National Association of Mutual Insurance Companies Group Insurance

“The trust obtained its latest determination letter on january 8, 2002, in which the internal revenue service stated that the trust, as then designed, was in compliance with the applicable requirements of the internal revenue code (the code). The trust has been amended since receiving the determination letter. However, the trust administrator and the trust's tax counsel believe that the trust is currently designed and being operated in compliance with the applicable requirements of the code. In accordance with section 419a of the code, the trust is subject to trust tax rates on net income earned from unrelated business activities. As the trust is a fully insured voluntary employee beneficiary association, investment income less related investment fees is subject to tax, excluding investment income from tax exempt sources. At december 31, 2020 and december 31, 2019, the trust had net federal and state income taxes recoverable of 64,294 and 53,210, respectively, due to overpayments in prior years resulting from a change in investment strategy, incorporating more investments with income from tax-exempt sources. Management evaluates all significant income tax positions that it takes. For the years ended december 31, 2020 and december 31, 2019, management does not believe that it has taken any tax positions that would require the recording of any additional tax liability nor does it believe that there are any unrealized tax benefits that would either increase or decrease within the next twelve months. The trust recognizes interest and penalty, if any, related to unrecognized tax benefits in interest expense. No interest or penalties have been accrued or charged to expense for uncertain tax positions for the years ended december 31, 2020 and december 31, 2019. The trust is subject to routine audits by taxing jurisdictions, however there are no current audits for any tax periods in progress. The annual information returns for the trust are subject to examination by taxing authorities for a period of three years from the date they are filed.”

“Income tax expense 16,416”

“Income tax expense 16,416”