2019-06-03T09:14:27-05:00 2018-12-31 GRANT THORNTON LLP 171 N CLARK ST SUITE 200 CHICAGO IL 60601 990 2018-01-01 363776789 National Insurance Crime Bureau % ROBERT JACHNICKI NATI 8475447000 1111 E Touhy Ave Ste 400 Des Plaines IL 60018 ROBERT JACHNICKI CFO/TREASURER 8475447000 2019-05-31 true Bridget T Roche P00666837 3128560200 209.220.64.52 36941220191545000000 2019-06-03 P C247A00D659FC57B33EB59630CEE5251EF4C1526 DB64C1701B389F151E46C096E2734789DEA2CBCD 2018 2019-02-21 02:37:17Z NICB Robert Jachnicki 1111 E Touhy Ave Ste 400 Des Plaines IL 60018 74889642 false X www.nicb.org X 1991 IL TO LEAD A UNITED EFFORT OF INSURERS, LAW ENFORCEMENT AND REPRESENTATIVES OF THE PUBLIC TO PREVENT AND COMBAT INSURANCE FRAUD AND CRIME. 14 14 434 0 0 13053 0 0 52256374 62181635 1509784 2442247 0 2617 53766158 64626499 0 0 0 0 39147931 40613451 0 0 0 13682047 20814480 52829978 61427931 936180 3198568 54617431 51075995 29837854 26944234 24779577 24131761 X TO LEAD A UNITED EFFORT OF INSURERS, LAW ENFORCEMENT, AND REPRESENTATIVES OF THE PUBLIC TO PREVENT AND COMBAT INSURANCE FRAUD AND CRIME THROUGH DATA ANALYTICS, INVESTIGATIONS, TRAINING, LEGISLATIVE ADVOCACY AND PUBLIC AWARENESS. false false 34618947 0 38087188 INVESTIGATIONS - NICB'S INVESTIGATIVE EFFORTS PRODUCED 2,505 PROSECUTIVE ADMINISTRATIVE ACTIONS (PAA) RELATED TO MEDICAL FRAUD, 3,060 IN THE COMMERCIAL FRAUD SEGMENT, AND 3,138 IN THE ORGANIZED VEHICLE CRIME SEGMENT. 7746952 0 8523067 DATA ANALYTICS - PUBLISHED 787 MEDAWARE ALERTS, IDENTIFIED 54 FRAUD RINGS AND DISSEMINATED 460 SUSPECT VEHICLE LEADS WITH 103 RECOVERIES. 2775576 0 3053642 PUBLIC AWARENESS AND LEGISLATIVE ADVOCACY - NICB LED LEGISLATIVE/REGULATORY EFFORTS IN CONJUNCTION WITH MEMBERS, TRADE GROUPS AND ANTI-FRAUD GROUPS IN CALIFORNIA, KENTUCKY, MICHIGAN, NEVADA AND FLORIDA ON VARIOUS VEHICLE FRAUD ISSUES. GENERATED AD EQUIVALENT VALUE OF $27M FROM NEWS RELEASES, PSA'S AND OTHER AWARENESS CAMPAIGNS; PRODUCED 12 MULTIMEDIA RELEASES ON INSURANCE FRAUD. 12286937 12517738 57428412 false false false true false false false false false true false false false true true true false false false false false false false false false false false false true false false false false false false false false false false false false false true true true false true 24 0 434 true true true false false false false false false false X 14 14 false false false false false false false true true false false true true true true true true true true false OK X ROBERT JACHNICKI 8475447000 1111 E TOUHY AVE STE 400 Des Plaines IL 60018 Mike Neubauer Chair 5.0 0.0 X 0 0 0 Michael Capuzzi Vice Chair 5.0 0.0 X 0 0 0 Michael J Prandi Imm. Past Chair(Thru 12/17/18) 5.0 0.0 X 0 0 0 Kelly Bever FMR. Vice Chair (Thru 3/2/18) 5.0 0.0 X 0 0 0 Lynne Brady Member 2.0 0.0 X 0 0 0 John Burns Member (START 4/3/18) 2.0 0.0 X 0 0 0 Jeremy Connor Member 2.0 0.0 X 0 0 0 Keith