2017-10-26T11:38:41-05:00 2016-12-31 351178661 Blue & Co LLC 500 N Meridian St Suite 200 Indianapolis IN 46204 990 2016-01-01 363678111 National Conference Of Insurance Guaranty Funds Inc NATI 3174648192 300 N Meridian Street No 1020 Indianapolis IN 46204 AMY J CLARK CFO 3174648192 2017-10-17 1 Angela N Crawford CPA P00573197 3176334705 2017-10-17 2016 2022-09-23 18:48:47Z AMY J CLARK 300 N Meridian Street No 1020 Indianapolis IN 46204 3938253 0 X www.ncigf.org X 1989 IL National Conference of Insurance Guaranty Funds (NCIGF) assists property and casualty guaranty funds 20 20 15 0 0 0 0 0 3850126 3916639 15516 21614 0 0 3865642 3938253 0 0 0 0 2300507 1873526 0 0 0 1521096 1708883 3821603 3582409 44039 355844 2616037 3219922 1459007 1721730 1157030 1498192 X To bring the greatest possible value to the member state property and casualty guaranty funds and the state-based guaranty fund system in operational support, communication and public policy development. 0 0 NATIONAL CONFERENCE OF INSURANCE GUARANTY FUNDS (NCIGF) IS A BUSINESS LEAGUE WHICH ADVANCES THE COLLECTIVE MISSIONS OF ITS MEMBERS and PROVIDES NATIONAL ASSISTANCE IN VARIOUS AREAS FOR PROPERTY AND CASUALTY GUARANTY FUNDS. NCIGF ASSISTS IN THE COORDINATION BETWEEN THE LIQUIDATORS AND PROPERTY AND CASUALTY GUARANTY FUNDS IN MULTI-STATE INSOLVENCIES, MONITORS LITIGATION AND LEGISLATION AFFECTING GUARANTY FUNDS, CONDUCTS VARIOUS EDUCATIONAL AND TRAINING PROGRAMS, PROVIDES INFORMATION CONCERNING THE PROPERTY AND CASUALTY GUARANTY FUND SYSTEM; AND PROVIDES A FORUM FOR DISCUSSION OF GUARANTY FUND RELATED ISSUES. NCIGF provides operational support, communications and public policy development to its members, the state property and casualty guaranty funds. The NCIGF also assist property and casualty guaranty funds by providing them with current legislative information and educational training opportunities.See Schedule O for 2016 SERVICE ACCOMPLISHMENTS HIGHLIGHTS.Highlights of our 2016 Accomplishments include:1) Guaranty Support Inc. (GSI) Completes Its First Year. In 2016, Guaranty Support Inc. (GSI), a for-profit subsidiary wholly owned by the NCIGF, began its first full year of operation. Formed in 2015, GSI provides a range of core data management and support services, including accounting and administration support, to NCIGF member guaranty funds and others. GSI exists to support and maximize the current state-based system of insolvency management, and strives to make the best tools available to make that system the most efficient and cost-effective mechanism for policyholder protection. GSI's strategic goals include developing systems for delivery of claims data to guaranty funds, as well as providing a vehicle for the insolvency system to insure timely and effective claims transition to and from guaranty funds and receivers in the event of liquidation. Another goal is creation of a delivery system that appropriately manages risks to GSI, NCIGF, regulators and policyholders. GSI provides services on request for NCIGF members, receivers, and other entities, to the extent that their activity is consistent with GSI's mission, as approved by the GSI board. 2) Uniform Data Standards ("UDS") Data Mapper. As 2016 drew to a close, the UDS Data Mapper has processed 52.4 million UDS records since it first went online in 2011. This proprietary utility, which was developed by the NCIGF and is now administered by our GSI subsidiary, gives receivers of an insolvent property and casualty insurer a way to easily, quickly and inexpensively convert digital data into the UDS format. Uniform Data Standards is an electronic communication protocol that uses a series of defined computer file formats to electronically report insolvency-related claims and financial records between receivers and guaranty funds.The UDS Data Mapper is a Web-based software that assists receivers in extracting, mapping and converting claims data into UDS for use with any liquidation. The UDS Data Mapper minimizes delays and costs associated with data conversions, and helps receivers identify early possible data issues. Over the years, the application has become a welcome and popular solution, especially for receiverships that have limited IT resources and on-staff UDS expertise, or that lack resources to retain outside UDS consultants. 