the United States. It shall affect 
 the liability of the employers subject thereto to their employes for personal 
 injuries sustained by the employe by accident arising out of and in the course 
 of his employment or for death resulting from such accidental injury; pro- 
 vided, however, that personal injury by accident as herein defined shall not 
 include diseases except where the disease is the natural and direct result of 
 a traumatic injury by accident, nor shall they include the results of a pre- 
 existing disease. 
 
 Any employers and employes who are, by the provisions of this section, 
 excepted from the provisions of this act may subject themselves thereto by 
 joint voluntary application to the board, in writing, for such period as may 
 be stated in the application, which shall be irrevocable during such period and 
 effective thereafter until a written revocation be filed with the board or the 
 employment be terminated. 
 
 2. The term "employer" as used in this act shall be construed to include 
 municipal corporations and any political subdivision or corporation thereof, 
 and any election with reference to this act shall be exercised by the law- 
 
12 
 
 making or other governing body thereof; provided, however, that nothing 
 contained in this act shall be construed as amending or repealing any statute 
 or ordinance relating to associations or funds for the relief, pensioning, 
 retirement or other benefit of any employes of such municipal employer, or 
 of the widows, children or dependents of such employes, or as in any manner 
 interfering with the same as now or hereafter established. 
 
 3. Whereas, at the time of the injury, both employer and employe have 
 elected to furnish or accept compensation under the provisions of this act 
 for a personal injury, received by an employe by accident and arising out of 
 and in the course of his employment, or for death resalting from such 
 injury, within two years thereafter, the employer shall be liable to provide 
 and pay compensation under the provisions of this act and shall be released 
 from all other liability, whatsoever; provided, however, that if injury or 
 death result to an employe through the deliberate intr/'tion of his employer 
 to produce such injury or death, the employe or his dependent as herein 
 defined shall receive the amount provided in this act in a lump sum to be 
 used, if they so desire to prosecute the employer, and said dependents shall 
 be permitted to bring suit against said employer for any amount they may 
 desire, that if injury or death results to an employe through the deliberate 
 intention of his employer to produce such injury or death, the employe or his 
 dependents as herein defined shall have the privilege to take under this act, 
 or in lieu thereof, to have a cause of action at law against such employer as if 
 this act had not been passed for such damages so sustained by the employe, 
 his dependents or personal representatives as may be recoverable at law. If 
 a suit is brought under this section, all right to compensation under the 
 provisions of this act shall thereby be waived and void as to all persons, 
 and if a claim is made for the payment of compensation or any other benefit 
 provided by this act, all rights to sue the employer for damages on account 
 of such injury or death shall thereby be waived and void as to all persons. 
 
 Notwithstanding anything hereinbefore or hereafter contained no employe 
 or dependent of any employe shall be entitled to receive compensation on 
 account of any injury to or death of an employe caused by a wilful self- 
 inflicted injury, wilful misconduct or intoxication of such employe. 
 
 4. In addition to all other compensation herein provided, such medical, 
 surgical and hospital treatment, including nursing, medical and surgical sup- 
 plies and appliances as may reasonably be required at the time of the injury 
 and thereafter during disability, but not exceeding ninety days unless the 
 board shall, by order made within that time, otherwise direct, not exceeding 
 a total expense to the employer of more than $100 on account of the benefits 
 provided by this section, to cure and relieve from the effects of the injury shall 
 be furnished by the employer, and, in case of his refusal or neglect reasonably 
 to do so, the employer shall be liable for the reasonable expense, within the 
 limits of this section, incurred by or on behalf of the employe in providing the 
 same. 
 
 In the event of an emergency, the employe shall have the right to call in 
 any available physician or surgeon to administer such first aid as may be 
 reasonably necessary at the expense of the employer within the limits of this 
 section. 
 
13 
 
 4a. In all claims for hernia resulting from injury received in the 
 course of and resulting from the employe's employment, it must be definitely 
 proved to the satisfaction of the board: 
 
 First. That there was an injury resulting in hernia. 
 
 Second. That the hernia appeared suddenly and immediately followed 
 the injury. 
 
 Fourth. That the hernia did not exist in any degree prior to the injury 
 for which compensation is claimed. 
 
 In all such cases where liability for compensation exists, the employer 
 shall provide competent surgical treatment by radical operation, the limits 
 of benefits payable under section four hereof being increased to two hundred 
 dollars in such cases, if the operation is performed. In case the injured 
 employe refuses to submit to the operation, the employer shall have the right 
 to a medical examination as provided in section thirty-seven hereof. If it 
 be shown by such examination that the employe has any chronic disease or is 
 otherwise in such physical condition so as to render it more than ordinarily 
 unsafe to submit to such operation, he shall, if unwilling to submit to the 
 operation, be entitled to compensation for disability under the general pro- 
 visions of this act. If the examination does not disclose the existence of 
 disease or other physical condition rendering the operation more than ordi- 
 narily unsafe and the employe, with knowledge of the result of such ex- 
 amination, thereafter refuses to submit to such operation, he shall be entitled 
 to compensation for disability under the general provisions of this act for 
 not exceeding one year. 
 
 If the employe submits to the operation, he shall, in addition to the 
 surgical benefits herein provided for, be entitled to compensation for twenty- 
 six weeks. If the hernia result in death within one year after it is sustained, 
 or the operation result in death, such death shall be deemed a result of the 
 injury causing such hernia and compensated accordingly under the pro- 
 visions of this act. This paragraph shall not apply where the employe has 
 refused to submit to an operation which has been found by the examination 
 herein provided for, not to be more than ordinarily unsafe. 
 
 5. If it be shown that the employer is furnishing the requirements 
 provided by Section four hereof in such manner that there is reasonable 
 ground for believing that the life, health or recovery of the employe is being 
 endangered or impaired thereby, the board may order a change in the 
 physician or other requirement, and if the employer fail promptly to comply 
 with such order after receiving it, may permit the employe or some one for 
 him to provide the same at the expense of the employer under such reasonable 
 regulations as may be provided by the board. 
 
 No action shall be brought against any employer subject to this act by any 
 employe or other person to recover damages for malpractice or improper 
 treatment received by such employe from any physician, hospital or attendant 
 thereof. 
 
 6. All fees and charges under Sections four and five shall be fair and 
 reasonable, shall be subject to regulation by the board and shall be limited 
 to such charges as are reasonable for similar treatment of injured persons 
 of a like standard of living in the same community and where such treatment 
 
14 
 
 is paid for by the injured person himself. In determining what fees are 
 reasonable, the board may also consider the increased security of payment 
 afforded by this act. 
 
 Where such requirements are furnished by a public hospital or other 
 institution, payment thereof shall be made to the proper authorities conduct- 
 ing same. No compensation shall be payable for the death or disability of an 
 employe if his death is caused, 'or if and in so far as his disability may be 
 aggravated, caused or continued, by an unureasonable refusal, failure or 
 neglect to submit to or follow any competent surgical treatment or medical 
 aid or advice. 
 
 7. Except as provided in sections four and five hereof, no compensation 
 shall be payable for the first two weeks of disability, and all compensation 
 shall be payable on the regular pay-day of the employer, commencing with 
 the first regular pay-day after two weeks after the injury, with interest at 
 the rate of 6% per annum on each installment from the time it is due until 
 paid. 
 
 8. Employers who hire employes within this State to work in whole 
 or in part without this State, may agree in writing with such employes to 
 exempt from the operation of this act injuries received outside of this State; 
 in the absence of such an agreement, the remedies provided by this act shall 
 be exclusive as regards injuries received outside this State upon the same 
 terms and conditions as if received within this State. 
 
 8a. No contract or agreement, written or implied, no rule, regulation 
 or other device, shall in any manner operate to relieve any employer in whole 
 or in part of any obligation created by this act except as herein provided. 
 
 9. Whenever an injury for which compensation is payable under this 
 act shall have been sustained under circumstances creating in some other 
 person than the employer a legal liability to pay damages in respect thereto, 
 the injured employe may at his option either claim compensation or proceed 
 at law by civil action against such other person to recover damages, or pro- 
 ceed both against the employer for compensation and such other person to 
 recover damages, but he shall not collect from both, and if compensation is 
 awarded under this act the employer having paid the compensation or having 
 become liable therefor, shall have the right to recover in his own name or that 
 of the injured employe from the other person in whom legal liability for 
 damages exists not to exceed the indemnity paid and payable to the injured 
 employe. 
 
 10. A principal contractor, intermediate, or sub-contractor shall be 
 liable for compensation to any employe injured while in the employ of any 
 one in* his intermediate or sub-contractors and engaged upon the subject 
 matter of the contract, to the same extent as the immediate employer. Any 
 principal, intermediate or sub-contractor who shall pay compensation under 
 the foregoing provision may recover the amount paid from any subordinate 
 contractor through whom he may have been rendered liable under this section. 
 
 Every claim to compensation under this section shall in the first instance 
 be presented to and instituted against the immediate employer, but such 
 
 * So in certified copy; probably intended for "of." 
 
IS 
 
 proceeding shall not constitute a waiver of the employe's rights to recover 
 compensation under this act from the principal or intermediate contractor, 
 provided that the collection of full compensation from one employer 'shall 
 bar recovery by the employe against any others, nor shall he collect from 
 all a total compensation in excess of the amount for which his immediate 
 employer is liable. 
 
 This section shall apply only in cases where the injury occurred on, in 
 cr about the premises on which the principal contractor has undertaken to 
 execute work or which are under his control otherwise or management. 
 
 ii. A minor, except where employed in wilful violation of any law of 
 this State regulating the employment of minors, shall be deemed sui juris for 
 the purposes of this act, and no other person shall have cause of action or 
 right to compensation for an injury to or death of such minor employe or 
 loss of service on account thereof, by reason of the minority of such employe. 
 In the event of the award of a lump sum of compensation to such minor 
 employe, payment shall be made to the guardian of such minor. 
 
