Kentucky FAIR Plan Governing Committee Annual Meeting June 4, 2020 - - PowerPoint PPT Presentation

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Kentucky FAIR Plan Governing Committee Annual Meeting June 4, 2020 - - PowerPoint PPT Presentation

Oct 01, 2023 296 likes •628 views

Kentucky FAIR Plan Governing Committee Annual Meeting June 4, 2020 Meeting Etiquette & Expectations Keys to a successful meeting Please keep your phone on mute to keep background noise to a minimum. If you need to step away from the

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Kentucky FAIR Plan

Governing Committee Annual Meeting June 4, 2020

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Meeting Etiquette & Expectations

Keys to a successful meeting

Please keep your phone on mute to keep background noise to a minimum.

If you need to step away from the phone, please do not place us on hold, as your hold music would disrupt the presenter. Participation

Role Call: During role call please unmute your phone. We will call you by name and company. We ask that you verbally confirm you are in attendance.

Voting: During voting we ask that you unmute your phone. We will ask for verbal affirmation as we do in our in-person meetings.

Questions: You may ask your question(s) throughout the presentation by unmuting your phone or by typing in the chat box. You may also raise your hand, using the hand icon next to your name in the chat room.

Motions: We ask those whom motion and second to identify themselves by name.

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Annual and Governing Committee Meeting Agenda

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  • 1. Roll Call
  • 2. Anti-Trust Preamble
  • 3. Approval of Minutes
  • 4. Election of Members of Governing Committee
  • 5. Election of Officers
  • 6. Auditor’s Report and Financial Statement
  • 7. Review of Investment Portfolio
  • 8. Executive Director’s Report
  • 9. Other Business
  • 10. Adjournment
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Approval of the Minutes

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Approval of minutes of prior meetings:

 October 24, 2019 Governing Committee (PAGE 3)  April 13, 2020 Products and Forms Committee (PAGE 10)  April 13, 2020 Audit Committee (PAGE 12)  April 13, 2020 Finance and Investment Committee (PAGE 14)

Need: A motion to approve minutes, please.

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Election of Governing Committee Members

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New member since last annual meeting:

 John Minor – Kentucky National Insurance Company (PAGE 16)  Approved by the Department of Insurance.  Motion – Election of new member

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Election of Officers

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Nominations: Lisa Pierce Name Kristen Mellinger Chair Rudy Schlich Vice Chair Mark Hillis Secretary Treasurer

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Report of Financial Audit

Deming, Malone, Livesay & Ostroff

Sarah Antle, CPA

 Audited Financials – PAGE 19  Letter to Management – PAGE 38

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Review of Investment Portfolio

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Merrill Lynch Steven L. Holley, CRPC, CFM

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Executive Director’s Report

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2016 2017 2018 2019 Written Premium $6,480,263 $5,714,365 $5,039,864 $4,330,252 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000

Written Premium

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2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 # Appl. 2,702 2,959 4,132 5,000 4,258 3,153 2,416 1,920 1,442 1,390 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

New Business Applications

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2013 2014 2015 2016 2017 2018 2019 # Policies 10057 10194 9456 8443 7522 7277 6605 2000 4000 6000 8000 10000 12000

Number of Inforce Policies

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2016 2017 2018 2019

  • Exp. Ratio

18.66% 22.76% 25.61% 28.45% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

Operating Expense Ratio

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2016 2017 2018 2019 # of Claims 420 336 307 318 50 100 150 200 250 300 350 400 450

Number of Reported Claims

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2015 2016 2017 2018 2019 Loss Ratio 40.21% 47.26% 47.89% 30.51% 37.17% LAE 12.16% 13.74% 14.76% 14.95% 17.84% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Loss and LAE Ratio

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16 88.78% 94.57% 80.21% 92.65% 70.00% 75.00% 80.00% 85.00% 90.00% 95.00% 100.00% 2016 2017 2018 2019

Combined Ratio

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2016 2017 2018 2019 Assets $21,063,692 21,941,623 $22,315,335 $18,477,797 Liabilities $3,851,454 $3,612,158 $2,781,288 $2,643,216 Equity $17,212,239 $18,329,465 $19,534,047 $15,834,581 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000

Balance Sheet

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Budget

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2020 1st Quarter

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Written Premium

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  • 16.4%

$1,228,386 $1,026,544 $0 $1,000,000 $2,000,000 2019 1st Quarter 2020 1st Quarter

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New Applications

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  • 16.3%

393 329 500 2019 1st Quarter 2020 1st Quarter

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  • 10.6%

7,152 6,390 6,000 7,000 8,000 2019 1st Quarter 2020 1st Quarter

Policies in Force

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Policies in Force

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DP1 72% DP2 8% HO2 5% HO4 0% HO6 HO8 10% CO 3% FF 2%

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Claims Reported

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All Other 7% Fire Lightning 10% Smoke 1% Theft 3% Vandalism Malicious Mischief 4% Windstorm Hail 75%

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Reinsurance

 Contract runs 10/1 to 9/30  Multi-year deal with Guy Carpenter as Broker  Renewal data provided in July  Reinsurance and Equity meeting is scheduled in

Sept 2020.

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Other Business

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Updates

 Member’s Equity Update

 Outstanding Balance: $578K  Follow up letters sent April 2020

 Building Sale – Plan Relocation

 Closed on the building April 22nd  Actively looking for a new location

 COVID-19

 KFP Staff  Policyholders  Market Impacts

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FAIR Plan Cost Sharing Alliance

Mission Statement The shared services mission of the FAIR Plan Cost Sharing Alliance is to implement and manage high quality services for FAIR Plans at the lowest possible cost. We will seek to eliminate duplicated FAIR Plan insurance operating costs in an efficient and cost-effective manner. Acting as a service manager for various FAIR Plans, we will strive to reduce operating expenses by combining services or group purchasing for Plans where size and activity level may require the improved efficiencies to be achieved by centralized operations. We will ensure that cost-effective quality services of optimum value are provided to each Plan, while working to keep the costs of the consolidated services and operations as low as possible. We will continue to streamline and monitor the consolidated services we manage on behalf of the FAIR Plans. We will continuously evaluate the shared services to ensure we meet the needs of our insureds and the standards of our individual boards, member companies and Departments of Insurance. We understand that each FAIR Plan is ultimately responsible for its own

  • perations and data and as a result we will apply the appropriate
  • versight, guidance and data integrity standards to all centralized
  • perations.

Letter shared with the Illinois FAIR Plan Governing Committee.

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Team Building and Community Service

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  • We raised money internally and purchased gifts for

Maryhurst around the holiday season.

  • Our team worked onsite with Active Hero’s to

provide organization and general clean up around their property.

  • The Plan, working with locally owned

restaurants in downtown Louisville provided

  • ver 1,200 lunches for front line healthcare

workers and first responders during the onset of COVID-19.

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Other Business

 1st Quarter PIPSO Report – (PAGE 44)  2020-2021 Committee Assignments (PAGE 45)  Comments from the Department of Insurance  Next Meeting: 10/22/2020

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Thanks for your support

Adjournment

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