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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, 61.826, 65.312(3) and 2020 Ky. Acts ch. 73 sec. 1(8) (b), at 12:30 p.m. (EDT) on Wednesday, September 22, 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; Kris Dunn, Associate Director of Insurance; Crystal Hellard, Litigated Claims Manager; Jeremy Head, Claims Manager; Michael Ray, Safety and Loss Control Manager (via teleconference); Phil Crumpton, Law Enforcement Specialist; Andrea Morse, Insurance Agency Manager; Marie Skinner, Accounting Manager; Bruce Lawson, Accountant; Joe Greathouse, LGIA/KACo Marketing Agent; Kathy Basham, Customer Service Representative; Clint Combs, Marketing Agent, Peel & Holland Financial Group; Steve Bolton, Board Counsel; Sue Porter, Marketing Agent, Roeding Insurance; Amy Ray and Michele Barrett, Marketing Agents, Roeding Insurance (via teleconference); Greg Sisson, Jeremy Russell and Ed Meredith, Underwriters, Safety & Claims, Inc.; Jesse Penn, Computer, Support Specialist; John Logan and Kristie Whistle, Marsh USA (via teleconference); Tracey Reed, Jail Consultant (via teleconference); and Sonya Chesser, Executive Assistant to the CEO/Director of Administrative Services.
Chair Carpenter called the meeting to order at 12:30 p.m.
Motion made by Orbrey Gritton, seconded by Adam O'Nan, to approve the minutes of the August 25, 2021 meeting. Motion carried.
Ms. Basham presented and discussed the following reports: balance sheet as of August 31, 2021, income statement and claims expense report for period July 1, 2021 - August 31, 2021; FY 2020/21 PAF budget for period July 1, 2021 - August 31, 2021; FY 2020/21 agent commissions earned to date as of August 31, 2021; and FY 2020/21 additions and deletions to premium for period August 1 - 31, 2021.
Motion made by Orbrey Gritton, seconded by Charles Kenner, to acknowledge receipt of the financial reports as presented. Motion carried.
Ms. Basham presented and discussed the investment report and investment transactions for the month of August. The board received a full listing of all of the Fund's investments electronically.
Motion made by Orbrey Gritton, seconded by John Wilson, to acknowledge receipt of the investment report and to ratify the investment transactions as presented. Motion carried.
Mr. Head presented and discussed the quarterly claims report. The report included data over a five year period and new reported claims for August 2021.
Mr. Juett presented a draft of the request for proposals to provide claims service for the KACo All Lines Fund and KACo Workers Compensation Fund. The proposals are due to the KACo office by 4:30 p.m. (EDT) on October 11.
Motion made by Adam O'Nan, seconded by Orbrey Gritton to approve issuance of the request for proposals for claims services as presented. Motion carried.
Mr. Juett, giving the director's report, informed the board of a budgeted loss control expenditure that will be made in support of accreditation for law enforcement departments. Mr. Head compared the number of claim losses with the departments that were accredited with those having no accreditation. He provided claims data, which revealed a significant increase of losses from those non-accredited members. Mr. Crumpton said roughly 20% the Fund's law enforcement agencies are accredited. He explained the importance of accreditation, which requires having policies in place that includes disciplinary actions, creditability and an outside board overseeing the accreditation process of its own individual agency. Policy incentives are also offered to members participating in the process. He said the Fund would offer a two year training program to assist up to 25 member agencies in obtaining accreditation. Mr. Juett said the cost is $4,000 for a year per participating member and, given law enforcement is the Fund's largest loss area, he feels that it will result in savings to the program. The amount would be shared between the Fund and the KACo Workers Compensation Fund with KALF paying more of the cost. The board concurred with staff will moving forward with the program.
The next meeting is scheduled for October 27th at 12:30 p.m.
Motion made by Adam O'Nan, seconded by Orbrey Gritton, to go into closed session at 1:00 p.m. to discuss proposed or pending litigation involving the board as authorized by KRS 61.810 (1)(c). Motion carried.
Motion made by Charles Kenner, seconded by Adam O'Nan, to return to open session at 1:28 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 1:28 p.m. Motion carried.
