2017-05-12T14:39:33-05:00 2016-06-30 PRICEWATERHOUSECOOPERS LLP THREE EMBARCADERO CENTER SAN FRANCISCO CA 94111 990 2015-07-01 461828839 FIAT LUX RISK AND INSURANCE COMPANY % ASHLEY LAMELL FIAT 5109879820 1608 RHODE ISLAND AVE NW WASHINGTON DC 20036 NATHAN BROSTROM CHAIR/CFO 5109879820 2017-05-11 MATTHEW PETROSKI P00853132 4154985000 2015 2021-01-29 14:40:06Z CHERYL A LLOYD 1608 RHODE ISLAND AVE NW WASHINGTON DC 20036 28935343 false X N/A X 2012 DC MANAGE AND SELF-FUND GENERAL, PROFESSIONAL TERRORISM, & OTHER LIABILITY LOSSES AS WELL AS TERRORISM PROPERTY DAMAGE EXPOSURES, FOR REGENTS OF THE UC AND ITS AFFILIATES. 7 2 0 2 0 0 0 26042672 27975945 673909 959398 0 0 26716581 28935343 0 0 0 0 0 0 0 0 0 25907363 45952256 25907363 45952256 809218 -17016913 53966392 79916785 44565351 87901195 9401041 -7984410 X THE COMPANY'S PRIMARY MISSION IS TO OPERATE FOR THE BENEFIT OF AND TO PROMOTE AND SUPPORT, DIRECTLY OR INDIRECTLY, THE INTERESTS AND PURPOSES OF THE REGENTS OF THE UNIVERSITY OF CALIFORNIA. IN FURTHERANCE OF THIS PURPOSE, THE COMPANY PROVIDES: (A) IMPROVED RISK MANAGEMENT PRICING PREDICTABILITY AND COST STABILITY; (B) ENHANCED RISK MANAGEMENT, AND PROTECTION AND COVERAGE OF LESS TRADITIONAL RISKS AND ESOTERIC RISKS; (C) A FOUNDATION FOR DEVELOPMENT AND IMPLEMENTATION WITHIN THE REGENTS OF MORE FORMALIZED RISK FINANCING POLICIES AND PROCEDURES; AND (D) INSURANCE COVERAGE FOR EXTERNAL THIRD PARTIES, INCLUDING BUT NOT LIMITED TO, AGENTS, AFFILIATES, ASSOCIATIONS, JOINT VENTURES, AND PARTNERSHIPS OF OR IN WHICH THE REGENTS OF THE UNIVERSITY OF CALIFORNIA PARTICIPATES OR OWNS AN INTEREST PROVIDED THAT SUCH THIRD PARTY COVERAGE IS NO MORE THAN AN INSUBSTANTIAL PORTION OF THE CORPORATION'S OVERALL ACTIVITIES. true false 33540574 14397000 CASUALTY PROGRAM: THE COMPANY UNDERWRITES DEDUCTIBLE REIMBURSEMENT INSURANCE POLICIES TO THE REGENTS OF THE UNIVERSITY OF CALIFORNIA (THE REGENTS) PROVIDING COVERAGE FOR A PORTION OF THE REGENT'S RETAINED RISK POSITION IN ITS CASUALTY PROGRAM WHICH INCLUDES: WORKERS COMPENSATION, GENERAL LIABILITY, AUTO LIABILITY, PROFESSIONAL LIABILITY AND EMPLOYMENT PRACTICES LIABILITY. THE REGENTS ARE RESPONSIBLE FOR LOSSES UP TO A CERTAIN THRESHOLD AND THE COMPANY INSURES LOSSES EXCEEDING THAT THRESHOLD. 9493312 9693873 EXCESS LIABILITY PROGRAM: THE COMPANY UNDERWRITES THE REGENTS EXCESS LIABILITY PROGRAM, PROVIDING COVERAGE OF $270 MILLION IN EXCESS OF $5 MILLION. REINSURANCE IS PURCHASED FOR ALL OF THE NET RETAINED POSITIONS. ALL COVERAGES ARE PROVIDED ON AN OCCURRENCE BASIS AND FEATURE AGGREGATE LOSS LIMITS. ALLOWS THE REGENTS TO BACKSTOP RISK FROM LARGE-SCALE TERRORIST ATTACKS AND FUND FOR CONSEQUENT POTENTIAL LOSSES. 