Delaware Insurance Guaranty Association

“Our membership consists of all licensed insurers in the state of delaware that write any kind of insurance to which chapter 42 of the delaware insurance code applies. Members have such rights as prescribed in chapter 42 of the delaware insurance code.”

“Per chapter 42 of the delaware insurance code, "the members of the board shall be selected by member insurers subject to the approval of the commissioner".”

“For the purpose of electing directors and to transact any other business at a meeting of member insurers, each member insurer shall be allotted votes bearing the same ratio to the total number of votes of all member insurers as the net direct written premiums (as defined in the act) of the member insurer for the preceding calender year bears to the total net direct written premiums for the preceding calender year of all member insurers.”

“The form 990 is completed by the accounting firm retained by the association with input from the association's executive director and controller. Once a preliminary draft of the 990 is completed, it is provided to all members of the board of directors for their review and comments. Any comments received from the board of directors are then considered; final adjustments, if needed are made to the form 990 and filed.”

“Annually each member of the board of directors , the association's auditors, executive director, outside counsel, and employees complete a conflict of interest questionaire which is reviewed by the association's outside counsel, executive director, and the chairman to determine if any conflict of interest exists.”

“The compensation of the executive director is reviewed and set annually by the board of directors. The compensation of any highly compensated employee is reviewed annually by the executive director as a part of the employee's annual performance review process. As a part of this process the executive director regularly monitors compensation practices of comparable organizations. Any increase in compensation for a highly compensated individual must come from the merit increase allowance which is reviewed annually by the board of directors as a part of the annual budget process for the organization.”

“When appropriate, documents will be delivered in an agreed upon manner upon request.”

“The executive director's compensation includes reimbursed expenses.”

“Adjustment to reserve for claims & claims expense 2,567,685.”

“The oversight process has not changed from the prior year.”

“The association prepares its financial statements in conformity with accounting practices recommended by the accounting issues committee of the national conference on insurance guaranty funds, which is a comprehensive basis of accounting other than accounting principles generally accepted in the united states of america.”