Alabama Insurance Guaranty Association

“The association's membership is comprised of all insurance companies that are licensed to write workers' compensation, automobile, other property and casualty insurance within the state of alabama.”

“The governing body is provided a draft of the form 990 for review and approval.”

“The board of directors annually signs the conflict of interest statement following discussion with the executive committee to identify any potential conflicts of interest.”

“The association obtains current compensation information by survey conducted by a consultant periodically or other means of data collection for each employee classification. The compensation information is provided to the board of directors for deliberation and final approval as to each employee's annual compensation amount.”

“The association will: (1) make its application for the recognition of exemption and its annual information returns available for public inspection without charge at its principal offices during regular business hours, (2) make each annual information return available for a period of 3 years beginning on the date the return is required to be filed (determined with regard to any extension of time for filing) or is actually filed, whichever is later, (3) provide a copy without charge, other than a reasonable fee for reproduction and actual postage costs, of all or any part of any application or return required to be made available for public inspection to any individual who makes a request for such copy in person or in writing (except as provided in regulations sections 301.6104(d)-2 and -3), or (4) make its governing documents, conflict of interest policy and financial statements public during the year upon request as indicated above.”

“Alfa, bryan hubbard chairman 1/1-12/31/22 po box 11000, montgomery, al 36191 nationwide, kim adams vice-chairman 1/1-12/31/22 5390 chestnut drive, cumming, ga 30040 chubb, jenny anzalone-ackley director 1/1-12/31/22 436 walnut street, philadelphia, pa 19106 state farm, eric hartill director 1/1-12/31/22 100 state farm parkway, birmingham, al 35209 allstate, sandy lowe director 1/1-09/14/22 222 w merchandise mart plaza, suite 850, chicago, il 60654 allstate, mike borysek director 9/15-12/31/22 222 w merchandise mart plaza, suite 850, chicago, il 60654 berkley industrial comp, greg pierre director 1/1-12/31/22 one metroplex drive, suite 500, birmingham, al 35209 travelers, sarah fanning director 1/1-02/14/22 700 13th st nw, ste. 1180, washington, dc 20005 travelers, david dove director 2/15-12/31/22 3000 riverchase galleria, ste 600, birmingham, al 35244”

“The alabama insurance guaranty act mandated the creation of the alabama insurance guaranty association to serve as an agent of the state of alabama. The purpose of the association is to provide a mechanism for the payment of covered claims under certain insurance policies, to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detection and prevention of insurer insolvencies, and to provide an association to allocate the cost of such protection among insurers. The association has acted in this capacity since its inception.”

“Alabama insurance guaranty association has maintained the books and records and administered claims for 40 insolvencies in 2022. As required by the state of alabama statute, the books and records of each insolvency are maintained in three separate accounts: auto, workers compensation and other. During the year, the association: 1. Paid auto premium refunds of $3,600 2. Paid other premium refunds of $126,995 3. Paid auto claims of $471,688 4. Paid workers compensation claims of $5,831,658 5. Paid other claims of $350,992 6. Incurred direct expenses of administering the claims of $270,502 7. Incurred legal fees associated with claims management of $395,740 8. Incurred administrative expenses of $2,293,519 to maintain its offices,support the national trade association who administers certain insolvencies and compensate employees, most of whom administer claims.”

“(incr) decr in claims liabilities 8,020,547.”

“Alabama insurance guaranty association uses the modified cash method of accounting.”

“The association's board of directors approved the selection of the independent accountant and votes on the acceptance of the association's audited financial statements annually.”