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The Kentucky Association of Counties All Lines Fund held a Board of Trustees meeting at 12:30 p.m. on Wednesday, December 17, 2025. This meeting was held at the KACo office located at 400 Englewood Drive in Frankfort, Ky. 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 County Judge/Executive; Vice-Chair Stacy Tapke, Kenton County Attorney; Stephen Harmon, Warren County Jailer; Reagan Taylor, Madison County Judge/Executive; and Steve Henry, Webster County Judge/Executive.
Others present included: Jim Henderson, Executive Director/CEO; Jeremy Baird, Director of Insurance; Tim Sturgill, General Counsel; Karen Basham, Chief Financial Officer; Kris Dunn, Associate Director of Insurance; Crystal Hellard, Litigated Claims Manager; Jeremy Head, Claims Manager; Michael Ray, Safety and Loss Control Manager; Phil Crumpton, Law Enforcement Liaison; Rich Ornstein, Staff Attorney; Andrea Morse, Insurance Agency Manager; Marie Skinner, Accounting Manager; Alyssa Rogers, Staff Accountant; Kathy Basham, Lindsey Bowman, and Macy Thompson, Customer Service Representatives; Steve Morrison and Steve Clary, Safety and Loss Control Specialists (both via video teleconference); Jennifer Burnett, Chief Innovation Officer; Sue Porter and Michele Barrett, Public Entity Insurance/KACo Marketing Agents; Rob Brown, Local Government Insurance Agency/KACo Marketing Agent; Joe Greathouse, Commonwealth Insurance Advisors/KACo Marketing Agent; Clint Combs, HUB International/KACo Marketing Agent; Jeremy Russell, Terry Banaszak, and Ben Barnes, Charles Taylor TPA; Kristie Whistle and Missi GeeAnn, Marsh, Inc.; Sean Curry, Green County PVA and KACo 1st Vice President; Jesse Penn, Computer Support Specialist; and Sonya Chesser, Executive Assistant to CEO/Director of Administrative Services.
Chairman Gritton called the meeting to order at 12:30 p.m.
Motion made by Stacy Tapke, seconded by Stephen Harmon, to approve the minutes of the October 29, 2025, meeting as presented. Motion carried.
Ms. Basham presented and discussed the following financial reports: balance sheet and claims expense report as of November 30, 2025; income statement and FY 2025/26 PAF budget for period July 1, 2025 through November 30, 2025; new business activity for November 1 - 30, 2025; and FY 2025/26 agent commissions by agency as of November 30, 2025.
Ms. Basham presented the investment report and security transactions for October and November 2025. The board received a full listing of the Fund's investments electronically prior to the meeting. She said the Fund is in compliance with the ratios as statutorily required.
Motion made by Stephen Harmon, seconded by Stacy Tapke, to acknowledge receipt of the financial reports as presented. Motion carried.
Motion made by Stacy Tapke, seconded by Steve Henry, to accept the investment report and to ratify the security changes as presented. Motion carried.
Ms. Basham presented the Fund's investment policy for the board's annual review. She recommended no changes at this time.
Ms. Basham reviewed the Fund's financial position as of June 30, 2025 for the purpose of determining whether a dividend should be declared. She said based on the Fund's dividend policy, the Fund is unable to declare a dividend.
Mr. Baird said the Kentucky Department of Insurance completed its examination of the Fund for period July 1, 2020 through June 30, 2024. He was pleased to report no findings, and the management letters advised two recommendations including a minor accounting issue, which has already been fixed, and the Kentucky Department of Insurance's recommendation for KALF to take an undiscounted rate going forward. The board received an electronic copy of the full audit report and management letter prior to the meeting.
Mr. Baird said the current marketing agreement with Local Government Insurance Agency, Inc. for Territory C expires on June 30, 2025, and there are no further extensions available. The Fund sent out a request for qualifications for a regional agent for Territory C and one submission was received from Local Government Insurance Agency, Inc. He presented a new Regional Agent Marketing Agreement between the Fund and Local Government Insurance Agency, Inc. as agent for Territory C for the board's consideration. The new agreement will commence on July 1, 2026 and continue through June 30, 2030, and allows two additional extensions of four years each.
Motion made by Stacy Tapke, seconded by Stephen Harmon, to approve the Regional Marketing Agreement with Local Government Insurance Agency, Inc. as presented. Motion carried.
Mr. Ray provided a loss control update and showed a brief video clip of a law enforcement vehicle operations training course offered to the Boyd County Sheriff's Department.
Chairman Gritton requested approval of the following meeting schedule for 2026: January 21, February 25, April 29, May 27, June 24, July 29, August 26, September 30, October 28, and December 16. All meetings will be held at 1 p.m. via video teleconference in accordance with KRS 61.826; that the primary location of the teleconference where the public will be allowed to attend will be at the offices of the Kentucky Association of Counties, 400 Englewood Drive, Frankfort, Kentucky.
Motion made by Reagan Taylor, seconded by Stacy Tapke, to adopt the schedule of meetings for 2026 as presented; that all meetings will be held via video teleconference in accordance with KRS 61.826; that the primary location of the teleconference where the public will be allowed to attend will be at the offices of the Kentucky Association of Counties, 400 Englewood Drive, Frankfort, Kentucky. Motion carried.
Motion made by Stephen Harmon, seconded by Reagan Taylor, to go into closed session at 1 p.m. to discuss proposed or pending litigation involving the board as authorized by KRS 61.810(1)(c). Motion carried. Motion carried.
Motion made by Reagan Taylor, seconded by Stephen Harmon, to return to open session at 1:29 p.m. Motion carried. No action was taken in closed session.
Motion made by Stacy Tapke, seconded by Reagan Taylor, to adjourn the meeting at 1:30 p.m. Motion carried.
