North Carolina Rate Bureau

“Every insurance carrier that is authorized to write automobile insurance, property insurance or workers compensation insurance in the state of north carolina is required to become a member of the bureau as required by the provisions of article 36 of chapter 58 of the general statutes of north carolina. Each member must pay an annual membership fee for each category of insurance for which it is licensed to write in north carolina. Each member must also annually or when requested, provide statistical data related writing automobile, property, or workers compensation insurance.”

“Member companies of the north carolina rate bureau elect 12 voting members to the governing committee. (there are also 2 non-voting governing committee members that are appointed by the north carolina governor that are not employed or associated with any insurance company or the north carolina department of insurance.) governing committee members serve for three-year terms; the terms cannot be served consecutively. The governing committee, elected by the north carolina rate bureau members, handle administration, supervision, and direction of all committees. The governing committee also appoints a general manager, who under the supervision of the governing committee has general control of the bureau's activities and associates.”

“One of the purposes of the north carolina rate bureau is the "establishment and administration of classifications, rules, rates, loss costs, rating plans, policy forms and policy provisions for the automobile insurance, property insurance and workers compensations insurance pursuant to article 36 of chapter 58 of the general statutes of north carolina" (excerpt from north carolina rate bureau constitution). In order to fulfill this purpose, the north carolina rate bureau files proposed changes on behalf of the bureau's member companies to north carolina commissioner of insurance. The north carolina rate bureau's proposed filings are subject to the commissioner of insurance's approval. If the commissioner of insurance disapproves a filing, the governing committee has the ability to follow the appropriate appeals process within the state of north carolina. In general, the north carolina rate bureau's governing committee is authorized and does make operating decisions on behalf of the member companies. However, in some rare instances, high level document changes do require a 3/4 majority vote from the bureau's member companies.”

“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 governing committee 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 rate bureau. 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 bureau. Further, the bureau 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 rate bureau governing committee meeting as well as every bureau committee or sub- committee meeting. The north carolina rate bureau's conflict of interest statement is included in the agenda and is referenced in every governing committee, 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 general manager's and top management compensation, as well as conducting a full compensation audit. The general manager's compensation was last reviewed in november 2024. 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, 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.”

“Since the north carolina rate bureau 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 bureau. 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 two non-voting public members who are not employed or affiliated with any insurance company or the department of insurance to the governing committee by the north carolina commissioner of insurance. The audited financial statements are presented to these members along with the rest of the governing committee on an annual basis.”

“Advisory services 7,589,603. Temporary staffing 432,042. Research services 253,750.”

“Income from passthrough investments 2,564.”