1362907 1703716 MEDICAL STOP LOSS PROGRAM: THE COMPANY UNDERWRITES THE REGENTS' SELF-FUNDED EMPLOYEE MEDICAL PLAN, UC CARE, PROVIDING SPECIFIC LOSS COVERAGE FOR CLAIMS THAT EXCEED $900,000 PER CLAIMANT, PER CALENDAR YEAR. THE COMPANY PURCHASED EXCESS OF LOSS REINSURANCE WITH A $1,100,000 DEDUCTIBLE, PER CLAIMANT PER CALENDAR YEAR EXCEPT FOR ONE SPECIFIC COVERED EMPLOYEE THAT IS SUBJECT TO A $1,400,000 DEDUCTIBLE. 740883 1858560 TERRORISM PROGRAM 323812 317853 OWNER CONTROLLED INSURANCE PROGRAM 92 4943 CONTRACTUAL LIABILITY COVERAGE 1064787 2181356 45461580 true false false false false false false false false false false true false true true true true true 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 false false false true 5 0 true 0 false false false false false false false false false false X 7 2 false false false false false false false true false false false true true true true true true false false false CA X ASHLEY LAMELL 8022642087 100 BANK STREET SUITE 500 BURLINGTON VT 05401 CHERYL A LLOYD PRESIDENT 3.5 36.5 X X 0 237938 64232 NATHAN BROSTROM CHAIR/CFO 2.6 37.4 X X 0 419430 77720 CHARLES F ROBINSON SECRETARY 1.7 38.3 X X 0 442007 78549 MAX C JONG DIRECTOR 1.7 0.0 X 0 0 0 JANET A NAPOLITANO DIRECTOR 0.1 39.9 X 0 584503 69964 STEVE A OLSEN DIRECTOR 1.7 38.3 X 0 327075 72850 PHILIP J SUPER DIRECTOR 1.7 0.0 X 0 0 0 JOHN G FALLE ASST SECRETARY 0.1 39.9 X 0 292773 68710 PATRICIA L SANDERS ASST SECRETARY 0.1 39.9 X 0 83131 18778 0 2386857 450803 0 false true false WILLIS TOWERS WATSON MANAGEMENTVER 100 BANK STREET SUITE 500 BURLINGTON VT 05401 MGMT CONSULTING 368127 MCDERMOTT WILL EMERY PO BOX 6043 CHICAGO IL 60680 LEGAL SERVICES 192955 2 0 NET EARNED PREMIUMS 524298 27975945 27975945 27975945 959398 959398 0 0 0 0 0 0 0 0 0 0 28935343 27975945 959398 0 0 0 0 0 0 0 0 0 0 519200 419200 100000 78704 78704 79984 79984 0 0 0 163135 40635 122500 0 1996 1996 3107 3107 0 0 77376 77376 0 10558 10558 0 0 0 10805700 10794029 11671 LOSS ADJUSTMENT EXPENSES 34065853 34065853 PREMIUM TAXES 141863 141863 STATE EXAMINATION EXPENSES 1140 1140 MEMBERSHIP FEES 3640 3640 45952256 45461580 490676 0 0 0 292057 321058 0 0 0 1010867 0 0 0 0 0 0 0 0 92911 20383 0 0 0 51086424 66507216 0 0 0 0 2495000 12057261 53966392 79916785 100259 448633 0 0 0 2850103 0 0 0 0 0 0 0 0 0 0 44465092 84602459 44565351 87901195 X 5234853 5234853 0 0 4166188 -13219263 9401041 -7984410 53966392 79916785 -17016913 -368538 X false true X true false X X X 1 THE REGENTS OF THE UNIVERSITY OF CALIFORNIA 943067788 6 true 29778411 0 1 29778411 true false false false false false false