Daly Member (Thru 5/23/18) 2.0 0.0 X 0 0 0 Paul Diemer Member 2.0 0.0 X 0 0 0 Jean Guan Member 2.0 0.0 X 0 0 0 Peter McCarron Member (Thru 11/15/18) 2.0 0.0 X 0 0 0 James McSheffrey Member 2.0 0.0 X 0 0 0 Matthew C Murphy Member 2.0 0.0 X 0 0 0 Tim Murray Member (START 8/1/18) 2.0 0.0 X 0 0 0 Mark Oppenheim Member 2.0 0.0 X 0 0 0 Peter Raubenheimer Member 2.0 0.0 X 0 0 0 Claudia Rodriguez Member (START 5/4/18) 2.0 0.0 X 0 0 0 Erik Roen Member 2.0 0.0 X 0 0 0 James Will Member (Thru 3/23/18) 2.0 0.0 X 0 0 0 Joseph Wehrle Chief Executive Officer 50.0 0.0 X 699288 0 17554 James Schweitzer Chief Operating Officer 50.0 0.0 X 339097 0 16054 Daniel Abbott Chief Information Officer 50.0 0.0 X 274752 0 66982 Robert Jachnicki CFO/Treasurer 50.0 2.1 X 268787 2129 62117 Andrew Sosnowski General Counsel/Secretary 50.0 5.0 X 259501 5181 39459 Roger Morris Vice President/Communications 40.0 0.0 X 204898 0 30589 Brian Smidt Vice President/Data Analytics 40.0 0.0 X 199785 0 38542 Barbara Low Vice President Human Resources 40.0 0.0 X 194608 0 29577 Alan Haskins Vice president/Govt. Affairs 40.0 0.0 X 167926 0 36627 George Worsham Vice President/Membership 40.0 0.0 X 156447 0 55524 Karen Graczyk Vice President/ITD 40.0 0.0 X 154558 0 59073 JAMES HERTZ ASSOCIATE GENERAL COUNSEL 40.0 0.1 X 326219 908 21213 Robert Jones Director Field Operations 40.0 0.0 X 165350 0 9849 Dana MacDonald Director Field Operations 40.0 0.0 X 158049 0 9519 Frederick Lohmann Director Field Operations 40.0 0.0 X 150534 0 28588 Thomas Welsh Training Director 38.0 20.0 X 120897 32032 54849 3840696 40250 576116 40 false true false Ryan C Bank 1221 Cornelia Avenue Unit 2 CHICAGO IL 60657 GEOSP. INTEL. CONSG. 320000 1 0 NONDEDUCTIBLE MEMBERSHIP DUES 900099 51313683 51313683 0 0 GEOSPATIAL MEMBER ASSESSMENT 900099 8341908 8341908 0 0 USER FEES 900099 1039228 1039228 0 0 LICENSE PLATE READER PROGRAM 900099 967575 967575 0 0 VEHICLE FINANCE PROGRAM 525990 92638 92638 0 0 426603 426603 0 0 62181635 1580650 1580650 0 0 0 0 0 10936338 188402 10074010 189133 862328 -731 861597 861597 0 0 0 0 0 0 0 0 0 RESTITUTION CONTRIBUTION 900099 2617 0 0 2617 2617 64626499 62181635 0 2444864 0 0 0 0 3371745 2783837 587908 0 27863114 27015703 847411 -337000 -324377 -12623 7463573 7239666 223907 2252019 2181168 70851 0 112561 82208 30353 91934 91934 107753 107753 0 68384 68384 1734244 1663015 71229 137808 124059 13749 4301992 3856141 445851 764155 719005 45150 0 1644812 1137765 507047 825717 799169 26548 0 351414 312115 39299 300 270 30 0 488683 441253 47430 723991 37487 686504 GEOSPATIAL IMAGERY 7339015 7339015 0 0 AUTO OPERATIONS 2089468 1991759 97709 0 REPORT AND SURV. SUPPORT 28606 28082 524 0 . 