KY AIK Audit: Dividends Cause of Failure

A new audit of Kentucky's AIK Comp shows that even while the self-insured co-op was going fast in to the red, its members were receiving millions of dollars in discounts and dividends as an incentive to keep members.An audit prepared at the request of the Kentucky Office of Workers' Claims released last week showed that no only did manamgement and trustees of the fund fail to adequately address reserve issues to deal with the rising costs of claims, sending the fund into a $59 million hole over the last five years, they routinely approved discounts and dividends totaling $38.6 million.The re...