April 22, 2024

PURMIT Board of Trustees Meeting Minutes

January 23, 2024

Trustees Present: Chair Christina McKnight (OSU), Vice Chair Brian Roy (PSU), Vivian Chen (OIT), Venu Nair (WOU)

Others present: James Parker (Trust Attorney), Ron Cutter, Reiner Braun, Sid Friedman, Matt Ahrens, Geoff Sinclair (Brown & Brown), Jared Tripp, Jon Weber, Michelle Sikkink, Jon Paulsen (Berkley Risk), Laurie Hager (Snell & Wilmer), Craig Scukas, Kevin Wick (PWC), Patricia Syquia-McCarthy (SOU), Tonya Evans (EOU), Jack Lavelle (K Financial), Don Johanssen (PSU)

 Call to Order

Quorum was met and Chair McKnight called to order the January 23, 2024, board meeting for PURMIT at 9:04 A.M.

Approval of meeting minutes from 10/12/23

Vice Chair Roy moved to approve, Chair McKnight Seconded.  Motion carried unanimously.

 

Introduction of new Trustees

Venu Nair- WOU new General Counsel

 

Broker Update (Brown & Brown)

  • BI study update with Rockland
    • Chair McKnight provided update on Rockland’s work at OSU. Jared Tripp advised Chris Mortifoglio indicated he should have this wrapped up by the end of February and ready to present early March.
  • Market Update – Ron Cutter
    • XS – UE is discussing a move from a single policy covering all members, to issuing seven individual policies covering each member and PURMIT itself. B&B and Berkley to review for potential impacts and response.
    • Market is still hard.
    • AGRIP conference is coming up in March in Nashville, TN. B&B recommends that PURMIT send representation to discuss liability program support with key insurance carriers expected to be in attendance. Chair McKnight and Vice Chair Roy were asked and agreed to attend.
  • Sid Friedman – Ancillary lines
    • Provided an update on the expected marketing plan to account for potential changes to the liability program structure.
  • Reiner Braun – Property
    • The Property market appears to have plateaued. Reinsurance renewals have been more organized this year – meaning there was capacity to fill programs.  Price increases have been slight (0-5%) in other programs placed  The London markets continue to value long-term relationships, look forward to the PURMIT visit, and are trying to diversify their books.
    • Severe convective storms have been 50% of losses this year.

  • Inflation is slowing, but building values are still being looked at.
  • Need to continue what we have been doing with risk management and consider a higher retention to offset rates.
  • Renewal applications
    • Sid Friedman advised new apps are available and should be coming out soon. Early-Mid February with 30-45 day turn arounds.
  • GRC Loss Control inspections discussion
    • Reiner Braun advised PURMIT has funding available from the markets to do inspections; however, part of that will be used for the BI study.  Braun recommended that available funding be used to do fewer inspections with learnings that can be shared across a broader number of buildings.
      • Risk Council is working to ensure that past recommendations are being tracked and closed when completed. Berkley and B&B will also look for other ways to utilize the provided risk management funds.
    • Active assailant/Deadly Weapons protection
      • Jared Tripp advised that CrisisRisk presented at a previous Risk Council meeting, and they offer numerous training webinars and a multitude of wrap around services if there is a threat or crisis event. Also, importantly, CrisisRisk speaks on behalf of the carrier with full authority.
    • London Visit
      • Reiner Bruan indicated he has had some exchanges with some Reinsurers already.
      • The plan is to come in on May 20th, meetings the 21st and 22nd, leave the 23rd Reiner Braun will help coordinate travel logistics for the PURMIT representatives.

Audit results – Jack Lavelle/K Financial

Mr. Lavelle reported that the audit went smoothly and a clean audit opinion was issued.

Financial Review – Michelle Sikkink

Ms. Sikkink noted that at the half-way point of the fiscal year the net position is trending up and the expenses are on budget. 

PUF account continues to return favorable results.

Discussion was had regarding the timing of the April meeting not lining up with financials being available.  As such, the board agreed to review the 2nd quarter financials at the June meeting.

Administrator Update – Jared Tripp

  • Board Retreat and Education Day

This topic was not discussed due to time constraints.

