The financially troubled Kentucky School Boards Insurance Trust will disband, forcing school districts to search for new workers’ compensation, property and liability insurance providers.
The closure means financial consequences for all of the state’s 174 school districts, which will have to divvy up some $60 million to cover the cost of past insurance claims.
The decision was announced after each school district was notified.
The Kentucky School Boards Association turned the insurance program over to the Kentucky League of Cities to be administered about two years ago. KLC Executive Director Jonathan Steiner said a financial review revealed fiscal woes that were worse than first believed, forcing the June 30 shutdown.
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