DRAFT
PURMIT Board of Trustees Meeting
August 9, 2016
9:00 a.m. – 2:00 p.m.
Minutes
Trustees Present: Ryan Hagemann (WOU), Craig Morris (SOU), Brian Roy (PSU), Patrick Hughes (OSU), Michelle Meyer (OIT)Trustees Not Present: Lara Moore (EOU)
Others Present: Ryan Britz, Jon Paulsen, Sheryl Sattler, Kim Severson (Berkley), and James Parker (DWT)
Call to Order
Chair Patrick Hughes called the meeting to order at 9:00 a.m.
Roll Call
Roll call was taken.
Review and Approval of Minutes
Meeting minutes from the May 4, 2016 and June 7, 2016 PURMIT Board of Trustees meetings were reviewed and discussed.
Action:
A motion was made by Mr. Morris to approve the minutes. The motion was seconded by Mr. Roy. The motion carried with no objections.
Trust Chair Election
The Trust Chair position was open for election. The position is an annual term with no restrictions or term limits. Mr. Roy was nominated as Chair of the Trust and Mr. Hughes was nominated as Vice Chair of the Trust.
Action:
A motion was made by Mr. Hughes to elect Mr. Roy as Trust Chair. The motion was seconded by Mr. Hagemann. Motion carried with no objections. A motion was made by Mr. Roy to elect Mr. Hughes as Trust Vice Chair. The motion was seconded by Mr. Morris. The motion carried with no objections.
Insurance Placement Services Discussion
The Board discussed the draft insurance placement services document and discussed the reasons for reviewing the insurance brokerage contract every few years and determined it was an appropriate time to explore the marketplace to obtain a formal review of insurance broker options. A selection committee was established to review the responses resulting from the procurement process and report those results to the Trustees.
Action:
A motion was made by Mr. Hagemann to adopt Portland State University’s procurement policy as the procurement policy of PURMIT and to use that policy when developing the formal insurance placement request for proposal document. The motion was seconded by Mr. Morris. The motion carried with no objections.
Workers Compensation Discussion
The Board discussed the workers’ compensation insurance program and potential options to be considered at the expiration of the current term.
Action:
No action at this time.
Cyber Coverage Discussion
The Board discussed the cyber coverage options presented and requested Berkley continue discussions with Gallagher to present additional options for a 1/1/17 effective date.
Action:
No action at this time.
Financial Review as of 6/30/2016, Proforma, Financial Metrics Discussion
Ms. Sattler of Berkley Risk presented PURMIT’s operating results and financial position as of June 30, 2016 to Trustees. On a combined basis, PURMIT’s net position as of 6/30/16 was $2.7 million. The financial information presented was unaudited.
Ms. Sattler presented the projected fiscal year end Statements of 25% Regulatory Requirement slide, which calculates PURMIT’s compliance with Oregon statute. Assuming no change in net position within the next quarter, PURMIT will exceed the Oregon minimum surplus target. The draft actuarial report showed positive improvements to losses which contributed to the increase in net position. Ms. Sattler provided an update to the quarterly Proforma document. The Trust’s financial projections will continue to improve while losses meet projections and other operating costs remain steady. The Board continued to review the projected surplus amounts and will continue working towards developing a target surplus, with quarterly updates from Berkley. Finally, Ms. Sattler presented the financial metrics that will be used by Berkley to show the Trusts financial performance on many different levels.
Action:
No action taken at this time.
Banking/Funding Policy
The Trustees discussed establishing three separate funds: short term/working layer fund, liquid/higher interest earning fund, and a surplus long-term protected fund. Mr. Parker indicated that he was very close to getting the Treasury banking account set up and ready for deposits. The Trustees reviewed the financials and determined how to allocate dollars to the different funds.
Action:
The Board authorized the transfer of an amount equal to PURMIT’s most recent quarterly unaudited statutory surplus plus 20% of the unaudited quarterly Reserve for loss and loss adjustment expenses to PURMIT’s account with the Oregon State Treasury (upon its opening). The Board further authorizes the Chair, Vice Chair, or another person designated by the Chair to approve a Berkley recommendation to transfer funds from PURMIT’s account with the Oregon State Treasury to PURMIT’s operating account with US Bank as necessary for the operation of the Trust. Motion was made by Mr. Morris. The motion was seconded by Mr. Roy. Motion carried with no objections.
Legal Bill Review – Feasibility Study
Berkley presented a product that provides an independent review of legal bills as related to PURMIT claims. The Trustees recommended that the General Counsel at each campus be consulted in advance of any decision to implement legal bill review software.
Action:
No action taken at this time.
Legal Counsel Items
No items for discussion
Action:
No action taken at this time.
The Board adjourned the regular meeting and went into Executive Session at 12:10 p.m. to address documents and information relating to actuarial estimates, loss reserves, and claims that are the subject of current or likely litigation. The executive session was held pursuant to ORS 192.660(2) (f) and ORS 192.660(2) (h).
The Board exited Executive Session at 1:15 p.m.
Final Decisions Related to Executive Session Discussions (if any)
There were no final decisions made related to Executive Session discussions.
Other items
Mr. Britz commented that the AGRiP membership dues were up for payment. The Trustees decided that they did not wish to renew the AGRiP membership.
Adjourn
The Board adjourned the meeting at 2:02 p.m.