The Kentucky Department of Insurance-appointed rehabilitators for the former KSBIT workers’ compensation pool have notified districts of a court ruling approving an assessment calculation and payment process for school districts.
In July 15 letters to superintendents of the affected districts, co-deputy rehabilitators Joseph Pope and David Hurt provide a breakdown of the court-ordered assessments. The court has issued a directive only on the workers’ compensation assessment at this point; a separate order on the former property and liability fund is forthcoming. Also still pending are disputed surplus notes totaling $8 million ($5.5 million for the WC fund and $2.5 million for the P&L fund.
“The Court has ordered each members’ assessment be calculated pro-rata 60% based on member’s earned premium and 40% based on member’s excess losses,” the officials said in the letter.
Three payment options were approved by Franklin Circuit Court Judge Thomas Wingate:
· Full payment of the amount noted in the invoice by Aug. 31;
· Payment of 25 percent of the full amount by Aug. 31 and the remaining balance equally spread out over two to six years; or
· Financing the assessment through a bond sale by the Kentucky Interlocal School Transportation Association (KISTA), which would make payment of the assessment in full by Sept. 30.
In the letter, district officials with questions are advised to contact Pope or Hurt at (502) 499-6290, extension 114 or 116, or by email at [email protected] or [email protected].
Questions regarding the KISTA bond sale should be directed to Joe Nance at Ross Sinclaire and Associates at (859) 977-6600 or [email protected].