 12. If death results within two years from an accident for which com- 
 pensation is payable under this act, the employer or his insurer shall pay to 
 the persons entitled to compensation, or, if none, then to the personal repre- 
 sentative of the deceased employe reasonable burial expenses of a person 
 of the standard of living of the de-ceased, not to exceed the sum of $75, and 
 shall also pay to or for the following persons compensation as follows, 
 to-wit : 
 
 (1) If there are no dependents, as herein defined, there shall be paid, 
 in addition to the burial expenses and medical expenses, if any otherwise 
 provided for herein, the further sum of $100, payment to be made* to the 
 personal representative of the deceased employe. 
 
 (2) If there are one or more wholly dependent persons, 65% of the 
 average weekly earnings of the deceased employe, but not to exceed $12 nor 
 less than $5 per week, shall be payable, all such payments to be made for the 
 period between the date of death and 335 weeks after the date of accident 
 to the employe, or until the intervening termination of dependency, but in 
 no case to exceed the maximum sum of $4,000. 
 
 (3) If there are partly dependent persons, the payments shall be such 
 part of what would be payable for total dependency as the partial dependency 
 existing at the time of the accident to the employe may be proportionate to 
 total dependency, all such payments to be made for the period between the 
 date of death and 335 weeks after the date of the accident to the deceased 
 employe or until the intervening termination of dependency, but in no case to 
 exceed in the aggregate of compensation on account of such death the maxi- 
 mum sum of $4,000. 
 
 Partial dependency shall be determined by the proportion of the earnings 
 of the employe which have been contributed to such partial dependent during 
 one year next preceding the date of injury; if the relation of partial de- 
 pendency shall not have existed for one year next preceding the date of injury, 
 the board shall consider all the facts and circumstances and fix such pro- 
 portion as may be fair and reasonable thereunder. 
 
 * Appears "male" in certified copy obviously an error. 
 
i6 
 
 (4) All relations of dependency herein referred to shall be construed 
 to mean dependency existing at the time of accident to the employe. 
 
 13. The following persons shall be presumed to be wholly dependent 
 upon a deceased employe: (a) A wife upon a husband whom she has not 
 voluntarily abandoned at the time of the accident; (b) A husband incapaci- 
 tated from wage earning, upon a wife whom he has not voluntarily abandoned 
 at the time of the accident to the wife; (c) A child or children under the age 
 of sixteen years or over sixten years if incapacitated from wage earning, 
 upon the parent with whom such child or children are living or by whom 
 actually supported at the time of the accident. In all other cases the relation 
 of dependency in whole or in part, shall be determined in accordance with the 
 facts of each case existing at the time of the accident, but no person shall 
 be considered a dependent in any degree unless he be living in the household 
 of the employe at the time of the accident or unless such person bears to 
 the employe the relation of father, mother, husband or wife, father-in-law or 
 mother-in-law, grandfather or grandmother, child or grandchild, or brother 
 or sister of the whole or half blood. 
 
 Compensation to any dependent shall cease at the death or legal or 
 common-law marriage of such dependent and upon the cessation of com- 
 pensation to or on account of any person, the compensation of the remaining 
 persons entitled to compensation shall, for the unexpired period during which 
 their compensation is payable, be that which such persons would have received 
 during such unexpired period if they had been the only persons entitled to 
 compensation at the time of the accident. 
 
 14. As used in this act, the term "child" includes step-children, legally 
 adopted children, posthumous children and recognized illegitimate children, 
 but does not include married children unless actually dependent. 
 
 The terms "brother" and "sister" include step-brothers, step-sisters and 
 brothers and sisters of the half blood or by adoption, but excludes married 
 brothers or sisters unless actually dependent. The term "grandchild" in- 
 cludes children of adopted children and children of step-children, but 
 excludes step-children of children or of adopted children and married children. 
 The term "parent" includes step-parents and parents by adoption. The words 
 "adopted" and "adoption" as herein used include cases where the persons are 
 legally adopted. 
 
 15. Payment of death benefits, in good faith, to a supposed dependent 
 or to a dependent subsequent in right to another or other dependents shall 
 protect and discharge the employer and insurer unless and until the lawful 
 dependent or dependents prior in right shall have given the employer or 
 insurer written notice of his or their claim. In case the employer or insurer 
 is in doubt as to who are dependents or as to their respective rights, the board 
 shall, on application, decide and direct to whom payment shall be made, and 
 payment made under such direction shall release the employer and insurer 
 from all liability; provided, however, that if an appeal be taken from the 
 order of the board directing payment, persons receiving payment under such 
 order shall be required to furnish bond for the protection of adverse claimants 
 pending the outcome of the proceedings. 
 
 In case death occurs as a result of the injury, after a period of total or 
 
partial disability, the period of disability shall be deducted from the total 
 period of compensation and the benefits paid thereunder from the maximum 
 allowed for the death respectively stated in Section 12 hereof. 
 
 16. Where the injury causes total disability for work, the employer, 
 during such disability, except the first two weeks thereof, shall pay the 
 employe so injured a weekly compensation equal to 65% of his average weekly 
 earnings, not to exceed $12 nor less than $5 per week, such payments to be 
 made during the period of total disability but not longer than eight years 
 after the date of the injury, nor in any case to exceed the maximum sum of 
 $5,000. In case the period of total disability begins after the period of partial 
 disability, the period of partial disaibility shall be deducted from the total 
 period of eight years during which compensation for total disability may be 
 payable, and the payments made on account of such partial disability shall be 
 deducted from the maximum of $5,000. 
 
 In case of the following injuries, the disability shall be deemed total and 
 permanent, to-wit : 
 
 (1) The total and permanent loss of sight in both eyes. 
 
 (2) The loss of both feet at or above the ankle. 
 
 (3) The loss of both hands at or above the wrist. 
 
 (4) A similar loss of one hand and one foot. 
 
 (5) An injury to the spine resulting in permanent and complete paralysis 
 of both arms or both legs or of one arm and one leg. 
 
 (6) An injury to the skull resulting in incurable insanity or imbecility. 
 
 The above enumeration is not to be taken as exclusive, but in all other 
 cases the burden of proof shall be on the claimant to prove that his injuries 
 have resulted in permanent total disability. 
 
 17. In case of an injury resulting in temporary partial disability, the 
 employe shall receive during such disability, except the first two weeks thereof, 
 a weekly compensation equal to 65 per cent of the difference between his 
 average weekly earnings before the injury and the average weekly earnings 
 which he earns or is able to earn in some suitable employment after the 
 injury and during such disability, not to exceed 335 weeks from the date of 
 injury nor exceeding the sum of $12 per week nor the maximum sum of $4000. 
 In case partial disability follows a period of total disability such period of 
 total disability shall be deducted from the maximum period allowed for 
 partial disability and the benefits paid on account thereof from the maximum 
 allowed for partial disability. 
 
 18. For injuries enumerated in the following schedule, the employe 
 shall receive in lieu of all other compensation, except such as may be payable 
 under Sections 4 and 5 hereof, a weekly compensation equal to 65 per cent. 
 of his average weekly earnings, but not less than $5 per week nor exceeding 
 $12 per week, for the respective periods stated thereon, to-wit: 
 
 For the loss of a thumb, 65% of the average weekly wages during 60 
 weeks. 
 
 For the loss of a first finger, commonly called the index finger, 65% of 
 the average weekly wages during 45 weeks. 
 
i8 
 
 For the loss of a second finger, 65% of the average wages during 30 
 weeks. 
 
 For the loss of a third finger, 65% of the average weekly wages during 
 20 weeks. 
 
 For the loss of a fourth finger, commonly known as the little finger, 65% 
 of the average weekly wages during 15 weeks. 
 
 The loss of the second, or distal phalange, of the thumb shall be con- 
 sidered to be equal to the loss of one-half of such thumb; the loss of more 
 than one-half of such thumb shall be considered to be equal to the loss of the 
 whole thumb. 
 
 The loss of the third, or distal phalange, of any finger, shall be considered 
 to be equal to the loss of one-third of such finger. 
 
 The loss of the middle, or second phalange, of any finger, shall be con- 
 sidered to be equal to the loss of two-thirds of such finger. 
 
 The loss of more than the middle and distal phalanges of any finger shall 
 be considered to be equal to the loss of the whole finger, provided, however, 
 that in no case will the amount received for more than one finger exceed the 
 amount provided in this schedule for the loss of a hand. 
 
 For the loss of a metacarpel bone (bone of palm) for the corresponding 
 thumb, finger or fingers above, add ten weeks to the number of weeks as 
 above. 
 
 For ankylosis (total stiffness of) or contractures (due to sears or in- 
 juries) which makes the fingers more than useless, the same number of weeks 
 apply to such finger or fingers (not thumb) as given above. 
 
 For the loss of a hand 65% of the average weekly wages during one 
 hundred and fifty weeks. 
 
 For the loss of an arm, 65% of the average weekly wages during two 
 hundred weeks. 
 
 For the loss of one of the toes, other than the great toe, 65% of the 
 average weekly wages during 10 weeks. 
 
 For the loss of the great toe, 65% of the average weekly wages during 
 30 weeks. 
 
 The loss of more than two-thirds of any toe shall be considered equal 
 to the loss of the whole toe. 
 
 The loss of less than two-thirds of any toe shall be considered to be equal 
 to the loss of one-half toe. For the loss of a foot, 65% of the average weekly 
 wages during 125 weeks. 
 
 For the loss of a leg, 65% of the average weekly wages during 200 weeks, 
 or the total and permanent loss of the sight of an eye, 65% of the average 
 weekly wages during one hundred weeks. 
 
