Franklin County settles with former insurance provider

FARMINGTON — Franklin County Commissioners reached a mutual settlement in August with the county’s former insurer in regards to obligations under the terms of an intergovernmental contract.

The agreement required the county to pay $28,750 to Maine County Commissioners Association Self-Funded Risk Management Pool. Initially the insurer indicated the county owed more than $160,000 from when it withdrew from the association two years ago.

The agreement releases each party from liability and dismisses pending litigation filed in the Kennebec County Superior Court in Augusta. Both parties agreed to permanently dismiss the case with prejudice and without costs. Both parties were responsible to pay for their own attorney fees, expenses and other costs associated with litigation, according to the agreement.

The agreement totally eliminates Franklin County from any further liability, county Commissioner Charles Webster said during a Sept. 1 commissioners meeting.

“I think it was good for everybody,” he said.

Franklin County commissioners voted in October 2017 to accept insurance coverage from Kyes Insurance Agency Inc. of Farmington for about $48,131, an additional cost to bond some employees brought the cost at the time to about $50,000.

The county previously had insurance through the Maine County Commissioners Association, which promised to keep insurance costs under $73,936 for 2018, county Clerk Julie Magoon said then.

The insurance coverage, effective for Jan. 1, 2018, included liability, cyber, buildings, building contents, auto insurance and anything under the Maine Tort Claims Act.


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