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PURMIT – Board of Trustees Meeting – Meeting Minutes

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PURMIT Board of Trustees Meeting

January 14, 2020

Minutes

Trustees Present:  Brian Roy (PSU), Christina McKnight (OSU), Greg Perkinson (SOU), Vivian Chen (OIT), Lara Moore (EOU), Ryan Hagemann (WOU)

Others Present: Ryan Britz (Berkley), James Parker (DWT)

Call to Order

The meeting was called to order at 2:01 p.m.

Roll Call

Roll call was taken.

Property Underwriting Meetings

Mr. Britz started the meeting by reminding the Trustees of the upcoming meetings with PURMIT’s property markets.  He noted that the agenda has been set and the group attending the meetings will have two full days of meetings, with multiple underwriters.  He also noted that the presentation to be made to underwriters was close to completion.

Action:

No action was taken.

Legal Counsel Items

Mr. Parker informed the Trustees that he would be transitioning out of his present firm, DWT, for an opportunity with another employer.  The Trustees and Mr. Parker discussed potential options to manage the transition of legal services to PURMIT.  Mr. Parker agreed to present an option to the Trustees to continue working with PURMIT at the January 30, 2020 meeting.

Action:

No action was taken.

Adjourn

The Board adjourned the meeting at 2:19 p.m.

PURMIT – Board of Trustees Meeting – Meeting Minutes

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PURMIT Board of Trustees Meeting

January 30, 2020

Minutes

Trustees Present:  Brian Roy (PSU), Christina McKnight (OSU), Greg Perkinson (SOU), Vivian Chen (OIT), Lara Moore (EOU), Ryan Hagemann (WOU)

Others Present: Ryan Britz & Sheryl Sattler (Berkley), James Parker (DWT), Sidney Friedman, Ron Cutter & Joel Troisi (BBNW), Taylor Marsden & Jamie Kilcoyne (K Financial)

Call to Order

The meeting was called to order at 8:59 a.m.

Roll Call

Roll call was taken.

Review and Approval of Minutes

Meeting minutes from the October 17, 2019 and January 14, 2020 PURMIT Board of Trustees meetings were reviewed and discussed. 

Action:

A motion was made by Mr. Hagemann to approve the minutes.  The motion was seconded by Mr. Perkinson.  The motion carried unanimously. 

PURMIT Financial Auditors Report for Fiscal Year 2018 – 2019

Mr. Marsden and Mr. Kilcoyne from K Financial presented the PURMIT financial audit report.  Mr. Kilcoyne noted that this was the fifth year K Financial has performed the audit for PURMIT. Mr. Marsden discussed the auditor’s letter and noted that management’s estimates for reserves are at an appropriate level.  Mr. Marsden further noted that the Management Discussion and Analysis document is a requirement for the audit process and it provides a high level overview of the program and K Financial’s audit results.  K Financial issued PURMIT a clean and unqualified audit.  Mr. Kilcoyne thanked PURMIT for its continued confidence selecting K Financial to perform PURMIT’s financial audit. 

Action:

No action was taken.

Financial Review as of December 31, 2019

Ms. Sattler from Berkley Risk presented the financial information as of December 31, 2019. Ms. Sattler noted PURMIT had $1.561M of operating revenue and an operating loss of $613K, resulting in a current surplus of $10.785M.  The operating loss is being driven by the use of surplus to offset the excess insurance premium for the term.  Ms. Sattler continued her discussion with the balance sheet portion of the financial statement, noting the Trust has $18M in assets and $7.4M in liabilities.  Ms. Sattler also noted that since the designated funds had been transferred to the Oregon State Treasury, PURMIT has earned approximately $82,539 of investment income.  Ms. Sattler commented that all Trust lines of business are operating at a profit.  PURMIT’s expenses remained on budget through December. PURMIT continues to add surplus to the operation and has positioned itself well by utilizing the Oregon State Treasury as an investment vehicle within the overall PURMIT investment portfolio.  Berkley continues its quarterly review of the surplus position, adding $5M to the Treasury account in January, and will advise the Trustees as to the amounts that are eligible for transfer to the Oregon State Treasury.  Finally, Ms. Sattler mentioned that PURMIT’s financial position is above the Oregon statute’s regulatory requirement. 

Action:

No action was taken.

Financial Proforma Update and Discussion

Ms. Sattler continued the financial discussion by reviewing the Proforma document and its trajectory out to 2023.  Ms. Sattler noted that the Proforma document does not include any potential SAIF dividend for the group for the 2021 year and beyond.  Ms. Sattler also noted that the Proforma is in line with prior assumptions and factors that were utilized to generate the exhibit.  PURMIT is projected to have a $1.2M loss for the current year, driven by the use of surplus to absorb excess insurance premium increases.