 In all other cases of permanent partial disability, including any disfigure- 
 ment which will impair the future usefulness or occupational opportunities 
 of the injured employe, compensation shall be determined according to the 
 percentage of disability, taking into account, among other things, any pre- 
 vious disability, the nature of the physical injury or disfigurement, the occu- 
 pation of the injured employe and age at the time of injury; the compensa- 
 tion paid therefor shall be 65% of the average weekly earnings of the employe, 
 but not less than $5 nor more than $12, multiplied by the percentage of dis- 
 
19 
 
 ability caused by the injury, for such period as the board may determine, not 
 exceeding 335 weeks nor a maximum sum of $4,000. Whenever the weekly 
 payments under this paragraph would be less than $3 per week, the period 
 may be shortened and the payments correspondingly increased to that amount. 
 Where compensation, except as provided in Sections four and five of this 
 act, is paid under any other provision of this act the period during which 
 such other compensation is paid and the amount thereof shall be deducted 
 respectively from the maximum period and maximum amount which may be 
 paid under this paragraph. 
 
 19. If an injured employe refuses employment reasonably suited to his 
 capacity and physical condition procured for him, he shall not be entitled to 
 compensation during the period of such refusal unless, in the opinion of the 
 board, such refusal was justifiable. 
 
 20. If a previously injured employe sustains a subsequent injury which 
 results in a condition to which both injuries, or their effects, contribute the 
 employer in whose employment the subsequent injury is sustained shall be 
 liable only for the compensation to which such resulting condition entitled the 
 employe, less all compensation which the provisions of this law would have 
 afforded an account of the prior injury or injuries had they been compensated 
 for thereunder. 
 
 21. Upon its own motion or upon the application of any party inter- 
 ested and a showing of change of conditions, mistake or fraud, the board 
 may at any time review any award or order, ending, diminishing or increasing 
 the compensation previously awarded, within the maximum and minimum 
 provided in this act, or change or revoke its previous order sending imme- 
 diately to the parties a copy of its subsequent order or award. Review 
 under this section shall be had upon notice to the parties interested and shall 
 not affect the previous order or award as to any sums already paid there- 
 under. 
 
 22. Compensation under this act to alien dependent widows and 
 children, not residents of the United States, shall be one-half of the amount 
 provided in each case for residents; and the employer may at any time, 
 commute all future installments of compensation to alien dependents the then 
 value thereof. Alien widowers, parents, brothers and sisters, not residents of 
 the United States, shall not be entitled to any compensation. 
 
 23. Any notice required to be given under this act shall be deemed 
 to have been properly given and served when deposited in the mail in a regis- 
 tered letter or package properly stamped and addressed to the person to 
 whom notice is to be given at his last known address and in time to reach him 
 in due time to act thereon. Notice may also be given and served in like 
 manner as are notices in civil actions. 
 
 Any notice, given and served as provided in this section, to the consular 
 representative of the nation of which any non-resident dependent of a de- 
 ceased employe is a citizen or subject or to the authorized agent or representa- 
 tive of any such official residing in this State, shall be deemed to have been 
 properly given and served upon such dependent. 
 
 24. Compensation shall be computed at the average weekly wage earned 
 
20 
 
 by employe at time of injury reckoning wages as earned, while working 
 at full time. 
 
 (a) If the employe, at the time of the injury, is regularly employed in 
 a higher grade of work or occupation than formerly during the year and 
 with larger regular wages, only such higher grade of work or occupation, if 
 the same be not seasonal, shall be taken into consideration in computing his 
 average weekly wages. 
 
 25. Any payments made, or the value of supplies furnished by the 
 employer or his insurer during the period of disability, to the employe or his 
 dependents, which by the terms of this act were not due or payable when made 
 or furnished, may, with the approval of the board, be deducted from the 
 amount payable as compensation. 
 
 The board may, on the application of either party, in its discretion and 
 having regard both to the welfare of the employe and the convenience and 
 financial ability of the employer, authorize compensation to be paid monthly 
 or quarterly. 
 
 26. Whenever compensation has been paid for not less than six months 
 thereafter, on the application of either party and upon notice to the other 
 party, in any case where the board may determine that it will be for the best 
 interests of either party and will not subject the employer or his insurer to an 
 undue risk of overpayment, future payments of compensation or any part 
 thereof may be commuted to a lump sum of an amount which will equal the 
 total sum of the probable future payments so commuted, discounted at 5% 
 per annum on each payment. Upon payment of such lump sum all liability 
 for the payments therein commuted shall cease. 
 
 27. Whenever for any reason the board may deem it expedient, any 
 lump sum which is paid as provided in Section twenty-six hereof shall be 
 paid to any suitable person or corporation appointed by the judge of the 
 county court of the county of the residence of the injured employe, or of his 
 dependents, as trustee to administer or apply the same for the benefit of the 
 person or persons entitled thereto. The receipt of such trustee for the amount 
 so paid to him or it shall discharge' the employer and his insurer. Except as 
 otherwise herein specifically provided, the manner of qualification and the 
 rights, duties and liabilities of such trustee shall be determined by the gen- 
 eral laws of this State. 
 
 28. The benefits in case of death shall be paid to such one or more 
 dependents of the deceased employe, for the benefit of all the dependents 
 entitled thereto, as may be determined by the board. The dependents to 
 whom payments are made shall apply the same to the use of the several 
 persons thereto entitled under this act, according to their respective claims on 
 the deceased for support. The compensation of an insane person shall be 
 paid to his or her committee. 
 
 In cases where the dependents are a widow, or other head of a family 
 of minor children, and one or more minor children, it shall be sufficient for 
 the widow or head of such family to make application for compensation on 
 behalf of all, and in cases where the dependents are mentally incapacitated or 
 are minors the head of whose family is not a dependent, the application may 
 be made by the committee, guardian or next friend of such dependents. 
 
21 
 
 29. Where an accident is caused in any degree by the intentional failure 
 of the employer to comply with any specific statute or lawful regulation made 
 thereunder, communicated to such employer and relative to installation or 
 maintenance of safety appliances or methods, the compensation for which the 
 employer would otherwise have been liable under this act shall be increased 
 15% in the amount of each payment; where the accident is caused in any 
 degree by the intentional failure of the employe to use any safety appliance 
 furnished by the employer, or to obey any lawful and reasonable rule, order 
 or regulation of the board or the employer for the safety of employees or the 
 public, the compensation for which the employer would otherwise have been 
 liable under this act, shall be decreased 15% in the amount of each payment; 
 provided, however, that nothing in this section shall be construed to conflict 
 with or impair any of the provisions of Section three of this act. 
 
 30. f In case any minor employe who is injured or killed is, at the time 
 of such injury, employed in wilful and known violation by the employer of 
 any law of this State regulating the employment of minors, his statutory 
 guardian, or personal representative of the minor so killed, may claim com- 
 pensation under the terms of this act or may sue to recover damages as if this 
 act had not been passed. If a claim to compensation be made under this 
 section, the making of such claim shall be a waiver and bar to all rights of 
 action on account of said injury or death of said minor as to all persons, and 
 the institution of an action to recover damages on account of such injury or 
 death shall be a waiver and bar of all rights to compensation under this act. 
 
 31. All rights of compensation granted by this act shall have the same 
 preference or priority for the whole thereof against the assets of the em- 
 ployer as is allowed by law for any unpaid wages for labor. 
 
 32. No claim for compensation under this act shall be assignable, and 
 all compensation and claims therefor shall be exempt from all claims of 
 creditors. 
 
 PROCEDURE TO OBTAIN COMPENSATION. 
 
 33- No proceeding under this act for compensation for an injury or 
 death shall be maintained unless a notice of the accident shall have been given 
 to the employer as soon as practicable after the happening thereof, and unless 
 a claim for compensation with respect to such injury shall have been made 
 within one year after the date of the accident, or, in case of death, within one 
 year after such death, whether or not a claim has been made by the employe 
 himself for compensation. Such notice and such claim may be given or made 
 by any person claiming to be entitled to compensation or by some one in his 
 behalf. If payments of compensation, as such, have been made voluntarily, 
 the making of a claim within such period shall not be required, but shall 
 become requisite following the suspension of such voluntary payments. 
 
 34. Such notice and such claim shall be in writing, and the notice shall 
 contain the name and address of the employe, and shall state in ordinary 
 language the time, place of occurrence, nature and cause of the accident, with 
 names of witnesses, the nature and extent of the injury sustained, and the 
 work or employment in which the employe was at the time engaged, and 
 shall be assigned by him or a person on his behalf, or, in the event of his 
 
22 
 
 death, by any one or more of his dependents or a person on their behalf. The 
 notice may include the claim. 
 
 35. Any such notice or claim shall be given to the employer, or if the 
 employer be a partnership, then to any one of the partners. If the employer 
 be a corporation, then the notice may be given to any agent of the corpora- 
 tion upon whom process may be served, or to any officer of the corporation, 
 or agent of the corporation in charge of the business at the place where the 
 injury occurred. Such notice or claim may be given by delivery to any of such 
 persons or in the manner provided in Section twenty-three hereof. 
 
 36. Such notice shall not be held invalid or insufficient by reason of 
 any inaccuracy in complying with Section thirty-four hereof, unless it be 
 shown that the employer was in fact misled to his injury thereby. Want of 
 notice or delay in giving notice shall not be a bar to proceedings under this 
 act if it be shown that the employer, his agent or representative, had knowl- 
 edge of the injury, or that such delay or failure to give notice was occasioned 
 by mistake or other reasonable cause. 
 
 37. After an injury and so long as compensation is claimed, the work- 
 man, if so requested by his employer or the board, shall submit himself to 
 examination, at reasonable time and places, to a duly qualified physician or 
 surgeon designated and paid by the employer. The employe shall have the 
 right to have a duly qualified physician or surgeon designated and paid by 
 himself present at such examination, which right, however, shall not be 
 construed to deny to the employer's physician or surgeon the right to visit the 
 injured employe at all reasonable times and under all reasonable conditions. 
 If an employe refuses to submit himself to or in any way obstruct such 
 examination his right to take or prosecute any proceedings under this act 
 shall be suspended until such refusal or obstruction ceases and no compensa- 
 tion shall be payable for the period during which said refusal or obstruction 
 continues. 
 
 38. No limitation of time provided in this act shall run against any 
 person who is mentally incompetent or who is a minor dependent, so long as 
 he has no committee, guardian or next friend. 
 
