North Carolina Insurance Guaranty Associ

“Insurers admitted as of june 25, 1971, to transact the kinds of insurance covered by the north carolina insurance guaranty assoc1at1on act (article 48 of chapter 58 of the general statutes of north carolina) are members of the north carolina insurance guaranty association. Insurers admitted after june 25, 1971, to transact the kinds of insurance covered by the north carolina insurance guaranty association act become members effective on the admission date. All insurers becoming members after october 1, 1985, pay a nonrefundable initial membership fee.”

“Member companies of the north carolina insurance guaranty association elect 7 voting members to the board of directors, the election of the member insurers is subject to the approval of the north carolina department of insurance commissioner. There is also 1 non-voting board of director member that is appointed by the north carolina department of insurance commissioner that is a property and casualty insurance agent. Each member insurer is entitled to one vote. Board of directors serve for three-year terms. The elected board of directors elect a chairman and other officers as necessary to serve a one-year term.”

“In general, the north carolina insurance guaranty association's board of directors is authorized and does make operating decisions on behalf of the member companies if a quorum is present. However, some decisions require an affirmative vote of a majority of all of the elected directors (eg. Approving contract, authorizing a refund or assessment, borrowing money, etc.).”

“The form 990, including schedules and other necessary supporting information, is provided to the organization's chief financial officer for review and approval. After the review and approval, the completed return is filed electronically to the internal revenue service. The board of directors is notified when the return has been filed but does not receive a copy unless specifically requested by one of the member companies serving on the committee.”

“Each new employee receives an organizational handbook that outlines the requirement of all employees to devote their full time to employment with the north carolina insurance guaranty association. If an employee is engaged in outside work or holds another job, the handbook specifically states that the other business cannot interfere with satisfactory job performance and attendance at the guaranty association. Further, the guaranty association requires that all employees fully disclose any possible conflict of interest such as outside employment to their supervisor or manager in order to prevent a compromising situation. Conflict of interest is also regularly reviewed at each north carolina insurance guaranty association board of directors meeting as well as every guaranty association committee or sub-committee meeting. The north carolina insurance guaranty association's conflict of interest statement is included in the agenda and is referenced in every board of directors, committee, and sub-committee meeting as a reminder to the governing committee and employees of their responsibilities. Per policy, members are not to vote, take action or use his or her personal influence on a matter that represents a personal conflict of interest.”

“Compensation data is obtained through, worldatwork, economic research institute, and capital associated industries. Independent consultants have been utilized in the past to prepare guidelines and ranges for the general manager's and top management compensation, as well as conducting a full compensation audit. This data is presented to a joint compensation sub-committee, consisting of 3 member companies, during the 4th quarter of the year after a review. The joint compensation sub-committee will recommend ranges for salary increases and merit increases for the following year. These recommendations are presented to the organization's governing body for approval, normally during the last month of the calendar year along with a comprehensive budget presentation. The most recent compensation review occurred in november 2024.”

“Since the north carolina insurance guaranty association was created by state statute, its organizational governing documents are public record. The conflict of interest statements are disclosed as agenda items and minutes in each governing committee, committee, and sub-committee meeting of the guaranty association. The financials of the organizations are made available to the public in these two manners 1) the annual filing of the organization's form 990, return of organization exempt from income tax, and 2) the appointment of a non -voting public property and casualty insurance agent to the board of directors by the north carolina commissioner of insurance. The audited financial statements are presented to this agent along with the rest of the board of directors on an annual basis.”

“Income from passthrough investment 2,129.”