May 24, 2019

PURMIT Board of Trustees Meeting – February 5, 2019

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.

February 13, 2019

PURMIT Board of Trustees Meeting – December 19, 2018

PURMIT Board of Trustees Meeting

December 19, 2018

Minutes


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

Trustees Not Present: Ryan Hagemann (WOU)

Others Present: Ryan Britz and Jon Weber (Berkley), Teresa Carson-Mastrude (EOU), Treasa Sprague (SOU), Carson Campbell (WOU), Greg Chaimov (DWT)


Call to Order

Chair Brian Roy called the meeting to order at 11:02 a.m.

 

Roll Call

Roll call was taken.

RMIS Request for Proposal Responses – Presentation and Discussion

Mr. Britz started the meeting by mentioning that PURMIT has a new Trustee from OSU, Christina McKnight. OSU’s prior Trustee, Patrick Hughes, took a job with a different organization and is no longer eligible to be the OSU Trustee.  He mentioned that OSU’s President had sent the letter to James Parker notifying him that Ms. McKnight was named the PURMIT Trustee on behalf of OSU.

Mr. Britz continued the meeting by outlining the process the Risk Council went through to generate, issue and analyze the RMIS RFP responses. He also mentioned the Risk Council invited all three RFP respondents to perform a live demonstration of their company’s RMIS system and processes.  Upon completion of the demonstrations, the Risk Council members each individually scored the RFP responses and supplied those scores to him.  The Risk Council scoring resulted in a unanimous recommendation to the Board of Origami Risk as the RMIS software for PURMIT.

Ms. McKnight asked how an RMIS was going to be paid for.

Mr. Roy noted that the Trust would pay any invoices due from Origami now, with future amounts being included as part of the overall allocation process. Ms. Moore and Mr. Perkinson both expressed agreement with Mr. Roy’s comments.

Action:

A motion was made by Mr. Roy instructing Berkley to notify Origami Risk of the Trust’s decision to select them as the RMIS software provider for the Trust subject to Origami’s agreement on contract terms consistent with PURMIT’s RFP. The motion was seconded by Mr. Perkinson.  The motion carried with no objections.

Executive Session

The Board did not adjourn to executive session.

Final Decisions Related to Executive Session Discussions (if any)

Adjourn

The Board adjourned the meeting at 11:40 a.m.

February 13, 2019

PURMIT Board of Trustees Meeting – October 2, 2018

PURMIT Board of Trustees Meeting

October 2, 2018

Minutes


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

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


 

Call to Order

Chair Brian Roy called the meeting to order at 9:06 a.m.

 

Roll Call

Roll call was taken.

Review and Approval of Minutes

Meeting minutes from the April 24 2018 and the May 22, 2018 PURMIT Board of Trustees meetings were reviewed and discussed.

Action:

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

Board of Trustees Chair and Vice Chair

Mr. Roy noted that he has been PURMIT’s Chairperson for two years and that it is time to bring in someone new. He commented that the past few Chair and Vice chair rotations have been with himself and Mr. Hughes.  In addition, typically the Chair would become Vice Chair and the Vice Chair would then be done serving in their role and remain as a PURMIT Trustee.  Mr. Roy noted that Ms. Moore, with her history as a Trustee and long term involvement on the Board, would be a strong leader to fill the Chairperson role.  Ms. Moore commented that she would be willing to serve as PURMIT’s next Chairperson.

Action:

A motion was made by Mr. Roy naming Ms. Moore as Chair of PURMIT and Mr. Roy as Vice Chair. The motion was seconded by Mr. Hughes.  The motion carried with no objections.  Mr. Hughes thanked Mr. Roy for his work as PURMIT Chair the past two years.

