FRANKFORT, Ky. (WTVQ)- The Kentucky Department of Insurance and Kentucky Employers Mutual Insurance received authorization from Franklin Circuit Court to disburse $5 million to 194 members of the Kentucky School Boards Insurance Trust Fund. KSBIT members include numerous county boards of education, colleges, and cooperatives throughout the Commonwealth.
DOI petitioned and was appointed rehabilitator over the failing KSBIT Workers Compensation Self Insurance Fund (KSBIT-WC) and the KSBIT Property Liability Fund (KSBIT-PL) in November 2013. At the time, KSBIT-WC had a reported deficit of over $35 million, for which members were liable. To shore up the failing insurer, KEMI agreed to assume all unpaid workers compensation claims in the estimated liability amount of $35 million. Beginning in November 2014, KEMI began administering all the workers compensation claims and to return excess money if claims were lower expected.
A recent actuarial study confirmed that KEMIs claims administration substantially reduced liabilities, resulting in approximately $5 million in savings to the assessed KSBIT members. Franklin Circuit Judge Thomas Wingate agreed and approved the commissioners plan to distribute $5 million to member education institutions.
KSBIT will disburse the funds through a pro rata distribution, beginning March 21, 2019.
A copy of the order is available on the Department of Insurance website.
For additional information about DOI and insurance fraud, visit http://insurance.ky.gov