AIK GAVE DISCOUNTS WHILE SLIPPING:

January 3, 2005

AIK Comp’s management provided millions in “premium discounts” to its members while the workers’ compensation insurance fund was slipping into a $59 million shortfall. Louisville, Ky.-based AIK Comp provided members with $38.6 million in discounts in a three-year period beginning Jan. 1, 2001, The Kentucky Post reported, citing an audit report prepared for the state’s Office of Workers’ Claims by a private consulting firm. The practice appeared to be the root cause of the $59 million shortfall the workers’ compensation firm now faces a deficit that more than 3,700 businesses in Kentucky are being ordered to cover.