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The Kentucky Association of Counties Insurance Agency, Inc. held a Board of Directors' meeting immediately following the KACo Board of Directors' meeting on Thursday, June 20, 2019 at 400 Englewood Drive in Frankfort, Kentucky.
The roll was called. The following Directors were present: Chairman Elbert Bennett, Caldwell Co. Magistrate; Gary Moore, Boone Co. Judge/Executive; Stevie Givens, Butler Co. Magistrate; Todd Ruckel, Lewis Co. Judge/Executive; Alex Barnett, Harrison Co. Judge/ Executive; and Jim Henderson, KACo Executive Director/CEO.
Others present were: Temple Juett, Director of Insurance; Karen Basham, Chief Financial Officer; Kelly Harding, Jerry Pace, and Clint Combs, Peel & Holland/KACo Benefits Group; Tim Sturgill, General Counsel; Andrea Morse, Associate Underwriter; and Sonya Chesser, Executive Secretary.
Chairman Bennett called the meeting to order at 2:14 p.m.
Motion made by Stevie Givens, seconded by Alex Barnett, to approve the minutes of the March 28, 2019 meeting as presented.
Ms. Basham presented and discussed the income statement for period July 1, 2018 through May 31, 2019; balance sheet as of May 31, 2019; and FY 2018/19 PAF budget for period July 1, 2018 - May 31, 2019.
Motion made by Alex Barnett, seconded by Stevie Givens, to accept the financial reports as presented. Motion carried.
Ms. Skinner, presented and discussed the total number of bonds and premium, by month, for FY 2018/19 as compared to FY 2017/18 as June 18, 2019. Mr. Henderson said Ms. Skinner manages the bond program very well and complimented her for a record number of public official bonds issued for FY 2018/19.
Mr. Harding, giving an update on health insurance, provided a summary of the KACo Benefits Program and a five year review of the Agency's financial performance, which includes an update on the current rolling twelve month commissions. He also presented a list of the activity to date for the July 1 renewal. He presented the Association health plan data through April 2019 for the board's review. Mr. Harding asked the board to consider a policy similar to the state of Kentucky's health plan that requires members to remain in the program for three years in order to maintain premium stabilization. Mr. Sturgill said the KACo Executive Committee would need to be involved in this discussion since the Association agreement is between KACo and Anthem.
Ms. Basham presented and discussed the FY 2019/20 program administration agreement between KACo and the KACo Insurance Agency, Inc. commencing July 1, 2019 and expiring June 30, 2020.
Motion made by Alex Barnett, seconded by Todd Ruckel, to approve the FY 2019/20 program administration agreement as presented. Motion carried.
Ms. Basham requested approval to renew the Errors and Omissions policy for year July 1, 2019 to July 1, 2020 with Lloyds. The final quote has not been received, however, from discussions, she anticipates a premium increase of 15% over last year's premium.
Motion made by Alex Barnett, seconded by Todd Ruckel, to approve renewing the Errors and Omissions policy with management's approval and no greater than 15% increase over last year's premium. Motion carried.
Ms. Basham presented and discussed the FY 2019/20 proposed draft budget.
Motion made by Stevie Givens, seconded by Alex Barnett, to adopt the FY 2019/20 budget as presented. Motion carried.
The next scheduled quarterly board meeting will be held September 26th upon adjournment of the KACo Board of Director's meeting. Judge Moore said he would be unable to attend the next meeting but asked the board to consider holding a special meeting so that he may be able to participate via phone should a quorum be required.
Motion made by Stevie Givens, seconded by Todd Ruckel, to adjourn the meeting at 2:45 p.m. Motion carried.