PURMIT Financial Review as of June 30, 2018

Ms. Sattler from Berkley Risk presented the financial information as of June 30, 2018. Ms. Sattler noted PURMIT had $4.8M of operating revenue and an operating income of $2.4M, resulting in a current surplus of $8.9M. Ms. Sattler continued her discussion with the balance sheet portion of the financial statement, noting the Trust has $15.7M in assets and $6.7M in liabilities.  Ms. Sattler also noted that since the designated funds had been transferred to the Oregon State Treasury, PURMIT has earned approximately $116,000 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 June.  .  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.  Mr. Roy asked about PURMIT’s actual incurred legal fees.  Ms. Sattler said they will pull the fees to date and advise actual numbers.  Mr. Britz noted that the Trust has now stabilized the claims process and that most old claim inventory has been cleaned up and in many cases closed out.  He continued by saying that the large decreases to the actuarial study will likely begin to slow down and barring any changes in frequency and/or severity or Trust retention appetite, the study will begin to stabilize.  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 2021. Ms. Sattler noted that the proforma document included the SAIF dividend for the group for the 2019 year.  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.

Surplus Analysis Presentation

Mr. Graybeal commented that BBNW was going to offer an alternate to the PURMIT actuary’s proposal regarding the ongoing surplus adequacy discussion. He noted that Mr. Poling will be discussing the data needs and the process of comparative metrics between PURMIT and similar pools to offer a benchmark.  He further noted that PURMIT may look to set a goal to develop a “free capital methodology” supporting PURMIT’s financial obligations and goals, and then determining how to best serve the Trust with the additional funds.  Mr. Poling noted that in order to start this process, three items are needed:  the actuarial study, financial industry ratios and capital adequacy measures, and a benchmarking stud of the cost of risk to compare to other local pools.  Mr. Hughes asked how Mr. Poling will find out the risk appetite of each institution, as they will vary from one to the next.  Mr. Poling proposed sending out a questionnaire that would ascertain the pertinent information from each member.  He also noted that he will need the actuary to provide additional confidence level information to the Trust so he can provide a surplus range for the Trust to consider.  Mr. Parker noted for Berkley to instruct the actuary to obtain additional confidence levels per Mr. Poling’s request.  Mr. Roy summarized the discussion noting the following two points:  1.  Establish the desired confidence level/range based on actuarial data.  2.  Second level surplus growth (above the confidence level band) and deployment of those funds as appropriate.

Action:

No action taken at this time.

The Trustees called a break at 10:01 a.m.

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

Media Liability

Mr. Britz said that PURMIT members are being requested to show larger liability limits on the Media Liability contract and certificates of insurance. He noted that BBNW was able to secure agreement from PURMIT’s liability carrier to extend coverage on top of the existing Media Liability coverage.  Mr. Hughes noted that several vendors have been requesting the higher limits in order to meet contractual obligation and that the increased limit would be helpful meeting those requirements.

Action:

A motion was made by Mr. Roy to bind the additional coverage limit for the Media Liability per the BBNW secured quote. The motion was seconded by Mr. Hagemann.  The motion carried with no objections.

Uninsured/Underinsured Motorists Coverage

Mr. Britz recommended that PURMIT adopt a resolution affirming the coverage limit the Trust offers in the event of an uninsured/underinsured motorists claim. Mr. Cutter noted as an agency practice, BBNW recommends to all of their self-insured clients that they adopt a resolution stating coverage and limit for uninsured/underinsured motorists coverage.  Mr. Hughes asked if each institution needed to sign as well, or if it was sufficient to be handled at the Trust level.  Mr. Parker proposed that the Trust look into this further and bring back a proposed solution at the next meeting.

Action:

No action taken at this time.

Procor Solutions & Consulting

Mr. Britz said that as part of the member institutions desire to establish the appropriate business income levels, BBNW introduced Procor to the risk council. The risk council was presented with options for consideration to establish next steps in the business income valuation process.  Risk council recommended that PURMIT select the option that includes business income valuation services for each of the six institutions.  Included in this process would be meeting with Procor to work through a series of metrics and data requests to establish the base data for Procor to develop the appropriate business income value.  Mr. Roy noted this is a worthy endeavor and necessary for the member institutions, but would like to explore a more efficient method for the metrics and data gathering discussion.  Mr. Hughes commented that if we’re spending the money on the product, we should provide all the appropriate information accurately so as to get the most accurate result.  Mr. Parker noted that procurement law may affect the process and that the Trust should check with the procurement requirements prior to selecting the services.  Ms. Moore agreed that this is an important process for the institutions to take part in.  Ms. Chen requested an example of the work product for review prior to moving forward.  Mr. Cutter said he would work with Procor to move the process forward.