3) Reverse Data Mapper. By the end of 2016, the Reverse Data Mapper (RDM) program had successfully collected data for 2011-2013 for virtually all states; collection of 2014 and 2015 data was underway. Developed by the NCIGF in 2014, the Reverse Data Mapper, collects and extracts, organizes and aggregates UDS data, enabling the NCIGF to efficiently solicit data requests and obtain needed data to support a variety of reporting needs, including insolvency-related financial information, including Expense Review reporting, and potential federal data requests through a single annual request. The utility also gives member guaranty funds and the NCIGF comprehensive and current aggregated insolvency information that until recently only resided with the receivers.4) 2016 Guaranty Fund Stakeholder Meeting. In July 2016 the NCIGF convened a meeting of insurance industry and trade representatives to refine and coordinate public policy strategy and messaging on critical guaranty fund and resolution issues. The goal was to leverage the unity of interest in state-based regulation between the trades, industry and the guaranty system to produce effective, targeted influence in future policy debates by the NCIGF. The meeting included a session with key staff from the Federal Reserve for an informal exchange on resolution policy direction. Key takeaways of the meeting included:- Industry representatives expressed an expectation that the guaranty fund system, represented by its support organization, the NCIGF, would continue to provide targeted leadership and education on resolution matters in the United States and abroad.- The conversation confirmed industry support of targeted NCIGF engagement on public policy matters. In addition, the NCIGF was strongly encouraged to collaborate more with industry. There should be no change in long-standing protocols guiding NCIGF involvement: the guaranty system's public policy efforts should continue to engage on matters that impact the guaranty system's core function, or where the guaranty system has unique or special expertise to contribute.- Industry representatives expressed the thought the NCIGF and NOLHGA are uniquely qualified to speak on resolution matters domestically and abroad, and in public policy discussions in which the U.S. resolution system could be impacted. Participants also agreed on three fundamental goals for NCIGF's public policy efforts:- Strengthen existing relationships with key players;- Defend against importing bad ideas into the U.S.; and - Export some of our resolution-related principles to the international community.5) NAIC 2016 Workers' Compensation Large Deductible Study. An important milestone in 2016 was the development and adoption of the National Association of Insurance Commissioners' (NAIC) 2016 Workers' Compensation Large Deductible Study. The 62-page study provides an excellent illustration of the issues related to large deducible and Professional Employer Organization (PEO) programs that challenge today's resolution system, and ideas for addressing these issues. The study, in which the NCIGF played a prominent developmental role, is a supplement to a similar study on large deductible programs prepared by the NAIC in 2006. The new study enhances and extends the scope of the earlier study by exploring the 10 years of experience with these programs since the 2006 study was published. The study puts in a fresh perspective the receivership community's challenges in addressing the downsides of large deductible and PEO programs, and the significant costs the programs bring to related insolvencies. It gives regulators and receivers suggestions for specific tools that permit enhanced oversight of the programs and guidance for dealing with a range of insurance company insolvency issues, now and in the future. At the same time, the study acknowledges