Update on TASB RMF Board of Trustees November Meeting

by June Kissinger

The Fund’s Board of Trustees met on November 5, 2010, at the TASB offices in Austin, Texas. Fund Chair Kevin Carbo called the meeting to order and asked for approval of the minutes of the July meeting.

The meeting opened with a reappointment of Trustees with expiring terms, the election of officers, and election of the nominations committees. Reports from the Audit and Finance Committee, the Claims Committee, and the Member Services Committee were delivered.

The Audit and Finance Committee reported on the following items: 

• Dan Smereck of Strategic Asset Alliance and Michael Salvay of Payden & Rygel presented the Fund’s Annual Investment Report to the full Board.
• The preliminary financial statements as of August 31, 2010 and September 30, 2010, both of which show an increase in members’ equity mostly comprised of investment income.
• A report of the Fund’s five-year financial trends.

The Claims Committee made the following reports to the Board:

• The annual report on claim trends and activities for Workers’ Compensation (WC), Property and Liability (P/L), and Unemployment Compensation (UC).
• Bickmore Risk Services has been engaged to conduct an external claims audit.
• A report on the Fund’s litigation management program.
• An update on the right of recovery on claim subrogation and/or restitution.
• A Report of the Texas Department of Insurance (TDI) WC Network Report Card, in which the Alliance received a very favorable overall rating.

The Member Services Committee reported the following items:

• A report on the 2010-11 renewal and marketing results that showed a gain in WC membership, a small membership loss in P/L despite strong competition in an on-going soft market, and a small loss in UC. 
• A report on the 2010-11 reinsurance programs where all coverages were renewed with the incumbent carrier.
• Authority to engage a London broker.
• A discussion of coastal property coverage.
• A report on the Fund’s training programs. 

Paul Taylor, Division Director, TASB Risk Management Legal & Regulatory Affairs, conducted the annual review of the Fund board policies and bylaws. Dubravka Romano, Associate Executive Director, TASB Risk Management Services, presented a report on the final 2009-10 TASB administrative fees.

If you have any questions about this report, contact June Kissinger, at 800.482.7276, ext. 3545.