The Kentucky Association of Counties All Lines Fund held a Board of Directors' meeting at 1:00 p.m. on Thursday, March 28, 2012 at 400 Englewood Drive in Frankfort, Kentucky.
The roll was called. The following Directors were present: Chairman Robert Carpenter, Greenup Co. Judge/Executive; Vice-Chair Jody Jenkins, Union Co. Judge/Executive; Karen Bushart, Clark Co. PVA; Jim Lambert, Daviess Co. Commissioner; and John Wilson, Garrard Co. Judge/Executive.
Others present were: Mark Miller, Director of Insurance; Larry Crigler, Interim Assistant Director of Insurance/Litigation Manager; Denny Nunnelley, Executive Director/CEO; Tim Sturgill, General Counsel; Bruce Lawson, Senior Accountant; Carolyn Jones, Chief Financial Officer; Michael Ray, Claims Manager; Crystal Hellard, Paralegal; Shawn Weir, Risk Manager; Jody Ledesma, Customer Service Representative; Marie Skinner, Accounting Assistant; Mike Troop, Consultant; Joe Greathouse, Rob Brown, Mike Young, Jerry Pace and Sue Porter, Marketing Agents; Bruce Ferguson and Ron Dolen, Underwriters, Safety & Claims; John Logan, Marsh, Inc.; Brent Caldwell, Board Counsel; Grant Satterly, Director of Financial Services; and Sonya Chesser, Executive Secretary.
Chairman Carpenter called the meeting to order at 1:00 p.m.
Motion made by Karen Bushart, seconded by John Wilson, to approve the minutes of the March 12, 2012 meeting as presented. Motion carried. Mr. Nunnelley presented a copy of the Board Orientation CD to the board members that were not present at the KACo Board Orientation on March 15th.
Mr. Miller presented and discussed the following reports: FY 2011/12 budget detail for the eight months ending February 29, 2012; PAF budget for July 1, 20111 through February 29, 2012; FY 2011/12 addition and deletions for period February 1 - 29, 2012; FY 2011/12 premium receivables as of March 21, 2012; agent commissions for FY 2011/12; and investment portfolio summary for FY 2011/12. He discussed the spike in claim payments, which was due partly to a claim settlement; however, the Fund will receive reinsurance recovery for that claim.
Motion made by John Wilson, seconded by Jim Lambert, to approve the budget detail and PAF budget as presented. Motion carried.
Mr. Miller said the Garrard County Fair Board has requested the return of their check totaling $24.61 for waiver of penalties and interest fees paid to KALF. Motion made by Jim Lambert, seconded by Karen Bushart, to deny the request by the Garrard County Fair Board to return their check of $24.61 for waiver of penalties and interest fees. Motion carried with John Wilson abstaining.
Mr. Weir presented and discussed the risk management, safety and loss control activities for period February 1 - 29, 2012.
Mr. Miller said 21 counties were declared disaster areas following March 2nd tornadoes. He said, to date, 187 new claims have been reported totaling $12.7 million and anticipates more claims to be filed. He provided an update as to the actions taken by KACo in assisting Morgan County. He said KACo staff was the first insurance company on-site in Morgan County and KACo continues to have staff on-site, now a daily basis, for the next three weeks. BELFOR, KACo's disaster recovery team, was allowed to begin restoration work in Morgan County on March 4th. He showed pictures of the devastation to the Morgan County's insured buildings and other areas. Mr. Miller and Mr. Ray commended Mr. Dolen for his work and efforts.
Mr. Ray presented and discussed the following claims activity reports: summary of losses; graphs of new reported and closed claims during Fund year 2011, including 424 reclosed; graphs of total claims count and open claims for all years as of February 29, 2012; and subro recoveries by Fund year 2005/06 through March 11, 2012 and projections through June 30, 2012 for both KALF and KACo Workers Comp Fund combined. There were a total of 198 newly reported claims totaling $1,448,739.86 for the month of February 2012 as compared to 193 reported claims totaling $963,747.35 for the month of February 2011.
Mr. Miller said request for proposal was sent out for reinsurance brokerage services. He presented and discussed a management services agreement between KACo All Lines Fund and Marsh USA, Inc. for a six year term commencing July 1, 2011 and ending June 30, 2017.
Motion made by Karen Bushart, seconded by John Wilson, to approve the management services agreement as the result of the request for proposal for reinsurance brokerage services. Motion carried. The next regularly scheduled board meeting will be held April 25th at 1:00 p.m.
Motion made by John Wilson, seconded by Jim Lambert, to go into closed session at 1:52 p.m. to discuss proposed or pending litigation involving the board as authorized by KRS 61.810 (1)(c). Motion carried.
The board returned to open session at 2:32 p.m. No action was taken in closed session.
Motion made by John Wilson, seconded by Jim Lambert, to adjourn the meeting at 2:32 p.m. Motion carried.
