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Wed November 4, 2009
KACo to Stop Using Fees for Meals, Gifts
Frankfort, KY – Kentucky Association of Counties insurance group officials have agreed to stop paying for most meals, trips or gifts for county officials. The Lexington Herald-Leader reports KACo officials responded to a threat of fines from the state Department of Insurance.
This means KACo will avoid violating state law prohibiting "illegal inducements" to prospective insurance customers. Those serving on KACo's insurance boards can still travel to meetings regarding insurance using the programs' money.
According to correspondence obtained through an Open Records request, KACo initially balked at the change. However, KACo officials softened after the insurance department warned that penalties for breaking the inducement law include a $10,000 fine per violation.