[tidy error]
The Kentucky Association of Counties All Lines Fund held a special Board of Directors' meeting, pursuant to proper notice given in accordance with KRS 61.823, at 12:50 p.m. on Wednesday, August 26, 2020 via teleconference and in person at 400 Englewood Drive in Frankfort, Kentucky.
The roll was called. The following Directors participated in person: Chairman Robert Carpenter, Greenup Co. Judge/Executive; John Wilson, Garrard Co. Judge/Executive; 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; Jim Henderson, Executive Director/CEO; Karen Basham, Chief Financial Officer; Tim Sturgill, General Counsel; Michael Ray, Safety & Loss Control Manager; Jeremy Head, Claims Manager; Andrea Morse, Associate Underwriter; Marie Skinner, Accountant; Steve Bolton, Board Counsel; Rob Brown and Joe Greathouse, LGIA/KACo Marketing Agents; Clint Combs, Peel & Holland/Marketing Agent; Grant Satterly, Director of Financial Services; Dwayne Litton, Safety & Loss Control Specialist; Jeff Thompson, former KACo employee; and Sonya Chesser, Chief Administrative Officer/Executive Assistant to CEO. Others participating via teleconference included: Bruce Lawson, Senior Accountant; Kris Dunn, Underwriting Manager; Rich Ornstein, Staff Attorney; Sue Porter and Kathy Marshall, Roeding Insurance/Marketing Agents; Phil Crumpton, Law Enforcement Specialist; Jeremy Russell, Underwriters, Safety & Claims; and John Logan, Marsh, Inc.
Chair Carpenter called the meeting to order at 12:50 p.m.
Motion made by Orbrey Gritton, seconded by Charles Kenner, to approve the minutes of the July 29, 2020 meeting. Motion carried.
Ms. Basham presented and discussed the following reports: balance sheet as of July 31, 2020; FY 2020/21 budget detail for the month ending July 31, 2020; FY 2020/21 PAF budget for period July 1 - 31, 2020; FY 2020/21 agent commissions earned to date as of July 31, 2020; FY 2020/21 additions and deletions for period July 1 - 31, 2020; underwriting profit and loss report as of July 31, 2020; and FY 2020/21 investment portfolio summary as of June 30, 2020.
Ms. Basham said dividend checks were recently mailed to eligible members.
Motion made by Adam O'Nan, seconded by Orbrey Gritton, to acknowledge receipt of the financial reports as presented. Motion carried.
Mr. Head presented a summary of the claims for the month of July 2020 including claims volume by year from 2016 to present.
Mr. Juett presented and discussed the reserve study for the July 1, 2019 through June 30, 2020 policy year as prepared by Oliver Wyman Actuarial Consulting Firm. He said the reserves will increase nominally by $4.4 million with the discounted rate bringing the recommended increase to $4.2 million. The reason is due to law enforcement and auto claims. He said this will reduce the Fund's surplus by $4.2 million. Oliver Wyman recommends setting the reserve at the unpaid loss and LAE, discounted at 2.0%, at $50,608,954.
Motion made by John Wilson, seconded by Orbrey Gritton, to set the reserves at the level of nominal unpaid loss and ALAE at $50,608,954, discounted at 2.0%, per the June 30, 2020 actuarial report. Motion carried.
Mr. Ray, providing an update on the 2020/21 grant program, said the application has been available on KACo's website since August 17 and will continue to remain open through September 17. Applications are being accepted for future purchases made with intent of helping members reduce losses in connection with the insurance funds and include purchases of equipment, training, or consulting services, as well as property improvements intended to reduce the risk of personal injury. Members may submit up to two separate applications during the application period and each application may be used to apply for one type of product or service. All applications are being considered, but areas that will be given priority attention this year will be products and services designed to help reduce or eliminate slip, trip and fall hazards; lifting injuries; auto accidents; and losses connected to jail operations. Grants are limited to a maximum reimbursement of $10,000, and members would be required to contribute an additional 20% to any grant awarded. To date, applications have been received from three fiscal courts and 21 political subdivisions. The Fund is contributing $100,000 with the KACo All Lines Fund also contributing $100,000.
Mr. Juett provided the board with a copy of his monthly director's report.
Motion made by Orbrey Gritton, seconded by John Wilson to move the next scheduled meeting form Monday, September 28th to Wednesday, September 30th at 1:00 p.m. p.m. Motion carried.
Motion made by Orbrey Gritton, seconded by John Wilson, to go into closed session at 1:12 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 Charles Kenner, to return to open session at 1:52 p.m. Motion carried. No action was taken in closed session.
Motion made by Adam O'Nan, seconded by John Wilson, to adjourn the meeting at 1:52 p.m. Motion carried.
