After some discussion, the board unanimously chose a provider for workers compensation insurance, an issue they have been discussing for several months. They chose to contract with the Insurance Center of Murray and Mayfield, which had the lowest bid of $112,356.15.
For workers compensation insurance, four agents submitted bids the Kentucky Employers Mutual Insurance; three of the bids were for $117,037, but the Insurance Center of Murray and Mayfield cut their commission.
Insurance agents Clayton Woodall and Lee Conrad said the commission was cut without KEMI’s permission, and thus the bid wasn’t valid. Woodall added that the other agents weren’t given the opportunity to cut their commissions as well.
Board Chair Mike Davis was blunt in response. “This seems like price fixing,” he said. “This is taking a lot of time, and this seems real straightforward.”
Hamby said he spoke to KEMI about the issue, and he went even further and said it isn’t the board’s responsibility to determine whether the bids they receive are valid.
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