Section 76. Creation of state fund

1. There is hereby continued in the
  department of labor a fund known as "the state insurance fund", for  the
  purpose of insuring employers against liability for personal injuries or
  death  sustained  by  their  employees,  including  liability other than
  liability assumed by contract imposed upon employers by reason of a suit
  or claim brought against the employer by another to recover  the  amount
  of  damages  obtained from such other by an employee of the employer for
  injuries or in case of death by his dependents for  death  sustained  by
  such  employee arising out of and in the course of his employment and to
  pay such damages, and of assuring to the persons  entitled  thereto  the
  compensation  and  benefits  provided  by  this  chapter  or  by any act
  providing for compensation now or hereafter enacted by the  congress  of
  the  United  States  of  America  if  such  liability  is incident to an
  employment carried on in  this  state,  and  every  such  payment  shall
  constitute  an  element  of loss for the purpose of establishing premium
  rates. Such fund shall consist of all premiums received  and  paid  into
  the  fund, of property and securities acquired by and through the use of
  moneys belonging  to  the  fund  and  of  interest  earned  upon  moneys
  belonging to the fund and deposited or invested as herein provided. Such
  fund  shall  be applicable to the payment of losses sustained on account
  of insurance, to the payment of expenses in the manner provided in  this
  chapter  and to the payment of premiums for reinsurance in any insurance
  corporation of the whole or any part of any policy obligations.
    2. The purposes of the state insurance fund herein created are  hereby
  enlarged to provide for the insurance by the state insurance fund of the
  payment  of  the  benefits  required by section two hundred four of this
  chapter. A separate fund is hereby created within  the  state  insurance
  fund,  which shall be known as the "disability benefits fund", and which
  shall consist of all premiums  received  and  paid  into  said  fund  on
  account  of  such  insurance, all securities acquired by and through the
  use of moneys belonging to said fund and of interest earned upon  moneys
  belonging  to  said  fund  and deposited or invested as herein provided.
  Said disability benefits fund shall be  applicable  to  the  payment  of
  benefits,  expenses  and  assessments  on  account  of insurance written
  pursuant to article nine of this chapter.
    2-b. The purposes of the state insurance fund created in this  section
  are  hereby enlarged to provide for the insurance by the state insurance
  fund of the payment of the benefits  required  by  section  one  hundred
  sixty-ddd of the executive law.
    3.  The respective assets and liabilities of the workers' compensation
  and disability benefits funds provided in  this  section  shall  be  and
  remain  separate  except  that advances may be made from either fund for
  the payment of benefits and  for  administrative  expenses,  subject  to
  annual reimbursement.
    Whenever used in this article the terms "state insurance fund", "state
  fund"   and  "fund"  shall  be  deemed  to  include  both  the  workers'
  compensation fund and the disability benefits fund  unless  the  context
  otherwise indicates.
    4.  The  purposes  of  such  state  insurance  fund are hereby further
  enlarged to permit  it  to  furnish  to  self-insurers,  as  defined  in
  subdivision  three  of section fifty of this chapter, representation and
  services of the nature specified in paragraph five of subsection (a)  of
  section   one  thousand  six  hundred  one  of  the  insurance  law  and
  subdivision three-d of section fifty of this chapter.
    5. No monies of the state insurance fund shall be transferred  to  any
  other  fund,  nor  shall any such monies be applied to the making of any
  payment for any purpose other  than  the  purposes  set  forth  in  this
  article.