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The Kentucky Association of Counties Workers' Compensation Self-Insurance Fund held a Board of Trustees meeting at 10:30 a.m. on Wednesday, December 17, 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 61.826 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; David Nicholson, Jefferson County Circuit Court Clerk; and Adam O'Nan, Union County Judge/Executive.
Others present included: Jim Henderson, Executive Director/CEO; Jeremy Baird, Director of Insurance; Tim Sturgill, General Counsel; Paul Harnice, Board Counsel, Stoll, Keenon, Ogden, PLLC; Karen Basham, Chief Financial Officer; Kris Dunn, Associate Director of Insurance; Michael Ray, Safety and Loss Control Manager; Crystal Hellard, Litigated Claims Manager; Jeremy Head, Claims Manager; Phil Crumpton, Law Enforcement Liaison; Rich Ornstein, Staff Attorney; Andrea Morse, Insurance Agency Manager; Marie Skinner, Accounting Manager; Alyssa Rogers, Staff Accountant; Kathy Basham, Lindsey Bowman, and Macy Thompson, Customer Service Representatives; Steve Morrison and Steve Clary, Safety and Loss Control Specialists (both via video teleconference); Jennifer Burnett, Chief Innovation Officer; Shellie Hampton, Director of Government Affairs; Sue Porter and Michele Barrett, Public Entity Insurance/KACo Marketing Agents; Rob Brown, Local Government Insurance Agency/KACo Marketing Agent; Joe Greathouse, Commonwealth Insurance Advisors/KACo Marketing Agent; Clint Combs, HUB International/KACo Marketing Agent; Jeremy Russell, Terry Banaszak, and Ben Barnes, Charles Taylor TPA; Kristie Whistle and Missi GeeAnn, Marsh, Inc.; Sean Curry, Green County PVA and KACo 1st Vice President; Jacqalynn Riley, Grant County Magistrate and KACo 2nd Vice President; 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 Michael Logsdon, to approve the minutes of the October 29, 2025, meeting as presented. Motion carried.
Ms. Basham presented and discussed the following financial reports: balance sheet as of November 30, 2025; statement of operations and FY 2025/26 PAF budget for July 1, 2025 through November 30, 2025; and FY 2025/26 agent commissions by agency as November 30, 2025.
Motion made by Dan Mosley, seconded by Adam O'Nan, to acknowledge receipt of the financial reports as presented. Motion carried.
Ms. Basham presented the investment report and security transactions for November 2025. The board received a full listing of the Fund's investments electronically prior to the meeting. She said the Fund is in compliance with the ratios as statutorily required.
Motion made by Adam O'Nan, seconded by Dan Mosley, to acknowledge receipt of the investment report and to ratify the investment transactions as presented. Motion carried.
Ms. Basham presented the Fund's investment policy for the board's annual review. She recommended no changes at this time.
Ms. Basham reviewed the Fund's financial position as of June 30, 2025 for the purpose of determining whether a dividend should be declared for the 2016-17 policy year. She said that in accordance with the Fund's dividend policy, the Fund could declare a dividend of up to $8 million.
Motion made by Dan Mosley, seconded by Adam O'Nan, to, subject to approval by the Department of Insurance, declare a dividend of $5 million for the policy year 2016-2017 to be paid to active members of the Fund after June 30, 2026 in accordance with the Board's dividend policy. Motion carried.
Mr. Baird said the Kentucky Department of Insurance completed its examination of the Fund for period July 1, 2020 through June 30, 2024. He was pleased to report no findings and minor recommendations. The board received an electronic copy of the full audit report and management letter.
Mr. Baird said the current marketing agreement with Local Government Insurance Agency, Inc. for Territory C expires on June 30, 2025 and there are no further extensions available. The Fund sent out a request for qualifications for a regional agent for Territory C and one submission was received from Local Government Insurance Agency, Inc. He presented a new Regional Agent Marketing Agreement between the Fund and Local Government Insurance Agency, Inc. as agent for Territory C for the board's consideration. The new agreement will commence on July 1, 2026 and continue through June 30, and allows two additional extensions of four years each.
Motion made by Adam O'Nan, seconded by David Nicholson, to approve Regional Agent Marketing Agreement with Local Government Insurance Agency, Inc. as presented. Motion carried.
Mr. Ray provided a loss control update and showed a brief video clip of a law enforcement vehicle operations training course offered to the Boyd County Sheriff's Department.
Chairman Terry requested approval of the following meeting schedule for 2026: January 21, February 25, April 29, May 27, June 24, July 29, August 26, September 30, October 28, and December 16. The board agreed for all meetings to be held at 11 a.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 will be at the offices of the Kentucky Association of Counties, 400 Englewood Drive, Frankfort, Kentucky.
Motion made by Adam O'Nan, seconded by Michael Logsdon, to adopt the schedule of meetings for 2026 with a start time at 11 a.m.; 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 will be at the offices of the Kentucky Association of Counties, 400 Englewood Drive, Frankfort, Kentucky. Motion carried.
Motion made by Adam O'Nan, seconded by David Nicholson, to go in closed session at 11:03 a.m. to discuss proposed or pending litigation involving the board as authorized by KRS 61.810(1)(c). Motion carried.
Motion made by Adam O'Nan, seconded by Dan Mosley, to return to open session at 11:09 a.m. Motion carried. There was no action taken in closed session.
Motion made by David Nicholson, seconded by Michael Logsdon, to adjourn the meeting at 11:09 a.m. Motion carried.
