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Insurance presenter urges Paducah board to defer vote on joining self‑insurance pool, warns of assessment risk
Summary
A community insurance advisor urged the board to delay any decision about joining a proposed self‑insurance pool, citing Department of Insurance guidance about member assessments if a pool’s surplus is insufficient and noting a reported audited surplus of $314,000 for the pool.
Keith Riley, who identified himself as representing an insurance interest, urged the board to delay consideration of joining a state self‑insurance pool for property and liability coverage until the district obtains renewal quotes from traditional insurers.
Riley summarized a Department of Insurance presentation and said the department cautioned that self‑insurance pools carry exposure to assessments if premiums and surplus are insufficient to cover claims. "I am asking you respectfully to delay the decision," Riley told the board, adding that the latest audited surplus for the pool he cited was $314,000 and that the pool’s property program limit is about $500 million.
He also reminded the board of a historical example he attributed to the department in which a prior school‑board pool had severe financial problems; Riley said those circumstances led to large assessments in the past. Riley recommended delaying action until May or until the district has insurer renewal terms to compare a fully insured program with pool participation.
Board members received the comment; the transcript records the presentation and request for delay but no immediate vote or board directive to change the timeline.
Riley asked the board to weigh potential savings against the risk of future assessments and to verify audited financials and the pool’s claims history before making a change.
