North Carolina Self Insurance Security Association

“Conflict of interest policy: the board of directors has adopted a conflict of interest policy which is reviewed annually, and each board member is asked to also execute an annual statement that they have reviewed the policy and acknowledge that they have no conflict of interest beyond the inherent conflict of interest that they are all employed by a member self-insurer of the security association.”

“Public inspection: the association's plan of operation and summary financial statements are posted on the association's website (ncsisa.org). The association's conflict of interest policy is available for inspection upon request.”

“The board of directors governs the security association pursuant to n.c. Gen. Stat. 97-132. The board is comprised of eleven individuals who are representatives, owners, employees, or officers of security association member self-insurers and are elected for staggered terms of three (3) years so that the terms of all directors shall not expire in the same year. As of 12/31/15, there were no vacancies on the board of directors. The board appoints a nominating committee to nominate directors for election at the association annual meeting in july of each year. All member self-insurers may submit names to the nominating committee for consideration to serve on the board of directors. All member self-insurers may vote on the slate of directors at the annual meeting. Effective july 1, 2011, the north carolina general assembly amended the association enabling legislation by removing certain regulatory approvals in connection with board governance and the association aggregate security system.”

“Compensation determination for executive director services: the board of directors reviewed form 990's of similar organizations for levels of compensation paid to other executive directors to determine a reasonable amount to be paid for executive director management services.”

“Independent contractors - additional description of services: stuart law firm, pllc provides support for the executive director including meeting preparation, response to inquiries from member self-insurers, coverage questions and litigation, workers' compensation claims defense, business, corporate law, support for the aass and relevant securities law, bankruptcy, surety law, insurance regulatory and legislative analysis mmc securities corp. Provides consulting services for the association aggregate security system.”

“Review of financial statements and form 990: the board of directors receives the audited financial statements and form 990. The audit and investment committee of the board of directors reviews and approves the audited financial statements before they are filed with the north carolina department of insurance. This committee also reviews, revises and recommends approval to the board of directors of form 990 before it is filed with the irs.”