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The Kentucky Association of Counties Workers' Compensation Fund held a special Board of Trustees' meeting, pursuant to proper notice given in accordance with KRS 61.823, at 10:40 a.m. on Wednesday, August 26, 2020 via teleconference and in person at 400 Englewood Drive in Frankfort, Kentucky.
The roll was called. The following Trustees participated in person: Chairman Greg Terry, Carlisle Co. Judge/Executive; Michael Logsdon, Oldham Co. Magistrate; Casey Ellis, Owen Co. Judge/Executive; Dan Mosley, Harlan Co. Judge/Executive; and Elbert Bennett, Caldwell Co. Magistrate.
Others participating in person included: Temple Juett, Director of Insurance; Jim Henderson, Executive Director/CEO; Karen Basham, Chief Financial Officer; Tim Sturgill, General Counsel; Michael Ray, Safety & Loss Control Manager; Jeremy Head, Claims Manager; Andrea Morse, Associate Underwriter; Marie Skinner, Accountant; Rich Ornstein, Staff Attorney; Rob Brown and Joe Greathouse, LGIA/KACo Marketing Agents; Clint Combs, Peel & Holland/Marketing Agent; Paul Harnice, Board Counsel, Stoll, Keenon, Ogden, PLLC; Jeff Scott, Oliver Wyman Actuarial Consulting Firm; Grant Satterly, Director of Financial Services; Ryan Siemens and Jeremy McCann, IT Support; and Sonya Chesser, Chief Administrative Officer/Executive Assistant to CEO. Those participating via videoconference were: Kris Dunn, Underwriting Manager; Bruce Lawson, Senior Accountant; Phil Crumpton, Law Enforcement Specialist; Kathy Basham, Customer Service Representative; Jeff Scott and Molly Stark, Oliver Wyman Actuarial Consulting Firm; Sue Porter, Michele Barrett, and Kathy Marshall, Roeding Insurance/Marketing Agents; Jeremy Russell and Ed Meredith, Underwriters, Safety & Claims; and Kristie Whistle, Marsh, Inc.
Chairman Terry called the meeting to order at 10:40 a.m.
Motion made by Elbert Bennett, seconded by Michael Logsdon, to approve the minutes of the July 29, 2020 meeting as presented. Motion carried.
Ms. Basham presented and discussed the following reports: balance sheet as of July 31, 2020; FY 2020/21 budget detail for the month ending July 31, 2020; FY 2020/21 PAF budget for period July 1 - 31, 2020; check history report for July 1 - 31, 2020; FY 2020/21 agent commissions earned to date as of July 31, 2020; FY 2020/21 investment portfolio summary as of July 31, 2020; and an operating report for July 2020.
Motion made by Michael Logsdon, seconded by Dan Mosley, to acknowledge receipt of the financial reports as presented. Motion carried.
Mr. Head presented a summary of the claims reported for the month of July 2020 including claims volume by year from 2016 to present.
Mr. Scott presented and discussed the reserve study for the July 1, 2019 through June 30, 2020 policy year as prepared by Oliver Wyman Actuarial Consulting Firm. Mr. Juett said staff's recommendation is to set the reserves at the level of nominal unpaid loss and ALAE at $65,177,708 per the June 30, 2020 actuarial report.
Motion made by Dan Mosley, seconded by Elbert Bennett, to set the reserves at the level of nominal unpaid loss and ALAE at $65,177,708 per the June 30, 2020 actuarial report. Motion carried.
Mr. Ray, providing an update on the 2020/21 grant program, said the application has been available on KACo's website since August 17 and will continue to remain open through September 17. Applications are being accepted for future purchases made with intent of helping members reduce losses in connection with the insurance funds and include purchases of equipment, training, or consulting services, as well as property improvements intended to reduce the risk of personal injury. Members may submit up to two (2) separate applications during the application period and each application may be used to apply for one type of product or service. All applications are being considered, but areas that will be given priority attention this year will be products and services designed to help reduce or eliminate slip, trip and fall hazards; lifting injuries; auto accidents; and losses connected to jail operations. Grants are limited to a maximum reimbursement of $10,000, and members would be required to contribute an additional 20% to any grant awarded. To date, applications have been received from three fiscal courts and 21 political subdivisions. The Fund is contributing $100,000 with the KACo All Lines Fund also contributing $100,000.
Mr. Juett provided the board with a copy of his monthly director's report.
The board agreed to move the regularly scheduled meeting from Monday, September 28th at 10:30 a.m. to September 30th at 10:30 a.m.
Mr. Henderson recognized Jeff Thompson, who recently retired as KACo's safety and loss control specialist for the west Kentucky region. Chairman Terry thanked Mr. Thompson for the great job he has done. Squire Bennett said it was always a pleasure working with Mr. Thompson.
Motion made by Elbert Bennett, seconded by Dan Mosley, to go into closed session at 11:08 a.m. to discuss proposed or pending litigation involving the board as authorized by KRS 61.810 (1)(c). Motion carried.
Motion made by Elbert Bennett, seconded by Michael Logsdon, to return to open session at 11:15 a.m. Motion carried. No action was taken in closed session.
Motion made by Elbert Bennett, seconded by Casey Ellis, to adjourn the meeting at 11:17 a.m. Motion carried.
