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The Kentucky Association of Counties All Lines Fund held a special Board of Directors' meeting, pursuant to proper notice given in accordance with KRS 61.823, at 12:30 p.m. on Monday, November 23, 2020 via teleconference.
The roll was called. The following Directors were present: Chairman Robert Carpenter, Greenup Co. Judge/Executive; Charles Kenner, Boone Co. Commissioner; and Orbrey Gritton, Anderson Co. Judge/Executive.
Others present included: Temple Juett, Director of Insurance; Jim Henderson, Executive Director/CEO; Karen Basham, Chief Financial Officer; Michael Ray, Safety & Loss Control Manager; Jeremy Head, Claims Manager; Andrea Morse, Associate Underwriter; Marie Skinner, Accountant; Kris Dunn, Underwriting Manager; Rich Ornstein, Staff Attorney; Crystal Hellard, Litigated Claims Specialist; Rob Brown and Joe Greathouse, LGIA/KACo Marketing Agents; Steve Bolton, Board Counsel; Bruce Lawson, Senior Accountant; Phil Crumpton, Law Enforcement Specialist; Sue Porter, Michelle Barrett and Kathy Marshall, Roeding Insurance/KACo Marketing Agents; Clint Combs, Peel & Holland/KACo Marketing Agent; Jennifer Burnett, Director of Research; Greg Sisson, Underwriters, Safety & Claims; and Sonya Chesser, Chief Administrative Officer/Executive Assistant to CEO.
Chair Carpenter called the meeting to order at 12:32 p.m.
Motion made by Orbrey Gritton, seconded by Charles Kenner, to approve the minutes of the October 21, 2020 meeting. Motion carried.
Ms. Basham presented and discussed the following reports: balance sheet, income statement and claims expenses report as of October 31, 2020; FY 2020/21 PAF budget for period July 1, 2020 - October 31, 2020; FY 2020/21 agent commissions earned to date as of October 31, 2020; FY 2020/21 additions and deletions for period October 1 - 31, 2020; FY 2020/21 premium receivables as of November 13, 2020; and FY 2020/21 investment portfolio summary as of October 31, 2020.
Motion made by Orbrey Gritton, seconded by Charles Kenner, to acknowledge receipt of the financial reports as presented. Motion carried.
Ms. Basham presented the Fund's dividend policy as adopted October 24, 2018 and discussed the five criteria that must be met as well as the financial analysis to determine whether to declare a dividend payable in the July 1, 2021 policy term. She said based on the dividend policy, the Fund does not meet the criteria to allow the Board to declare a dividend for policy year 2021-2022. The reason is that the Fund did not have a net income on June 30th according to the financials of the most recent audited fiscal year.
Mr. Head presented and discussed the quarterly claims report for period July 1, 2020 through October 31, 2020.
Mr. Juett presented and discussed an agreement with The Underwriters Group and Succeed Risk Management jointly with the KACo All Lines Fund and KACo Workers Compensation Fund for software services for loss control videos. He said The Underwriters Group is moving these services from the current vendor, Succeed Risk Management, to Zywave. The term is effective January 1, 2021 through December 31, 2021 at annual cost of $5,000 to be split between the KACo All Lines Fund and KACo Workers Compensation Fund.
Motion made by Orbrey Gritton, seconded by Charles Kenner, to approve the contract between the Fund and The Underwriters Group for safety videos commencing on January 1, 2021 and concluding on December 31, 2021 in the amount of $5,000 as presented. Motion carried.
Mr. Juett presented the Fund's investment policy, as adopted October 24, 2018, for the board's annual review of the policy. He said that investment options for the Fund are limited by statute and the Fund's investment managers recommended no changes to the Fund's investment strategy. Therefore, staff recommends no changes to the policy.
Motion made by Orbrey Gritton, seconded by Charles Kenner, to make no changes to the Fund's current investment policy. Motion carried.
Mr. Juett presented and discussed an engagement letter for Oliver Wyman to perform the actuarial rate study for policy year 2021-2022 at a cost of $14,000.
Motion made by Orbrey Gritton, seconded by Charles Kenner, to approve the engagement letter with Oliver Wyman to perform the actuarial rate study for policy year 2021-2022 in the amount of $14,000 as presented. Motion carried.
Mr. Juett, giving the executive director's report, provided a list of the safety grants awarded for 2020. He said staff approved a little over the $200,000 limit because he believes a few entities may not expend the funds they were awarded, which will result in the Fund not exceeding the $200,000 limit.
The board agreed to move the December 21st meeting from 1:00 p.m. to a special time at 12:30 p.m.
Motion made by Orbrey Gritton, seconded by Charles Kenner, to go into closed session at 12:52 p.m. to discuss proposed or pending litigation involving the board as authorized by KRS 61.810 (1)(c). Motion carried.
Motion made by Orbrey Gritton, seconded by Charles Kenner, to return to open session at 1:00 p.m. Motion carried. No action was taken in closed session.
Motion made by Orbrey Gritton, seconded by Charles Kenner, to adjourn the meeting at 1:00 p.m. Motion carried.