United Educators

Mr. Britz commented that the member institutions are again working through the risk management practices credit process with United Educators. He noted that the process is similar to last year and that the program has been discussed with risk council and they are all moving toward selecting the completing their desired educational track.

Action:

No action taken at this time.

Legal Counsel Items

Mr. Parker informed the Board that work would resume on PURMIT’s entry into the Public Universities Fundnow that the Trust is eligible to hold an account with the Oregon State Treasury. Mr. Parker continued by asking the Trustees if they would like him to begin exploring the early stages of developing their own Memorandum of Coverage.  Mr. Roy asked Mr. Parker for a reasonable timeline to get this completed, what line of coverage is recommended they start with?  Mr. Roy also asked if BBNW has recommended language for the Trust to start looking at.  Mr. Graybeal noted there would also be a cost to generate the document.  Mr. Roy commented that he would like to see the following by the next meeting:  timeline, budget and which line of business to begin the process.  Mr. Parker commented that he would work with BBNW and Berkley Risk to begin outlining the process and desired items expressed by Mr. Roy.

Action:

No action taken at this time.

Other Items

Mr. Britz commented that the risk council has received responses from the RMIS RFP and that they are planning to have three respondents do an in person demonstration of their respective system. He continued by noting that the risk council would evaluate the proposals and demonstration together to determine which RMIS system is the best fit for PURMIT members.  The risk council will also make a recommendation to the Trustees for discussion and approval, at a future Trustee meeting.  The Trustees agreed with this approach.

 

Executive Session

The Board adjourned the regular meeting and went into Executive Session at 1:10 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 1:43 p.m.

Final Decisions Related to Executive Session Discussions (if any)

The Board re-entered the regular meeting at 1:44 p.m.

There were no final decisions or actions related to Executive Session discussions.

Other Items

Adjourn

The Board adjourned the meeting at 1:47p.m.

May 30, 2018

PURMIT Board of Trustees Meeting – February 14, 2018

PURMIT Board of Trustees Meeting

February 14, 2018

Minutes


Trustees Present: Ryan Hagemann (WOU) Brian Roy (PSU), Patrick Hughes (OSU), Greg Perkinson (SOU), Vivian Chen (OIT)

Others Present: Sheryl Sattler, Jon Weber and Ryan Britz (Berkley), Jessica Gettman, Ron Graybeal, Shelley Dalmau (BBNW, Craig Scukas (PWC), Jamie Kilcoyne and Taylor Marsden (K Financial) and James Parker (DWT)


Call to Order

Chair Brian Roy called the meeting to order at 9:00 a.m.

 

Roll Call

Roll call was taken. Mr. Roy welcomed Greg Perkinson as Trustee representing SOU.  Mr. Perkinson introduced himself and noted that he was the VP of Finance and Administration for SOU.

Review and Approval of Minutes

Meeting minutes from the August 18, 2017 PURMIT Board of Trustees meeting were reviewed and discussed.  Mr. Hagemann noted that Mr. Catz’s name was misspelled on the September 21, 2017 meeting minutes.  Mr. Britz noted he would make the change.

Action:

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

PURMIT Financial Auditors Report for Fiscal Year 2016-2017 – K Financial

Mr. Kilcoyne and Mr. Marsden presented their audited financial report. Mr. Kilcoyne commented that this is the third year that K Financial has performed the audit on behalf of PURMIT.  Mr. Kilcoyne discussed the auditors letter and noted that there were no significant findings as a result of their audit that management’s estimates for reserves are at appropriate levels.  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 results.  The auditors issued a clean opinion.  Mr. Kilcoyne noted that loss reserves decreased for prior years, as shown by the actuarial report, and K Financial noted that the reserves were fairly stated.  Mr. Kilcoyne then thanked the group for their confidence selecting K Financial to perform PURMIT’s financial audit.

Action:

No action taken at this time.