Action:

No action was taken

ProCor Solutions & Consulting – Business Interruption Valuation Activities

Mr. Britz noted that the contract has been signed with ProCor to perform the Business Income analysis for each of the institutions.  He is in the process of working with the members to set dates for the review to begin.  He further stated that the on campus visits will be with OSU and PSU, with the intent of developing a template that the remaining members can use for this year, and the group can continue to use in the future.  Mr. Perkinson noted that the success of the tool will be predicated on OSU and PSU’s on campus work sessions.  Mr. Roy noted that this will provide valuable information on several levels, for the member institutions. 

Action:

No action was taken

Legal Counsel Transition

Mr. Parker presented a packet to the Trustees for his involvement as Trust Attorney for the Trust, upon his departure from DWT.  The packet included; an engagement letter, DWT release letter and the letter outlining Mr. Parker’s departure from DWT.  Mr. Roy inquired as to the reason for a flat fee instead of hourly charges.  Mr. Parker noted that founding a law firm and the associated overhead costs would not be feasible without a fixed fee arrangement.  Mr. Parker also noted that he had set the fees to fit within the current legal budget.  Mr. Roy noted that the Trust would need to authorize Berkley Risk to complete the paperwork for the transition of the PURMIT Trust Attorney role to Mr. Parker’s law firm.  Mr. Roy noted that PSU would be willing to host Trustee meetings in the future.  Mr. Friedman also offered BBNW’s board room for hosting future meetings. 

Action:

A motion was made by Mr. Perkinson authorizing Berkley Risk to engage Mr. Parker’s new firm and transition the DWT files to his new firm.  The motion was seconded by Mr. Hagemann.  The motion carried unanimously. 

July 1, 2020 Renewal – Market Overview and Timeline

Mr. Troisi began the discussion by noting that the marketplace continues to be in hardening posture, with many companies reporting combined ratios over 100%.  Continued pressure is being applied to rates.  He further noted that there has been little pressure up to this point for PURMIT to look at a higher retention.  Anticipated rate increases for the renewal are in the 10% – 20% range.  The markets underwrote the PURMIT business as new last year, which should help to keep rate increases in check.  Mr. Troisi noted that the marketplace is moving slow due to the number of submissions underwriters are working through.  He is targeting late April for indications.  Mr. Cutter discussed the state of the casualty market, noting that terms and pricing continue to deteriorate.  He is anticipating an increase for the July renewal and is working closely with Mr. Poling to determine market expectations.  He further noted that SAM coverage is becoming increasingly challenging, with more requirements for claim reporting being put in place.  He further commented that there will be significant changes to the Foreign Liability coverage at the renewal.  Mr. Roy asked what alternatives exist for writing the property coverage.  Mr. Troisi noted that there have been good discussions with alternative markets and expects to have quotes to offer.  He also mentioned that some markets may want to visit each campus.  Mr. Perkinson asked if the industry recognizes risk management programs in place for cyber and social engineering exposure.  Mr. Cutter said that there currently is no direct correlation but effective risk management programs are recognized by underwriters and can result in a reduced premium.  Ms. McKnight noted that United Educators has a very good cyber training program that is focused towards campus IT departments, and OSU has gone through the training and has been beneficial.  Mr. Roy commented about the pro response benefit in the UE policy and the success PSU has had when using the program.  He further commented that the limit on the policy is for PURMIT, not each individual member.  Mr. Friedman noted that it is an additional coverage offered by UE and that it applies at the policy level and does not apply to each member institution individually.  He further noted that BBNW would look into expanding the coverage at the upcoming renewal. 

Action:

No action was taken

The Trustees called a break at 10:08 a.m.

The meeting was called back into session and 10:16 a.m.

Executive Session

The Board adjourned the regular meeting and went into Executive Session at 10:02 a.m. to address documents and information relating to attorney-client privileged communications and trade secret documents.  The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 10:40 a.m.

Final Decisions Related to Executive Session Discussions (if any)

The Board made no decisions related to executive session. 

Legal Counsel Items

Mr. Parker noted that the annual reporting to the State of Oregon was completed in December.  He is continuing to work on PURMIT access to PUF and is optimistic that the process is moving in the right direction.  He also mentioned that he reviewed the broker contract with BBNW to ensure all responsibilities were being completed. 

Other Items

Mr. Britz noted that a few folks will be meeting with Lloyds underwriters to discuss the PURMIT program and expectations for the upcoming renewal.  He requested that each institution provide wildfire mitigation plans in advance of the Lloyds meetings. Ms. Moore requested that an overview of the meetings be provided at the next Trustee meeting. 

Adjourn

The Board adjourned the meeting at 11:09 a.m.

PURMIT – Board of Trustees Meeting – Meeting Minutes

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PURMIT Board of Trustees Meeting

April 3, 2020

Minutes

Trustees Present:  Brian Roy (PSU), Christina McKnight (OSU), Greg Perkinson (SOU), Vivian Chen (OIT), Lara Moore (EOU), Ryan Hagemann (WOU)

Others Present: Ryan Britz (Berkley), James Parker (Trust Attorney), Sidney Friedman, Ron Cutter, Richard Poling & Joel Troisi (BBNW)

Call to Order

The meeting was called to order at 1:01 p.m.