0 0 0 0 3643 1072 2571 61427931 57428412 3999519 0 1800 1177 9079074 6493711 0 0 1782363 2812654 0 0 0 0 0 0 0 0 1306181 1476322 8083849 6761662 1634930 1322187 40791852 38905595 0 0 0 0 0 0 21231 64349 54617431 51075995 3762891 4575262 0 0 3287361 673796 0 0 0 0 0 0 0 0 0 0 22787602 21695176 29837854 26944234 X 24779577 24129144 0 2617 0 0 24779577 24131761 54617431 51075995 X 3198568 -5025001 1178617 X false true X true false false false false 51313683 107753 107753 106152 1601 2054687 1467950 586737 5406418 4831144 575274 622744 462568 160176 1322187 0 POST RET. BENEFITS NON CURRENT 18591000 DUE TO ISO 1728640 ACCRUED OTHER LIABILITIES 1375536 21695176 X 59533114 -5025001 -5025001 64558115 68384 68384 64626499 61359547 61359547 68384 68384 61427931 FIN 48 FOOTNOTE FORM 990, SCHEDULE D, PART X, LINE 2 NICB HAS RECEIVED A FAVORABLE DETERMINATION LETTER FROM THE IRS STATING THAT IT IS EXEMPT FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(4) OF THE INTERNAL REVENUE CODE OF 1986 (IRC), EXCEPT FOR INCOME TAXES PERTAINING TO UNRELATED BUSINESS INCOME. THE FINANCIAL ACCOUNTING STANDARDS BOARD ISSUED GUIDANCE THAT REQUIRE TAX EFFECTS FROM UNCERTAIN TAX POSITIONS TO BE RECOGNIZED IN THE FINANCIAL STATEMENTS ONLY IF THE POSITION IS MORE LIKELY THAN NOT TO BE SUSTAINED IF THE POSITION WERE TO BE CHALLENGED BY A TAXING AUTHORITY. MANAGEMENT HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS THAT REQUIRE RECOGNITION IN THE FINANCIAL STATEMENTS. A PROVISION FOR INCOME TAXES HAS BEEN INCLUDED IN THE 2018 FINANCIAL STATEMENTS AND IT IS IMMATERIAL TO THE OVER FINANCIAL STATEMENTS. ADDITIONALLY, THERE IS NO INTEREST OR PENALTIES RECOGNIZED IN THE STATEMENTS OF ACTIVITIES OR STATEMENTS OF FINANCIAL POSITION. X X X X true false false false false false false true false Joseph Wehrle Chief Executive Officer 431872 0 256292 0 11124 0 16500 0 2510 0 718298 0 0 0 James Schweitzer Chief Operating Officer 247157 0 84165 0 7775 0 15000 0 2434 0 356531 0 0 0 Daniel Abbott Chief Information Officer 207092 0 62505 0 5155 0 39958 0 28763 0 343473 0 0 0 Robert Jachnicki CFO/Treasurer 205466 2129 61996 0 1325 0 35093 0 28752 0 332632 2129 0 0 Andrew Sosnowski General Counsel/Secretary 195038 5181 60365 0 4098 0 12435 0 28719 0 300655 5181 0 0 Roger Morris Vice President/Communications 170594 0 25609 0 8695 0 10551 0 21088 0 236537 0 0 0 Brian Smidt Vice President/Data Analytics 171168 0 25914 0 2703 0 19408 0 20139 0 239332 0 0 0 Barbara Low Vice President Human Resources 166134 0 25924 0 2550 0 10681 0 20406 0 225695 0 0 0 Alan Haskins Vice president/Govt. Affairs 154793 0 12389 0 744 0 9603 0 28013 0 205542 0 0 0 George Worsham Vice President/Membership 142065 0 13702 0 680 0 29699 0 27116 0 213262 0 0 0 Karen Graczyk Vice President/ITD 136702 0 12721 0 5135 0 32049 0 28029 0 214636 0 0 0 JAMES HERTZ ASSOCIATE GENERAL COUNSEL 86843 908 15116 0 224260 0 5449 0 16603 0 348271 908 0 0 Robert Jones Director Field Operations 145124 0 14232 0 5994 0 8795 0 1898 0 176043 0 0 0 Dana MacDonald Director Field Operations 140823 0 13698 0 3528 