Financial Review as of October 31, 2017

Ms. Sattler from Berkley Risk presented the financial information as of October 31, 2017. Ms. Sattler discussed the financial results, noting PURMIT had $7.9M of member contributions, $2.1M of operating revenue and a net income of $825K, resulting in an overall surplus of $7.2M for the year.   Ms. Sattler continued her discussion with the balance sheet portion of the financial statement, noting the Trust has $18.6M in assets and $11.377M in liabilities.  Ms. Sattler also noted that since the designated funds had been transferred to the Oregon State Treasury, PURMIT has earned approximately $20K of investment income.  Mr. Roy asked about the restitution payments being received by the Trust and whether those funds should be sent back to the Member or remain in the Trust.  Ms. Sattler commented that the Trust member has been reimbursed for their portion of the loss by the Trust and the restitution payments should remain with the Trust account.

Financial Proforma Update and Discussion

Ms. Sattler continued the financial discussion by reviewing the proforma document and its trajectory out to 2021. Ms. Sattler noted that the proforma document included the SAIF dividend for the group.  Ms. Sattler also commented that the proforma includes options to return 25% or 50% of the SAIF dividend to PURMIT members.  The group discussed the options for returning a portion of the SAIF dividend to the members.  Mr. Roy commented that additional information was needed regarding the Trusts financial position and goals before moving forward.  Mr. Hughes commented that the group needs to explore options that will assist the Trust with setting appropriate financial goals and ways in which the goals can be achieved, and finally what to do with the funds once the appropriate funding levels have been achieved.  Mr. Parker commented that there are several ways the funds can be utilized to benefit the members, depending on what the groups is looking to do.  Mr. Britz commented that PricewaterhouseCoopers, PURMIT’s actuary, has the ability to perform this function and provide guidance to PURMIT.  Mr. Roy requested that Mr. Britz work with Mr. Scukas to provide a proposal for consideration with the goal to develop an appropriate plan to guide the group in establishing their surplus targets.

Action:

No action taken at this time.

July 1, 2018 Renewal Process and Timeline

Mr. Britz presented to the Trustees the desired timeline for the upcoming renewal activities. Mr. Graybeal discussed the approach that the BBNW team will be taking for each of the Trust’s coverages, and desired options and outcomes resulting from their renewal activities.  Mr. Hughes commented that he has some concerns with TBI exposure and what approach PURMIT’s liability carrier may be taking as a result of this exposure.  Mr. Graybeal noted that they are not expecting any changes from the current carrier and that his team would confirm same during the renewal process.  Mr. Roy commented that it would be a good decision to meet with the carrier since they have been a partner for several years, as this would further solidify the relationship and have a clear understanding as to their intent going forward.  Mr. Graybeal commented that he would discuss this with the carrier and work towards finding a time to have a meeting.

Action:

No action taken at this time.

Brown & Brown NW – Workers’ Compensation Self Insurance Presentation

Ms. Dalmau discussed with the Trustees the current workers’ compensation insurance program in place for the Trust as well as options to consider when exploring a self-insured option. The Trustees discussed the pros and cons of both options and requested Brown & Brown NW to continue the relationship with SAIF going forward and to keep the self-insurance mechanism in mind as an option for future consideration.

Action:

No action taken at this time.

Update form Claims Desk – Introduction of Jon Weber

Mr. Britz commented that Berkley made some internal changes to the claims team and that Jon Weber will now be the claims contact for PURMIT. Mr. Weber introduced himself and provided background information to the group about his career experiences and that he was looking forward to getting to know the group.

Action:

No action taken at this time.

 

The Board adjourned the regular meeting and went into Executive Session at 11:32 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 12:49 p.m.

Final Decisions Related to Executive Session Discussions (if any)

The Board re-entered the regular meeting at 12:51 p.m.

There were no final decisions or actions related to Executive Session discussions.

Adjourn

The Board adjourned the meeting at 12:53p.m.

May 30, 2018

PURMIT Board of Trustees Meeting – September 21, 2017

PURMIT Board of Trustees Meeting

September 21, 2017

Minutes


Trustees Present: Ryan Hagemann (WOU) Brian Roy (PSU), Patrick Hughes (OSU), Lara Moore (EOU), Craig Morris (SOU), Vivian Chen (OIT)

Others Present: Sheryl Sattler and Ryan Britz (Berkley), Jason Catz (SOU), and James Parker (DWT)


Call to Order

Chair Brian Roy called the meeting to order at 12:00 p.m.

