(1) The authority may provide coverage for insurance, authorized in KRS 342.803, to any employer in the Commonwealth, and who tenders the required premium for coverage and comply with other conditions and qualifications for obtaining and maintaining coverage adopted by the authority to protect and ensure its actuarial soundness and solvency.
(2) The authority shall provide coverage to any employer who is unable to secure coverage in the voluntary market unless:
(a) The employer owes undisputed premiums to a previous workers' compensation carrier or to a workers' compensation residual market mechanism; or (b) Providing coverage to the employer would subject the authority or its employees to a violation of federal or state law.