Guaranty Association Benefits Company

“The organization is a non-stock, non-profit membership organization organized under the district of columbia nonprofit corporation act of 2010. Membership is restricted to the state life and health insurance guaranty associations that participated in the court-approved liquidation plan for executive life insurance company of new york.”

“The organization's members elect four (4) of the organization's seven (7) board members, but each person eligible for election to the board by the members must satisfy the requirements in the organization's bylaws.”

“The organization's members retain the rights to approve all amendments to the organization's articles of incorporation and to amend the organization's bylaws. In addition, the organization's members retain the rights provided under the district of columbia nonprofit corporation act of 2010 to approve certain extraordinary actions by the organization (e.g. Certain disposition of assets, dissolution or merger of the organization).”

“The organization's management worked with the organization's independent audit firm to complete the 990. The organization's chairman caused the 990 to be circulated electronically to all board members after it was completed for their review and comments. The transmittal asked each board member to notify the chairman of any questions, comments or observations about the 990 within five (5) days, and advised the board members that the chairman would call a meeting of the board if two or more board members so requested. Any comments received from any board member were considered prior to finalizing the 990. Any adjustments determined by the chairman and the organization's management to be warranted were made to the form 990 before it was finalized and filed with the internal revenue service.”

“Each year the organization's outside counsel prepares a "certificate of compliance and conflict of interest statement" that is presented to each director, officer and key personnel for execution. Outside counsel explains the reason for the statement. Outside counsel reviews the statements and evaluates any items that may be listed by the individuals to determine if a conflict might exist and would advise disinterested officers of the organization if any actions would be advisable. Each "certificate of compliance and conflict of interest statement" are made part of the organization's official minute book.”

“The organization's president, which is its top management official, is not compensated directly by the organization. The organization's president is also the president of the national organization of life and health insurance guaranty associations ("nolhga"). The organization has entered into an agreement with nolhga for various services to be provided to the organization by nolhga (e.g., providing important it services to the organization and oversight and tracking of the organization's administrative costs and expenses, etc.). The services provided to the organization under the agreement also include advice and leadership by nolhga's president, who also serves as president of the organization. An appropriate portion of the time spent on the organization's behalf by nolhga's president is charged to the organization. Thus, the organization's president receives no additional compensation for serving as the organization's president, but the organization reimburses nolhga for the portion of time nolhga's president devotes to the organization. The terms of the agreement were negotiated on behalf of the organization by its outside counsel, with oversight by the chairman of the board. Once final, the agreement was presented to and approved by the organization's board. Form 990, part vi, section b, line 15b: the organization's vice president operations is a non-employee officer that is compensated under a service contract. The organization's president and chairman oversaw the negotiation of the service contract on behalf of the organization. Both the president and the chairman are familiar with the services the vice president of operations is obligated to provide under the service contract and the cost of similar services provided to state life and health insurance guaranty associations.”

“When appropriate, the organization's relevant documents will be delivered in an agreed upon manner upon request.”

“Reserve -7,089,774. Changes in annuity reserves -33,550,846.”