               

Executive Session pursuant to ORS 192.660(2)(f), & 192.660(2)(h)

Entered session at 10:26 AM

Break: 11:11 – 11:18 AM

Out of session at 12:24 PM

No action taken

Legal Items (James Parker)

None

Adjournment

Meeting was adjourned at 12:24 PM

March 18, 2024

PURMIT Board of Trustees Meeting Minutes

October 12, 2023

Trustees Present: Chair Christina McKnight (OSU), Vice Chair Brian Roy (PSU), Vivian Chen (OIT), Dr. Ana Karman (WOU), Dr. Neil Woolf (SOU), LeeAnn Case (EOU)

Others present: James Parker (Trust Attorney), Reiner Braun, Sid Friedman, Matt Ahrens, Geoff Sinclair (Brown & Brown), Jon Paulsen, Jared Tripp, Jon Weber, Nicole Lofstedt, Michelle Sikkink (Berkley Risk), Laurie Hager (Snell & Wilmer), Craig Scukas (PWC), Katie Vorderstrasse (OSU), Patricia Syquia-McCarthy (SOU), Tonya Evans (EOU)

 Call to Order

Chair McKnight called order the October 12th, 2023, board meeting for PURMIT at 9:10 A.M.

Approval of Agenda

Approved by Chair McKnight

Review and Approval of Meeting Minutes from 6/20/23 and 6/27/23

  • June 20 – time entering exec session is off 1:02
  • June 27 – 9:56 time change

With the above corrections, minutes approved without objection.  Motion by Vice Chair Roy, Second by Chair McKnight.

Introduction of new Trustees

  • LeeAnne Case – EOU
  • Dr. Ana Karaman – WOU
  • Dr. Neil Woolf – SOU

Broker Update (Brown & Brown)

  • Renewal update
    • Bound and renewed, pending policy – about 30-60 days for UE
    • Dividends from Saif
  • Ratify email vote for 10/1 UE, Liberty, and AWAC policy renewal
    • The email vote was unanimously approved; however, we recommend an official vote to ratify.
    • There is a change to the allocation model, which will slightly increase the monthly invoicing.  The total increase is $34,182.00.  The major changes were seen in the GLX and ELL policies, coming in combined over $60,000 higher than we had originally projected; however, there was a reduction of close to $30,000 combined on the two excess layers.  Also, there was a $3,336.55 reduction in the bound property premium. 
      • Action: Cover this increase with Surplus funds instead of reallocating to universities.
        • Motion by Vice Chair Roy, Second by Chair McKnight, motion passed unanimously
    • Market Update
      • Property
        • Market is very difficult
          • Increase in convective storms fueling market challenges
          • Vice Chair Roy suggested continued engagement with London Markets on minimal wildfire risk  
    • Update on Deadly Weapons Protection
      • The Risk Council met with Crisis Risk on October 25th.  Crisis Risk provided an excellent overview of wrap around services they provide if an event occurs.  Crisis Risk works directly with the carrier and has authority from the carrier.

Financial Review (Michelle Sikkink)

  • Financial Statement review
    • Update on PUF account
      • This has been a good move, seeing solid gains
    • PSU Building renaming –
      • This premium overcharge is being written off, but we did receive funds from the same year from Brown & Brown so those funds will need to be returned to the schools.

Claims Handling Update – (Jon Weber) – Requesting approval of the language as presented

  • Claims Manual updates
    • Approval of language for Acceptable Counsel Rate (pages 4, 12, 15, 18)
      • Acceptable rate
      • Overages due to procurement on property claims:
        • Cap of $100k then it comes to the board for approval.  Add to provision b.  Remove the “shared” concept (b.i.).  On a “covered claim”
    • Signatures on Property Proofs of Loss (page 10)
    • Berkley oversight in line with member Procurement procedures – see above
    • Adding language for Auto physical damage over the road (page 4) – wording proposed – add a “Period’ after “coverage” and not reference the endorsement.  Remove the rest.
      • Action: Above changes to the claims manual approval with motion by Vice Chair Roy, Second by Chair McKnight, passed unanimously.

Administrator Update – (Jared Tripp)

  • Risk Council update
    • The Risk Council last met September 26th, 2023 and we discussed the current mission of the Council as well as goals it would like to work towards this year.  After considerable discussion:
      • There is no single mission statement; however, the Council agrees their function is to carry out decisions made by the board as well as present risk control ideas to the board.
      • Bi-Weekly meetings
        • To serve as an open forum/sounding board for ideas and procedures (i.e. ask other members how they handle specific coverage matters.  Not so much to come to a consensus where ALL members handle identically, but rather to collaborate so members are aligned. 
        • To provide valuable updates regarding coverages, vendors, etc…to ensure all members are up to date on all current information.
      • The Risk Council would like to re-instate the yearly Risk Council Retreat.
        • This would be scheduled at a different campus each year and would allow for in-depth training on specific coverages.
        • The Risk Council will need an approved annual budget before planning can begin.
    • Chair McKnight would also still like to have a combined Board Trustee/Risk Council retreat
      • Action: Motion to approve $10,000 budget for Risk Council Professional Development retreat made by Chair McKnight, Seconded by Vice Chair Roy. Passed unanimously.

