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The Kentucky Association of Counties All Lines Fund held a Board of Directors' meeting at 1:00 p.m. on Wednesday, August 21, 2019 at 400 Englewood Drive in Frankfort, Kentucky.
The roll was called. The following Directors were present: Chairman Robert Carpenter, Greenup Co. Judge/Executive; John Wilson, Garrard Co. Judge/Executive; Orbrey Gritton, Anderson Co. Judge/Executive; Adam O'Nan, Union Co. Judge/Executive and Charles Kenner, Boone Co. Commissioner.
Others present were: Temple Juett, Director of Insurance; Karen Basham, Chief Financial Officer; Michael Ray, Safety & Loss Control Manager; Marie Skinner, Accountant; Bruce Lawson, Senior Accountant; Crystal Hellard, Litigated Claims Specialist; Jeremy Head, Claims Manager; Rich Ornstein, Staff Attorney; Macy Thompson and Kathy Basham, Customer Service Representatives; Jerry Pace, Peel & Holland/KACo Marketing Agents; Sue Porter, Roeding Insurance/KACo Marketing Agents; Rob Brown and Joe Greathouse, LGIA/KACo Marketing Agent; Andrea Morse, Associate Underwriter; John Logan and Kristie Whistle, Marsh, Inc.; Ed Meredith, Jeremy Russell and Terry Banaszak, Underwriters, Safety & Claims; Steve Bolton, Board Counsel; and Sonya Chesser, Executive Secretary.
Chairman Carpenter called the meeting to order at 1:00 p.m.
Motion made by Orbrey Gritton, seconded by John Wilson, to approve the minutes of the July 24, 2019 meeting. Motion carried.
Ms. Basham presented and discussed the following reports: FY 2019/20 budget detail for the month ending July 31, 2019; balance sheet as of July 31, 2019; FY 2019/20 PAF budget for period July 1 - 31, 2019; FY 2019/20 additions and deletions as of July 31, 2019; FY 2019/20 agent commissions earned to date as of July 31, 2019; and FY 2019/20 investment portfolio summary as of July 31, 2019.
Motion made by Charles Kenner, seconded by Adam O'Nan, to accept the financial reports as presented. Motion carried.
Mr. Head presented and discussed the following claims activity reports: summary of losses valued as of July 31, 2019; graphs of opened and closed claims during FY 2019/20; total open claims for all years as of July 31, 2019; and a chart comparing the number of claims from the last three to five to ten years including the incurred monthly averages as of June 30, 2019. There were a total of 234 newly reported claims totaling an incurred value of $1,914,196.27 for the month of July 2019 as compared to 262 reported claims totaling an incurred value of $1,717,392.22 for the month of July 2018. He recommended switching from monthly claims reports to quarterly in order to allow for more developed and accurate projections. The board concurred with the next reporting to be given at the October meeting. Mr. Head will inform the board of any issues that should arise between the quarters.
Mr. Juett presented a payment policy resolution for the board's consideration which states that the KALF Board recognizes the need for members to make premium balance payments in a prompt and timely manner by incentivizing early payments and discouraging late payments. Accordingly, the KALF Board has consistently offered member discounts for early premium payments, and imposed fees on unpaid balances after November 1 of each policy year. The KALF Board has also required full payment, including fees, no later than June 30 of each policy year to avoid cancellation for the next policy year. To promote member equity, the KALF Board has consistently enforced this payment policy. The KALF Board reserves the right, in rare instances, to grant members additional time to make payments on outstanding balances or to waive fees. Factors, including, but not limited to, highly unusual conditions of severe financial hardship and member payment history, may be considered.
Motion made by John Wilson, seconded by Orbrey Gritton, to adopt the payment policy resolution as presented. Motion carried.
Mr. Juett requested approval to take action on Knott County Fiscal Court's request for waiver of penalties for FY 2018/19 totaling $5,272.55.
Motion made by Orbrey Gritton, seconded by John Wilson, to allow Knott County Fiscal Court to make payments on outstanding penalties for FY 2018/19 due to unusual conditions of severe financial hardship. Motion carried.
Mr. Ray provided an update on the grant program. The grant application became available Aug. 15 via KACo's website and will remain open through Oct. 15. He said, to date, nine members have submitted applications.
Mr. Juett provided an update on the open position for a law enforcement specialist position.
Mr. Juett extended an invitation to the KALF Board to attend the burning of the KACo building note on September 26th in conjunction with the KACo quarterly board meeting.
The next scheduled board meeting will be held September 25th at 1:00 p.m.
Motion made by John Wilson, seconded by Orbrey Gritton, to go into closed session at 1:20 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 John Wilson, to return to open session at 1:36 p.m. Motion carried. No action was taken in closed session.
Motion made by Orbrey Gritton, seconded by John Wilson, to adjourn the meeting at 1:36 p.m. Motion carried.
