MADISON — A new report shows the state fund that insures local government property finished the last fiscal year in the red.
The Legislative Audit Bureau's review Friday found the fund's financial position has deteriorated since the state insurance commissioner's office issued a $12 million dividend in fiscal year 2009-2010.
Net losses and other expenses significantly exceeded net premiums and other revenues in subsequent fiscal years. As of June 30, 2014, the fund had a $703,000 deficit. The insurance commissioner's office estimated the deficit stood at $5.9 million this summer.
The bureau also found claims processing was unorganized, deductibles weren't properly applied. The policy administrator didn't collect past-due amounts due to time restrictions and didn't charge interest on them because of the calculations' complexity.
An OCI spokesman didn't immediately return voicemail messages.