Roll Call

Roll call was taken.

London Meetings – Recap

Mr. Troisi commented that the visit with Lloyds underwriters in February was very successful.  The group that attended had two full days of meetings with lead markets, other participating markets and a few new markets.  He also noted that the submission is out to the markets at this point.  Lloyds, London and domestic markets are in the modeling phase of the underwriting process at this time.  The market is operating a bit slower than usual due to the coronavirus pandemic and staff working from home.  April 1 is the single largest renewal date for the property market, so most underwriters had not looked at the submission until the April 1 push was complete.  Mr. Troisi also noted that underwriters were impressed with the amount of collaboration that occurs between the member institutions, specifically the Risk Council meetings and the risk sharing that occurs within the Trust’s retained layers.  Mr. Troisi noted that he should start seeing indications from markets within the next few weeks, which will help to build momentum to fill out the placement.  Mr. Troisi warned of the potential for increases due to market conditions.  He also mentioned that in addition to the current roster of insurers, he has been working with other interested markets to consider writing the program.  Mr. Roy commented that the visit to London was very beneficial for the groups understanding of the market as well as meeting the underwriters that participate on the program. 

Mr. Poling continued the discussion with a focus on the casualty lines of business.  He noted that COVID-19 has been having a negative effect on the market from a timing perspective.  He commented the UE was ahead of the majority of insurers relating to the abuse and molestation coverage, with their coverage stance last year.  Mr. Poling has been in contact with the underwriter at UE and has been informed by them that PURMIT should expect an increase on the renewal pricing, with no coverage changes.  He further noted that UE’s desired increase was modest compared to other carriers around the country.  The excess liability was moved to Liberty last year and is expecting them to renew the coverage this year.  He noted that Liberty is not taking any new business submissions this year as they are focusing on their renewal book.  Mr. Cutter noted that other pools are seeing increases to their liability premiums this year.  Mr. Poling discussed alternative markets.

Mr. Cutter noted that the Foreign Liability will be increasing significantly over the expiring premium, due to the exposures being rated incorrect by the incumbent market.  Mr. Friedman noted that the increase may be tempered somewhat due to a decrease in travel due to the coronavirus. 

Mr. Poling mentioned that he was not expecting any surprises for the renewal.  He noted that public entities are seeing an increase in ransomware attacks in the past six months. 

Mr. Parker requested Brown & Brown provide guidance to the group for the upcoming meeting, for estimated premiums so the group has an idea for budgeting purposes.  Mr. Roy noted that he would like to have a decent idea for the liability and property lines of business for each institution. 

Mr. Hagemann asked for some direction regarding out of state employees and procuring workers’ compensation coverage.  Mr. Friedman noted that there is a companion, Other States Coverage, in place for all PURMIT members to provide out of state coverage for employees.  Mr. Hagemann noted he would be in contact with Mr. Friedman to discuss further. 

Ms. McKnight noted that OSU was in the process of exploring the establishment of a police department that would take effect July 1, 2020.  She noted that she would keep the group informed as to what OSU decides.  

Action:

No action was taken.

Adjourn

The Board adjourned the meeting at 1:54 p.m.

PURMIT – Board of Trustees Meeting – Meeting Minutes

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PURMIT Board of Trustees Meeting

April 17, 2020

Minutes

Trustees Present:  Ryan Hagemann (WOU) Brian Roy (PSU), Christina McKnight (OSU), Vivian Chen (OIT), Lara Moore (EOU), Greg Perkinson (SOU)

Others Present: Ryan Britz, Jon Weber (Berkley), James Parker (Trust Attorney)

Call to Order

Chair Lara Moore called the meeting to order at 2:01 p.m.

Executive Session

The Board adjourned the regular meeting and went into Executive Session at 2:02 p.m. to address documents and information relating to attorney-client privileged communications and trade secret documents.  The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 2:23 p.m.

Final Decisions Related to Executive Session Discussions (if any)

Mr. Parker brought the group back into regular session, noting that no one from the public was present or on the phone.  Mr. Perkinson commented that he was prepared to give Mr. Parker authority to handle the litigation for any ongoing subrogation claims.  Mr. Hagemann clarified that Mr. Parker should have the authority for litigation for claims in subrogation status until the Board has had an opportunity to refine the process and procedures outlined in the claims manual. 

Action:  A motion was made by Mr. Perkinson authorizing Mr. Parker to handle all currently pending litigation related to claims in subrogation, where necessary, until the Board updates the claims manual.  The motion was seconded by Ms. Moore.  The motion passed unanimously.   

Adjourn

The Board adjourned the meeting at 2:29 p.m.