 ADMINISTRATION. 
 
 39. A board is hereby created, to be known as the "Workmen's Com- 
 pensation Board," which shall consist of three members appointed by the 
 Governor. Each member of the board shall hold office for four years and 
 until his successor shall have been appointed and qualified, except that when 
 the board is first created, one member shall be appointed for two years, one 
 for three years and one for four years. Thereafter, upon the expiration of 
 the term of any member, his successor shall be appointed for a full term of 
 four years. Of the board as first constituted, the member appointed for two 
 years shall be chairman during his term, the member appointed for three years 
 during the third year and the member appointed for four years during the 
 fourth year. Thereafter, the senior member in length of service on the board 
 in his current term in any given year shall be chairman during that year. 
 
 Vacancies on the board shall be filled by appointment for the remainder 
 
23 
 
 of the unexpired term, but no vacancy shall impair the rights of the remain- 
 ing members to exercise all the powers of the board, nor shall relieve such 
 members frorn^discharging all the duties of the board during such vacancy. 
 In the event of a vacancy, the appointee for the unexpired term shall not 
 succeed his predecessor in the chairmanship of the board; such other member 
 as would, but for the vacancy, have been chairman shall at once succeed to 
 the unexpired chairmanship, when a vacancy occurs therein, in addition to the 
 year's chairmanship to which he would otherwise have been entitled. 
 
 40. No person shall be eligible to appointment as a member of the 
 board unless he shall be at least thirty years of age, a resident of Kentucky 
 not less than three years consecutively next preceding his appointment, and 
 of good moral character. 
 
 No person accepting appointment as a member of the board and qualify- 
 ing as such shall be eligible to election or appointment to any public office 
 during any calendar year which shall include any part of the term of mem- 
 bership on the board for which he may have been appointed and qualified 
 and in which such election shall -be held or appointment made. Resignation 
 from membership on the board shall not relieve such member from any of 
 the provisions of this section and the acceptance of appointment and quali- 
 fication as a member of the board shall constitute a valid waiver of any and 
 all statutory or constitutional rights to or eligibility for holding any other 
 public office during such time. 
 
 41. The Governor may, at any time, remove any member of the board 
 for inefficiency, neglect of duty, misconduct in office or political activity, or if 
 he become ineligible as defined in Section 40, giving him in advance a copy 
 of the charges preferred and an opportunity of being publicly heard, in person 
 or by counsel, upon not less than ten days' notice. A representative of the 
 Attorney General's office shall attend such proceedings, and, upon the Gov- 
 ernor's request, shall advise or assist him therein. Either party may procure 
 the attendance of witnesses and their testimony as is now provided by the 
 Civil Code in ordinary actions. 
 
 If such member be removed, the Governor shall file in the office of the 
 Secretary of State a complete statement of all charges made against such 
 member and his findings thereon, together with a complete record of the 
 proceedings had and transcript of testimony heard, the same to constitute a 
 public record of the Commonwealth. Any member of the board may also 
 be removed by the Senate, by impeachment under the same procedure as is 
 now provided by law. 
 
 42. The salary and expenses of the board with their assistants and 
 employes shall be paid out of the maintenance fund provided for in Section 
 85 hereof; the annual salary of each member shall be three thousand five 
 hundred dollars. The board may appoint a secretary at a salary of not more 
 than twenty-five hundred dollars a year and a medical director and such 
 other assistants and employes as are necessary to the proper administration of 
 this act, at salaries to be fixed by the board and approved by the Governor; 
 provided, however, that such salaries shall in no case exceed $75 per month 
 to any stenographer, $100 per month to any clerical employe, $150 per month to 
 any other employe or assistant, or $3,000 per year to the medical director, who 
 
24 
 
 snail be a reputable licensed and practicing physician and surgeon of the pro- 
 fessional education, training or qualification required by law for admission to 
 practice in this state. The board may at any time remove any of its ap- 
 pointees upon filing with the Secretary of State a full written statement of its 
 reasons for such removal. 
 
 423. Members of the "Workmen's Compensation Board" shall be con- 
 sidered as officers, and shall take the oath prescribed by the Constitution and 
 laws of Kentucky, and shall give bond in the sum of $10,000 of a surety com- 
 pany authorized to do business in the State, for the faithful performance of 
 their duties, which bonds shall be approved by the Governor and kept on file 
 in the office of the Secretary of State, and any action on said bonds for 
 breach thereof, shall be instituted by special counsel employed by the Gov- 
 ernor and shall be in the name of the Commonwealth. The premium upon 
 said bonds shall be paid out of the maintenance fund. 
 
 42b, The board and their employes or authorized representatives shall, 
 for such traveling as is necessitated by the discharge of their official duties, 
 be allowed transportation actually paid for, not exceeding the regular fare 
 over the most direct route, and meals and lodging actually paid ior, not 
 exceeding three dollars per day, 
 
 43. The board shall keep and maintain its main offices in Frankfort, 
 Kentucky, using suitable rooms and offices belonging to the State, and shall 
 be provided necessary office furniture to be paid for out of the State treasury. 
 The board shall provide necessary supplies, books, periodicals and maps and 
 shall provide itself with a seal for the authentication of its orders, awards or 
 proceedings, on which shall be inserted the words ''Workmen's Compensation 
 Board, State of Kentucky, Official Seal." The board may hold sessions at any 
 place within the State where necessary and shall have power to sue or in- 
 stitute legal proceedings in any court of the Commonwealth, under existing 
 laws as to jurisdiction of actions; unless consented to by the board, all actions 
 or proceedings against it or a member thereof in his official capacity as such, 
 shall be brought in the courts of the county of Franklin. 
 
 44. The board shall fix and adopt at least one day of the week on 
 which regular meetings shall be held bi-weekly for the transaction of all 
 business, a quorum of the board to be present at its main offices not later 
 than 11:00 A. M., and remaining at the office, or available thereto, until 5:00 
 P. M. of such day. When necessary, the chairman shall call the board 
 together at any time during business hours on any other day to consider and 
 transact any business which may be before it. All proceedings of the board 
 shall be recorded in a book for that purpose by the secretary, which shall 
 constitute a public record and shall contain an entry of each case, claim or 
 proceeding considered, heard or passed upon by the board or a member 
 thereof, with the award, finding or decision made thereon. 
 
 45. For the purposes of this act, the State of Kentucky is hereby divided 
 into three districts, to be known respectively as the Eastern, Central and 
 W T estern Districts. The Eastern District shall contain the counties of Carroll. 
 Gallatin, Boone, Kenton, Campbell, Owen, Grant, Pendleton, Bracken, Scott, 
 Harrison, Robertson, Mason, Woodford, Jessamine, Fayette, Bourbon, 
 Nicholas, Fleming, Lewis, Greenup, Boyd, Carter, Elliott, Rowan, Bath, Mont- 
 
25 
 
 gomery, Clark, Madison, Estill, Powell, Menifee, Morgan, Lawrence, Johnson, 
 Martin, Pike, Floyd, Knott, Letcher, Perry, Magoffin, Wolfe, Lee, Breathitt, 
 Owsley. The Central District, the counties of Trimble, Henry, Oldham, 
 Jefferson, Shelby, Franklin, Bullitt, Spencer, Anderson, Nelson, Washington, 
 Mercer, Marion, Boyle, Garrard, Lincoln, Rockcastle, Green, Taylor, Adair, 
 Casey, Russell, Pulaski, Cumberland, Clinton, Wayne, McCreary, Whitley, 
 Laurel, Jackson, Clay, Leslie, Knox, Bell, Harlan. The Western District, 
 the counties of Fulton, Hickman, Graves, Carlisle, Ballard, McCracken, Cal- 
 loway, Marshall, Livingson, Crittenden, Lyon, Caldwell, Trigg, Christian, 
 Hopkins, Webster, Union, Henderson, Daviess, McLean, Muhlenberg, Todd, 
 Logan, Butler, Ohio, Hancock, Breckinridge, Meade, Hardin, Grayson, Larue, 
 Edmonson, Hart, Warren, Barren, Metcalfe, Monroe, Allen. One member 
 of the board, as first constituted, shall be appointed for each district, the suc- 
 cessors of each to thereafter be appointed from such district. During his 
 term of office, each member shall maintain his residence at some point in his 
 district and shall adopt and maintain office hours for at least one day of the 
 week at some point in his district, during usual business hours; the place, 
 day and time of maintaining such office hours and the place of residence of 
 the member shall be shown upon the official stationery used by him in his 
 district. 
 
 46. A majority of the board shall constitute a quorum for the trans- 
 action of business, and vacancies shall not impair the right of the remaining 
 members to exercise all the powers of the full board, so long as a majority 
 remains. Any investigation, inquiry or hearing which the board is authorized 
 to hold or undertake may be held or undertaken by or before any one member 
 of the board, or a referee acting for him, under authorization of the board. 
 All investigations, inquiries, hearings and decisions of the board, and every 
 order made by a member thereof, when approved by a majority of the mem- 
 bers, and so shown on a record of its proceedings, shall be deemed to be the 
 order of the board. 
 
 47. The board may make rules not inconsistent with this act for 
 carrying out the provisions of this act. Processes and procedure under this 
 act shall be as summary and simple as reasonably may be. The board or any 
 member thereof shall have the power for the purpose of this act to subpoena 
 witnesses, administer or cause to have administered oaths, and to examine or 
 cause to have examined such parts of the books and records of the parties 
 to a proceeding as relate to question in dispute. 
 
 The county sheriff shall serve all subpoenas of the board and shall receive 
 the same fees as now provided by law for like service in civil actions; each 
 witness who appears in obedience to such subpoena of the board shall receive 
 for attendance the fees and mileage for witnesses in civil cases in the courts. 
 
 The circuit court shall, on application of the board, or any member 
 thereof, enforce by proper proceedings, the attendance and testimony of wit- 
 nesses and the production and examination of books, papers and records. 
 
