Kentucky Health Insurance Practice Exam

The second injury fund is specifically designed to provide compensation to employers for the costs associated with injuries sustained by employees who already have a previous injury or disability. This fund encourages employers to hire individuals who may have a history of injuries or disabilities by minimizing the financial risk associated with additional injuries that can occur during employment.

When an employee with a prior injury sustains a subsequent injury, this fund helps cover a portion of the workers' compensation costs, thereby incentivizing the hiring of these individuals. It mitigates the burden that employers might otherwise face when dealing with the higher costs associated with employees who have preexisting conditions.

This unique aspect of the second injury fund promotes inclusivity in the workforce by allowing those with past injuries to receive fair employment opportunities while also supporting employers. The other options do not fulfill this specific purpose, as they refer to different types of funds or insurance mechanisms unrelated to compensation for second injuries in the workplace.