PURMIT – Board of Trustees Meeting – Meeting Minutes

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PURMIT Board of Trustees Meeting October 17, 2019

Minutes

Trustees Present:  Ryan Hagemann (WOU) Brian Roy (PSU), Christina McKnight (OSU), Vivian Chen (OIT), Lara Moore (EOU), Greg Perkinson (SOU)

Others Present: Sheryl Sattler, Ryan Britz (Berkley), Ron Cutter (BBNW), James Parker (DWT)

Call to Order

Chair Lara Moore called the meeting to order at 9:02 a.m.

Roll Call

Roll call was taken.

Review and Approval of Minutes

Meeting minutes from the May 16, May 26, June 19 and June 29, 2019 PURMIT Board of Trustees meetings were reviewed and discussed.   

Action:

A motion was made by Mr. Roy to approve the minutes.  The motion was seconded by Mr. Hagemann.  The motion carried with no objections.

PURMIT Financial Review as of June 30, 2019

Ms. Sattler from Berkley Risk presented the financial information as of June 30, 2019. Ms. Sattler noted PURMIT had $4.9M of operating revenue and an operating income of $2.169M, resulting in a current surplus of $11.3M.  Ms. Sattler continued her discussion with the balance sheet portion of the financial statement, noting the Trust has $17.2M in assets and $5.9M in liabilities.  Ms. Sattler also noted that since the designated funds had been transferred to the Oregon State Treasury, PURMIT has earned approximately $252K of investment income.  Ms. Sattler commented that all Trust lines of business continue to operate at a profit.  PURMIT’s expenses remained on budget. PURMIT continues to add surplus to the operation and has positioned itself well by utilizing the Oregon State Treasury as an investment vehicle within the overall PURMIT investment portfolio.    Berkley continues its quarterly review of the surplus position and will advise the Trustees as to the amounts that are eligible for transfer to the Oregon State Treasury.  Finally, Ms. Sattler mentioned that PURMIT’s financial position is above the Oregon statute’s regulatory requirement. 

Action:

No action taken at this time. 

Financial Proforma Update and Discussion

Ms. Sattler continued the financial discussion by reviewing the Proforma document and its trajectory out to 2022.  Ms. Sattler noted that the Proforma document does not include any potential SAIF dividend for the group for the 2019 year and beyond.  Ms. Sattler also noted that the Proforma is in line with prior assumptions and factors that were utilized to generate the exhibit

Action:

No action taken at this time. 

DAS WC Paid loss Retro Billing

Mr. Britz noted that the Trust had received an inquiry and invoice from DAS, relating to workers’ compensation claims that had occurred when the institutions were a part of the state system.  The letter suggested that the PURMIT members were responsible for the retrospective premium payments DAS paid to the carrier.  Mr. Britz, Mr. Hagemann, and Mr. Parker noted that they would do the research and work with the representative from DAS and report back at the next meeting.

Action: 

No action taken at this time. 

ProCor Solutions & Consulting

Due to an unresolvable firm conflict, Mr. Parker recommended the Trust utilize one of its non-DWT lawyers to work with Berkley to get the contract finalized.  Ms. Moore agreed that it would be best and asked that Berkley begin to work with the outside firm. 

Action: 

No action taken at this time. 

United Educators – Risk Management Practices Credit Program

Mr. Britz noted that the risk management practices credit program offered by United Educators has been launched and the members of the Risk Council are actively working through the program.  He also noted that the Risk Council members have readily embraced the program and have found that it is beneficial for their departments and assists with their internal risk management practices. 

Action: 

No action taken at this time.  

Legal Counsel Items

Mr. Parker discussed several items with the group:

  1. Public Universities Fund – work continues with OSU to allow PURMIT access to the fund. Parker has informed OSU that PURMIT would like to join the PUF by the end of the year.
  2. Property Memorandum of Coverage –Davis Wright Tremaine has attorneys that have experience drafting insurance coverage and have the resources to work on the project, should Trustees choose to move forward. Roy asked if it is advantageous for PURMIT to move in this direction at this time.  Mr. Cutter noted that could be an advantage to the Trust to have its own memorandum of coverage.  Mr. Parker asked if stabilization of the program and structure is needed before introducing a different form.  Mr. Cutter noted that he would seek advice from Mr. Troisi and report back. 
  3. Annual reporting to the state will occur as soon as the financial audit and actuarial reports are completed.

Action:

No action taken at this time. 

Other Items

Mr. Britz made the Trustees aware of the upcoming in person Risk Council meeting that will take place at OSU’s Cascades Campus.  Topics to be discussed include:  Sexual Abuse & Molestation Coverage Update by UE representatives; Cyber Coverage update by Chubb; BBNW presentation for Property Coverage and Fleet Risk Management; McLarens loss adjusting services overview; and ProCor overview by ProCor staff.  Mr. Roy noted that there was previous Trustee discussion regarding a visit with Lloyds underwriting markets and that there are plans being discussed for a visit in February.  Mr. Cutter commented that he as other clients that conduct visits with Lloyds underwriters and it has been beneficial for establishing relationships and providing a more in-depth understanding of program activities for the markets.  Ms. McKnight noted that it would be beneficial to have a representative from OSU present to discuss any specifics regarding last year’s large loss.  The group agreed with the intent and requested staff to begin identifying dates for the meetings. 