 48. If the employe and employer reach an agreement, conforming to 
 the provisions of this act, in regard to compensation, a memorandum of the 
 agreement shall be filed with the board, and, if approved by it, shall be en- 
 forceable in like manner as is herein provided for the enforcement of awards 
 
26 
 
 of the board. Nothing herein shall prevent the voluntary payment of com- 
 pensation in the amounts and for the periods herein prescribed, without 
 formal agreement, but nothing shall operate as a final settlement except a 
 memorandum of agreement filed with and approved by the board in accord- 
 ance with this section, or the expiration of the time limit hereinbefore pre- 
 scribed in Section 33. 
 
 49. If the parties fail to reach an agreement in regard to compensation 
 under this act, or if they have previously filed such an agreement with the 
 board and compensation has been paid or is due in accordance therewith and 
 the parties thereafter disagree, either party may make written application to 
 the board for a hearing in regard to the matter at issue and for a ruling 
 thereon. Such application for a hearing must be filed as soon as is practicable 
 after disagreement, or after the cessation of voluntary payments, if any have 
 been made. 
 
 As soon as possible after such application has been received the board 
 shall set the date for a hearing, to be held as soon as is practicable in view 
 of the matter involved, and shall notify the parties at issue of the time and 
 place of such hearing. 
 
 Unless otherwise agreed to by the parties and authorized by the board, 
 the hearing shall be held at or convenient to the place where the injury was 
 sustained or the ground for disagreement occurred. In advance of directing 
 a hearing, the board, or a member thereof, or referee authorized by the board, 
 may confer informally with the parties at issue in an attempt to assist in 
 adjusting their differences, but may not delay the granting of a hearing, over 
 the objection of either party, for such purpose. 
 
 50. The board, or any of its members, shall hear the parties at issue 
 and their representatives and witnesses and shall determine the dispute in a 
 summary manner. The award, together with a statement of the findings of 
 fact, rulings of law and any other matters pertinent to the question at issue, 
 shall be filed with the record of proceedings, and a copy of the award shall 
 immediately be sent to the parties in dispute. 
 
 51. If an application for review is made to the board within seven days 
 from the date of the award, the full board, if the first hearing was not held 
 before the full board, shall review the evidence, or if deemed advisable, as 
 soon as practicable, hear the parties at issue, their representatives and wit- 
 nesses and shall make and award and file the same in like manner as specified 
 in the foregoing section. 
 
 If a party introduce at a hearing before the full board a witness whose 
 testimony at the original hearing appears in the transcript of evidence taken 
 thereat, the costs accruing through the attendance of such witness and the 
 transcribing of his testimony at the second hearing shall be borne by the party 
 introducing him, at such hearing, regardless of the outcome of the controversy. 
 
 52. An award, or order of the board, as provided in Section 50, if 
 application for review be not filed as therein provided, or an award or order 
 of the board upon review as provided in Section 51, shall be conclusive, and 
 binding as to all questions of fact, but either party may, within twenty days 
 after the rendition of such final order or award of the board may by petition 
 appeal to the circuit court that would have jurisdiction to try an action for 
 
damages for said injuries if this Act had not passed, for the review of such 
 order or award, the board and the adverse party being made respondents. 
 Such petition shall state fully the grounds upon which a review is sought, 
 assign all errors relied on and shall be verified by the petitioner, who shall 
 furnish copies of the petition to the respondents at the time of filing same. 
 
 Summons shall issue upon the petition, directing the adverse party to file 
 answer within fifteen days after service thereof and directing the board to 
 certify its complete record of the case to the court, or, in lieu thereof, and 
 if consented to by the petitioner and adverse party, an abstract of the record 
 prepared in the same manner as hereinafter provided for appeals to the Court 
 of Appeals. 
 
 No new or additional evidence may be introduced in the circuit court, 
 except as to the fraud or misconduct of some person engaged in the adminis- 
 tration of this Act, and affecting the order, ruling or award, but the court 
 shall otherwise hear the cause upon the record or abstract thereof as certified 
 by the board, and shall dispose of the cause in summary manner, its review 
 being limited to determining whether or not : 
 
 1. The board acted without or in excess of its powers. 
 
 2. The order, decision or award was procured by fraud. 
 
 3. The order, decision or award is not in conformity to the provisions 
 of this Act 
 
 4. If findings of fact are in issue, whether such findings of fact support 
 the order, decision or award. 
 
 The board and each party shall have the right to appear in such review 
 proceedings; the court shall enter judgment affirming, modifying or setting 
 aside the order, decision or award, or in its discretion remanding the cause 
 to the board for further proceedings in conformity with the direction of the 
 court. The court may, in advance of judgment and upon a sufficient showing 
 of fact, remand the cause to the board. 
 
 53- Where an amount sufficient under existing laws to authorize an 
 appeal to the Court of Appeals is involved, the judgment of the circuit court 
 shall be subject to appeal to the Court of Appeals, the scope of whose review 
 shall include all matters herein made the subject of review by the circuit 
 court and also errors of law arising in the circuit court and upon appeal made 
 reviewable by the Civil Code of procedure where not in conflict with the 
 provisions of this Act. The procedure as to appeal to the Court of Appeals 
 shall be the same as in civil actions, so far as the same may be applicable to 
 and not in conflict with the provisions of this act, except as follows: 
 
 1. Only so much of the evidence shall be embraced in a bill of exceptions 
 as may be necessary to present clearly the questions of law involved in the 
 rulings to which exceptions are reserved, and such evidence as is embraced 
 therein shall be set forth in condensed and narrative form, save as a proper 
 understanding of the questions presented may require that parts of it be set 
 forth otherwise. 
 
 2. In order to carry out the provisions of sub-section i and further to 
 reduce the size of the record on appeal, it shall be the duty of the appellant to 
 file with the clerk of the circuit court, together with proof or acknowledg- 
 ment of service of a copy on the appellee or his counsel, a schedule which shall 
 
28 
 
 indicate the portions of the record to be incorporated into the transcript of the 
 record on such appeal. Should the appellee or his counsel desire additional 
 portions of the record incorporated into the record to be filed in the Court 
 of Appeals, he may file with the clerk of the circuit court his schedule also, 
 within ten days thereafter (unless the term be extended by order of the 
 circuit court or of the Court of Appeals), indicating such additional portions 
 of the record desired by him. 
 
 The clerk of the circuit shall transmit to the Court of Appeals as the 
 transcript of the record only those portions of the record in the lower court 
 which are designated by the parties as above provided. The parties, or their 
 counsel, may, however, agree by written stipulation to be filed with the clerk 
 of the circuit court, the portions of the record which shall constitute the 
 transcript of record on appeal, and the clerk in such case shall transmit only 
 the papers designated in such stipulation. 
 
 54. If the Court of Appeals shall find that portions of the record un- 
 necessary to a proper presentation of the case have been incorporated into the 
 transcript by either party, the court may order that the whole or any part of 
 the clerk's fee for preparing the transcript shall be paid by the offending party. 
 
 Whenever it shall be necessary or proper, in the opinion of the judge of 
 the circuit court, that original papers of any kind should be inspected by the 
 Court of Appeals, such judge may make such rule or order for the safe- 
 keeping, transporting and return of such original papers as to him may seem 
 proper, and the Court of Appeals will receive and consider such original 
 papers in connection with the transcript of the record. 
 
 55- Upon motion of either party and a sufficient showing of reason or 
 necessity therefor, the court to which an appeal is taken may continue in 
 force the award, judgment or order appealed from, pending its decision of 
 such appeal. 
 
 56. Any party in interest may file in the circuit court of the county in 
 which the injury occurred a certified copy of a memorandum of agreement 
 approved by the board or of an order or decision of the board, or of an 
 award of the board unappealed from, or of an award of the board rendered 
 upon an appeal, whereupon said court shall render judgment in accordance 
 therewith and notify the parties. Such judgment shall have the same effect 
 and all proceedings in relation thereto shall thereafter be the same as though 
 said judgment had been rendered in a suit duly heard and determined by said 
 court. 
 
 Any such judgment of said circuit court unappealed from or affirmed 
 on appeal or modified in obedience to the mandate of the Appellate Court, 
 shall be modified to conform to any decision of the board, ending, diminishing 
 or increasing any weekly payment under the provisions of Section 21 of this 
 Act, upon a presentation to it of a certified copy of such decision. 
 
 57. If the board or any court before whom any proceedings are 
 brought under this act shall determine that such proceedings have been 
 brought, prosecuted or defended without reasonable ground, it may assess 
 the whole cost of the proceedings upon the party who has so brought, prose- 
 cuted or defended them. 
 
58. The board, or arty member thereof, may, upon the application of 
 either party, or upon its own motion, appoint a disinterested and duly qualified 
 physician or surgeon to make any necessary medical examination of the em- 
 ploye and to testify in respect thereto. Said physician or surgeon shall be 
 allowed traveling expenses and a reasonable fee to be fixed by the board, but 
 not exceeding $10 for each examination and report, but the board may allow 
 additional reasonable amounts in extraordinary cases. 
 
 The fees and expenses of such physician or surgeon shall be paid out 
 of the maintenance fund. 
 
 59. All fees of attorneys and physicians and charges of hospitals under 
 this Act shall be subject to the approval of the board. No attorney's fees 
 shall be allowed or approved against any party or parties not represented by 
 such attorney, nor exceeding an amount equal to 15% of the amount of the 
 first $1,000 or fraction thereof recovered, or 10% of the excess of such recov- 
 ery, if any, over $1,000. The board may deny or reduce an attorney's fee 
 upon proof of solicitation of employment. 
 
 60. All questions arising under this act, if not settled by agreement of 
 the parties interested therein, with the approval of the board,, shall be de- 
 termined by the board except as otherwise herein provided for. 
 
