We'll Persevere: Interim Kentucky Comp Boss

NU Online News Service, June 9, 4:11 p.m. EDT?Kentucky's acting commissioner of workers' claims said he does not know what led to dismissals and the resignation of his predecessor, but despite the disruption the agency is moving forward. [@@]

"Of course, it wasn't something that we expected, but we are moving forward and working to continue doing our jobs," said Bill Emrick, the acting commissioner.

His comments followed the resignation last week of Commissioner Larry Greathouse, who quit after officials in Gov. Ernie Fletcher's administration fired three workers' claims insurance regulators--Gary Davis, director of security and compliance; Thomas Lewis, deputy commissioner; and Ora Burge, director of claims processing. All three had been appointed by previous administrations prior to Gov. Fletcher.

The resignation and firings came at a time when the state was beginning to hold hearings to examine the financial tailspin of AIK Comp, one of Kentucky's largest workers' compensation carriers, that was under the supervision of Mr. Greathouse's agency.

The state is studying how AIK Comp had plunged into an actuarial deficit of nearly $40 million, which stands to negatively affect both the company and the 2,600 employers it insures.

The state already has hired independent auditors to sift through records at AIK Comp's Louisville, Ky. headquarters.

During the hearing, AIK submitted a plan that would require its members to pay an extra $49 million in premiums dating back to 1998 to restore the company to financial health and cover the shortfall.

Mr. Emrick said that the AIK plan will not actually be implemented until the public hearing period is complete and his agency has looked over all the issues. "All regulations will be reviewed to assure that such a situation will be prevented from occurring again," added Mr. Emrick.

Mr. Emrick explained that he was not a member of the office at the time of the firings and said that he could not expound on why the firings occurred. By law, Gov. Fletcher will appoint a new, permanent commissioner to replace Mr. Greathouse from among candidates selected by a special nominating commission.

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We'll Persevere: Interim Kentucky Comp Boss

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