Mr. Roy noted that due to the large premium increase for the property coverage at the renewal, he wanted to make the Trustees aware that PSU has asked BBNW and Berkley to do due diligence on a separate property coverage tower for PSU.  Mr. Cutter commented that he is working with PSU and that premium indications should be provided sometime after January 1st.  Ms. Moore thanked Mr. Roy for informing the group and requested that Mr. Roy share the information he is provided with the other Trust members.  Mr. Parker clarified that a separate coverage tower is within PURMIT and is an effort to find the best way to build and structure the property program so it provides the best benefit to all members.  Mr. Roy agreed and noted that he would keep the group up to date with the information.  Mr. Parker asked if Mr. Troisi can give the group a sense where rates are headed for next year’s renewal.  Mr. Cutter commented that, barring any additional catastrophic events, the market is still firming and that will likely continue through 2020, estimating increases in the 15%-20% range.  He further noted that firming property markets have not traditionally lasted for several years, but if losses continue where they have been, pricing can be expected to remain higher than it has been in recent history.  He is going to discuss with Mr. Troisi and provide further indications at the next meeting.  Mr. Roy requested Berkley provide proforma allocation models at the next meeting, using several different scenarios, so the Trustees can begin analyzing potential premium changes for the 2020 renewal.

Action:

No action taken at this time. 

The Trustees called a break at 10:15 a.m.

The meeting was called back into session at 10:25 a.m.

Executive Session

The Board adjourned the regular meeting and went into Executive Session at 10:02 a.m. to address documents and information relating to attorney-client privileged communications and trade secret documents.  The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 10:57 a.m.

Final Decisions Related to Executive Session Discussions (if any)

The Board made no decisions related to executive session. 

Adjourn

The Board adjourned the meeting at 11:12 a.m.

PURMIT Board of Trustees Meeting – May 29, 2019

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PURMIT Board of Trustees Meeting

May 29, 2019

Minutes

Trustees Present:  Ryan Hagemann (WOU) Brian Roy (PSU), Christina McKnight (OSU), Vivian Chen (OIT), Lara Moore (EOU)

Others Present: Ryan Britz (Berkley), Sid Friedman, Ron Cutter, Joel Troisi, Richard Poling (BBNW), James Parker (DWT)

 

Call to Order

Chair Lara Moore called the meeting to order at 10:00 a.m.

Executive Session

The Board adjourned the regular meeting and went into Executive Session at 10:02 a.m. to address documents and information relating to attorney-client privileged communications and trade secret documents.  The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 10:54 a.m.

Final Decisions Related to Executive Session Discussions (if any)

The Board made no decisions related to executive session.

Adjourn

The Board adjourned the meeting at 10:55 a.m.

PURMIT Board of Trustees Meeting – June 27, 2019

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PURMIT Board of Trustees Meeting

June 27, 2019

Minutes

Trustees Present:  Ryan Hagemann (WOU) Brian Roy (PSU), Christina McKnight (OSU), Vivian Chen (OIT), Lara Moore (EOU), Greg Perkinson (SOU)

Others Present: Ryan Britz (Berkley), Sid Friedman, Ron Cutter, Joel Troisi (BBNW), James Parker (DWT)

Call to Order

Chair Lara Moore called the meeting to order at 9:02 a.m.

Executive Session

The Board adjourned the regular meeting and went into Executive Session at 9:04 a.m. to address documents and information relating to attorney-client privileged communications and trade secret documents.  The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 9:38 a.m.

Final Decisions Related to Executive Session Discussions (if any)

Mr. Parker brought the group back into regular session, noting that no one from the public was present or on the phone.  Mr. Roy began the discussion by noting the increase in premium on regarding the property program and requested each institution provide input as to how much of the fund balance they would be willing to dedicate as an offset to the property premium increase.  All Trustees provided their recommended range.  Mr. Parker summarized by commenting that the Trustees had settled into the $1.5M to $2M range for use of the fund balance and asked the group if there was any further discussion needed.  Mr. Roy followed by commenting that if there consensus at $2M, Trustees should move forward.

Action:  A motion was made by Mr. Hagemann to approve the allocation model and budget, inclusive of the updated pricing for the $200M x $100M property layer and with a $2M fund balance deployment to offset the overall allocation premium to the members.  The motion was seconded by Mr. Perkinson.  Roll call was taken of each Trustee and there were no objections to the motion.

Adjourn

The Board adjourned the meeting at 9:49 a.m.

PURMIT Board of Trustees Meeting – June 19, 2019

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PURMIT Board of Trustees Meeting

June 19, 2019

Minutes

Trustees Present:  Ryan Hagemann (WOU) Brian Roy (PSU), Christina McKnight (OSU), Vivian Chen (OIT), Lara Moore (EOU)

Others Present: Ryan Britz (Berkley), Sid Friedman, Joel Troisi, Richard Poling (BBNW), James Parker (DWT)

 

Call to Order

Chair Lara Moore called the meeting to order at 9:36 a.m.

