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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, September 26, 2019 at 400 Englewood Drive in Frankfort, Kentucky.
The roll was called. The following Directors were present: Chairman Elbert Bennett, Caldwell Co. Magistrate; 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: Karen Basham, Chief Financial Officer; Clint Combs, Peel & Holland/KACo Benefits Group; Tim Sturgill, General Counsel; Marie Skinner, Accountant/UI Manager; Bruce Lawson, Senior Accountant; and Sonya Chesser, Executive Secretary.
Chairman Bennett called the meeting to order at 2:20 p.m.
Motion made by Alex Barnett, seconded by Todd Ruckel, to approve the minutes of the June 20, 2019 meeting as presented. Motion carried.
Ms. Basham presented and discussed the income statement for period July 1, 2019 through August 31, 2019; balance sheet as of August 31, 2019; and FY 2019/20 PAF budget for period July 1, 2019 - August 31, 2019.
Motion made by Alex Barnett, seconded by Stevie Givens, to accept the financial reports as presented. Motion carried.
Ms. Basham presented and discussed the audited financial statement for years ended June 30, 2019 and 2018.
Motion made by Stevie Givens, seconded by Todd Ruckel, to acknowledge receipt of the audited financial statement as presented. Motion carried.
Ms. Skinner, presented and discussed the total number of bonds and premium, by month, for FY 2019/20 as compared to FY 2018/19 as September 23, 2019.
Mr. Combs, giving an update on health insurance, provided a summary of the KACo Benefits Program, which includes 61 fiscal courts, 70 libraries and 63 political subdivisions totaling 194 members for a total annualized premium of $40,410,121 and 5,421 covered lives. His report also included a five year review of the Agency's financial performance and the current rolling twelve month commissions, which have increased by 17.1% over last year. He said new members include four fiscal courts netting 312 lives for the quarter. Knox County Fiscal Court, Kentucky River Regional Animal Shelter and West Shelby Water District (Dental only) terminated on July 1, 2019. He reported that the Anthem bonus to KACo has nearly doubled in the past five years. Mr. Combs presented and discussed the premium and expense summary report for period June 2016 through May 2019; the population and claims data through June 2019.
Ms. Basham presented the Directors and Officers renewal for policy year July 1, 2019 to July 1, 2020 with Ironshore, a Lloyd's syndicate, in which the board approved at the last meeting if the premium amount was no greater than 15% and if management approved. The total premium amount including taxes and surcharges totaled $11,638.43, resulting in an overall increase of 5.04%.
Mr. Sturgill said the Agency is as a wholly owned subsidiary of KACo and, in past years, the Agency has declared a dividend to be paid to KACo as the shareholder. Based on the earnings, he requested that the Agency declare a dividend in the amount of $500,000 payable to KACo.
Motion made by Alex Barnett, seconded by Todd Ruckel, to declare a $500,000 dividend payable to KACo. Motion carried.
The next scheduled quarterly board meeting will be held December 19th upon adjournment of the KACo Board of Director's meeting.
Motion made by Todd Ruckel, seconded by Stevie Givens, to adjourn the meeting at 2:45 p.m. Motion carried.
