Insurers in 2 States Come Under Scrutiny

April 26, 1989 1 min read

The board that oversees medical claims for Oklahoma teachers and state employees has removed the program’s administrator following the release of a highly critical state audit.

A preliminary report by Auditor and Inspector Clifton Scott accused the Oklahoma State and Education Employees Group Insurance Board of lax accounting procedures, lengthy delays in payments, and a failure to deposit checks in a timely manner.

The state auditor’s investigation found $145,000 in uncashed checks, some of which were voided because more than 90 days earlier; four crates of unpaid claims awaiting processing; and $2 million deposited in an unsecured bank account.

In Louisiana, meanwhile, 18 school districts, all members of the Louisana School Boards Insurance Trust, will have to find another insurance carrier to provide workers’ compensation coverage after July 1.

The state’s insurance commissioner issued an order prohibiting the current carrier from writing or renewing policies in the state because it failed to meet state fiscal standards.--nm

A version of this article appeared in the April 26, 1989 edition of Education Week as Insurers in 2 States Come Under Scrutiny