 61. Every employer subject to this Act shall hereafter keep a record of 
 all injuries, fatal or otherwise, received by his employes in the course of their 
 employment. Within one week after the occurrence and knowledge thereof, 
 as provided in Sections 33-36, of an injury to an employe, causing his absence 
 from work for more than one day, a report thereof shall be made in writing* 
 and mailed to the board on blanks to be procured from the board for the 
 purpose. 
 
 Upon the termination of the disability of the injured employe, or if the 
 disability extends beyond a period of sixty days, then also at the expiration 
 of such period, the employer shall make a supplementary report to the board 
 on blanks to be procured from the board for the purpose. 
 
 The said report shall contain the name, nature and location of the busi- 
 ness of the employer, and name, age, sex, wages and occupation of the 
 injured employe, and shall state the date and hour of the accident, causing the 
 injury, the nature and cause of the injury, and such other information as may 
 be required by the board. 
 
 Any employer subject to this act who refuses or wilfully neglects to make 
 the report required by this section shall be liable for a fine of not more than 
 $25 for each such refusal or neglect. 
 
 62. Any person who shall knowingly file, cause to be filed, or permit to 
 be filed, any false or fraudulent claim, on his behalf, to compensation or other 
 benefits under this Act, or who shall by fraud, deceit or misrepresentation 
 procure or cause to be made or shall receive any payments of compensation 
 or other benefits under this act to which the recipient is not lawfully entitled, 
 or shall conspire with, aid or abet another so to do, shall be guilty of a 
 misdemeanor. 
 
 Any person who shall by deceit or misrepresentation and with intent to 
 defraud, cause or procure or conspire with, aid or abet another in so causing 
 
or procuring, any person entitled to compensation or other benefits under this 
 Act to omit to title claim thereto or to accept the payment of a less sum 
 than that to which he may be lawfully entitled to thereunder, shall be guilty 
 of a misdemeanor. 
 
 Any person guilty of a misdemeanor as defined in this section shall, upon 
 conviction, be punishable by a fine of not less than $50 nor more than $500, or 
 imprisonment of not less than ten nor more than ninety days, in the dis- 
 cretion of the jury. 
 
 63. Every employer under this Act shall either insure and keep in- 
 sured his liability for compensation hereunder in some corporation, association 
 or organization authorized to transact the business of workmen's compensa- 
 tion insurance in this State, or shall furnish to the board satisfactory proof 
 of his financial ability to pay direct the compensation in the amount and 
 manner and when due as provided for in this Act. In the latter case, the 
 board shall require the deposit of an acceptable security, indemnity or bond 
 to secure to such an extent as the board may direct, the payment of com- 
 pensation liabilities as they are incurred. 
 
 Every employer accepting the provisions of this act shall at the time of 
 such acceptance file with the board in substantially the form prescribed by it, 
 and annually thereafter, or as often as may be necessary, evidence of his 
 compliance with the provisions of this section and all others relating thereto. 
 Until these provisions are complied with, the employer, shall, from the date 
 of his acceptance of the act, be liable to an employe either for compensation 
 under this Act or at law in the same manner as if the employer had refused 
 to accept the provisions of this Act. Claim of compensation in such cases 
 shall be deemed a waiver of the right to proceed at law and the institution of 
 an action at law shall be deemed a waiver of all claim to compensation. 
 
 64. Whenever an employer has complied with the provisions of Section 
 63, relating to self-insurance, the board shall issue to such employer a certifi- 
 cate which shall remain in force for a period fixed by the board, but the 
 board may, upon at least sixty days' notice and a hearing to the employer, 
 revoke the certificate upon satisfactory evidence for such revocation having 
 been presented. The board may thereafter, upon petition of the employer 
 and a hearing, grant a new certificate, but the employer shall not, as a matter 
 of right, be entitled to a hearing for this purpose sooner than six months 
 after a previous revocation of his certificate. 
 
 Authorization to make payments of compensation direct may be granted 
 either as to the employer's entire risk, or as to such part or class thereof as 
 the board may direct in its certificate. In the latter case the board shall 
 determine the extent to which and the manner in which the remainder of his 
 said risk shall be insured. Any employer authorized to make payments of 
 compensation direct, may, for his own protection, independently insure the 
 whole or any part or character of such payments. 
 
 65. For the purposes of complying with the provisions of Section 63 
 groups of employers are hereby authorized to form either among themselves 
 or with employers in other states Mutual Insurance Associations or Reciprocal 
 or Inter-insurance Exchanges subject to the general laws of this State re- 
 lating to such Mutual Insurance Associations or Reciprocal or Inter-insurance 
 
31 
 
 Exchanges and such reasonable conditions and restrictions, not inconsistent 
 therewith, as may be fixed by the board. Membership in such Mutual In- 
 surance Associations or Reciprocal or Inter-insurance Exchanges so approved, 
 together with evidence of the payment of premiums due, shall be evidence of 
 compliance with Section 63. 
 
 The board shall have power in any case to require any Mutual Insurance 
 Association or Reciprocal or Inter-insurance Exchange to purchase an annuity 
 or to effect re-insurance with a company authorized to transact insurance in 
 this State or to make such deposit with a bank or trust company of this State 
 as shall in either case be approved by said board for the purpose of fully 
 securing the payment of all deferred installments upon any claim for com- 
 pensation. 
 
 Any unreasonable failure or delay in securing the payment of any de- 
 ferred installments of compensation after request has been made by such 
 board as provided in this action,* shall, when reported to the Insurance Com- 
 missioner, constitute grounds for suspension or revocation of the insurer's 
 license to do business in this State. 
 
 66. Subject to the approval of the board any employer may enter into 
 or continue any agreement with his employe to provide a system of compen- 
 sation, benefit or insurance in lieu of the compensation and insurance pro- 
 vided by this act. No such substitute system shall be approved unless it 
 confers benefits upon injured employes at least equivalent to the benefits 
 provided by this act, nor if it requires contributions from the employes, unless 
 it confers benefits in addition to those provided under this Act at least com- 
 mensurate with such contributions. 
 
 Such substitute system may be terminated by the board on reasonable 
 notice and hearing to the interested parties if it shall appear that the same is 
 not fairly administered, or if its operation shall disclose latent defects threat- 
 ening its solvency, or if for any substantial reason it fails to accomplish the 
 purpose of this Act; and in this case the board shall determine upon the 
 proper distribution of all remaining assets, if any, subject to the right of any 
 party in interest to take an appeal to the courts. 
 
 67. All policies insuring the payment of compensation under this Act 
 must contain a clause to the effect that as between the employer and the 
 insurer the notice to or knowledge of the occurrence of the injury on the part 
 of the insured shall be deemed notice or knowledge, as the case may be, on the 
 part of the insurer; that jurisdiction of the insured for the purpose of this Act 
 shall be jurisdiction of the insurer; and that the insurer shall in all things 
 be bound by and subject to the awards, judgments or decrees rendered against 
 such insured. 
 
 68. No policy of insurance against liability for compensation arising 
 under this act shall be issued unless it contains the agreement of the insurer 
 that it will promptly pay to the person entitled to same all benefits conferred 
 by this Act, and all installments of the compensation that may be awarded or 
 agreed upon, and that the obligation shall not be affected by any default in 
 the giving of any notice required by such policy, or otherwise. Such agreement 
 
 * Evidently intended for "section." 
 
32 
 
 shall be construed to be a direct promise by the insurer to person entitled to 
 compensation enforceable in his name. 
 
 69. Every policy for the insurance of the compensation herein provided, 
 against liability therefor, shall be deemed to be made subject to the pro- 
 visions of this act. No corporation, association or organization shall enter 
 into any such policy of insurance unless its form shall have been approved 
 by the board. 
 
 70. Every policy or contract of workmen's compensation insurance 
 under this Act, issued or delivered in this State, shall cover the entire liability 
 of the employer for compensation under this Act to each and all of his em- 
 ployes covered by such policy, except as otherwise provided in Section 64 
 hereof, regardless of whatever other contingencies may be insured or pro- 
 vided for by riders attached thereto or endorsements made thereon. On the 
 face of every such policy shall be printed conspicuously tfre words, "Insur- 
 ance under this policy is in Class (designating the same) of the Company's 
 Workmen's Compensation Classification Manual," and in the blank thus 
 provided the number or other designation in said manual under which the said 
 policy is written shall be placed before the policy is issued. If more than one 
 class of risk be covered by the same policy, the separate risks and their cor- 
 responding manual classifications shall be stated in the same manner. 
 
 71- No such policy of insurance or rider to be used therewith shall be 
 issued or delivered until a copy of the form thereof has been filed with the 
 Commissioner of Insurance at least thirty days prior to such issue or de- 
 livery, unless before the expiration of thirty days the said Commissioner 
 shall have approved the form thereof in writing; nor if the Commissioner of 
 Insurance notifies the company in writing that in his opinion the form of 
 said policy or rider does not comply with the laws of this Commonwealth, 
 specifying fully the reasons for his opinion ; provided, that upon petition of 
 the company the decision of the said Commissioner shall be subject to re- 
 view by the Franklin Circuit Court and to appeal therefrom to the Court of 
 Appeals. 
 
 72. The rates charged by all carriers of insurance, including the 
 parties to any mutual, inter-indemnity, inter-insurance, reciprocal or other 
 plan or scheme, writing insurance against the liability for compensation under 
 this Act, for insurance against such liability and against the liability of em- 
 ployers to employes where either or both have not elected to furnish or ac- 
 cept compensation under this Act, shall be fair, reasonable and adequate, with 
 due allowance for merit rating, and all risks of the same kind and degree of 
 hazard shall be written at the same rate by the same carrier. No policy of 
 insurance against liability for compensation under this act shall be valid until 
 the rate thereof has been approved by the board, nor shall any such carrier 
 of insurance write any such policy or contract until its basic and merit rating 
 schedule have been filed with, approved and not subsequently disapproved by 
 the board. Each such insurance carrier shall report to the board* State In- 
 surance Commissioner in accordance with such reasonable rules as the State 
 Insurance Commissioner may at any time prescribe, for the purpose of 
 
 * So in certified copy. 
 
