Kentucky Associated General Contractors Self-Insurance Fund v. Lowther

OPINION OF THE COURT.

A divided Court of Appeals affirmed the Franklin Circuit Court, which affirmed an Administrative- Law Judge’s decision to uphold a $10,000.00 fine imposed on the employer’s insurance carrier, Kentucky Associated General Contractors Self-Insurance Fund (KAGC), and the carrier’s third-party administrator, Ladegast and Heffner Claims Service, Inc. (Ladegast). The fine was based on two unfair claims settlement practices, the employer’s failure to meet the time constraints for paying claims and its failure to pay a claim in which liability was clear.1

The issue central to the…