Area schools are being hit with hundreds of thousands of dollars in penalties, in the wake of the dissolution of the Kentucky School Boards Insurance Trust, or KSBIT.
The penalty payments are intended to fix a $60 million deficit in KSBIT's worker’s compensation and property and liability pools. The penalty amount is 60 percent based on premiums, and 40 percent based on that school district’s past claims.
The insurance program was attractive to districts due to its low premium costs in worker’s comp and liability coverages.