Executive Session

The Board adjourned the regular meeting and went into Executive Session at 10:02 a.m. to address documents and information relating to attorney-client privileged communications and trade secret documents.  The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 10:52 a.m.

Final Decisions Related to Executive Session Discussions (if any)

Mr. Parker noted that the items for the Trustees to discuss include the following:  the allocation model and cost figures for the 2019 renewal term, with the Property coverage to be addressed separate from the other allocation items, binding the quotes for the primary $100M and $200M x $300M Property coverage layers, and finally binding the Terrorism tower.  Mr. Hagemann noted that the allocation worksheet did not include the margin factor, as per the Trustees request.  The Trustees discussed the potential action items.

Action:  A motion was made by Mr. Roy authorizing Berkley and BBNW to bind the non-property coverages as presented in the board packet.  The motion was seconded by Mr. Hagemann.  The motion carried with no objections.  A second motion was made by Mr. Roy authorizing Berkley and BBNW to bind the primary $100M layer and the $200M x $300M layers as quoted and presented in the board packet, with an effort to improve upon the premium charge and terms for the identified layers.  The motion was seconded by Ms. Moore.  The motion carried with no objections.  A third motion was made by Mr. Roy authorizing Berkley and BBNW to bind the $200M x $100M subject to no premium increase and no degradation in terms.  Mr. Parker noted the Berkley will instruct BBNW to bind the $200M x $100M layer, in line with the pricing and terms presented to the Trustees.  If material changes to terms or final pricing is higher than presented, Berkley will present that information to the trustees for discussion.  The motion was seconded by Ms. Moore.  The motion carried with no objections.  A fourth motion was made by Mr. Perkinson authorizing Berkley and BBNW to bind the terrorism coverage as indicated in the materials, with instructions  to improve premium and coverage terms where possible.  The motion was seconded by Mr. Hagemann.  The motion carried with no objections.  A fifth motion was made by Ms. McKnight authorizing Berkley and BBNW to bind the property coverage inclusive of the risk control fee, as presented.  The motion was seconded by Mr. Roy.  The motion carried with no objections.

Adjourn

The Board adjourned the meeting at 1:07 p.m.

PURMIT Board of Trustees Meeting – May 16, 2019

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PURMIT Board of Trustees Meeting

May 16, 2019

Minutes

Trustees Present:  Ryan Hagemann (WOU) Brian Roy (PSU), Christina McKnight (OSU), Vivian Chen (OIT), Lara Moore (EOU)

Others Present: Sheryl Sattler, Ryan Britz (Berkley), Sid Friedman, Ron Cutter, Joel Troisi (BBNW), James Parker (DWT)

 

Call to Order

Chair Lara Moore called the meeting to order at 9:05 a.m.

 

Roll Call

Roll call was taken.

Review and Approval of Minutes

Meeting minutes from the February 5, 2019 PURMIT Board of Trustees meetings were reviewed and discussed.

Action:

A motion was made by Mr. Hagemann to approve the minutes.  The motion was seconded by Ms. Moore.  The motion carried with no objections.

PURMIT Financial Review as of March 31, 2019

Ms. Sattler from Berkley Risk presented the financial information as of March 31, 2019. Ms. Sattler noted PURMIT had $3.8M of operating revenue and an operating income of $905K, resulting in a current surplus of $9.98M.  Ms. Sattler continued her discussion with the balance sheet portion of the financial statement, noting the Trust has $20M in assets and $10.2M in liabilities.  Ms. Sattler also noted that since the designated funds had been transferred to the Oregon State Treasury, PURMIT has earned approximately $181K of investment income.  Ms. Sattler commented that all Trust lines of business continue to operate at a profit.  PURMIT’s expenses remained on budget. PURMIT continues to add surplus to the operation and has positioned itself well by utilizing the Oregon State Treasury as an investment vehicle within the overall PURMIT investment portfolio.    Berkley continues its quarterly review of the surplus position and will advise the Trustees as to the amounts that are eligible for transfer to the Oregon State Treasury.  Finally, Ms. Sattler mentioned that PURMIT’s financial position is above the Oregon statute’s regulatory requirement.

Action:

No action taken at this time.

Financial Proforma Update and Discussion

Ms. Sattler continued the financial discussion by reviewing the Proforma document and its trajectory out to 2022.  Ms. Sattler noted that the Proforma document does not include any potential SAIF dividend for the group for the 2019 year and beyond.  Ms. Sattler also noted that the Proforma is in line with prior assumptions and factors that were utilized to generate the exhibit

Action:

K Financial and PwC LLP 2019 Engagement Contracts

Mr. Britz presented the contract renewal terms for PURMIT’s auditor, K Financial and its actuary, PricewaterhouseCoopers.  The terms and conditions remained the same as expiring.

