North Carolina Insurance Underwriting

“Every insurer authorized to write basic property insurance in north carolina, except town and county mutual insurance association and assessable mutual companies and except insurer who only writes insurance on property exmepted from taxation, shall be required to become and remain a member of the association.”

“The board of directors consist of fourteen (14) members (seven (7) representatives from the insurance industry, four (4) licensed agents and three (3) from the general public. The agent and public representatives are appointed by the commissioner of insurance each year. The insurance industry representatives are nominated and approved by the board of directors each year. The seven (7) insurance industry board members represent the remaining companies of the insurance industry by proxies.”

“All plan of operation and procedural changes must be approved by the board of directors with some company members providing their votes by proxies. Once these changes are approved by the board of directors, they are filed with the commissioner of insurance for approval.”

“The 990 is prepared by the director of finance and accounting and is reviewed by the general manager. The general manager also serves as the secretary and treasurer for the board of directors.”

“Every year all board of directors and employees are required to sign a conflict of interest statement. These statements are reviewed for indication of conflicts.”

“The board of directors hire and provides review and compensation for the general manager. The general manager approves hiring and compensation for all remaining employees.”

“For key employees of the organization comparability data from property casualty insurers (pci)and national association of mutual insurance companies (namic) were utilized to dtermine equitable compensation levels.”

“All governing documents and financial statements are available on the association's website.”

“In 1969 the north carolina general assembly established the association as a market of last resort to provide property insurance in the beach and coastal areas of north carolina for individuals and businesses who are unable to buy it in the standard insurance market. All property and casualty insurance companies doing business in north carolina are required by statute to participate in funding the operations of the association, and they share in its losses on pro rata basis. The association is not an agency of the state government, but its regulated by the north carolina commissioner of insurance.”

“Change not admiteed; pension liability 1,800,483”