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The Kentucky Association of Counties Workers' Compensation Self-Insurance Fund held a Board of Trustees' meeting 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 61.826, 61.826, 65.312(3) and 2020 Ky. Acts ch. 73 sec 1(8)(b), at 10:30 a.m. (EDT) on Wednesday, September 22, 2021.
The roll was called. The following Trustees were present: Chairman Greg Terry, Carlisle Co. Judge/Executive; Vice-Chair Dan Mosley, Harlan Co. Judge/Executive (via teleconference); Michael Logsdon, Oldham Co. Magistrate; Elbert Bennett, Caldwell Co. Magistrate; and Casey Ellis, Owen Co. Judge/Executive (via teleconference).
Others participating in person included: Temple Juett, Director of Insurance and Business; Jim Henderson, Executive Director/CEO; Karen Basham, Chief Financial Officer; Tim Sturgill, General Counsel; Kris Dunn, Associate Director of Insurance; Crystal Hellard, Litigated Claims Manager; Jeremy Head, Claims Manager; Michael Ray, Safety and Loss Control Manager (via teleconference); Phil Crumpton, Law Enforcement Specialist; Andrea Morse, Insurance Agency Manager; Joe Greathouse, LGIA/KACo Marketing Agents; Kathy Basham, Customer Service Representative; Clint Combs, Marketing Agent, Peel & Holland Financial Group; Sarah Bishop, Board Counsel, Stoll, Keenon, Ogden, PLLC (via teleconference); Amy Ray (via teleconference) and Sue Porter, Marketing Agents, Roeding Insurance; Greg Sisson, Jeremy Russell and Ed Meredith, Underwriters, Safety & Claims, Inc.; Jesse Penn, Computer, Support Specialist; John Logan, Marsh USA (via teleconference); and Sonya Chesser, Executive Assistant to the CEO/Director of Administrative Services.
Chairman Terry called the meeting to order at 10:30 a.m.
Motion made by Michel Logsdon, seconded by Elbert Bennett, to approve the minutes of the August 25, 2021 meeting as presented. Motion carried.
Ms. Basham presented and discussed the following reports: balance sheet as of August 31, 2021, income statement and claims expense report for period July 1, 2021 - August 31, 2021; FY 2020/21 PAF budget for period July 1, 2021 - August 31, 2021; check history report for August 1 - 31, 2021.
Motion made by Elbert Bennett, seconded by Dan Mosley to acknowledge receipt of the financials reports as presented. Motion carried.
Ms. Basham presented the investment report and investment transactions for the month of August 2021. The board received a full listing of all of the Fund's investments electronically.
Motion made by Dan Mosley, seconded by Elbert Bennett, to acknowledge receipt of the investment report and to ratify the investment transactions as presented. Motion carried.
Mr. Head presented and discussed the quarterly claims report. The report included data over a five year period and new reported claims for August 2021.
Mr. Juett presented a draft of the request for proposals to provide claims service for the KACo All Lines Fund and KACo Workers Compensation Fund. The proposals are due to the KACo office by 4:30 p.m. (EDT) on October 11.
Motion made by Michael Logsdon, seconded by Elbert Bennett, to approve issuance of the request for proposals for claims services as presented. Motion carried.
Mr. Juett, giving the director's report, informed the board of a budgeted loss control expenditure that will be made in support of accreditation for law enforcement departments. Mr. Head compared the number of claim losses with the departments that were accredited with those having no accreditation. He provided claims data, which revealed a significant increase of losses from those non-accredited members. Mr. Crumpton said roughly 20% of the Fund's law enforcement agencies are accredited. He explained the importance of accreditation, which requires having policies in place that includes disciplinary actions, creditability and an outside board overseeing the accreditation process of its own individual agency. Policy incentives are also offered to members participating in the process. He said the Fund would offer a two year training program to assist up to 24 member agencies in obtaining accreditation. Mr. Juett said the cost is $4,000 for a year per participating member and, given law enforcement is the Fund's largest loss area, he feels that it will result in savings to the program. The amount would be shared between the Fund and the KACo All Lines Fund (KALF) with KALF paying more of the cost. Seeing no objection from the board, staff will move forward with implementing the program.
The next meeting is scheduled for October 27th at 12:30 p.m.
Motion made by Michael Logsdon, seconded by Elbert Bennett, to go into closed session at 11:01 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 11:12 a.m. Motion carried. No action was taken in closed session.
The next meeting will be October 27th at 10:30 a.m.
Motion made by Dan Mosley, seconded by Casey Ellis, to adjourn the meeting at 11:12 a.m. Motion carried.