33 
 
 determining the solvency of the carrier, and the adequacy of its rates; for 
 such purposes the board or State Insurance Commissioner may inspect the 
 books and records of such insurance carrier, and examine its officers, agents 
 and directors under oath. 
 
 73. Election to operate under the provisions of this Act shall be effected 
 by the employer by filing with the board the following notice, to-wit : 
 
 "(Name of employer) elects to operate under the provisions of Chapter 
 
 , Acts of 1916, commonly known as the Workmen's Compensation 
 
 Act, this election being effective as of the day of and covering 
 
 (here insert name of industry, business or operation on which election is 
 made)." 
 
 In addition to the name of each industry, business or operation as to 
 which such election is filed, there shall also be stated in the notice with 
 reference thereto (i) its location and address of chief office, (2) average 
 number of employes during preceding twelve months, (3) kind of business 
 being conducted, (4) method of securing payments of compensation to em- 
 ployes which the employer elects to adopt. 
 
 Such notice shall be in writing and signed by the employer, if an indi- 
 vidual, by any partner if a partnership, or by the chief officer or agent within 
 this State if a corporation. 
 
 74. Election to operate under the provisions of this Act shall be effected 
 by the employe by signing the following notice, to-wit: 
 
 "I hereby agree with (name of employer) to accept the provisions of 
 Chapter Acts of 1916, commonly known as the Kentucky Work- 
 men's Compensation Act." 
 
 The election shall be effective from, and including, the date of signing, 
 which shall be inserted opposite the employe's signature. In case an employe 
 be unable to write, his mark shall be witnessed by a third person, who shall at 
 the time read the notice to the employe. Any number of employes may sign 
 the same notice, provided that there be conspicuously written or printed at the 
 top of each page thereof on which signatures appear a copy of the above form 
 of notice. If the employment be intermittent or be temporarily suspended, 
 the original acceptance of the employe shall continue effective in subsequent 
 employment under the same employer. 
 
 Identification of such signature or mark of the employe shall constitute 
 conclusive proof of his election to operate under the provisions of this Act, 
 in any hearing or proceeding in which such election may be material or in 
 issue. 
 
 75. All such notices of election by employes shall, when executed, be 
 preserved by the employer during the continuation of the employment of those 
 employes whose names are subscribed thereto. Any person who shall, with 
 fraudulent intent, wilfully destroy, convert or secrete any such notice, or 
 wilfully deprive the owner or his agent thereof, or erase or obliterate any part 
 thereof, shall be guilty of a misdemeanor and upon conviction be punishable 
 by a fine of not less than $50 nor more than $200, or imprisonment of not less 
 than ten days nor more than ninety days, in the discretion of the jury. 
 
 76. At any time after electing to operate under the provisions of this 
 Act, either party may withdraw such election, the employer by filing written 
 
34 
 
 notice with the board stating the date when such withdrawal is effective and 
 the industry, business or operation covered thereby, by personal written notice 
 to the employe or posting in conspicuous places about such place of business 
 not less than one week next preceding the date on which the same is to become 
 effective copies of such notice of withdrawal; the employe desiring to with- 
 draw such election shall file with the employer a written notice of withdrawal, 
 stating the date when such withdrawal is to become effective. Following the 
 filing or giving of such notices, the status of the party withdrawing shall 
 become the same as if his former election had not been made; provided, 
 however, that withdrawal shall not be effective as to an injury sustained less 
 than one week after the filing thereof. 
 
 An employer, while operating under the provisions of this Act, shall at all 
 times keep posted in conspicuous places about his place of business notices to 
 that effect, in such form as may be prescribed by the board. 
 
 76a. Every employer affected by the provisions of this Act who does 
 not elect to operate thereunder shall not, in any suit at law by an employe 
 or his representative to recover damages for personal injury or death by 
 accident arising out of and in the course of his employment, be permitted to 
 defend any such suit at law upon any or all of the following grounds : 
 
 (1) That the employe was guilty of contributory negligence. 
 
 (2) That the injury was caused by the negligence of a fellow servant of 
 the injured employe. 
 
 (3) That the employe has assumed the risk of injury. 
 
 76b. Every employe affected by the provisions of this act who does not 
 elect to operate thereunder, and his representative in case of death, shall, in 
 any suit at law to recover damages for personal injury or death by accident 
 arising out of and in the course of his employment against an employer elect- 
 ing to operate under the provisions of this Act, proceed at law as if this act 
 had not been enacted, and the employer may avail himself of the defenses of 
 contributory negligence, negligence of a fellow servant and assumption of 
 risk as such defenses now exist at common law. 
 
 77. No agreement by any employe to pay any portion of the insurance 
 premium paid by his employer shall be valid, and any employer who deducts 
 any portion of such premium from the wages or salary of any employe entitled 
 to the benefits of this Act shall be guilty of a misdemeanor and upon con- 
 viction thereof shall be fined not more than $100, for each offense. 
 
 78. Upon the request of the board, the Attorney General, or, under his 
 direction, the Commonwealth's Attorney or County Attorney of any county, 
 shall institute and prosecute the necessary actions or proceedings for the 
 enforcement of any of the provisions of this Act, arising within the county 
 or counties of their respective jurisdictions, and shall defend in like manner 
 all suits, actions or proceedings brought against the board or the members 
 thereof in their official capacity. 
 
 79. The board shall prepare and furnish, free of charge, blank forms 
 and provide its rules for their distribution, so that the same may be readily 
 available, of all notices, claims, reports, proofs and other blank forms and 
 literature which it may deem proper and requisite to the efficient adminis- 
 
35 
 
 tration of this Act. It may authorize the publication and distribution of such 
 blanks by employers and their insurers in manner and form provided by it. 
 
 80. Annually on or before the I5th day of December the board shall 
 make a report to the Governor for the preceding fiscal year, which shall 
 include a statement of the number of awards made and of claims rejected by 
 it, a general statement of the causes of accident leading to the injuries for 
 which awards were made or rejected claims based, and a detailed statement of 
 the disbursements from, and unpaid expenses chargeable against, the main- 
 tenance fund and its condition, together with any other information which 
 the board deems proper to call to the attention of the Governor, including any 
 recommendations it may have to make, and it shall be the duty of the board 
 to publish and distribute among employers and employees such general infor- 
 mation as to the business transacted by the department as may be useful and 
 necessary; provided, however, that an abuse of such right to so publish and 
 distribute information shall constitute political activity within the meaning of 
 Section 41 hereof. 
 
 The annual report shall not exceed five hundred copies. All printing of 
 the department shall be done by the contractor or contractors for public 
 printing, subject to such provisions of the general laws governing public 
 printing as may be applicable thereto, and shall be paid for out of any funds 
 in the State treasury not otherwise appropriated. 
 
 81. This act shall become effective on the first day of August, 1916, 
 except as to Sections 39 to 47, hereof, both inclusive, relating to the appoint- 
 ment of the board and their rights, powers and duties, an emergency is de- 
 clared to exist, and the same shall become effective on the first day of April, 
 1916. 
 
 Elections by employers and employes and contracts of insurance entered 
 into in conformity with the provisions of this Act, between April 1st, 1916, 
 and August 1st, 1916, to become effective on or after August 1st, 1916, 
 shall be valid and enforceable. 
 
 82. For the purpose of paying the salaries and expenses of the board 
 and its necessary employes in making preparation and putting this Act into 
 operation the sum of $7,500 is hereby appropriated, payable out of any funds 
 in the State treasury not otherwise appropriated. All claims for salaries or 
 expenses, when approved by resolution of the board, and countersigned by the 
 chairman thereof, shall be presented to the Auditor of Public Accounts, who 
 shall issue his warrant in payment thereof. All such claims shall show to 
 whom and for what service, material or other things or reason such amounts 
 are to be paid and shall be accompanied by voucher checks or receipts covering 
 the same except as to items of less than $1.00. 
 
 83. For the purpose of paying the salaries and necessary expenses of 
 the board and its assistants and employes in administering and carrying out 
 the provisions of this Act an administrative fund shall be created and main- 
 tained in the following manner: 
 
 Sub-section i. Every person, partnership, association, corporation, 
 whether organized under the laws of this or any other state or country, com- 
 pany, mutual company or association, the parties to any inter-indemnity con- 
 tract or reciprocal plan or scheme, and every other insurance carrier, insuring 
 
36 
 
 employers in this state against liability for personal injuries to their employes, 
 or death caused thereby, under the provisions of this Act, shall, as herein- 
 after provided, pay a tax upon the premiums received, whether in cash .or 
 notes, -in this State or on account of business done in this State, for such 
 insurance in this State, at the rate of 4 per cent, of the amount of such pre- 
 miums, which tax shall be in lieu of all other taxes on such premiums, which 
 tax shall be assessed and collected as hereinafter provided. Provided, how- 
 ever, that such insurance carriers shall be credited with all cancelled or re- 
 turned premiums actually refunded during the year on such insurance, and 
 with premiums, on re-insurance with companies authorized and licensed to 
 transact business in Kentucky, which re-insurance shall be reported by the 
 re-insurer; but no credit shall be allowed for re-insurance in companies not 
 licensed to transact business in Kentucky. 
 
 Sub-section 2. Every such insurance carrier shall, for the six months 
 ending October 3ist, 1916, for the eight months ending June 3Oth, 1917, and 
 annually thereafter, make a return verified by the affidavit of its president and 
 secretary, or other chief officers or agents, to the Commissioner of In- 
 surance, stating the amount of all such premiums and credits during the period 
 covered by such return. Every insurance carrier required to make such return 
 shall file the same with the Commissioner of Insurance within thirty days 
 aftec the close of the period covered thereby and shall at the same time pay 
 into the State treasury a tax of $4 on each $100 of such premium ascertained 
 as provided in subsection I hereof, less returned premiums on cancelled 
 policies and re-insurance with other companies licensed to transact business in 
 this State, and upon payment file a statement with the Secretary of State. 
 Upon receiving such "payments the State Treasurer shall place the whole 
 thereof to the credit of the fund for the administration of this Act. 
 
