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The Kentucky Association of Counties All Lines Fund held a Board of Directors' meeting at 1:00 p.m. on Monday, February 24, 2020 at 400 Englewood Drive in Frankfort, Kentucky.
The roll was called. The following Directors were present: Chairman Robert Carpenter, Greenup Co. Judge/Executive; John Wilson, Garrard Co. Judge/Executive; Orbrey Gritton, Anderson Co. Judge/Executive; Charles Kenner, Boone Co. Commissioner; and Adam O'Nan, Union Co. Judge/Executive.
Others present were: Temple Juett, Director of Insurance; Jim Henderson, Executive Director/CEO; Tim Sturgill, General Counsel; Karen Basham, Chief Financial Officer; Jeremy Head, Claims Manager; Michael Ray, Safety & Loss Control Manager; Bruce Lawson, Senior Accountant; Crystal Hellard, Litigated Claims Specialist; Kris Dunn, Underwriting Manager; Andrea Morse, Associate Underwriter; Marie Skinner, Accountant; Rich Ornstein, Staff Attorney; Phil Crumpton, Law Enforcement Specialist; Macy Thompson and Kathy Basham, Customer Service Representative; Steve Bolton, Board Counsel; Sue Porter and Kathy Marshall, Roeding/Public Entity Insurance; Rob Brown and Joe Greathouse, LGIA/KACo Marketing Agents; Clint Combs, Peel & Holland/Marketing Agents; Jeremy Russell and Ed Meredith, Underwriters Safety & Claims; Kristie Whistle, Marsh USA; and Sonya Chesser, Executive Secretary.
Chair Carpenter called the meeting to order at 1:00 p.m.
Motion made by Orbrey Gritton, seconded by Charles Kenner, to approve the minutes of the January 29, 2020 meeting. Motion carried.
Ms. Basham presented and discussed the following reports: balance sheet as of January 31, 2020; FY 2019/20 budget detail for the seven months ending January 31, 2020; FY 2019/20 PAF budget for period July 1, 2019 through January 31, 2020; FY 2019/20 agent commissions as of January 31, 2020; FY 2019/20 additions and deletions for period January 1 - 31, 2020; FY 2019/20 premium receivables as of February 20, 2020; and FY 2019/20 investment portfolio summary as of January 31, 2020. She said the Fund is in compliance with the investment ratios as statutorily required by the Kentucky Department of Insurance.
Motion made by Orbrey Gritton, seconded by Adam O'Nan, to accept the financial reports as presented. Motion carried.
Mr. Head presented a quarterly report of the claims activity for 2019 including a comparison from 2015 through 2019. He also presented the new reported claims for January 2020.
Mr. Juett, giving the director's report, provided each board member with a written copy of his report.
Mr. Juett presented a memorandum of extension between the Kentucky Association of Counties All Lines Fund and Underwriters Safety & Claims, Inc. for an additional one (1) year term commencing on July 1, 2020 and continuing through June 30, 2021.
Motion made by Orbrey Gritton, seconded by John Wilson, to approve the memorandum of extension with Underwriters Safety & Claims, Inc. for an additional one (1) year term. Motion carried.
Ms. Basham said request for proposals for auditing services was sent out. Deming, Malone, Livesay and Ostroff, PLLC and Mountjoy Chilton Medley, LLP each submitted a response. She presented and discussed the proposals and recommended remaining with Deming, Malone, Livesay and Ostroff, PLLC for another three year term starting with fiscal year 2019-20.
Motion made by John Wilson, seconded by Orbrey Gritton, to approve Deming, Malone, Livesay and Ostroff, PLLC to provide auditing services for a three term starting with fiscal year 2019-20. Motion carried.
Mr. Juett said the Kentucky Department of Insurance has requested additional information concerning KALF's request to issue a dividend to eligible members out of FY 2006/07.
Mr. Juett said all indications on reinsurance point toward an increase from Munich in property rates. He requested approval to issue a request for proposals for reinsurance should staff determine that it is in the best interest of the Fund to do so. He said staff will be meeting with Ms. Whistle following the KALF board meeting to begin exploring the question of whether to put the reinsurance out for bid.
Motion made by John Wilson, seconded by Adam, to authorize staff to send out a request for proposals for reinsurance if they determine it is in the best interest of the Fund. Motion carried.
The next regularly scheduled meeting will be held March 25th at 1:00 p.m.
Motion made by Orbrey Gritton, seconded by John Wilson, to go into closed session at 1:19 p.m. to discuss proposed or pending litigation involving the board as authorized by KRS 61.810 (1)(c). Motion carried.
Motion made by John Wilson, seconded by Orbrey Gritton, to return to open session at 1:46 p.m. Motion carried. No action was taken in closed session.
Motion made by John Wilson, seconded by Adam O'Nan, to adjourn the meeting at 1:46 p.m. Motion carried.