 

Roll Call

Roll call was taken.

Review and Approval of Minutes

Meeting minutes from the May, 22, 2017, June 6, 2017 and June 14, 2017 PURMIT Board of Trustees meeting were reviewed and discussed.

Action:

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

Financial Review as of June 30, 2017

Ms. Sattler from Berkley Risk presented the financial information as of June 30, 2017. Ms. Sattler noted that the figures presented and discussed were unaudited.  PURMIT auditors were in Berkley’s office last week performing their field work portion of the audit.  The discussions went well and Berkley anticipates that the audit will be completed by the agreed upon date of November 10.  Ms. Sattler also noted that Berkley was waiting on the actuary to complete their review and that while discussing the reserves with them it came to Berkley’s attention that PwC was treating all liability claims on an occurrence basis.  Berkley staff discussed the coverage differences with PwC and outlined which coverages are occurrence and which are claims-made.  This change will have an impact to the reserve study and Berkley is awaiting the revised report before finalizing the financial information.  Berkley expects the proper recognition of the claims will result in a benefit to PURMIT’s surplus.   Ms. Sattler discussed the financial results, noting PURMIT had $5.6M of operating revenue and a net income of $549K, resulting in an overall surplus of $3.2M for the year.  .  Mr. Britz commented that he would confirm that the broker had or would net any earned commissions against the next fee installment.  Mr. Morris asked if the Trust was still exploring workers’ compensation self-insurance option.  Mr. Parker commented that Berkley, Brown & Brown and himself are continuing to have that dialogue and that per Trustee direction during prior meetings, will have options to present at the spring meeting.  Ms. Sattler continued her discussion with the balance sheet portion of the financial statement, noting the Trust has $14.75M in assets and $11.474M in liabilities.  Ms. Sattler also noted that since the designated funds had been transferred to the Oregon State Treasury, PURMIT has earned approximately $6,500 of investment income.  Mr. Hagemann asked if prior financial statements will need to be restated due to actuarial recognition of the coverage parts and their claim basis.  Ms. Sattler indicated that the financial statements will not need to be restated.

Financial Proforma Update and Discussion

Ms. Sattler continued the financial discussion by reviewing the Financial Condition Monitoring Report. Ms. Sattler discussed the key ratios that PURMIT should be watching closely and noted that all ratios have been improving year after year.  Mr. Morris asked if there were any ratios that PURMIT should be concerned about.  Ms. Sattler commented that there are none at this time.  Ms. Sattler then discussed the proforma document and its trajectory out to 2020.  Mr. Morris noted that Ms. Sattler did a nice job explaining the financial situation and also the conservative nature of the proforma.  Mr. Roy echoed Mr. Morris’ comments.

Action:

No action taken at this time.

 

Berkley Contract

Mr. Parker commented that the contract between PURMIT and Berkley was a two year agreement, with five, two-year renewal options thereafter. As outlined in the contract, each party is to provide its intent to renew or non-renew.  Berkley Risk had previously provided intent in writing to renew their services for another two-year term.  Mr. Parker noted that, as outlined in the contract, PURMIT needs to decide to renew or non-renew their participation.

Action:

A motion was made by Mr. Morris to exercise PURMIT’s first option to extend its agreement with Berkley Risk as PURMIT’s administrator with instructions to Mr. Parker to document the agreement.  The motion was seconded by Mr. Hagemann.  After discussion, the motion carried with no objections.

Crime Policy – Social Engineering Options

Mr. Britz commented that Brown & Brown was exploring options that may increase the social engineering limit of the Crime policy. He noted that there have been discussions with markets that have provided additional limits and is awaiting further information.  He mentioned that he would provide information to the Trustees once he received from Brown & Brown.

Action:

No action taken at this time

United Educators – Risk Management Practices Credit Program

Mr. Britz made the Trustees aware of the credit that United Educators offers is member insureds. He noted that the total credit would be 6% and will be recognized at next years’ renewal.  He also noted that it is a two-stage process and the first phase has been completed, earning the Trust a 3% discount.  Phase II is being handled by members of the Risk Council and it is anticipated that the remaining 3% will be completed within the next few months.