 Sub-section 3. If any such insurance carrier shall fail or refuse to make 
 the return required by this Act, the said Commissioner of Insurance shall 
 assess the tax against such insurance carrier at the rate herein provided for, 
 on such amount of premiums as he may deem just, and the proceedings 
 thereon shall be the same as if the return had been made. 
 
 Sub-section 4. If any such insurance carrier shall withdraw from busi- 
 ness in this State before the tax shall fall due, as herein provided, or shall fail 
 or neglect to pay such tax, the Commissioner of Insurance shall at once pro- 
 ceed to collect the same, and he is hereby empowered and authorized to employ 
 such legal process as may be necessary for that purpose, and when so collected 
 he shall pay the same into the State treasury. The suit may be brought by the 
 Commissioner of Insurance, in his official capacity, in any court of this State 
 having jurisdiction; reasonable attorney's fees may be taxed as costs therein, 
 and process may issue to any county of the State, and may be served as in civil 
 actions, or in cases of unincorporated associations, partnerships, inter- 
 indemnity contracts or other plan or scheme, upon the principal agent of the 
 parties thereto. 
 
 Sub-section 5. Any person or persons who shall in this State act or 
 assume to act as agent for any such insurance carried whose authority to do 
 business in this State has been suspended, while such suspension remains in 
 force, or shall neglect or refuse to comply with any of the provisions of this 
 
37 
 
 section obligatory upon such persons or party, or who shall wilfully make a 
 false or fraudulent statement of the business or condition of any such insur- 
 ance carrier or false or fraudulent return as herein provided, shall be deemed 
 guilty of a misdemeanor, and upon conviction shall be punished by a fine of 
 not less than $100 nor more than $1,000, or by imprisonment for not less than 
 ten nor more than ninety days, or both such fine and imprisonment, in the 
 discretion of the jury. 
 
 Sub-section 6. Whenever by this Act any officer is required to give any 
 notice to an insurance carrier, the same may be given by delivery, or by mail- 
 ing by registered letter properly addressed and stamped, to the principal office 
 or chief agent of such insurance carrier within this State, or to its home 
 office, or to the secretary, general agent or chief officer thereof in the United 
 States. 
 
 Sub-section 7. Any insurance carrier liable to pay a tax upon premiums 
 under this Act shall not be liable to pay any other or further tax upon such 
 premiums, or on account thereof, under any other law of this State. 
 
 Sub-section 8. Every employer carrying his own risk under the pro- 
 visions of Section 63 shall, under oath, report to the board his pay roll subject 
 to the provisions of this Act. Such report shall be made in form prescribed 
 tfy the board and at the times herein provided for premium reports by insurer. 
 The board shall assess against such pay roll a maintenance fund tax com- 
 puted by taking 4 per cent of the basic premiums chargeable against the same 
 or most similar industry or business, taken from the manual insurance rates 
 for compensation then in force in this State. 
 
 Sub-section 9. The board shall not be authorized to incur expenses or 
 indebtedness during any period, chargeable against the maintenance fund, in 
 excess of the premium tax payable to such fund for the same period. If it 
 be ascertained that the tax collected for a given period exceeds the total 
 expense chargeable against the maintenance fund under the provisions of this 
 act, the board may authorize a corresponding credit upon collections for the 
 succeeding period. 
 
 84. Kentucky Employes' Insurance Association. For the purpose of 
 carrying out the provisions of this act, and of affording to employers a 
 method of insuring their liability as required thereby, the Kentucky Em- 
 ployes' Insurance Association is hereby created a body corporate with the 
 powers provided herein and with all the general corporate powers incident 
 thereto. 
 
 85. The Board of Directors of the Association shall consist of 15 
 members thereof, three of whom shall be appointed by the Governor, and 12 
 of whom shall be elected by ballot of the subscribers, in accordance with 
 Section 207 of the Constitution. Of the original directors appointed by the 
 Governor, one shall be appointed for one year, one for two years, and one 
 for three years ; annually thereafter one director shall be appointed for a term 
 of three years. Election of directors by the subscribers shall be held at such 
 times and in such manner as the by-laws shall provide. 
 
 86. The appointed directors shall, within thirty days of the subscrip- 
 tion of twenty-five employers, call the first meeting of the subscribers by a 
 
notice in writing mailed to each subscriber at his place of business not less 
 than ten days before the date fixed for the meeting. 
 
 87. At the first meeting of the subscribers the remaining twelve di- 
 rectors shall be elected. The board of directors may thereafter exercise power 
 as such and may adopt by-laws not inconsistent with the provisions of this 
 Act. 
 
 88. The board of directors shall annually choose by ballot a president, 
 who shall be a member of the board, a secretary, a treasurer, and such other 
 officers as the by-laws shall provide. 
 
 89. Seven or more of the directors shall constitute a quorum for the 
 transaction of business. 
 
 Vacancies in any office may be filled in such manner as the by-laws shall 
 provide. 
 
 90. Any employer in the Commonwealth may become a subscriber. 
 
 91. In any meeting of the subscribers each subscriber shall be entitled 
 to one vote, and if a subscriber has 250 employes to whom the association is 
 bound to pay compensation he shall be entitled to two votes, and he shall 
 be entiled to one additional vote for each additional 250 employes to whom 
 the association is bound to pay compensation, but no subscriber shall cast 
 by his own right or by the right of proxy, more than 10 votes. 
 
 92. No policy shall be issued by the association until* less than fifty 
 employers have subscribed who have not less than five thousand employes 
 to whom the association may be bound to pay compensation. 
 
 93. No policy shall be issued until a list of the subscribers, with the 
 number of employes of each, together with such other information as the 
 Insurance Commissioner may require, shall have been filed at the insurance 
 department, nor until the president and secretary of the association shall have 
 certified under oath that every subscription in the list so filed is genuine and 
 made with an agreement by every subscriber that he will take the policies 
 subscribed for by him, within thirty days of the granting of a license to the 
 association by the Insurance Commissioner to issue policies. 
 
 94. The board of directors shall distribute the subscribers into groups 
 in accordance with the nature of the business and the degree of the risk of 
 injury. 
 
 Subscribers within each group shall annually pay in cash, or notes abso- 
 lutely payable, such premiums as may be required to pay the compensation 
 herein provided for the injuries which may occur in that year. 
 
 95. The association may in its by-laws and policies fix the contingent 
 mutual liability of the subscribers for the payment of losses and expenses not 
 provided for by its cash funds; but such contingent liability of a subscriber 
 shall not be less than an amount equal to and in addition to the cash premium. 
 
 96. If the association is not possessed of cash funds above its unearned 
 premiums sufficient for the payment of incurred losses and expenses, it shall 
 make an assessment for the amount needed to pay such losses and expenses 
 upon the subscriber liable to assesment therefor in proportion to their several 
 liability. 
 
 The word "not," in bill as introduced, is omitted from certified copy. 
 
Every subscriber shall pay his proportional part of any assessments which 
 may be laid by the association, in accordance with law and his contract, on 
 account of injuries sustained and expenses incurred while he is a subscriber. 
 
 97. The board of directors may, from time to time, by vote, fix and 
 determine the amount to be paid as a dividend upon policies expiring during 
 each year after retaining sufficient sums to pay all the compensation which 
 may be payable on account of injuries sustained and expenses incurred. 
 
 All premiums, assessments and dividends shall be fixed by and for groups 
 as heretofore provided in accordance with the experience of each group, but 
 all the funds of the association and the contingent liability of all the sub- 
 scribers shall be available for the payment of any claim against the association. 
 
 98. Any proposed premium, assessment, dividend or distribution of 
 subscribers shall be filed with the insurance department and shall not take 
 effect until approved by Insurance Commissioner after such investigation as 
 he may deem necessary. 
 
 99. The board of directors shall make and enforce reasonable rules 
 and regulations for the prevention of injuries on the premises of subscribers, 
 and for this purpose the inspectors of the association shall have free access 
 to all such premises during regular working hours. 
 
 Any subscriber or employe aggrieved by any such rule or regulation may 
 petition the Workmen's Compensation Board for a review and it may affirm, 
 amend or annul the rule or regulation. 
 
 loo. If any officer of the association shall falsely make oath to any 
 certificate required to be filed with the Insurance Commissioner, he shall be 
 guilty of perjury. 
 
 101. This act shall not affect any causes of action existing or action 
 pending on August I, 1916, and, its application as between employer and 
 employe, except as otherwise herein provided, shall date from and include 
 August i, 1916. 
 
 102. The rule of law requiring strict construction of statutes in 
 derogation of the common law shall not be applicable to the provisions of 
 this Act. If any section or part thereof shall be held invalid, such partial 
 invalidity shall not affect the Act as a whole or any other section or part 
 thereof. 
 
 Approved March 23rd, 1916. 
 
 A. O. STANLEY, 
 
 Governor. 
 JAMES D. BLACK, 
 President of the Senate. 
 
 H. C. DUFFY, 
 Speaker of the House of Representatives. 
 
Commonwealth of Kentucky 
 
 OFFICE OF THE SECRETARY OF STATE 
 
 CERTIFICATE 
 
 I, JAMES P. LEWIS, Secretary of State for the Commonwealth of 
 Kentucky, do certify that the foregoing writing has been carefully compared 
 by me with the original record thereof, now in my official custody as secretary 
 of State and remaining on file in my office, and found to be a true and correct 
 copy of Senate Bill No. 40. An Act to provide an elective system of work- 
 men's compensation for industrial accidents, prescribing the manner of election 
 and the rights and liabilities of employers, employes and third parties; 
 making provision for medical and surgical care of injured employes; estab- 
 lishing rates of compensation for personal injuries or death, etc. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand. 
 
 Done at Frankfort this 4th day of April, 1916. 
 
 J. P. LEWIS, 
 
 Secretary of State. 
 
 By C. J. HOWES, 
 
 Assistant Secretary of State. 
 
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