Officials of the Kentucky Association of Counties insurance group have agreed to stop paying for most meals, trips or gifts for county officials.
The Lexington Herald-Leader reports that KACo officials took the move in response to a threat of fines from the state Department of Insurance.
The action allows KACo to avoid violating state law prohibiting “illegal inducements” to prospective insurance customers. The newspaper says those serving on KACo’s insurance boards can still travel to meetings regarding insurance using the programs’ money.
According to correspondence obtained through an Open Records request, the Herald-Leader says KACo initially balked at the change. The paper reported the tone of KACo officials softened after the insurance department warned that penalties for breaking the inducement law include a $10,000 fine per violation.
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