0 8465 0 2041 0 168555 0 0 0 Frederick Lohmann Director Field Operations 134843 0 13835 0 1856 0 8550 0 21339 0 180423 0 0 0 Thomas Welsh Training Director 90841 32032 24395 0 5661 0 27825 0 28191 0 176913 32032 0 0 SEVERANCE PAYMENTS SCHEDULE J, PART I, LINE 4A AN INDIVIDUAL REPORTED IN PART VII RECEIVED A SEVERANCE PAYMENT DURING THE YEAR. THE AMOUNT IS REPORTED AS TAXABLE WAGES ON THEIR W-2. THEIR NAME IS NOT REPORTED DUE TO A GAG ORDER RELATING TO THEIR SEVERANCE AGREEMENT. NON FIXED PAYMENTS SCHEDULE J, PART I, LINE 7 EMPLOYEES ARE ELIGIBLE FOR BONUSES, BUT BONUSES ARE NOT GUARANTEED AS PART OF THEIR COMPENSATION OR SPECIFIED IN A CONTRACT. WHETHER ANY BONUS IS PAID AND THE AMOUNT PAID SOLELY DEPENDS ON WHETHER THE COMPANY MEETS THE PERFORMANCE METRICS SPECIFIED IN THE BONUS PAYMENT SCHEDULE. A BONUS IS PAID ONLY IF THE PERFORMANCE RATING IS 85% OR ABOVE. THE PERFORMANCE RATING FOR 2017 WAS 93%. PERFORMANCE TARGETS ARE SET FORTH AT THE BEGINNING OF THE BUDGET YEAR IN THE OPERATION PLAN AND APPROVED BY THE BOARD. THE AWARD GRADIENTS FOR THE CEO WAS 65%, OTHER OFFICERS AT 30% AND THE KEY EMPLOYEES AT 10%-15%; OF THEIR BASE SALARIES. THE TOTAL BONUS AND INDIVIDUAL OFFICER BONUS IS DETERMINED AND APPROVED BY THE EXECUTIVE COMMITTEE WHICH IS THE GOVERNING BODY OF THE EXECUTIVE/COMPENSATION/NOMINATING COMMITTEE. OTHER PROGRAM SERVICES FORM 990, PART III, LINE 4D TRAINING - PROVIDED TRAINING FOR 72,486 MEMBER COMPANY AND 18,479 LAW ENFORCEMENT PERSONNEL. ADDED THREE NICTA COURSES AND CONDUCTED TWO MEDICAL INVESTIGATIONS ACADEMIES AND ONE SPECIAL INVESTIGATIONS ACADEMY. EXPENSES = $3,795,577 GRANTS = $ 0 REVENUE = $4,175,830 GEOSPATIAL IMAGERY - PROVIDED INSURANCE INDUSTRY AND FIRST RESPONDERS WITH GEOSPATIAL SUPPORT (GRAY SKY RESPONSE) AND DATA ANALYTICS IN DISASTER SITUATIONS. AERIAL IMAGERIES OF CALIFORNIA WILD FIRES, HURRICANE MICHAEL, HURRICANE FLORENCE AND TORNADO RELATED RESPONSES IN CONNECTICUT AND IOWA WERE PROVIDED TO FEMA, NOAA AND LOCAL LAW ENFORCEMENT AGENCIES AND MEMBERS ON REAL-TIME BASIS. EXPENSES = $8,491,360 GRANTS = $ 0 REVENUE = $8,341,908 EXECUTIVE COMMITTEE AND OTHER COMMITTEES FORM 990, PART VI, LINE 1A EXECUTIVE COMMITTEE: AT EACH ANNUAL MEETING OF THE BOARD, THERE MAY BE ELECTED FROM ITS MEMBERSHIP AN EXECUTIVE COMMITTEE. THE EXECUTIVE COMMITTEE SHALL CONSIST OF THE CHAIRMAN AND VICE CHAIRMAN OF THE BOARD AND NO MORE THAN SEVEN (7) MEMBERS ELECTED FROM THE MEMBERSHIP OF THE BOARD. THE EXECUTIVE COMMITTEE SHALL BE VESTED WITH THE AUTHORITY TO ACT BETWEEN MEETINGS OF THE BOARD, SUBJECT TO THE LIMITATIONS OF THE GNFPCA. THE CHAIRMAN OF THE BOARD SHALL BE THE CHAIRMAN OF THE EXECUTIVE COMMITTEE. OTHER COMMITTEES: THE BOARD, BY RESOLUTION ADOPTED BY A MAJORITY OF THE GOVERNORS PRESENT AT A MEETING AT WHICH A QUORUM IS PRESENT, MAY, AS IT DEEMS FIT, ESTABLISH OR APPOINT OTHER COMMITTEES, THE CHAIRMAN THEREOF