false false false false false false false false true FORM 990, SCHEDULE A, PART I, LINE 11A THE COMPANY PURCHASED GOODS AND SERVICES FOR THE BENEFIT OF THE REGENTS OF UNIVERSITY OF CALIFORNIA. SEE FORM 990, PART IX FOR FURTHER DETAIL. UC REGENTS STIP 15564376 F UC REGENTS TRIP 50942840 F 66507216 REINSURANCE RECOVERABLE 12057261 12057261 0 RESERVES FOR LOSSES AND LOSS A 84505923 RELATED PARTY PAYABLE 96536 84602459 17772776 -368538 -368538 18141314 10794029 10794029 28935343 35158227 35158227 10794029 10794029 45952256 TEXT OF FIN 48 (ASC 740) FOOTNOTE- FORM 990, SCHEDULE D, PART X, LINE 2 THE COMPANY WAS ORGANIZED AND IS OPERATED SUBSTANTIALLY FOR CHARITABLE SCIENTIFIC AND EDUCATIONAL PURPOSES WITHIN THE MEANING OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE COMPANY COMPLETED ITS APPLICATION FOR RECOGNITION OF EXEMPTION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE WITH THE INTERNAL REVENUE SERVICE AND RECEIVED APPROVAL ON DECEMBER 15, 2015 OF THIS STATUS. AS SUCH, NO FUTURE FEDERAL INCOME TAX LIABILITIES ARE EXPECTED. IN ADDITION, THE COMPANY IS EXEMPT FROM STATE INCOME TAXES IMPOSED UNDER THE CALIFORNIA REVENUE AND TAXATION CODE. HOWEVER, THE COMPANY IS SUBJECT TO INCOME TAXES ON ANY NET INCOME THAT IS DERIVED FROM A TRADE OR BUSINESS, REGULARLY CARRIED ON, AND NOT IN FURTHERANCE OF THE PURPOSE FOR WHICH IT IS GRANTED EXEMPTION. NO INCOME TAX PROVISION HAS BEEN RECORDED AS THE NET INCOME, IF ANY, FROM ANY UNRELATED TRADE OR BUSINESS, IN THE OPINION OF MANAGEMENT, IS NOT MATERIAL TO THE BASIC FINANCIAL STATEMENTS TAKEN AS A WHOLE. THE COMPANY IS SUBJECT TO PREMIUM TAXES IN THE DISTRICT OF COLUMBIA ON DIRECT PREMIUMS WRITTEN. PREMIUM TAX EXPENSE FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 AMOUNTED TO $72,153 AND $64,064, RESPECTIVELY. THE COMPANY IS ALSO SUBJECT TO FEDERAL EXCISE TAXES ON CERTAIN REINSURANCE PREMIUMS PAID ON POLICIES ISSUED BY FOREIGN INSURERS. THE FEDERAL EXCISE TAX EXPENSE FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 AMOUNTED TO $69,710 AND $70,443, RESPECTIVELY. REVENUE ON FORM 990 BUT NOT INCLUDED ON FINANCIAL STATEMENTS FORM 990, SCHEDULE D, PART XI, LINE 4B CEDED WRITTEN PREMIUMS REPORTED GROSS ON FORM 990 $ 10,794,029 EXPENSES ON FORM 990 BUT NOT INCLUDED ON FINANCIAL STATEMENTS FORM 990, SCHEDULE D, PART XII, LINE 4B CEDED WRITTEN PREMIUMS REPORTED GROSS ON FORM 990 $ 10,794,029 X false false false false false false false false false CHERYL A LLOYD PRESIDENT 0 237938 0 0 0 0 0 45060 0 19172 0 302170 0 0 NATHAN BROSTROM CHAIR/CFO 0 412000 0 0 0 7430 0 58548 0 19172 0 497150 0 0 CHARLES F ROBINSON SECRETARY 0 433091 0 0 0 