Action:

No action taken at this time

Annual Retreat Planning

Mr. Britz presented an example of a planning retreat as a result of discussions from past meetings. The Trustees agreed that it would be beneficial to engage in this activity and should look to include other folks like each institution’s VP of Finance and members of the Risk Council.  Mr. Hagemann noted that it should be a meeting that is separate from a regular Board meeting.  Ms. Moore commented that she would like to see a section that addressed real and/or potential vulnerabilities to the Trust.  Mr. Hagemann commented that he would like to incorporate a dashboard process into the meeting, tracking accomplishments, goals, achievements, service providers, etc., keeping mind a way to present and inform PURMIT happenings back to member Presidents.  Mr. Britz commented that he will continue discussions with Brown & Brown and Mr. Parker further establish an appropriate agenda.  Mr. Roy noted that PSU would be willing to host the retreat.

Action:

No action taken at this time

Legal Counsel Items

No items were discussed.

Action:

No action taken at this time

Other items

No other items were discussed.

Action:

No action taken at this time.

The Board adjourned the regular meeting and went into Executive Session at 1:09 p.m. to address documents and information relating to attorney-client privileged communications and attorney work product. The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 2:09 p.m.

Final Decisions Related to Executive Session Discussions (if any)

The Board re-entered the regular meeting at 2:11 p.m.

Mr. Katz joined the meeting at the invitation of the Board. There were no final decisions or actions made related to Executive Session discussions.  Mr. Roy noted his appreciation to Mr. Parker for the work done on behalf of the Trust over the past few months.

Adjourn

The Board adjourned the meeting at 2:15p.m.

May 30, 2018

PURMIT Board of Trustees Meeting – August 18, 2017

PURMIT Board of Trustees Meeting

August 18, 2017

Minutes


Trustees Present: Ryan Hagemann (WOU), Lara Moore (EOU), Brian Roy (PSU), Patrick Hughes (OSU), Craig Morris (SOU)

Others Present: Ryan Britz (Berkley); James Parker (DWT); and Jason Catz (SOU)


Call to Order

Chair Brian Roy called the meeting to order at 9:01 a.m.

 

Roll Call

Roll call was taken.

The Board adjourned the regular meeting and went into Executive Session at 9:06 a.m. to address documents and information relating to attorney-client communications relating to a claim and potential 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 10:26 a.m.

Final Decisions Related to Executive Session Discussions (if any)

There were no final decisions made related to Executive Session discussions.

Adjourn

The Board adjourned the meeting at 10:27 a.m.

April 16, 2018

PURMIT Board of Trustees Meeting – September 21, 2017

PURMIT Board of Trustees Meeting

September 21, 2017

Minutes


Trustees Present: Ryan Hagemann (WOU) Brian Roy (PSU), Patrick Hughes (OSU), Lara Moore (EOU), Craig Morris (SOU), Vivian Chen (OIT)

Others Present: Sheryl Sattler and Ryan Britz (Berkley), Jason Catz (SOU), and James Parker (DWT)


Call to Order

Chair Brian Roy called the meeting to order at 12:00 p.m.

Roll Call

Roll call was taken.

Review and Approval of Minutes

Meeting minutes from the May, 22, 2017, June 6, 2017 and June 14, 2017 PURMIT Board of Trustees meeting were reviewed and discussed.

Action:

