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The Kentucky Association of Counties Workers' Compensation Self-Insurance Fund held a special Board of Trustees meeting at 2:30 p.m. on January 21, 2026. 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; David Nicholson, Jefferson County Circuit Court Clerk (via video teleconference); and Adam O'Nan, Union County Judge/Executive.
Others present included: Jim Henderson, Executive Director/CEO; Jeremy Baird, Director of Insurance; Karen Basham, Chief Financial Officer (via video teleconference); 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 video teleconference); Phil Crumpton, Law Enforcement Liaison; Rich Ornstein, Staff Attorney; Andrea Morse, Insurance Agency Manager; Marie Skinner, Accounting Manager; Alyssa Rogers, Staff Accountant; Steve Morrison and Steve Clary, Safety and Loss Control Specialists (both via video teleconference); Michele Barrett (via video teleconference), Sue Porter and Kathy Marshall, 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 (via video teleconference); Shellie Hampton, Director of Government Affairs; Greg Sisson (via video teleconference); Jeremy Russell, Ed Meredith, and Terry Banaszak, Charles Taylor TPA; Dan Smereck, Strategic Asset Alliance (via video teleconference); Danny Linton, Pinnacle Actuarial Resources (via video teleconference); David Livingston, Scott County Magistrate and Public Entity Insurance; Dustin Gilchrist, DMLO CPAs (via video teleconference); Jesse Penn, Computer Support Specialist; and Sonya Chesser, Executive Assistant to CEO/Director of Administrative Services.
Chairman Terry called the meeting to order at 2:43 p.m.
Chairman Terry accepted nominations for a chair, vice-chair and secretary.
Chairman Terry nominated Adam O'Nan as chair.
Motion made by Dan Mosley, seconded by Michael Logsdon, to elect Adam O'Nan as chair, Greg Terry as vice-chair, and Sonya Chesser as secretary. Motion carried.
Motion made by Adam O'Nan, seconded by Dan Mosley, to approve the minutes of the December 17, 2025, meeting as presented. Motion carried.
Ms. Skinner presented and discussed the following financial reports: balance sheet as of December 31, 2025; statement of operations and FY 2025/26 PAF budget for July 1, 2025 through December 31, 2025; and FY 2025/26 agent commissions by agency as December 31, 2025.
Motion made by Dan Mosley, seconded by Adam O'Nan, to acknowledge receipt of the financial reports as presented. Motion carried.
Ms. Skinner presented and discussed a summary of the Fund's investments for November and December 2025, and the security transactions for December 2025. The Board received a complete electronic listing of the Fund's investments prior to the meeting. She said the Fund is in compliance with the ratios as statutorily required.
Ms. Basham said the Kentucky Department of Insurance did not disapprove the Fund's request to declare a dividend of $5 million for policy year 2016-2017.
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.
Mr. Baird requested approval of the substitution of the Fund's security deposit in accordance with KRS 304.50-050.
Motion made by Adam O'Nan, seconded by Dan Mosley, to authorize KACo to replace matured U.S. Treasury Note with new U.S. Treasury Note and allow Director of Insurance and KACo Chief Executive Officer to sign Form 145 on board's behalf, and for all future forms. Motion carried.
Mr. Smereck presented a quarterly investment report as of December 31, 2025, and provided a capital market outlook.
Mr. Gilchrist presented and discussed the quarterly statement for period ending December 31, 2025, as prepared by DMLO for the required Kentucky Department of Insurance filing.
Motion made by Michael Logsdon, seconded by Dan Mosley, to approve the second quarter financial statement as presented. Motion carried.
Mr. Linton presented a review of the rate study as prepared by the actuary, Pinnacle Actuarial Resources, to determine rates for the 2026-2027 policy year. He recommended adopting the actuarily recommended schedule of rates set forth in Exhibit 1.1.1.2, Column 13, of the January 11, 2026, Pinnacle Rate Study, which are based on the Funds own claims experience data and discounted at 2%. Mr. Baird said staff concurs with the recommendation.
Motion made by Dan Mosley, seconded by Adam O'Nan, to adopt the actuarily recommended schedule of rates set forth in Exhibit 1.1.1.2, Column 13, of the January 11, 2026, Pinnacle Rate Study, which are based on the Funds own claims experience data and discounted at 2%. Motion carried.
Mr. Baird, presenting the director's report, provided a map of Kentucky counties showing the territories designated for the safety and loss control areas assigned to Mr. Morrison and Mr. Clary.
The next meeting is Feb. 25, at 11 a.m.
Motion made by Adam O'Nan, seconded by Dan Mosley, to go in closed session at 3:34 p.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 Michael Logsdon, to return to open session at 3:46 p.m. Motion carried. There was no action taken in closed session.
Motion made by Dan Mosley, seconded by Adam O'Nan, to adjourn the meeting at 3:46 p.m. Motion carried.
