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VLCT PROPERTY AND CASUALTY INTERMUNICIPAL FUND, INC.
BOARD OF DIRECTORS MEETING
VLCT OFFICES MONTPELIER, VERMONT
Friday, February 15, 2019

MINUTES

Directors Present: Pete Johnson, Carl Rogers, Joshua Powers, Jackie Higgins, Stuart Hurd (via phone), John Lawe, Jerry Storey (via phone), Bruce Urie, Brendan Whittaker, David Atherton, and Patrick Moreland

Staff Present: Joe Damiata, Maura Carroll, Jeremiah Breer, Fred Satink and Jill George

Others Present: Steve DeCenso and Tara Miller from Milliman; Chris McKenna from NLC Mutual Insurance Company

President Johnson called the meeting to order at 9:31 a.m. 

Upon motion (Powers/Rogers) duly adopted, the Board voted unanimously to approve the agenda.

Upon motion (Whittaker/Urie) duly adopted, the Board voted to approve the minutes from the December 14, 2018 meeting as presented, with Directors Storey and Higgins abstaining. 

Prior to board approval of the January 25, 2019 minutes, Jerry Storey asked that the minutes be amended to reflect his appreciation for Jeremiah Breer’s hard work with the auditor request for proposal process. 

Upon motion (Higgins/Whittaker) duly adopted, Board voted to unanimously approved the minutes from the January 25, 2019 meeting as amended.

Chris McKenna, from the National League of Cities Mutual Insurance Company provided the board with training on basic actuarial concepts and the principles of capital adequacy. He discussed three basic approaches of estimating reserves and the value of larger data sets and brought those to life by using some practical group exercises.

Chris briefly reviewed some categories of risk for insurance organizations and proceeded to discuss various methods that can be used to establish capital adequacy. He provided some PACIF specific data that provided some rough assessments of the Funds’ capital adequacy. The Board thanked Chris for his presentation.

Our consulting actuaries Steve DiCenso and Tara Miller from Milliman provided the Board with an overview of the 2018 Year-end actuarial results. They outlined that overall reserves estimates for prior years and particularly for 2018, have decreased significantly from the estimates that were completed using June 30, 2018 data.

Upon motion (Rogers/Powers), duly adopted, the board voted unanimously to accept the Actuarial Analysis of Loss and Loss Adjustment Expense Reserves Report as of 12/31/18 with carried reserves at 100% of the central estimate and the risk margin at 95% confidence level. 

The Board voted to enter executive session at 11:25 to discuss personnel matters. The Board voted to exit Executive session at 11:27.

 Joe Damiata provided the Board with an organizational update that included:

  • Staff are reviewing a few capital adequacy options for the board to consider. Staff will provide the Board with a recommendation on how to proceed with the project at the March 22 meeting.
  • Staff have wrapped up the 2018 Enterprise Risk Management (ERM) Risk Inventory and are now working on the 2019 priorities.
  • Jessi Hill is working on implementation of new performance management software called “TrakStar”. This system will help supervisors track employee performance throughout the year and make writing reviews more efficient.
  • Joe reminded the board about the upcoming conference opportunities for board members.
  • Staff is in the process of renewing PACIF’s AGRIP recognition for following pooling best practices. The recognition has to be renewed every three years.
  • Maura Carroll provided the board with an overview of VLCT’s involvement in the evaluation of software vendors for tax and grand list systems.
  • Joe Damiata requested that board members complete and hand in the annual conflict of interest form as required by the Department of Financial Regulation. 

Fred Satink briefed the Board on the results of the 2019 renewals. 99.7% of all renewals stayed with PACIF, as only one member left (Town of Fair Haven). A new member (Barton Village) joined PACIF effective 1/1/2019.

Jill George presented the 2018 fourth quarter claims report to board and provided an overview of claims activity for the quarter, as well as an explanation of the attached graphs. She outlined that overall claim frequency for most lines of business were improved compared to prior fourth quarters. There was noteworthy frequency in claims related to snow and ice.

Upon motion (Urie/Powers), duly adopted, the board voted unanimously to accept the fourth quarter 2018 claims report. 

Jeremiah Breer shared some preliminary unaudited financial summary information with the Board. This indicated that there was a positive change in net position in excess of $4.3MM. As previously noted, this was largely the result of reductions to the actuarial loss estimates.

John Lawe presented the report of the Joint Investment Committee. The committee reviewed 2018 investment results with PACIF’s financial advisor Strategic Asset Alliance and fixed income manager Mellon.

Joe Damiata provided the Board with a brief review of two currently active bills that have the potential to impact PACIF. The first is H.15 which proposes to add marijuana as a substance eligible for reimbursement by workers’ compensation. Staff have compiled a list of several concerns and questions which were provided to the VLCT Advocacy staff. The bill will continue to monitored closely. The second bill is S.37 which is a medical monitoring bill that establishes strict liability for certain releases of hazardous chemicals. Last year’s version of the bill had a municipal exemption, so VLCT Advocacy is working to have that language inserted into this year’s bill. 

Upon motion (Powers/Urie), duly adopted, the board voted unanimously to adjourn the meeting (12:20 p.m.). 

Respectfully submitted,
Fred Satink
Assistant Secretary

 

Board or Committee: 
PACIF Board of Directors
Board Meeting Date: 
Friday, February 15, 2019

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