A decision by Gov. Ernie Fletcher to have the Office of Insurance take over regulation of the group self-insured workers’ compensation funds in Kentucky is reportedly supported by the Property Casualty Insurers Association of America (PCI).
“We applaud the governor for his quick action in moving to resolve the current crisis with the AIK Comp Fund and to further stabilize the market,” Greg LaCost, PCI regional manager and counsel, said. “His decision supports our argument that the group self-insured workers’ compensation funds should fall under the same regulatory oversight that private insurers face as they compete for business in Kentucky.
“While the state has its hands full in attempting to approve a plan that will fairly divide the current deficit among AIK Comp policyholders, today’s action was critical in that it will ultimately produce a more accountable workers’ compensation system in Kentucky.”
LaCost said mandating the same accounting and regulatory scrutiny as that of private workers’ comp insurers, and ensuring that the group self-insured funds have adequate reserves, will guarantee payment of claims and avoid future surprises and assessments for policyholders.
PCI writes 56 percent of the workers’ comp market in Kentucky and more than 47 percent of all property/casualty insurance in the state.
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