Action: 

A motion was made by Mr. Hagemann to approve the contracts for K Financial and PricewaterhouseCoopers.  The motion was seconded by Mr. Roy.  The motion carried with no objections.

Legal Counsel Items

Mr. Parker discussed several items with the group:

  1. Property Memorandum of Coverage – He advised that Davis Wright Tremaine has attorneys that have experience drafting insurance coverage and have the resources to work on the project, should Trustees choose to move forward.
  2. ProCor – He is working with ProCor and BBNW to complete the conflict waiver, resulting from ProCor being a subsidiary of BBNW.
  3. RMIS Contract – Origami has not been able to meet PURMIT’s required terms, despite several attempts. Because of this inability, Mr. Parker requested the Trustees provide direction if he should continue his efforts or stop.  After discussion the Trustees did not express an interest in waiving the required terms of the RFP.  Parker noted that he would let Origami know and stop negotiations.
  4. UM/UIM – Formal adoption and selection of lower UM/UIM limits is the appropriate risk management step for the Trust to take. At the same time, it is recommended that PURMIT also confirm its intent for offering PIP limits.  Parker presented a combined form for each institution, showing the UI/UIM and PIP limits decided offered by the Trust.  The Trustees discussed the proposed solution.

Action:

A motion was made by Mr. Roy to adopt the UM/UIM and PIP policy and form as presented by Mr. Parker.  The motion was seconded by Mr. Hagemann.  The motion carried with no objections.

The Trustees called a break at 9:47 a.m.

The meeting was called back into session at 9:55 a.m.

Executive Session

The Board adjourned the regular meeting and went into Executive Session at 10:02 a.m. to address documents and information relating to attorney-client privileged communications and trade secret documents.  The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 1:03 p.m.

Final Decisions Related to Executive Session Discussions (if any)

The Board made no decisions related to executive session.

Adjourn

The Board adjourned the meeting at 1:04 p.m.

PURMIT Board of Trustees Meeting – February 5, 2019

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PURMIT Board of Trustees Meeting

February 5, 2019

Minutes

Trustees Present:  Ryan Hagemann (WOU) Brian Roy (PSU), Christina McKnight (OSU), Greg Perkinson (SOU), Vivian Chen (OIT), Lara Moore (EOU)

Others Present: Sheryl Sattler, Ryan Britz (Berkley), Ron Graybeal, Tim Clarke (BBNW), James Parker (DWT), Jamie Kilcoyne and Taylor Marsden (K Financial)

 

Call to Order

Chair Lara Moore called the meeting to order at 11:08 a.m.

Roll Call

Roll call was taken.

Review and Approval of Minutes

Meeting minutes from the October 2, 2018 PURMIT Board of Trustees meetings were reviewed and discussed.

Action:

A motion was made by Ms. Moore to approve the minutes.  The motion was seconded by Mr. Hagemann.  The motion carried with no objections.

PURMIT Financial Auditors Report for Fiscal Year 2017 – 2018

Mr. Kilcoyne and Mr. Marsden presented the audited financial report.  Mr. Kilcoyne noted that this was the fourth year for K Financial performing PURMIT’s audit.  Mr. Kilcoyne noted that the majority of their work was completed in September and the final report was completed in November.  He discussed the auditor’s letter and noted that management’s estimates for reserves are at an appropriate level.  Mr. Kilcoyne noted that the Management Discussion and Analysis document is a requirement for the audit process and it provides a high level overview of the program and K Financial’s audit results.  K Financial issued PURMIT a clean audit.  Mr. Kilcoyne thanked the group for their confidence selecting K Financial to perform PURMIT’s financial audit.

Action:

No action taken at this time.

PURMIT Financial Review as of June 30, 2018

Ms. Sattler from Berkley Risk presented the financial information as of December 31, 2018. Ms. Sattler noted PURMIT had $2.7M of operating revenue and an operating income of $742K, resulting in a current surplus of $9.7M.  Ms. Sattler continued her discussion with the balance sheet portion of the financial statement, noting the Trust has $21M in assets and $11.2M in liabilities.  Ms. Sattler also noted that since the designated funds had been transferred to the Oregon State Treasury, PURMIT has earned approximately $112,000 of investment income.  Ms. Sattler commented that all Trust lines of business are now operating at a profit.  PURMIT’s expenses remained on budget through December. PURMIT continues to add surplus to the operation and has positioned itself well by utilizing the Oregon State Treasury as an investment vehicle within the overall PURMIT investment portfolio.    Berkley continues its quarterly review of the surplus position and will advise the Trustees as to the amounts that are eligible for transfer to the Oregon State Treasury.  Finally, Ms. Sattler mentioned that PURMIT’s financial position is above the Oregon statute’s regulatory requirement.

Action:

No action taken at this time.

