Kentucky comp fund wants retroactive assessment

FRANKFORT, Ky.—Rehabilitators for AIK, a group workers compensation self-insurance fund, filed court papers Wednesday detailing a plan to assess employer members an additional $97.3 million to cover claims and administrative costs.

In November 2004, Kentucky's Office of Insurance approved a $58.5 million assessment of AIK's members who purchased coverage between 1999 and 2003, according to the papers filed in Frankfort County Circuit Court. But an additional assessment is needed to pay claims and cover run-off costs.

AIK in 2004 revealed that it was short of funds needed to meet its obligations (BI, July 14, 2004). It had about 2,600 members at the time.

Under Kentucky law, self-insurance pools can retroactively assess members to fund remedial plans.