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The Kentucky Association of Counties All Lines Fund held a Board of Trustees meeting at 12:30 p.m. (ET) on Wednesday, April 26, 2023. This meeting was held at the KACo offices located at 400 Englewood Drive in Frankfort, Kentucky and via video teleconference, pursuant to proper notice given in accordance with KRS 61.826 and KRS 65.312(3).
The roll was called. The following Trustees were present: Chairman Orbrey Gritton, Anderson Co. Judge/Executive; Vice-chair Stacy Tapke, Kenton County Attorney; Steve Henry, Webster Co. Judge/Executive; Steve Harmon, Warren County Jailer (via video teleconference); and Reagan Taylor, Madison County Judge/Executive.
Others present included: Jim Henderson, Executive Director/CEO; Temple Juett, Director of Insurance and Business; Kris Dunn, Associate Director of Insurance; Tim Sturgill, General Counsel; Karen Basham, Chief Financial Officer; Rich Ornstein, Staff Attorney; Jeremy Head, Claims Manager; Crystal Hellard, Litigated Claims Specialist; Marie Skinner, Accounting Manager; Phil Crumpton, Law Enforcement Specialist, Andrea Morse, Insurance Agency Manager; Kathy Basham, Macy Thompson and Lindsey Bowman, Customer Service Representatives; Alyssa Rogers, Staff Accountant; Sue Porter and Michele Barrett, Roeding Insurance/KACo Marketing Agents; Clint Combs, Hub/Peel & Holland/KACo Marketing Agent; Rob Brown, Local Government Insurance Agency/KACo Marketing Agent; Joe Greathouse, Commonwealth Insurance Company/KACo Marketing Agent; Ed Meredith and Jeremy Russell, Charles Taylor, TPA (via video teleconference); Kristie Whistle and GeeAnn Missi, Marsh, Inc.; Shellie Hampton, Director of Government Affairs; Jennifer Burnett, Director of Strategic Operations; Jeff McCraffrey and Mike Cook, DMLO; Jesse Penn, Computer Support Specialist; and Sonya Chesser, Executive Assistant to the CEO/Director of Administrative Services.
Chairman Gritton called the meeting to order at 12:30 p.m.
Motion made by Reagan Taylor, seconded by Steve Harmon, to approve the minutes of the March 29, 2023 meeting as presented. Motion carried.
Ms. Basham presented and discussed the following reports: balance sheet, income statement and claims expense report as of March 31, 2023; FY 2022/23 PAF budget for period July 1, 2022 - March 31, 2023; FY 2022/23 additions and deletions to the premium for March 1 - 31, 2023; and FY 2022/23 agent commissions by agency as of March 31, 2023.
Ms. Basham presented the investment report for the month of March 2023; the investment transactions for March 2023 and the FY 2022/23 investment portfolio summary. She said the Fund is in compliance with the investment ratios as statutorily required. The board received a full listing of the Fund's investments electronically prior to the meeting.
Motion made by Stacy Tapke, seconded by Steve Henry, to acknowledge receipt of the financial reports and to accept the investment report and to ratify the investment transactions as presented. Motion carried.
Mr. McCaffery presented and discussed the quarterly financial statement as of March 31, 2023 as prepared by DMLO.
Motion made by Stacy Tapke, seconded by Steve Henry, to approve the quarterly financial statement to be filed with the Kentucky Department of Insurance as presented. Motion carried.
Each board member signed the Trustee Confirmation of Receipt of the quarterly financial statement also to be filed with the Kentucky Department of Insurance.
Mr. Juett asked the marketing agents to provide a progress update for the FY 2023-24 insurance renewals. Ms. Porter and Mr. Combs both reported that the consensus from the membership is that they understand the reasons for the premium increase and recognize the benefits and value-added services that KACo offers.
Mr. Juett presented the Fund's current defense panel policies and procedures and litigation protocols for the board's information. He said KACo sent out a request for proposal for defense counsel in the southeastern region and two responses were received by Kerrick Backhert, PSC and Bell, Orr, Ayers & Moore, Attorneys at Law. He recommended adding Kerrick Backhert, PSC to the defense counsel panel. The board concurred with the recommendation.
Mr. Crumpton provided an update on a virtual reality firearms simulator that the Fund is looking to purchase to replace the outdated MILO units. He welcomed the board to participate in a demonstration being offered in the Training Room today until 2 p.m.
Mr. Juett, giving the director's report, said notices of cancellations will be sent out May 1 to members who have not made a payment for FY 2022/23.
The next scheduled board meeting will be May 24 at 12:30 p.m.
Motion made by Reagan Taylor, seconded by Steve Henry, to go into closed session at 1:15 p.m. to discuss proposed or pending litigation involving the board as authorized by KRS 61.810 (1)(c). Motion carried.
Motion made by Stacy Tapke, seconded by Reagan Taylor, to return to open session at 2:00 p.m. Motion carried. No action was taken in closed session.
Motion made by Stacy Tapke, seconded by Steve Henry, to adjourn the meeting at 2:00 p.m. Motion carried.