Executive Session pursuant to ORS 192.660(2)(f), & 192.660(2)(h)

  • Entered session at 10:39am
  • Out of session at 11:56AM
    • No action taken

Legal Items – (James Parker)

  • Updated Rate for Trust Attorney – updated to $84,000 annually to account for inflation and costs.
  • Motion to approve made by Vice Chair Roy, seconded by Chair McKnight, approved unanimously.

Next Board Meeting Dates

  • January 23th, 2024
  • April 11th, 2024
  • June 13th, 20th, 27th
  • October 10th, 2024

Adjournment

  • Meeting was adjourned at 12:01pm
March 18, 2024

PURMIT Board of Trustees Meeting Minutes

June 27, 2023

Trustees Present: Chair Christina McKnight (OSU), Vice Chair Brian Roy (PSU), Lara Moore (EOU), & Greg Perkinson (SOU).

Others present: James Parker (Trust Attorney), Reiner Braun, Sid Friedman, Ron Cutter (Brown & Brown), Jon Paulsen, Jared Tripp, Michelle Sikkink, Jon Weber, & Nicole Lofstedt (Berkley Risk).

Call to order

Chair McKnight called order the June 27th, 2023 board meeting for PURMIT at 9:02 A.M.

Executive Session Pursuant to ORS 192.660(2)(f) & (g)

Entered executive session at 9:02 A.M.

      Exited executive session 9:56 A.M.

Regular Session resumed 11:56 A.M.

The Board discussed the potential use of surplus to offset a portion of the pricing increases anticipated at the July 1 renewal. Vice Chair Roy moved to approve the adoption of the 2023-24 Allocation Model using $500,000 of surplus to offset annual costs.  Second by Trustee Moore. Motion passed unanimously.

The Board discussed the options presented for Active Assailant coverage. Vice Chair Roy moved to authorize Brown & Brown to bind as recommended and presented. Additionally, Berkley and Brown & Brown may use up to an additional $33K over presented in the event that Everest does not agree to the recommended terms.  Second by Trustee Perkinson. Motion passed unanimously.

The Board discussed the options on Social Engineering coverage. Trustee Perkinson moved to approve Brown & Brown to bind coverage on Excess Social Engineering coverage of $5M and change to allocation model in accordance with the change.  Second by Chair McKnight. Motion carried unanimously.

Adjournment

Meeting adjourned at 10:00 A.M. PT. The next BOT meeting is October 12th, 2023 at 9:00 AM

March 18, 2024

PURMIT Board of Trustees Meeting Minutes

June 20, 2023

Trustees Present: Chair Christina McKnight (OSU), Vice Chair Brian Roy (PSU), Vivian Chen (OIT), Lara Moore (EOU), & Greg Perkinson (SOU).

Others present: James Parker (Trust Attorney), Reiner Braun, Sid Friedman, Ron Cutter (Brown & Brown), Jon Paulsen, Jared Tripp, Michelle Sikkink, Jon Weber, & Nicole Lofstedt (Berkley Risk).

Call to order

Chair McKnight called order the June 20th, 2023 board meeting for PURMIT at 1:02 P.M.

Approval of Minutes –

      Vice Chair Roy motioned to approve May 4th, 2023 and June 13th, 2023 meeting minutes.  Second by Chair McKnight.  Motion carried unanimously.

London Trip –

      Mr. Braun updated the board on the London market meetings.

Executive Session Pursuant to ORS 192.660(2)(f) & (g)

Entered executive session at 1:02 P.M.

      Exited executive session 3:46 P.M.

Regular Session resumed 3:46 P.M.

  • Chair McKnight moved to approve the allocation of an additional $25,000 from the legal budget to pay Snell & Wilmer for ongoing costs of MOC.  Second by Vice Chair Roy. Motion carried unanimously.
  • Vice Chair Roy moved to authorize Brown & Brown to bind the renewal quotations as recommended.  Second by Chair McKnight. Motion carried unanimously.

Adjournment

Meeting adjourned at 3:50 P.M. PT. The next BOT meeting is June 27th, 2023 at 9 A.M. PT.

