JEFFERSON CITY, Mo. (AP) — The CEO of Missouri Employers Mutual Insurance Co. endorsed a proposal Tuesday for lawmakers to study whether any changes are needed to the state-created company after an audit recently criticized it for excessive expenses.
But CEO Jim Owen urged lawmakers not to adopt a more aggressive proposal, which would force the company to pay $127 million to the state and spin off a new private insurance firm by the end of the year.
The Senate Small Business, Insurance and Industry Committee began hearing testimony Tuesday on a trio of bills reacting to problems and concerns with the Columbia-based workers' compensation insurer. The interest in the proposals exceeded the committee's time, forcing the hearing to be continued until lawmakers return from their annual spring break the week of March 19.
In recent years, two board members of Missouri Employers Mutual have faced federal indictments for alleged financial crimes unrelated to their duties on the board. Both members died before going to trial. An ongoing investigation by the FBI also is looking into whether the company — or former CEO Roger Wilson, a previous Missouri Democratic governor — directed $8,000 to be passed through a St. Louis law firm as a political contribution to the Missouri Democratic Party.
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