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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, June 25, 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; Adam O'Nan, Union County Judge/Executive (via video teleconference); and David Nicholson, Jefferson County Circuit Court Clerk.
Others present included: Jim Henderson, Executive Director/CEO; Temple Juett, Chief Insurance Officer; Jeremy Baird, Director of Insurance; Tim Sturgill, General Counsel; Paul Harnice, Board Counsel, Stoll, Keenon, Ogden, PLLC; Karen Basham, Chief Financial Officer; Kris Dunn, Assistant Director of Insurance; Rich Ornstein, Staff Attorney; Michael Ray, Safety & Loss Control Manager; Jeremy Head, Claims Manager; Andrea Morse, Insurance Agency Manager; Steve Morrison, Safety and Loss Control Specialist; Steve Clary, Safety and Loss Control Specialist (via video teleconference); Alyssa Rogers, Staff Accountant; Lindsey Bowman, Customer Service Representative (via video teleconference); Shellie Hampton, Director of Government Affairs; Jennifer Burnett, Director of Strategic Operations; Sue Porter, Michelle Barrett and Kathy Marshall, Public Entity Insurance/KACo Marketing Agents; Clint Combs, HUB International/KACo Marketing Agent (via video teleconference); Jeremy Russell and Terry Banaszak, Charles Taylor TPA, LLC (both via video teleconference); Jesse Penn, Computer Support Specialist; and Beth Pleasant, Administrative Specialist.
Chairman Terry called the meeting to order at 10:32 a.m.
Motion made by Dan Mosley, seconded by Adam O'Nan, to approve the minutes of the May 28, 2025, meeting as presented. Motion carried.
Ms. Basham presented and discussed the following financial reports: balance sheet and statement of operations as of May 31, 2025; FY 2024/25 PAF budget as of May 31, 2025; FY 2024/25 agent commissions by agency as May 31, 2025; and FY 2024/25 premium receivable report as of June 18, 2025.
Motion made by Michael Logsdon, seconded by Dan Mosley, to acknowledge receipt of the financial reports as presented. Motion carried.
Ms. Basham presented the investment report for May 2025; the investment transactions for May 2025; and the FY 2024/25 investment portfolio summary by month. 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 Dan Mosley, seconded by Adam O'Nan, to acknowledge receipt of the investment report and to ratify the investment transactions as presented. Motion carried.
Ms. Basham presented and discussed the FY 2025/26 preliminary draft budget for the board's approval. A final budget will be presented for review and approval when the actuary completes the reserve study.
Motion made by Michael Logsdon, seconded by Dan Mosley, to adopt the FY 2025/26 preliminary budget as presented. Motion carried.
Ms. Basham presented and discussed the FY 2025/26 program administration fee agreement between KACo and the KACo Workers Compensation Fund commencing on July 1, 2025 and expiring June 30, 2026.
Motion made by David Nicholson, seconded by Michael Logsdon, to approve the FY 2025/26 program administration fee agreement as presented. Motion carried.
Mr. Juett presented and discussed an engagement letter from Pinnacle Actuarial Resources to perform an analysis of the unpaid loss and loss adjustment expense as of June 30, 2025 for the Fund.
Motion made by Adam O'Nan, seconded by Dan Mosley, to approve the engagement letter as presented. Motion carried.
Mr. Juett, giving the executive director's report, provided an update on renewals for the upcoming fiscal year.
Chairman Terry moved the next scheduled meeting from July 30, at 10:30 a.m. to July 29 at 10:30 a.m. due to a scheduling conflict.
Motion made by Dan Mosley, seconded by David Nicholson, to go in closed session at 11 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 Adam O'Nan, to return to open session at 11:05 a.m. Motion carried. There was no action taken in closed session.
Motion made by David Nicholson, seconded by Dan Mosley, to adjourn the meeting at 11:06 a.m. Motion carried.