March 18, 2024

PURMIT Board of Trustees Meeting Minutes

June 13, 2023

Trustees Present: Chair Christina McKnight (OSU), Vice Chair Brian Roy (PSU), Vivian Chen (OIT), Lara Moore (EOU)

Others present: James Parker (Trust Attorney), Reiner Braun, Sid Friedman, Ron Cutter (Brown & Brown), Jon Paulsen, Jared Tripp, Michelle Sikkink, Jon Weber (Berkley Risk), Laurie Hager (Snell & Wilmer), Tonya Evans (EOU)

Call to order

Chair McKnight called order the June 13th, 2023 board meeting for PURMIT at 9:03 A.M. Pacific

Executive Session Pursuant to ORS 192.660(2)(f) & (g)

Entered executive session at 9:02 A.M.

      Exited executive session 10:06 A.M.

Regular Session:

No decisions were made related to Executive Session. The next BOT meeting is June 20th, 2023 at 1 P.M. PT.

Adjournment

Meeting adjourned at 10:07 A.M. PT.

March 18, 2024

PURMIT Board of Trustees Meeting

PURMIT Board of Trustees Meeting

January 24, 2023

Minutes

Trustees Present: Chair Christina McKnight (OSU), Vice Chair Brian Roy (PSU), Greg Perkinson (SOU), Lara Moore (EOU), Vivian Chen (OIT).

Others Present: James Parker (Trust Attorney), Reiner Braun, Matt Ahrens, Andrew Pickles, Sid Friedman, Ron Cutter (BB), Craig Scukas (PwC), Jon Paulsen, Will Phomtalikhith, Michelle Sikkink, Jon Weber (Berkley Risk), Taylor Marsden (K Financial), Craig Scukas (PWC). 

Call to Order

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

Approved of Board Meeting Minutes from 11/09/22

Minutes were approved without objection, with the addition of the proposed education session for Council members and Trustees.

K Financial – Financial Audit Report

Mr. Marsden presented the auditor’s report and responded to Board questions.

Financial Review

Ms. Sikkink presented the 12/31/2022 PURMIT financial statements and took questions from the Board.  Ms. Sikkink noted that Berkley is reviewing and updating authorized signatures for all PURMIT bank/treasury accounts. 

Capital Adequacy Assessment

Mr. Scukas presented the proposed contract and work requirements for the capital adequacy assessment project.  The Board accepted the proposal without objection, subject to confirmation from Mr. Parker of the final legal terms.

Claims Handling Update

Mr. Weber led an extended discussion with the Board on proposed changes to the claims handling manual.

  1. The Board provided feedback to Berkley Risk on establishing a new outside counsel reimbursement rate that will be effective 1/1/2023.  Berkley Risk will change the wording in the claims manual and present it at the next board meeting for final approval and adoption.
  2. The Board discussed the interplay of property adjustment cost estimations imposed by the property insurance market, recommendations of Mr. Weber, and individual member university procurement rules.  The Board asked for additional recommendations from Berkley, Brown & Brown, and Trustees.

Brown and Brown Market Update

Mr. Braun discussed the current state of the property market and anticipated challenges going into the 7/1/23 renewal.

Risk Control Surveys

40 locations have been identified for Risk Control visits and valuations.  Another 15 will be identified and Universities will be notified.  The visits will be scheduled shortly and Berkley will work with the universities as the visits are completed.

London Reinsurance Market Visit

Mr. Braun noted that the PURMIT market meetings have provided significant improvement in the terms and conditions of the property placement over time and encouraged PURMIT to continue with its current level of engagement.  For the 2023 renewal, the PURMIT delegation will be meeting with the London markets on May 23rd and 24th.  Mr. Braun will be working on the presentation and the information meeting will be scheduled shortly.  The delegation is expected to include two Board members, Brown & Brown, Berkley Risk, and Mr. Parker.

Legal Items

Mr. Parker provided an update on the proposed project to develop an MOC for PURMIT as early as the 2023 renewal.  After discussion, the Board unanimously approved the engagement of Ms. Hager of Snell & Wilmer in Portland to provide legal counsel on the project, using a portion of the pre-existing legal budget.

Mr. Weber and Mr. Parker discussed the pending forms providing annual confirmation of lower UM/UIM limits selected by the members.

Executive Session

The Board adjourned the regular meeting and went into Executive Session 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 11:29 p.m.

Final Decisions Related to Executive Session Discussions

No final decisions were made related to Executive Session.

Review of the PURMIT Calendar

The next PURMIT Board Meeting will be may 4th at 9:00 am in the Brown and Brown Portland office.  The board strongly suggests and in person meeting if possible, however, a Teams Meeting option will be provided. 

Adjourned

                The meeting adjourned at 12:10 pm.