TO BE DESIGNATED BY THE BOARD IN THE MAKING OF SUCH APPOINTMENTS. EACH SUCH COMMITTEE SHALL HAVE TWO (2) OR MORE GOVERNORS, AND EACH COMMITTEE MEMBER SHALL BE A DULY AUTHORIZED REPRESENTATIVE OF A MEMBER OF THE CORPORATION. ANY COMMITTEE MEMBER MAY BE REMOVED BY THE BOARD WHENEVER, IN ITS JUDGMENT, THE BEST INTERESTS OF THE CORPORATION ARE TO BE SERVED BY SUCH REMOVAL. FORM 990 REVIEW PROCESS FORM 990, PART VI, LINE 11B A NATIONAL PUBLIC ACCOUNTING FIRM PREPARES THE FORM 990. A DRAFT OF THE RETURN IS REVIEWED BY THE NICB TREASURER AND INTERNAL ACCOUNTING NICB PERSONNEL. AN UPDATED FINAL DRAFT IS REVIEWED AND APPROVED BY THE NICB AUDIT/FINANCE COMMITTEE AND PROVIDED ELECTRONICALLY TO THE FULL NICB VOTING BOARD OF GOVERNORS FOR COMMENTS BEFORE IT IS FILED WITH THE IRS. CONFLICT OF INTEREST POLICY MONITORING & ENFORCEMENT FORM 990, PART VI, LINE 12C NICB'S OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES ARE SUBJECT TO THE CONFLICT OF INTEREST POLICY. NICB'S COMPLIANCE OFFICER IS IN CHARGE OF MONITORING EMPLOYEE ACTIVITIES FOR COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY. CONFLICTS ARE REPORTED TO THE COMPLIANCE OFFICER, AND THE COMPLIANCE OFFICER REPORTS ALL MATTERS TO THE NICB AUDIT/FINANCE COMMITTEE FOR REVIEW. PROCESS FOR DETERMINING COMPENSATION FORM 990, PART VI, LINES 15A AND 15B SALARY RATES ARE BASED ON COMPARABLE SALARY DATA COMPILED BY HUMAN RESOURCES THAT APPROXIMATES NICB'S OPERATIONS, CANDIDATE'S QUALIFICATIONS AND EXPERTISE. NICB HAS AN INTERNAL COMMITTEE OF DEPARTMENT HEADS THAT REVIEW CANDIDATES. THE NICB BOARD OF GOVERNORS OVERSEES CANDIDATES AND SALARY LEVELS FOR OFFICER POSITIONS. FOR ITS COMPENSATION PROCESS, A COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, COMPENSATION SURVEY DATA, AND APPROVAL OF COMPENSATION BY THE BOARD OF GOVERNORS IS REQUIRED. THE BOARD REVIEW IS DONE ANNUALLY, AND THE OUTSIDE CONSULTANT REVIEW IS DONE PERIODICALLY. THE REVIEW PROCESS FOR NICB IS CONTEMPORANEOUSLY DOCUMENTED IN THE ORGANIZATION'S MINUTES. THERE IS AN EXTERNAL SALARY SURVEY AND REVIEW CONDUCTED EVERY 3 YEARS. THE FINAL SALARY RATES ARE APPROVED BY THE EXECUTIVE COMMITTEE OF THE BOARD ANNUALLY. GOVERNING DOCUMENTS MADE AVAILABLE FORM 990, PART VI, LINE 19 ARTICLES, BYLAWS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. RECONCILIATION OF NET ASSETS FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS OR FUND BALANCES CONSIST OF: POST-RETIREMENT RELATED CHANGES OTHER THAN NET PERIODIC POST-RETIREMENT COSTS $1,176,000 RESTITUTION CONTRIBUTION $ 2,617 ----------- TOTAL $1,178,617 =========== National Insurance Crime Training Acad 1111 East Touhy Ave Ste 400 Des Plaines IL 60018 311768814 Public Safety IL 501(c)(3) 10 NICB true false false false false true false false false false false false false true true false true false false National Insurance Crime Training Academy o 92466 FMV