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The Kentucky Association of Counties Insurance Agency, Inc. held a quarterly Board of Directors meeting upon adjournment of the KACo Board of Directors quarterly meeting on Thursday, December 19, 2024. This meeting was held at 400 Englewood Drive in Frankfort, Ky. and via video teleconference, pursuant to proper notice given in accordance with KRS 61.826 and 65.312(3).
The roll was called. The following Directors were present: Chairman Dan Mosley, KACo President-elect and Harlan County Judge/Executive; Stevie Givens, Butler County Magistrate; Ronnie Akers, Floyd County Magistrate; Harry Clark, Rowan County Judge/Executive; Joe Pat Covington, Scott County Judge/Executive and Jim Henderson, KACo Executive Director/CEO.
Others participating included: Temple Juett, Director of Insurance; Tim Sturgill, General Counsel; Karen Basham, Chief Financial Officer; Andrea Morse, Insurance Agency Manager; Kris Dunn, Associate Director of Insurance; Marie Skinner; Alyssa Rogers, Staff Accountant; Kelly Harding, HUB International/KACo Marketing Agent; Jesse Penn, Computer Support Specialist; and Sonya Chesser, Executive Assistant to CEO/Director of Administrative Services.
Judge Mosley called the meeting to order at 2 p.m.
Motion made by Stevie Givens, seconded by Joe Pat Covington, to approve the minutes of the September 26, 2024, meeting as presented. Motion carried.
Ms. Basham presented and discussed the balance sheet as November 30, 2024; income statement and FY 2024/25 PAF budget for period July 1, 2024 through November 30, 2024. She also presented the pro forma balance sheet for the KACo Benefits Program as of October 31, 2024, and the pro forma income statement for the four months ending October 31, 2024, as prepared by Capstone Administrators.
Motion made by Harry Clark, seconded by Ronnie Akers, to acknowledge receipt of the financial reports as presented. Motion carried.
Ms. Morse presented the quarterly bond summary report by month for FY 2024/25 including the bond type for all currently active bonds as of November 30, 2024, and list of bond cancellations.
Ms. Basham discussed the dividend review and said, based on the financial position of the Agency, staff recommends declaring a $100,000 dividend to KACo.
Motion made by Joe Pat Covington, seconded by Stevie Givens, to declare a $100,000 dividend to KACo. Motion carried.
Mr. Harding, giving an update on health insurance, provided a written summary of the KACo Benefits Program, which includes seventy fiscal courts, sixty-three libraries and sixty-four other political subdivisions totaling 197 members covering 6,030 lives. The report also included the quarterly activity and a five-year review of the Agency's financial performance and benefits commission for the current and prior rolling twelve-month periods.
Mr. Sturgill discussed the new federal reporting requirement as passed by Congress. The Corporate Transparency Act (CTA), enacted in 2021, was passed to enhance transparency in entity structures and ownership to combat money laundering, tax fraud, and other illicit activities. It is designed to capture more information about the ownership of specific entities operating in or accessing the U.S. market and requires business entities to register by end of the calendar year. Mr. Sturgill said the Agency is as reporting company, however, exempt as a wholly owned subsidiary of KACo, a non for profit, and regulated by the state of Kentucky as an insurance producer. Recently, a federal district court in Texas granted a nationwide preliminary injunction barring enforcement of the reporting requirements. Mr. Sturgill noted the injunction could lifted anytime.
Motion made by Harry Clark, seconded by Stevie Givens, that upon review of the provisions of the Federal Corporate Transparency Act and advice of legal counsel, the Board of Directors finds that the Kentucky Association of Counties Insurance Agency, Inc., a wholly owned subsidiary of the Kentucky Association of Counties, Inc., a nonprofit corporation exempt from taxation pursuant to 26 USC § 501(c), and a licensed insurance agency subject to the supervision of the insurance commissioner of the Commonwealth of Kentucky, is exempt from filing beneficial owner information otherwise required by the Act pursuant to 31 USC § 5336(a)(11)(B)(xix). Motion carried.
President Mosley requested approval of the following meeting schedule for 2025: March 20, June 26, Sept. 25, and Dec. 18. All meetings will be held at 1 p.m. via video teleconference in accordance with KRS 61.826; that the primary location of the teleconference where the public will be allowed to attend, unless otherwise noted on the schedule, will be at the offices of the Kentucky Association of Counties, 400 Englewood Drive, Frankfort, Kentucky.
Motion made by Stevie Givens, seconded by Ronnie Akers, to adopt the schedule of meetings for 2025 as presented; that all meetings will be held via video teleconference in accordance with KRS 61.826; that the primary location of the teleconference where the public will be allowed to attend, unless otherwise noted on the schedule, will be at the offices of the Kentucky Association of Counties, 400 Englewood Drive, Frankfort, Kentucky. Motion carried.
Motion made by Stevie Givens, seconded by Harry Clark, to adjourn the meeting at 2:27 p.m. Motion carried.