March 18, 2024

PURMIT Board of Trustees Meeting

November 9th, 2022

Minutes

Trustees Present: Chair Christina McKnight (OSU), Vice Chair Brian Roy (PSU), Vivian Chen (OIT), Ryan Hagemann (WOU).

Others Present: Patricia Syquiam (SOU), James Parker (Trust Attorney), Reiner Braun, Matt Ahrens, Andrew Pickles, Sid Friedman, Ron Cutter (BB), Craig Scukas (PwC), Jon Paulsen, Will Phomtalikhith, Michelle Sikkink, Jon Weber (Berkley Risk).

Call to Order

Chair McKnight called the meeting to order at 1:02 p.m. 

Meeting Minutes from the 06/16/2022, and 06/27/2022 29th, 2022 Board of Trustees Meeting were discussed. Vice Chair Roy moved to approve the minutes as presented, seconded by Chair McKnight, and unanimously approved.

Wholesale broker Ben Merris from CRC Insurance services introduces himself. Mr. Merris noted that he works primarily on excess casualty placements in the public entity market. He noted that losses have been steadily increasing due to social inflation, and nuclear verdicts. He noted that the excess market is slowing down, and is able to get more quotes back on the placements to drive the price in PURMIT’s favor. Mr. Merris also mentioned other structures available in order to obtain coverage, and that PURMIT should explore these options at the next renewal.

Chair McKnight requested that the Risk Council make recommendations for PURMIT if they were to adopt their own memorandum of coverage for casualty. Berkley will lead the Risk Council through this project.

Capital Adequacy Assessment

                Craig Scukas from PwC presented a Capital Adequacy Assessment for PURMIT, and estimated that the cost would is estimated to be around $60,000. Mr. Scukas mentioned that the study is good for three to five years, and can be used to justify increasing or decreasing member contributions.

PURMIT Trustees requested a formal agreement outlining the terms of the assessment to be presented at the next meeting.

Broker Updates

Reiner Braun presented property market updates. Mr. Braun mentioned that the GRC loss control inspections PURMIT completed were valuable in the renewal. He also mentioned that the PURMIT is preparing to complete these inspections again before the upcoming renewal, and mentioned that the carriers will cover the cost. Mr. Braun noted that the market overall is expecting a rate increase due to all the natural catastrophes that have recently occurred. He concluded his presentation by mentioning that premium is increasing, and capacity is shrinking.

Financial Review

Michelle Sikkink (Berkley Risk) presented the June 30th, 2022 financial report. Ms. Sikkink discussed the balance sheet portion of the financial statement, noting an increase in Trust assets and liabilities. Mrs. Sikkink also mentions that the investment income is still relatively low in comparison to prior years due to market conditions. Finally, Mrs. Sikkink mentioned that PURMIT’s financial position is above the Oregon statute’s regulatory requirement.

Administrator Updates

                William Phomtalikhith from Berkley provided an update on the Risk Council. He mentioned that all schools were able to meet the submission deadlines that were set in the Risk Council Meetings, completed the RMPC program for a 6% premium credit, and worked on loss prevention projects to mitigate losses. Mr. Phomtalikhith concluded his presentation by asking the PURMIT Trustees if there are any additional tasks for the Risk Council to take on.

                Chair McKnight suggested an education day where vendors, brokers, or carriers can come present what they do for PURMIT to further the knowledge of the Risk Council members, and Trustees. Berkley will lead the Risk Council in planning this meeting.

                Jon Weber presented loss scenarios to the Trustees that require exceptions for reimbursement from PURMIT. The Trustees agreed that PURMIT should be settling losses within the PURMIT layer in favor of the member, and requested Berkley to update the claims manual to allow exceptions for this. Berkley will present updates at the next meeting.

Legal Items

                James Parker presented the Treasury Banking Agreement Amendment that would allow PURMIT to invest in the Public University Fund which was previously approved in the prior meeting. The Trustees agreed that since the Public University Fund agreement was approved, this is also approved.

Executive Session

The Board adjourned the regular meeting and went into Executive Session 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 4:59 p.m.

Final Decisions Related to Executive Session Discussions (if any)

                The Board made no decisions related to executive session.

Board Meeting Schedule

                The next PURMIT board meeting will be scheduled for January 24th at 9:00 a.m. Pacific.

Adjourned

                Meeting adjourned at 5:09 p.m.

June 5, 2020

PURMIT – Board of Trustees Meeting – Meeting Minutes

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.

June 5, 2020

PURMIT – Board of Trustees Meeting – Meeting Minutes

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.

June 5, 2020

PURMIT – Board of Trustees Meeting – Meeting Minutes

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.