the programs as an important and valued part of the modern insurance marketplace. Adopted at the Workers' Compensation Task Force level at the NAIC 2016 Summer Meeting and by the NAIC overall later in the year, the study fulfills the 2016 charges of the NAIC/IAIABC Joint (C) Working Group Property and Casualty (C) Committee Workers' Compensation Task Force to study issues of mutual concern to insurance regulators and the International Association of Industrial Accident Boards and Commissions (IAIABC). The effort to bring all the parties together to update the 2006 NAIC Workers' Compensation Large Deductible Study went far toward raising the awareness of large deductible issues overall, resulting in a more thoughtful, comprehensive approach to addressing problems related to recent Workers' Compensation company insolvencies. The completion of the study represents an important milestone. It is an outstanding example of the benefits that arise when the guaranty fund, regulatory and receivership communities collectively analyze issues and work collaboratively to address them. 6) NCIGF Town Hall Teleconference. The NCIGF hosted two Town Hall Teleconferences for the property and casualty guaranty fund community in 2016.The first teleconference on March 21 featured presentations and discussion on a range of topics, including the 2016 NCIGF board strategic planning initiative, an overview on the 2017 NCIGF Core Services Member Survey and the organization's Member Committee Advisory Committee (MCAC). The second Town Hall was held September 21. It focused on NCIGF's 2017 Business Planning Priorities and Budget, and other topics. The Town Halls were planned by a workgroup of the NCIGF Communications Committee.7) Educational Conferences. Two educational conferences were hosted in 2016: the NCIGF Annual Conference in Santa Fe, New Mexico and the NCIGF Fall Workshop in Mobile, Alabama. SEE SCHEDULE O FOR CONTINUED 2016 ACCOMPLISHMENTS 8) New Insolvencies and Coordinating Committee Support. Insolvency support services, including Coordinating Committee and claims data support services, remained the cornerstone of the NCIGF's service offerings throughout 2016. These services help member guaranty funds remain insolvency-ready and prepared to protect policyholders. 2016 brought about two new insolvencies for the property and casualty guaranty funds, Affirmative Insurance Company and Lumbermen's Underwriting Alliance. Affirmative Insurance Company, an Illinois domestic property and casualty insurer, was placed into rehabilitation on September 16, 2015. The company was ordered into liquidation on March 24, 2016. Affirmative's primary line of business was substandard auto. The company also wrote a small number of Workers' Compensation policies. At the time of liquidation, the company was licensed in 35 states. Approximately 14 guaranty associations were triggered as a result of Affirmative's liquidation. On May 23, Lumbermen's Underwriting Alliance, a reciprocal inter-insurance exchange organized under the laws of the State of Missouri, was ordered into liquidation. The company wrote mainly Workers' Compensation along with a small book of liability and property coverage.9) Guaranty Fund Distributions. 2016 estate guaranty fund distributions from 45 estates complete and proposed totaled at least $181.9 million.10) Federal Education Program. The NCIGF's Federal Education Program continued its mission of informing policymakers about the state-based guaranty fund system and the consumer protection it delivers. The NCIGF has administered the program in conjunction with the National Organization of Life & Health Insurance Guaranty Associations (NOLHGA) since 2002. Over that time, the NCIGF has conducted hundreds of briefings of members of different committees and executive branch officials. As a result, the NCIGF has become a valued technical resource on issues related to insurance insolvency and the state insurance guaranty fund system. 