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

Financial Review as of June 30, 2017

Ms. Sattler from Berkley Risk presented the financial information as of June 30, 2017. Ms. Sattler noted that the figures presented and discussed were unaudited.  PURMIT auditors were in Berkley’s office last week performing their field work portion of the audit.  The discussions went well and Berkley anticipates that the audit will be completed by the agreed upon date of November 10.  Ms. Sattler also noted that Berkley was waiting on the actuary to complete their review and that while discussing the reserves with them it came to Berkley’s attention that PwC was treating all liability claims on an occurrence basis.  Berkley staff discussed the coverage differences with PwC and outlined which coverages are occurrence and which are claims-made.  This change will have an impact to the reserve study and Berkley is awaiting the revised report before finalizing the financial information.  Berkley expects the proper recognition of the claims will result in a benefit to PURMIT’s surplus.   Ms. Sattler discussed the financial results, noting PURMIT had $5.6M of operating revenue and a net income of $549K, resulting in an overall surplus of $3.2M for the year.  .  Mr. Britz commented that he would confirm that the broker had or would net any earned commissions against the next fee installment.  Mr. Morris asked if the Trust was still exploring workers’ compensation self-insurance option.  Mr. Parker commented that Berkley, Brown & Brown and himself are continuing to have that dialogue and that per Trustee direction during prior meetings, will have options to present at the spring meeting.  Ms. Sattler continued her discussion with the balance sheet portion of the financial statement, noting the Trust has $14.75M in assets and $11.474M in liabilities.  Ms. Sattler also noted that since the designated funds had been transferred to the Oregon State Treasury, PURMIT has earned approximately $6,500 of investment income.  Mr. Hagemann asked if prior financial statements will need to be restated due to actuarial recognition of the coverage parts and their claim basis.  Ms. Sattler indicated that the financial statements will not need to be restated.

Financial Proforma Update and Discussion

Ms. Sattler continued the financial discussion by reviewing the Financial Condition Monitoring Report. Ms. Sattler discussed the key ratios that PURMIT should be watching closely and noted that all ratios have been improving year after year.  Mr. Morris asked if there were any ratios that PURMIT should be concerned about.  Ms. Sattler commented that there are none at this time.  Ms. Sattler then discussed the proforma document and its trajectory out to 2020.  Mr. Morris noted that Ms. Sattler did a nice job explaining the financial situation and also the conservative nature of the proforma.  Mr. Roy echoed Mr. Morris’ comments.

Action:

No action taken at this time.

 

Berkley Contract

Mr. Parker commented that the contract between PURMIT and Berkley was a two year agreement, with five, two-year renewal options thereafter. As outlined in the contract, each party is to provide its intent to renew or non-renew.  Berkley Risk had previously provided intent in writing to renew their services for another two-year term.  Mr. Parker noted that, as outlined in the contract, PURMIT needs to decide to renew or non-renew their participation.

Action:

A motion was made by Mr. Morris to exercise PURMIT’s first option to extend its agreement with Berkley Risk as PURMIT’s administrator with instructions to Mr. Parker to document the agreement.  The motion was seconded by Mr. Hagemann.  After discussion, the motion carried with no objections.

Crime Policy – Social Engineering Options

Mr. Britz commented that Brown & Brown was exploring options that may increase the social engineering limit of the Crime policy. He noted that there have been discussions with markets that have provided additional limits and is awaiting further information.  He mentioned that he would provide information to the Trustees once he received from Brown & Brown.

Action:

No action taken at this time

United Educators – Risk Management Practices Credit Program

Mr. Britz made the Trustees aware of the credit that United Educators offers is member insureds. He noted that the total credit would be 6% and will be recognized at next years’ renewal.  He also noted that it is a two-stage process and the first phase has been completed, earning the Trust a 3% discount.  Phase II is being handled by members of the Risk Council and it is anticipated that the remaining 3% will be completed within the next few months.

Action:

No action taken at this time

Annual Retreat Planning

Mr. Britz presented an example of a planning retreat as a result of discussions from past meetings. The Trustees agreed that it would be beneficial to engage in this activity and should look to include other folks like each institution’s VP of Finance and members of the Risk Council.  Mr. Hagemann noted that it should be a meeting that is separate from a regular Board meeting.  Ms. Moore commented that she would like to see a section that addressed real and/or potential vulnerabilities to the Trust.  Mr. Hagemann commented that he would like to incorporate a dashboard process into the meeting, tracking accomplishments, goals, achievements, service providers, etc., keeping mind a way to present and inform PURMIT happenings back to member Presidents.  Mr. Britz commented that he will continue discussions with Brown & Brown and Mr. Parker further establish an appropriate agenda.  Mr. Roy noted that PSU would be willing to host the retreat.

Action:

No action taken at this time

Legal Counsel Items

No items were discussed.

Action:

No action taken at this time

Other items

No other items were discussed.

Action:

No action taken at this time.

The Board adjourned the regular meeting and went into Executive Session at 1:09 p.m. to address documents and information relating to attorney-client privileged communications and attorney work product. The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 2:09 p.m.

