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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. (EDT) on Wednesday, May 26, 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 participating in person included: Temple Juett, Director of Insurance and Business; Jim Henderson, Executive Director/CEO; Karen Basham, Chief Financial Officer; Tim Sturgill, General Counsel; Andrea Morse, Insurance Agency Manager; Jeremy Head, Claims Manager; Rich Ornstein, Staff Attorney; Michael Ray, Safety & Loss Control Manager; Kris Dunn, Associate Director of Insurance; Crystal Hellard, Litigated Claims Manager; Marie Skinner, Accounting Manager; Phil Crumpton, Law Enforcement Specialist; Steve Bolton, Board Counsel; Joe Greathouse, LGIA/KACo Marketing Agent; Sue Porter and Kathy Marshall, Roeding Insurance/KACo Marketing Agents; Clint Combs, Peel and Holland Financial Group/KACo Marketing Agent; and Sonya Chesser, Executive Assistant to the CEO/Director of Administrative Services.
Others participating via video conference: Michelle Barrett, Roeding Insurance/KACo Marketing Agent; 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 April 28, 2021 meeting. Motion carried.
Ms. Basham presented and discussed the following reports: balance sheet as of April 30, 2021, income statement and claims expenses report for period July 1, 2020 - April 30, 2021; FY 2020/21 PAF budget for period July 1, 2020 - April 30, 2021; FY 2020/21 agent commissions earned to date as of April 30, 2021; FY 2020/21 additions and deletions to premium for period April 1 - 30, 2021; and FY 2020/21 premium receivables as of May 20, 2021. She said the Fund is in compliance with the investment ratios as statutorily required.
Motion made by Orbrey Gritton, seconded by Adam O'Nan, to acknowledge receipt of the financial reports as presented. Motion carried.
Mr. Head presented and discussed the quarterly claims report for period Feb. 2021 through Apr. 2021.
Ms. Basham presented and discussed the investment report and investment transactions for the month of April. She also presented the market overview for second quarter of 2021 as prepared by Central Bank. The board received a full listing of all of the Fund's investments electronically.
Motion made by Orbrey Gritton, seconded by Charles Kenner, to acknowledge receipt of the investment report and to ratify the investment transactions as presented. Motion carried.
Ms. Basham presented and discussed the Custodial Agreement between the KACo All Lines Fund and Central Bank to hold, manage and invest properties per the terms and conditions of the agreement.
Motion made by Adam O'Nan, seconded by John Wilson, to approve the Custodial Agreement between the KACo All Lines Fund and Central Bank as presented. Motion carried.
Ms. Basham presented and discussed the FY 2021/22 draft budget for the board's review.
Mr. Juett presented and discussed the reinsurance renewal premium quote from County Reinsurance Limited (CRL) for policy year 2021/22 totaling $6,419,281.
Motion made by Adam O'Nan, seconded by Orbrey Gritton, to renew reinsurance with CRL for policy year 2021/22 as presented. Motion carried.
Mr. Juett presented a Memorandum of Extension between the KACo All Lines Fund and Roeding Insurance-Public Entity for Territory D for another three year term commencing on July 1, 2021 and continuing through June 30, 2024. He said that in the meantime, staff will continue to work with the regional agents to revise the agreements.
Motion made by John Wilson, seconded by Orbrey Gritton, to approve the Memorandum of Extension with Roeding Insurance-Public Entity for Territory D for another three year term as presented. Motion carried.
The next meeting will be June 23rd at 12:30 p.m.
Motion made by Adam O'Nan, seconded by Orbrey Gritton, to go into closed session at 1:04 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 1:32 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 1:32 p.m. Motion carried.
