Koetters Leaves Ky. Office of Insurance Suddenly, Without Explanation

Martin J. Koetters, a veteran insurance industry executive appointed to lead the Kentucky Office of Insurance last summer, has left the job suddenly and without explanation.

Koetters’ departure was revealed Thursday in a brief release announcing his replacement, who will be Glenn Jennings, a long-time state employee.

The release said Koetters resigned on Tuesday.

Mark York, deputy secretary of the Environmental and Public Protection Cabinet, declined to comment on Koetters’ departure. A message left on Koetters’ home telephone was not immediately returned.

When Koetters was appointed in July 2004, cabinet Secretary LaJuana Wilcher said his “experience and leadership skills position him wonderfully well to tackle the many challenging issues in Kentucky’s insurance market today …”

Koetters has been in the middle of one of the biggest insurance failures in recent Kentucky history, taking over AIK Comp, the financially failed workers’ compensation insurer shortly after he began his job last year. Koetters is the court-appointed rehabilitator of the insurer. A spokeswoman for the agency said the court will be asked to replace Koetters with Jennings.

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Editor’s note: See related item in Southeast News.