National Workers Compensation Reinsurance

“Any company licensed to write workers' compensation insurance in any state that has an approved authorized insurance plan may become a member. Any state workers' compensation insurance fund established by law also may become a member. The board of directors may permit participation at its sole discretion to any group, organization, association or other entity it deems appropriate.”

“The board of directors is comprised of twelve (12) individuals, none of whom are employees or representatives of the same member. Only individuals who are employees or representatives of members shall be eligible for election as directors. The board shall be elected by the members at the annual meeting of the members. Board elections shall be made for staggered terms, with such terms effective immediately upon adjournment of the annual meeting of the members. Four (4) individuals shall be elected annually for a term of three (3) years. No individual serving on the board for a full term shall succeed himself or herself, except where a sufficient number of non-succeeding individuals cannot be induced to serve on the board. No more than five (5) of the twelve (12) board members shall be employees or representatives of members that are servicing carriers. To facilitate voting for members of the board of directors at annual meetings, at least sixty (60) days prior to each annual meeting the board shall appoint a nominating committee consisting of four (4) members. The nominating committee shall make nominations for the terms that are expiring at the next annual meeting. The nominating committee recommendations shall be reported to all members at least one (1) week prior to the annual meeting. Any member can make additional nominations at the annual meeting.”

“Members may consider and act upon all matters brought before them except where otherwise provided in the bylaws. Except where otherwise provided in the nwcra's bylaws, at all meetings action may be taken only upon affirmative vote of a majority of the members that write not less than 50.1% of the total net workers compensation premiums written by all members during the latest calendar year for which information is available in all states where the bylaws are operative. If such meeting is limited to matters involving one state by the terms of the notice of meeting, no action may be taken unless there has been an affirmative vote of members that write not less than 50.1% of the total net workers compensation premiums written by all members providing reinsurance in such state during the latest calendar year for which information is available in such state.”

“Form 990 is prepared by the firm engaged to prepare its annual audited financial statements. The firm working in conjunction with the nwcra's administrator and legal counsel prepare and review all related tax documents prior to the chair's review and approval for filing. Although the full board did not review the 2020 tax return prior to its filing with the irs, the voting members will get a complete copy of the filing at the next physical meeting scheduled for september 2021.”

“Ncci as administrator annually distributes to each board member a copy of the board's code of business conduct and ethics statement. Each board member is required to sign the code of business conduct and ethics acknowledgement form and return it to the administrator. In june of each year, board counsel advises new board members of their obligations under the board's code of business conduct and ethics statement. Board members that have an interest in a matter being reviewed by the board are required to disclose the nature and extent of the interest. Only after such disclosure may the interested board member participate in discussion of the matter. But the interested board member cannot vote on the matter. The board may go into executive session and request the interested board member to excuse himself/herself from the discussion.”

“Officers and board members are not compensated. Travel and related expenses of board members are reimbursed pursuant to a policy adopted by the board. As an administrator, ncci's fee is negotiated as part of the administration agreement entered into with ncci.”

“Members that want to review the governing documents, code of business conduct and ethics and financial statements can obtain them by contacting the ncci as administrator.”