8916 0 59377 0 19172 0 520556 0 0 JANET A NAPOLITANO DIRECTOR 0 570000 0 0 0 14503 0 63103 0 6861 0 654467 0 0 STEVE A OLSEN DIRECTOR 0 327075 0 0 0 0 0 53678 0 19172 0 399925 0 0 JOHN G FALLE ASST SECRETARY 0 290023 0 0 0 2750 0 51397 0 17313 0 361483 0 0 EMPLOYEE COMPENSATION FORM 990, SCHEDULE J THE COMPANY DOES NOT HAVE ANY EMPLOYEES. NONE OF THE LISTED INDIVIDUALS RECEIVED ANY COMPENSATION FROM THE FILING ORGANIZATION. DURING FISCAL YEAR 2015, THE TOP MANAGEMENT OFFICIAL AND ALL OTHER OFFICERS WERE EMPLOYEES OF THE REGENTS OF UNIVERSITY OF CALIFORNIA, A RELATED ORGANIZATION. METHODS USED TO ESTABLISH COMPENSATION OF CEO/EXECUTIVE DIRECTOR FORM 990, SCHEDULE J, PART I, LINE 3 THE COMPANY RELIED ON THE UNIVERSITY OF CALIFORNIA, THAT USED ONE OR MORE OF THE METHODS DESCRIBED IN SCHEDULE J, PART I, LINE 3, TO ESTABLISH THE FOUNDATION'S TOP MANAGEMENT OFFICIAL'S COMPENSATION, INCLUDING A COMPENSATION COMMITTEE, COMPENSATION SURVEY ON STUDY, AND APPROVAL BY THE BOARD ON COMPENSATION COMMITTEE. NEW PROGRAM SERVICE ACTIVITIES FORM 990, PART III, LINE 2 THE COMPANY BEGAN OFFERING NEW COVERAGE TO THE REGENTS OF THE UNIVERSITY OF CALIFORNIA INCLUDING: EMPLOYER MEDICAL STOP LOSS, OWNER CONTROLLED INSURANCE PROGRAM AND CONTRACTUAL LIABILITY. OTHER PROGRAM SERVICES FORM 990, PART III, LINE 4D TERRORISM PROGRAM: THE COMPANY PROVIDES PROPERTY AND CASUALTY TERRORISM COVERAGE ON A DIRECT BASIS TO THE REGENTS. REINSURANCE IS PURCHASED FOR ALL NET RETAINED POSITIONS FOR PROPERTY TERRORISM, ALLOWING THE REGENTS TO OBTAIN GREATER COVERAGE FOR THE SAME COST OF COMMERCIAL INSURANCE. THE CASUALTY TERRORISM PROGRAM ALLOWS THE REGENTS TO BACKSTOP RISK FROM LARGE-SCALE TERRORIST ATTACKS AND FUND FOR CONSEQUENT POTENTIAL LOSSES. OWNER CONTROLLED INSURANCE PROGRAM: EFFECTIVE FEBRUARY 1, 2016 THE COMPANY PROVIDES OWNER CONTROLLED INSURANCE PROGRAM COVERAGE CONSISTING OF DEDUCTIBLE REIMBURSEMENT WORKERS COMPENSATION AND GENERAL LIABILITY EXPOSURES ASSOCIATED WITH CONSTRUCTION AT THE UNIVERSITY. THE LIMITS ARE $500,000 PER OCCURRENCE SUBJECT TO A MAXIMUM CASH DEDUCTIBLE OF $750,000 FOR THE SAME PERIOD. CONTRACTUAL LIABILITY COVERAGE: EFFECTIVE JUNE 24, 2016 THE COMPANY PROVIDES CONTRACTUAL LIABILITY COVERAGE. THE UNIVERSITY ACQUIRED AN EXISTING LOAN IN CONJUNCTION WITH A RECENT PROPERTY ACQUISITION, SAND HILL. THE LOAN COVENANT REQUIRES THE PURCHASE OF REPRESENTATIONS, WARRANTIES, AND GUARANTEES INSURANCE COVERAGE. COVERAGE WILL BE CLAIMS MADE WITH DEFERENCE COSTS INCLUDING LIMITS OF $53,200,000, IN AGGREGATE, SUBJECT TO $532,000 RETENTION. FORM 990 REVIEW PROCESS FORM 990, PART VI, SECTION B, LINE 11B THE COMPANY