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The Kentucky Association of Counties All Lines Fund held a Board of Directors' meeting at the KACo offices located at 400 Englewood Drive in Frankfort, Ky. and via video teleconference, pursuant to proper notice given in accordance with KRS 61.826 and 2020 Ky. Acts ch. 73 sec. 1(8) (b), at 12:30 p.m. on Wednesday, February 24, 2021.
The roll was called. The following Directors were present: Chairman Robert Carpenter, Greenup Co. Judge/Executive; Vice-Chair John Wilson, Garrard Co. Judge/Executive (via video conference); Charles Kenner, Boone Co. Commissioner; Orbrey Gritton, Anderson Co. Judge/Executive; and Adam O'Nan, Union Co. Judge/Executive.
Others present included: Temple Juett, Director of Insurance; Jim Henderson, Executive Director/CEO; Karen Basham, Chief Financial Officer; Tim Sturgill, General Counsel; Andrea Morse, Associate Underwriter; Jeremy Head, Claims Manager; Rich Ornstein, Staff Attorney; Crystal Hellard, Litigated Claims Specialist; Steve Bolton, Board Counsel; and Sonya Chesser, Chief Administrative Officer/Executive Assistant to CEO.
Others participating via video conference: Michael Ray, Safety & Loss Control Manager; Kris Dunn, Underwriting Manager; Bruce Lawson, Senior Accountant; Marie Skinner, Accountant; Phil Crumpton, Law Enforcement Specialist; Steve Clary, Safety & Loss Control Specialist; Clint Combs, Peel & Holland/KACo Marketing Agent; Rob Brown and Joe Greathouse, LGIA/KACo Marketing Agents; Tracey Reed, Jail Consultant; Sue Porter and Michelle Barrett, Roeding Insurance/KACo Marketing Agents; John Logan, Marsh, Inc.; Greg Sisson and Jeremy Russell, Underwriters, Safety & Claims; and Jon Sharp, IT Manager.
Chair Carpenter called the meeting to order at 12:30 p.m.
Motion made by Orbrey Gritton, seconded by Charles Kenner, to approve the minutes of the Jan. 27, 2021 meeting. Motion carried.
Ms. Basham presented and discussed the following reports: balance sheet, income statement and claims expenses report as of Jan. 31, 2021; FY 2020/21 PAF budget for period July 1, 2020 - Jan. 31, 2021; additions and deletions for period Jan. 1 - 31, 2021; FY 2020/21 agent commissions earned to date as of Jan. 31, 2020; FY 2020/21 premium receivables as of Feb. 17, 2021; and FY 2020/21 investment portfolio summary as of Jan. 31, 2020.
Motion made by Adam O'Nan, seconded by Orbrey Gritton, to acknowledge receipt of the financial reports as presented. Motion carried.
Ms. Basham presented a summary of the investment report and list of security position changes as of Jan. 31, 2020. The board received a copy of the full investment report electronically prior to the meeting. The board was in favor of the summarized investment report as presented by Ms. Basham.
Motion made by Charles Kenner, seconded by Adam O'Nan, to accept the investment report and to ratify the security changes as presented. Motion carried.
Mr. Henderson said the Fund's investment managers at Central Bank and Conning are available to provide the board with an investment update. The board agreed to have Central Bank and Conning to present to the board twice a year.
Mr. Head presented and discussed the quarterly claims report for period Nov. 1, 2020 through Jan. 31, 2021.
Mr. Juett said the Territory D contract would be ready to present to the board at next month's meeting.
Mr. Juett, giving the director's report, provided the board with a written copy of his report, which he briefly discussed including preliminary indications from CRL on reinsurance costs and update on loss control activity. He said the Department of Insurance has begun its four year audit and KACo, along with the Kentucky League of Cities and Department of Criminal Justice Training, have completed the first of seventeen emergency drivers' courses with 26 students completing the course. The KACo Workers Compensation Fund received final approval of a $2 million dividend that the board declared in November, which will be paid to those who were members in 2007-08 and remain members in August 2021.
The next meeting will be March 24 at 12:30 p.m.
Motion made by Orbrey Gritton, seconded by Adam O'Nan, to go into closed session at 12:58 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 Adam O'Nan, to return to open session at 1:10 p.m. Motion carried. No action was taken in closed session.
Motion made by John Wilson, seconded by Orbrey Gritton, to adjourn the meeting at 1:10 p.m. Motion carried.
