The failover code in the KSB seems to be really fragile. It seems to only be failing over in the case that a "Service removal exception" occurs. We need to allow it to failover properly in the case that any error occurs (especially a 404!). We'll want to report to the kuali Rice project (create a KULRICE jira) and then make a fix in our local copy and contribute back.
this will fix EN-1250 (IU implementation of rice)