Final Decisions Related to Executive Session Discussions (if any)

The Board re-entered the regular meeting at 2:11 p.m.

Mr. Katz joined the meeting at the invitation of the Board.. There were no final decisions or actions made related to Executive Session discussions.  Mr. Roy noted his appreciation to Mr. Parker for the work done on behalf of the Trust over the past few months.

Adjourn

The Board adjourned the meeting at 2:15p.m.

April 16, 2018

PURMIT Board of Trustees Meeting – August 18, 2017

PURMIT Board of Trustees Meeting

August 18, 2017

Minutes


Trustees Present: Ryan Hagemann (WOU), Lara Moore (EOU), Brian Roy (PSU), Patrick Hughes (OSU), Craig Morris (SOU)

Others Present: Ryan Britz (Berkley); James Parker (DWT); and Jason Catz (SOU)


Call to Order

Chair Brian Roy called the meeting to order at 9:01 a.m.

 

Roll Call

Roll call was taken.

The Board adjourned the regular meeting and went into Executive Session at 9:06 a.m. to address documents and information relating to attorney-client communications relating to a claim and potential 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 10:26 a.m.

Final Decisions Related to Executive Session Discussions (if any)

There were no final decisions made related to Executive Session discussions.

Adjourn

The Board adjourned the meeting at 10:27 a.m.

September 27, 2017

PURMIT Board of Trustees Meeting – June 14, 2017

PURMIT Board of Trustees Meeting

June 14, 2017

12:30 p.m.

Minutes


Trustees Present: Ryan Hagemann (WOU) Brian Roy (PSU), Patrick Hughes (OSU), Vivian Chen (OIT), and Craig Morris (SOU)

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


Call to Order

Chair Brian Roy called the meeting to order at 12:37 p.m.

Roll Call 

Roll call was taken.

The Board adjourned the regular meeting and went into Executive Session at 12:40 p.m. to address documents and information relating to PURMIT trade secrets and attorney-client communications relating to the 2017 – 18 allocation model, handling of PURMIT documents and potential and/or current 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 1:42 p.m.

Final Decisions Related to Executive Session Discussions (if any)

Mr. Parker noted that the Trustees need to decide on the social engineering limit and the allocation model to be utilized for the upcoming fiscal year. The allocation includes all the items previously discussed with the exception of the premium increase should the Trustees elect to buy the increased limits. In addition, the direction to Berkley will include the instruction to bind the allocation selected by the Trustees which is inclusive of insurance premiums, operational costs, actuarial loss picks and margin factor. The Trustee vote will also include permission for Berkley to instruct Brown & Brown to bind the insurance coverages previously discussed.

Action:

A motion was made by Mr. Roy to purchase the social engineering limit of $250,000. The motion was seconded by Mr. Morris. The motion carried with no objections.

 

The Trustees discussed the allocation options presented for the 2018 fiscal year.

Action:

A motion was made by Mr. Morris to approve the allocation model including a 5% margin factor as presented and authorize Berkley to cause insurance coverage to be bound as presented therein. The motion was seconded by Mr. Hagemann. Mr. Hughes objected and reiterated his preference for the no margin factor option. The motion carried with four votes in favor and one vote against (Hughes).

Adjourn

 The Board adjourned the meeting at 1:58 p.m.

September 27, 2017

PURMIT Board of Trustees Meeting – June 6, 2017

PURMIT Board of Trustees Meeting

June 6, 2017

10:00 a.m.

Minutes


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

Others Present: Ryan Britz (Berkley); Ron Graybeal (BBNW); and James Parker (DWT)


Call to Order

Chair Brian Roy called the meeting to order at 10:03 a.m.

Roll Call

Roll call was taken.

The Board adjourned the regular meeting and went into Executive Session at 10:05 a.m. to address documents and information relating to PURMIT trade secrets and attorney-client communications relating to the 2017 – 18 allocation model, handling of PURMIT documents and potential and/or current 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 11:05 a.m.

Final Decisions Related to Executive Session Discussions (if any)

There were no final decisions made related to Executive Session discussions. The next PURMIT Board of Trustees meeting is scheduled for June 14, 2017.

Adjourn

The Board adjourned the meeting at 11:06 a.m.