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The Kentucky Association of Counties Insurance Agency, Inc. held a special Board of Directors' meeting, pursuant to proper notice given in accordance with KRS 61.823, immediately following the KACo Board of Director's meeting on Thursday, June 25, 2020. This meeting was held in person at 400 Englewood Drive in Frankfort, Kentucky and via teleconference.
The roll was called. The following Directors participated in person and by teleconference: Chairman Gary Moore, Boone Co. Judge/Executive; Reagan Taylor, Madison Co. Judge/Executive; Stevie Givens, Butler Co. Magistrate; Todd Ruckel, Lewis Co. Judge/Executive (via teleconference); Alex Barnett, Harrison Co. Judge/Executive; Gary Gardner, Hart Co. Magistrate; and Jim Henderson, KACo Executive Director/CEO.
Others participating in person and by teleconference included: Temple Juett, Director of Insurance (via teleconference); Karen Basham, Chief Financial Officer; Kelly Harding, Peel & Holland/KACo Benefits Group; Bruce Lawson, Senior Accountant (via teleconference); Marie Skinner, Accountant/UI Manager; Rich Ornstein, Staff Attorney; Jon Sharp, IT Manager; and Sonya Chesser, Chief Administrative Officer/Executive Assistant to CEO.
Chairman Moore called the meeting to order at 3:01 p.m.
Motion made by Alex Barnett, seconded by Reagan Taylor, to approve the minutes of the March 26, 2020 meeting as presented. Motion carried.
Ms. Basham presented and discussed balance sheet as of May 31, 2020; income statement for July 1, 2019 through May 31, 2020; and FY 2019/20 PAF budget for period July 1, 2019 through May 31, 2020.
Motion made by Gary Moore, seconded by Stevie Givens, to approve the minutes of the March 26, 2020 as presented. Motion carried.
Ms. Basham presented and discussed the FY 2020/21 proposed budget.
Motion made by Alex Barnett, seconded by Stevie Givens, to approve the FY 2020/21 budget as presented. Motion carried.
Ms. Basham presented and discussed the FY 2020/21 program administration agreement between KACo and the KACo Insurance Agency, Inc. commencing on July 1, 2020 and ending June 30, 2021.
Motion made by Gary Gardner, seconded by Stevie Givens to approve the FY 2020/21 program administration agreement as presented. Motion carried.
Ms. Skinner provided an overview of the bond issues and renewals as of June 18, 2020 including a report by month for FY 2018/19 as compared to FY 2019/20.
Mr. Harding, giving an update on health insurance, provided a summary of the KACo Benefits Program, which includes 64 fiscal courts, 73 libraries and 63 political subdivisions totaling 200 members; a net of four members since the last reporting period. The report also included a five year review of the Agency's financial performance and the current rolling twelve month commissions. Mr. Harding said Anthem plans to offer Chamber Advantage Program, a product similar to a product that KACo offers for employers that have 2 to 50 employees. He said Peel & Holland will be meeting with Anthem after July 1 to discuss their direct competition with KACo for the book of business. Because of COVID-19, Mr. Harding said the renewal cycle has been challenging with the majority of renewals being conducted virtually and by way of call centers. He said employee health benefit information were recorded and provided to the clients. This method of communicating has been successful since employees are able to view the recording at their leisure rather than in person meeting. He said claims will begin to dip since hospitals are cancelling procedures not COVID-19 related. Due to the low volume of claims, carriers plan to offer rebates. One example, is Anthem plans to provide members a rebate of 10% on health and 50% on dental for April charges incurred.
Ms. Basham presented the errors and omissions policy renewal for FY 2020/21. She said the bill will come due in August, and based on last year's premium, the bill should not to exceed an increase of 20% or $15,084.00. She requested approval to renew the policy should the amount not exceed a 20% increase.
Motion made by Alex Barnett, seconded by Reagan Taylor, to approve the errors and omissions policy for FY 2020/21 for amount not to increase 20% over last year's premium. Motion carried.
Mr. Henderson asked staff to look at term options that would allow the invoice to be presented to the board. Mr. Juett said staff could look at extending the policy to coincide with a quarterly board meeting since the carrier will not provide a quote until 30 days of the premium being due.
The next regularly scheduled meeting will be held September 24th upon adjournment of the quarterly KACo Board of Director's meeting.
Motion made by Stevie Givens, seconded by Reagan Taylor, to adjourn the meeting at 3:24 p.m. Motion carried.
