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The Kentucky Association of Counties Workers' Compensation 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 61.823, at 10:00 a.m. on Wednesday, February 24, 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 video teleconference); Michael Logsdon, Oldham Co. Magistrate; Elbert Bennett, Caldwell Co. Magistrate; and Casey Ellis, Owen Co. Judge/Executive (via video teleconference).
Others participating included: Temple Juett, Director of Insurance; Jim Henderson, Executive Director/CEO; Karen Basham, Chief Financial Officer; Tim Sturgill, General Counsel; Jeremy Head, Claims Manager; Andrea Morse, Associate Underwriter; Kris Dunn, Underwriting Manager; Crystal Hellard, Litigated Claims Specialist; Rich Ornstein, Staff Attorney; Michael Ray, Safety & Loss Control Manager; Marie Skinner, Accountant; Rob Brown and Joe Greathouse, LGIA/KACo Marketing Agents; Paul Harnice, Board Counsel, Stoll, Keenon, Ogden, PLLC; Bruce Lawson, Senior Accountant; Phil Crumpton, Law Enforcement Specialist; Steve Clary, Loss Control Specialist; Clint Combs, Peel & Holland/Marketing Agent; Sue Porter and Michelle Barrett, Roeding Insurance/Marketing Agents; Jeremy Russell and Ed Meredith, Underwriters, Safety & Claims; John Logan, Marsh, Inc.; Jennifer Burnett, Chief Innovation Officer; Sonya Chesser, Chief Administrative Officer/Executive Assistant to CEO.
Chairman Terry called the meeting to order at 10:32 a.m.
Motion made by Elbert Bennett, seconded by Michael Logsdon, to approve the minutes of the Jan. 27, 2021 meeting as presented. Motion carried.
Ms. Basham presented and discussed the following reports: balance sheet, income statement, and claims expense report as of Jan. 31, 2021; FY 2020/21 PAF budget for period July 1, 2020 - Jan. 31, 2021; check history report for period Jan. 1 - 31, 2021; additions and deletions report for period Jan. 1 - 31, 2021; FY 2020/21 agent commissions earned to date as of Jan. 31, 2021; FY 2020/21 premium receivable as of Feb. 17, 2021; and FY 2020/21 investment portfolio summary as of Jan. 31, 2021.
Ms. Basham presented the investment report and security position changes for period as of Jan. 31, 2021. The board received a full listing of all of the Fund's investments electronically.
Motion made by Michael Logsdon, seconded by Elbert Bennett, to acknowledge receipt of the financial reports as presented. Motion carried.
Motion made by Casey Ellis, seconded by Dan Mosley, to accept the investment report and ratify the quarterly security changes as presented. Motion carried.
Mr. Head presented and discussed the quarterly claims report for period Nov. 1, 2020 through Jan. 31, 2021.
Mr. Juett said the Territory D contract would be ready to present to the board at next month's meeting.
Mr. Juett, giving the director's report, provided the board with a written copy of his report, which he briefly discussed. The report included information related to a workers' compensation billed filed Feb. 10; the Nurse Triage usage; preliminary indications from CRL on reinsurance costs; loss control activity; the Workers Comp Fund receiving final approval of the $2 million dividend that the board declared in November, which will be paid to those who were members in 2007-08 and remain members in August 2021. He said the Department of Insurance has begun its four year audit and KACo, along with the Kentucky League of Cities and Department of Criminal Justice Training, have completed the first of seventeen emergency drivers' courses with 26 students completing the course.
Mr. Henderson provided an update on HB 561, a bill filed by Rep. Sal Santoro, which increases the gas tax, adds fees for electric vehicles and modifies the state's road funding formulas. This piece of legislation to increase transportation funding is the number one legislative priority for counties for the 2021 session. He asked the board to encourage their legislator to become a co-sponsor of the bill.
The next meeting will be March 24th at 10:30 a.m.
Motion made by Elbert Bennett, seconded by Casey Ellis, to go into closed session at 11:00 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 11:09 a.m. Motion carried. No action was taken in closed session.
Motion made by Dan Mosley, seconded by Casey Ellis, to adjourn the meeting at 11:09 a.m. Motion carried.