Financial Proforma Update and Discussion

Ms. Sattler continued the financial discussion by reviewing the Proforma document and its trajectory out to 2022.  Ms. Sattler noted that the Proforma document does not include any potential SAIF dividend for the group for the 2019 year and beyond.  Ms. Sattler also noted that the Proforma is in line with prior assumptions and factors that were utilized to generate the exhibit.  Mr. Roy asked where the Trust is with gaining access to the Oregon Public University Fund.  Mr. Parker noted that he continues to work on this project with the appropriate folks to gain acceptance to the fund.  Mr. Roy noted the importance of PURMIT accessing the fund and the potential increased return on our invested assets.

Action:

No action taken at this time.

July 1, 2019 Renewal Process and Timeline

Mr. Britz presented to the Trustees the proposed timeline Berkley and Brown & Brown Northwest plan to follow for analysis and implementation of the coverages that renewal July 1, 2019.  Mr. Roy asked if there were any concerns or other items that the group needs to be aware of regarding the liability renewal.  Mr. Clarke noted that the market is experiencing general firming of rates and that the group should expect a modest rate change at renewal.

Action: 

No action taken at this time.

Uninsured Motorists/Underinsured Motorists Coverage Discussion

Mr. Parker recommended that PURMIT and its member universities sign an election form confirming what PURMIT offered and what the member purchased.  He also recommended that this be done annually for the file.  Mr. Roy agreed with the approach and annual discussion.  Mr. Parker noted that he would finish the documents and transmit to the group for signature.

Action:

No action taken at this time.

The Trustees called a break at 9:51 a.m.

The meeting was called back into session and 10:00 a.m.

Executive Session

The Board adjourned the regular meeting and went into Executive Session at 10:02 a.m. to address documents and information relating to attorney-client privileged communications and trade secret documents.  The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 11:01 a.m.

Final Decisions Related to Executive Session Discussions (if any)

The Board made no decisions related to executive session.

Procor Solutions & Consulting

The Trustees continued this discussion as a carry-over from the previous meeting.  Mr. Roy commented that he was in favor of this proposal and recommended that the group move forward with the proposal.  Mr. Clarke echoed Mr. Roy’s comments and added the importance of understanding the financial impacts that each member institution may have resulting from a claim.  The process that ProCor uses will assist each institution with establishing the correct Business Income valuation as well as providing a general overview and benefit to understanding each institutions overall financial operations.  Mr. Roy was in favor of engaging ProCor based on the provided proposal.  Mr. Perkinson agreed that the proposal and process made sense to move forward.  Mr. Roy noted that we need to confirm that the proposal and acceptance meet the Oregon procurement code.  Mr. Britz noted that he would confirm the process.  Mr. Parker suggested the Trustees authorize Berkley to move forward with the ProCor proposal, contingent upon confirmation from PSU regarding the procurement process.

Action:

A motion was made by Mr. Roy to authorize Berkley to accept the ProCor proposal, subject to confirmation of the procurement code.  The motion was seconded by Ms. Moore.  The motion carried with no objections.

Legal Counsel Items

Mr. Parker commented that he completed his annual reporting to the State of Oregon back in December, per his direction from the Trustees.  Mr. Parker continued the discussion from PURMIT’s last meeting, regarding the development of PURMIT’s own memorandum of coverage.  After discussion with Brown & Brown Northwest and Berkley, all parties agreed that the property coverage should be the first coverage form developed.  The proposed timeline is for the July 1, 2020 renewal cycle, and the Trust should allocate $50,000 for completion of the project.  Mr. Roy agreed with making the change from excess coverage to a coverage memorandum and then continuing to make additional changes, as needed in the future.  Ms. McKnight agreed with Mr. Roy’s approach and comments.  Mr. Perkinson agreed with the process as well.  Mr. Parker also noted that if the Trustees agreed with the approach, DWT may be able to complete the project within their annual projected budget.  He also noted that he can reach out to other known coverage lawyers in Oregon to gauge interest and determine costs if requested.  Mr. Roy asked whom, within the group, should work on this project.  Mr. Parker noted that it would be himself, Brown & Brown Northwest, Berkley and other DWT staff, as needed.  Mr. Roy asked if DWT has experience drafting coverage language.  Mr. Parker noted that in addition to himself drafting coverage language in the past, there are other lawyers within DWT that can assist with the project.  In addition, he noted that he can further refine the process and identify the folks that will be involved and discuss at the Trustee meeting in the Spring.  Mr. Roy agreed with this approach.   Mr. Parker finished by commenting that he continues to work with Origami’s general counsel to get to resolution regarding the open items.  He will update the Trustees at the next meeting.

Action:

No action taken at this time.

Other Items

Mr. Britz commented that Brown & Brown Northwest has secured a revised list of excluded countries from the Foreign Voluntary Workers’ Compensation coverage, greatly reducing the list of excluded countries.  Mr. Britz recommended the Trustees agree to the revised list and upon doing so, he would instruct Brown & Brown to inform the carrier of PURMIT’s intent.

Action:

No action taken at this time.

Adjourn

The Board adjourned the meeting at 11:35 a.m.