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The Kentucky Association of Counties Workers' Compensation Self-Insurance Fund held a special Board of Trustees meeting at 10:30 a.m. on Wednesday, February 26, 2025. This meeting was held at the KACo offices located at 400 Englewood Drive in Frankfort, Kentucky and via video teleconference, pursuant to proper notice given in accordance with KRS 61.823, 61.826, and KRS 65.312(3).
The roll was called. The following Trustees were present: Chairman Greg Terry, Carlisle County Judge/Executive; Vice-Chair Dan Mosley, Harlan County Judge/Executive; Michael Logsdon, Oldham County Magistrate; Adam O'Nan, Union County Judge/Executive; and David Nicholson, Jefferson County Circuit Court Clerk.
Others present included: Jim Henderson, Executive Director/CEO; Temple Juett, Director of Insurance and Business; Karen Basham, Chief Financial Officer; Paul Harnice, Board Counsel, Stoll, Keenon, Ogden, PLLC; Kris Dunn, Assistant Director of Insurance; Rich Ornstein, Attorney; Michael Ray, Safety & Loss Control Manager (via video teleconference); Jeremy Head, Claims Manager; Crystal Hellard, Litigated Claims Manager; Marie Skinner, Accountant; Alyssa Rogers, Staff Accountant; Kathy Basham, Lindsey Bowman and Macy Thompson, Customer Service Representatives; Sue Porter, Michelle Barrett and Kathy Marshall, Public Entity Insurance/KACo Marketing Agents; Joe Greathouse, Commonwealth Insurance Agency/KACo Marketing Agent; Rob Brown, Local Government Insurance Agency/KACo Marketing Agent; Clint Combs, HUB International/KACo Marketing Agent (via video teleconference); GeeAnn Missi, Marsh, Inc. (via video teleconference); Greg Sisson (via video teleconference), Ed Meredith, and Jeremy Russell, Charles Taylor, TPA; Jesse Penn, Computer Support Specialist; and Sonya Chesser, Executive Assistant to CEO/Director of Administrative Services.
Chairman Terry called the meeting to order at 10:30 a.m.
Motion made by Adam O'Nan, seconded by David Nicholson, to approve the minutes of the January 22, 2025, meeting as presented. Motion carried.
Ms. Basham presented and discussed the following financial reports: balance sheet as of January 31, 2025; statement of operations as of January 31, 2025; FY 2024/25 PAF budget for period July 1, 2024 - January 31, 2025; FY 2024/25 agent commissions by agency as January 31, 2025; and FY 2024/25 premium receivables as of February 14, 2025.
Motion made by Michael Logsdon, seconded by David Nicholson, to acknowledge receipt of the financial reports as presented. Motion carried.
Ms. Basham presented the investment reports for January 2025 and the FY 2024/25 investment portfolio summary by month. There were no investment transactions for the month of January 2025. She said the Fund is in compliance with the ratios as statutorily required.
Motion made by Adam O'Nan, seconded by David Nicholson, to acknowledge receipt of the investment report as presented. Motion carried.
Ms. Basham presented the annual review of the dividend policy.
Motion made by David Nicholson, seconded by Michael Logsdon, to declare a dividend of $4.2 million for the policy year FY 2015/16 to be paid to active members of the Fund after June 30, 2025, in accordance with the Board's dividend policy. Motion carried.
Mr. Head presented and discussed the quarterly claims report as of January 31, 2025.
Mr. Juett stated that the Fund's existing claims service agreement with Charles Taylor TPA, LLC is set to expire on June 30, 2025, and it includes an option for up to two additional three-year extensions. He presented the first memorandum of extension between the Fund and Charles Taylor, TPA for a period of three (3) years commencing on July 1, 2025, and continuing through June 30, 2028.
Motion made by Adam O'Nan, seconded by Michael Logsdon, to approve the memorandum of extension as presented. Motion carried.
Mr. Juett stated that the existing agent marketing agreement with Commonwealth Insurance Advisors, LLC for Territory B is set to expire on July 1, 2025, and it includes an option for an additional four-year extension. He presented a memorandum outlining the four-year extension between the Fund and Commonwealth Insurance Advisors, LLC as the agent, which will commence on July 1, 2025, and conclude on June 30, 2029. It also includes a correction noting that the original agreement identified Commonwealth Insurance Advisors, LLC as Commonwealth Insurance Advisors, a Kentucky for-profit corporation.
Motion made by Adam O'Nan, seconded by Michael Logsdon, to approve the Memorandum of Correction and Extension as presented. Motion carried.
Ms. Basham stated that the existing asset management agreement with Conning is set to expire on June 30, 2025, and it includes an option for up to two additional three-year extensions. She presented the first memorandum of extension between the Fund and Conning, Inc. for a period of three (3) years commencing on July 1, 2025, and continuing through June 30, 2028.
Motion made by David Nicholson, seconded by Michael Logsdon, to approve the memorandum of extension as presented. Motion carried.
The next meeting is March 19, at 10:30 a.m.
Motion made by Adam O'Nan, seconded by David Nicholson, to go in closed session at 10:50 a.m. to discuss proposed or pending litigation involving the board as authorized by KRS 61.810(1)(c). Motion carried.
Motion made by Michael Logsdon, seconded by Dan Mosley, to return to open session at 10:58 a.m. Motion carried. There was no action taken in closed session.
Motion made by Michael Logsdon, seconded by Dan Mosley, to adjourn the meeting at 10:58 a.m. Motion carried.