0 0 0 1 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 19 0 1 15 1 0 0 0 0 0 0 0 0 X 20 20 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 IN X Amy J Clark 3174648192 300 N Meridian Street Suite 1020 Indianapolis IN 46204 Sandra J Robinson Chair 1.00 X X 0 0 0 Charles F Renn Vice Chair 1.00 X 0 0 0 D Keith Bell DIRECTOR 1.00 X 0 0 0 Charles P Breitstadt DIRECTOR 1.00 X 0 0 0 Henry W Edmiston DIRECTOR 1.00 X 0 0 0 J Smith Harrison DIRECTOR 1.00 X 0 0 0 Larry E Hinton DIRECTOR 1.00 X 0 0 0 Brandon E LaSalle DIRECTOR 1.00 X 0 0 0 William M Lynch DIRECTOR 1.00 X 0 0 0 Michael C Marchman DIRECTOR 1.00 X 0 0 0 John R Mathews DIRECTOR 1.00 X 0 0 0 Joyce Hall Mellinger DIRECTOR 1.00 X 0 0 0 Christopher P Roe DIRECTOR 1.00 X 0 0 0 Bradley A Roeber DIRECTOR 1.00 X 0 0 0 Arthur M Russell DIRECTOR 1.00 X 0 0 0 Timothy M Schotke DIRECTOR 1.00 X 0 0 0 Cina D Welch DIRECTOR 1.00 X 0 0 0 John C Wells DIRECTOR 1.00 X 0 0 0 Wayne D Wilson DIRECTOR 1.00 X 0 0 0 Debra G Wozniak DIRECTOR 1.00 X 0 0 0 ROGER H SCHMELZER President President, Chief Executive Officer 40.00 X 351670 0 37542 Amy J Clark Vp V.P.-Chief Financial Officer, Treasurer 40.00 X 167192 0 15064 BARBARA F COX Svp S.V.P.-Legal&Regulatory Affairs, Corp. Secretar 40.00 X 208267 0 33256 Robert N Crews Vp V.P.-Guaranty Fund Services and Communications 40.00 X 157513 0 31416 Andrew D Holladay Vp V.P.-Chief Information Officer 40.00 X 163344 0 26078 Mark D Steckbeck Asst VP V.P.-Legal Affairs, Asst. Corp. Secretary 40.00 X 181995 0 26802 1229981 0 170158 6 0 1 0 Oliver Wyman PO Box 3800-28 Boston MA 02241 Actuarial consulting services 484833 Faegre Baker Daniels 300 N Meridian St Indianapolis IN 46204 Federal education services 458140 Locke Lord LLP 111 South Wacker Dr Chicago IL 60606 Legal consulting services 424051 3 Membership Dues & Asse 900099 3817106 3817106 Registration Income-Wo 900099 99533 99533 3916639 21614 21614 3938253 3916639 0 21614 X 981801 347623 276164 164355 103583 399833 111660 3986 529307 66853 3819 89054 156013 177841 18378 76469 Dues & Sub. 73952 Federal Proxy Tax 1718 3582409 250 250 2173308 2286241 160385 533035 37238 27765 348293 309695 48944 38598 89833 115541 106079 218492 2616037 3219922 300474 578335 7800 1086 1150733 1142309 1459007 1721730 X 1157030 1498192 1157030 1498192 2616037 3219922 X 355844 -14682 X X 0 1 X 1 0 0 0 0 3817106 3986 3986 3986 348293 309695 38598 38598 Security Deposits 119871 Investment in GSI 98621 218492 Deferred Compensation 115541 Pension Long Term Liability 1026768 1142309 X 3938253 0 3938253 0 3938253 3582409 0 3582409 0 3582409 Part X, Line 2: Note to consolidated financial statements NCIGF is a not-for-profit corporation and has been recognized as tax-exempt pursuant to Section 501(c)(6) of the Internal Revenue Code (IRC). As such, NCIGF is generally exempt from income taxes. NCIGF is required to file Federal Form 990 Return of Organization Exempt from Income Tax which is an informational return only. However, Section 6033(e) of the IRC defines lobbying in a manner that includes some of the activities performed by NCIGF. As a result, under the same section, NCIGF is required to either report the total amount of expenses related to such activities to its members as nondeductible for federal income tax purposes or pay a proxy income tax. NCIGF has elected to pay a proxy income tax. The proxy tax expense was approximately $1,700 and $8,000 for 2016 and 2015, respectively. GSI is a taxable entity and is, therefore, subject to federal and state income taxes. Deferred income tax items related to GSI are not significant to the overal consolidated financial statements. ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA REQUIRE MANAGEMENT TO EVALUATE TAX POSITIONS TAKEN BY NCIGF and GSI AND RECOGNIZE A TAX LIABILITY IF NCIGF or GSI have TAKEN AN UNCERTAIN POSITION THAT MORE LIKELY THAN NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY VARIOUS FEDERAL AND STATE TAXING AUTHORITIES. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY NCIGF and GSI, AND HAS CONCLUDED THAT AS OF DECEMBER 31, 2016 AND 2015, THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY OR DISCLOSURE IN THE ACCOMPANYING FINANCIAL STATEMENTS. NCIGF and GSI are sUBJECT TO ROUTINE AUDITS BY TAXING JURISDICTIONS; HOWEVER, THERE ARE CURRENTLY NO AUDITS FOR ANY TAX PERIODS IN PROGRESS. X X X X 0 0 0 ROGER H SCHMELZER President President, Chief Executive Officer 260157 0 68524 0 22989 0 13639 0 23903 0 389212 0 0 0 Amy J Clark Vp V.P.-Chief Financial Officer, Treasu 136224 0 30000 0 968 0 7524 0 7540 0 182256 0 0 0 BARBARA F COX Svp S.V.P.-Legal&Regulatory Affairs, Cor 174838 0 30000 0 3429 0 9060 0 24196 0 241523 0 0 0 Robert N Crews Vp V.P.-Guaranty Fund Services and Comm 134972 0 20000 0 2541 0 6371 0 25045 0 188929 0 0 0 Andrew D Holladay Vp V.P.-Chief Information Officer 133686 0 29000 0 658 0 7351 0 18727 0 189422 0 0 0 Mark D Steckbeck Asst VP V.P.-Legal Affairs, Asst. Corp. Secr 162957 0 15929 0 3109 0 8190 0 18612 0 208797 0 0 0 Form 990, Part VI, Section A, line 6 NCIGF is a membership association of post-assessment and pre-assessment property and casualty insurance guaranty funds which are funds established by the laws of the various states and the District of Columbia. The term "guaranty funds" includes "guaranty associations", "insolvency funds", "security funds", or any other legislatively mandated mechanism created to provide protection against the insolvency of licensed property and casualty insurers. Form 990, Part VI, Section A, line 7a The nominating committee nominates individuals for positions on the board of directors that become vacant prior to the annual meeting. Individuals may also be nominated by one member and seconded by two other members or nominated from the floor by a 2/3 vote at the annual meeting of members. The members elect nominees to the board of directors at the annual meeting of members. Form 990, Part VI, Section A, line 7b Any change to the corporate bylaws requires approval of a majority of NCIGF member guaranty funds. Form 990, Part VI, Section B, line 11b The process for review the Form 990 includes a review by the treasurer, audit committee, and board prior to filing with the IRS. Form 990, Part VI, Section B, line 12c THE WRITTEN CONFLICT OF INTEREST POLICY IS REGULARLY AND CONSISTENTLY MONITORED AND COMPLIANCE ENFORCED BY THE PRESIDENT AND CEO. THE SCOPE OF THE CONFLICT OF INTEREST POLICY INCLUDES OFFICERS, DIRECTORS, TRUSTEES, AND EMPLOYEES. ANNUALLY, the president delivers the policy to EACH INDIVIDUAL. Employees are REQUIRED TO FILL OUT AND SUBMIT A CONFLICT OF INTEREST FORM. Any instances of noncompliance with the policy are to be promptly reported to the board. BOARD MEMBERS WITH POTENTIAL OR ACTUAL CONFLICTS OF INTERESt ARE TO REFRAIN FROM PARTICIPATING IN ANY DELIBERATION OR DECISIONS ON SUCH TRANSACTIONS WHICH IS NOTED IN THE MINUTES OF THE MEETING. Form 990, Part VI, Section B, line 15 THE PROCESS FOR DETERMINING COMPENSATION FOR THE CHIEF EXECUTIVE AND OTHER OFFICERS INCLUDES A REVIEW AND APPROVAL BY THE INDEPENDENT EXECUTIVE COMMITTEE MEMBERS OF THE BOARD OF DIRECTORS; COMPARABLE DATA FROM AN INDEPENDENT AND EXTERNAL HUMAN RESOURCE CONSULTANT IS CONDUCTED AND REVIEWED BY THE EXECUTIVE COMMITTEE; AND DOCUMENTATION ON THE DELIBERATION AND DECISION OF THE COMPENSATION ARRANGEMENTS ARE RECORDED IN THE MINUTES OF THE ORGANIZATION. NCIGF DOES NOT HAVE ANY EMPLOYEES THAT MEET THE FORM 990 KEY EMPLOYEE DEFINITION, BUT A SIMILAR PROCESS IS CONDUCTED FOR TOP MANAGEMENT POSITIONS OF THE ORGANIZATION. Form 990, Part VI, Section C, line 19 NCIGF governing documents, conflicts of interest policy and financial statements would be available to the public upon request. Form 990, Part IX, line 11g Purchased Services 529,307. Form 990, Part XI, line 9: Changes in Defined Benefit Pension -14,682. Form 990, Part XI, Line 2c, Oversight of Audit THE AUDIT COMMITTEE ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT AND SELECTION OF AN INDEPENDENT ACCOUNTANT; AND, NO PROCESSES HAVE CHANGED FROM PRIOR YEAR. Guaranty Support Inc 300 N Meridian St Ste 1020 indianapolis IN 46204 352542172 technology and consulting services IL National Conference of Insurance Guarantee Funds Inc C -458 474260 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0