Wheaton School District settles old insurance suit
District accepts 81 percent of original $102K insurance claim
The Wheaton Board of Education has recently accepted a $31,913.37 health insurance claim to settle a suit with a third-party catastrophic insurance coverage company that was ordered to liquidate in 2003.
"I am glad to see the board make that decision, and it gets our taxpayers some money that we didn't think we'd ever have an opportunity to reclaim," said Lance Massey, superintendent of the Wheaton School District.
Around 2012, Liquidity Solutions Inc. delivered $51,473 of the original $102,946 claim that the school district had with Legion Insurance Co., Massey said. In the end, the district accepted 81 percent of the original claim.
The district used to have self-funded health insurance years ago, Massey said. Legion Insurance was the district's third-party catastrophic insurance coverage company. The district now has health coverage through Missouri Educators Trust Consortium.
The board of education accepted last month's offer with a vote of 3-2-2, with three members approving, two members opposing, and two members abstaining.
Lewis Royer, board president, said he voted to accept the claim.
"I think we've spent several years entertaining offers, and it was still up in the air if they would have ever settled that suit or not," Royer said.
Each time the district declined offers, it had to pay fees.
The school district has worked with the law firm of Tueth, Keeney, Cooper, Mohan & Jackstadt P.C. during the suit, Massey said. The Commonwealth Court of Pennsylvania ordered Legion Insurance into liquidation on July 28, 2003.