WORKED WITH AN INDEPENDENT ACCOUNTING FIRM ENGAGED TO PREPARE THE FORM 990 RETURN. THE DRAFT RETURN PREPARED BY THE ACCOUNTING FIRM WAS REVIEWED AND APPROVED BY THE AUDIT AND FINANCE COMMITTEE AND A COMPLETE COPY OF THE RETURN WAS PROVIDED TO THE ENTIRE BOARD PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE. CONFLICT OF INTEREST FORM 990, PART VI, SECTION B, LINE 12C THE EXECUTIVE COMMITTEE OF THE BOARD IS CHARGED WITH MONITORING PROPOSED OR ONGOING TRANSACTIONS FOR CONFLICTS OF INTEREST AND ADDRESSING ANY POTENTIAL OR ACTUAL CONFLICTS. PURSUANT TO THE CONFLICTS OF INTEREST POLICY, AN ANNUAL CONFLICT OF INTEREST QUESTIONNAIRE, AIMED AT DETERMINING ANY FAMILY AND BUSINESS RELATIONSHIPS AND TRANSACTIONS OR OTHER TRANSACTIONS THAT MAY POSE A POTENTIAL CONFLICT, IS DISTRIBUTED TO ALL COVERED PERSONS (I.E. BOARD MEMBERS, OFFICERS, EXECUTIVE LEADERSHIP OR KEY EMPLOYEES). COVERED PERSONS ARE REQUIRED TO DISCLOSE REAL OR POTENTIAL CONFLICTS AT THE TIME WHEN SUCH CONFLICTS ARISE. WHEN SOMEONE BECOMES A COVERED PERSON AND ANNUALLY THEREAFTER, EACH COVERED PERSON IS REQUIRED TO SIGN A STATEMENT AFFIRMING THAT HE/SHE: (1) HAS RECEIVED A COPY OF THE CONFLICTS OF INTEREST POLICY; (2) HAS READ THE POLICY AND UNDERSTANDS SAID POLICY; AND (3) AGREES TO COMPLY WITH ALL REQUIREMENTS OF THE POLICY, INCLUDING COMPLETING THE CONFLICTS OF INTEREST QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES ARE REVIEWED BY THE EXECUTIVE COMMITTEE AND ANY PERSONS WITH ACTUAL OR POTENTIAL CONFLICTS ARE INFORMED VIA WRITTEN COMMUNICATION. THE PROCEDURES FOR ADDRESSING ANY CONFLICT OF INTEREST INCLUDES, BUT IS NOT LIMITED TO, THE FOLLOWING: (1) THE CONFLICTING INTEREST IS FULLY DISCLOSED TO THE BOARD; (2) THE INTERESTED PERSON RESPONDS TO FACTUAL QUESTIONS RELATED TO THE SUBSTANCE OF THE TRANSACTION OR ARRANGEMENT BEING CONSIDERED, AFTER WHICH HE/SHE SHALL LEAVE THE MEETING; (3) THE PERSON WITH THE CONFLICT OF INTEREST IS EXCLUDED FROM THE DISCUSSION AND APPROVAL OF SUCH TRANSACTION; (4) ALTERNATIVES TO THE PROPOSED TRANSACTION ARE INVESTIGATED, COMPETITIVE BIDS OR COMPARABLE VALUATIONS ARE OBTAINED; (5) ANY CONFLICTING ISSUES DURING THE COURSE OF A BOARD MEETING WHICH CANNOT BE RESOLVED IS REFERRED TO THE GOVERNANCE COMMITTEE; AND (6) THE TRANSACTION OR ACTION MUST BE APPROVED BY A MAJORITY OF DISINTERESTED PERSONS. PROCESS OF DETERMINING COMPENSATION OF THE CEO FORM 990, PART VI, SECTION B, LINE 15A THE COMPANY DOES NOT HAVE ANY EMPLOYEES. THE CFO/CHAIR DID NOT RECEIVE ANY COMPENSATION FROM THE FILING ORGANIZATION. DURING FISCAL YEAR 2016, THE TOP MANAGEMENT OFFICIAL WAS AN EMPLOYEE OF THE REGENTS OF UNIVERSITY OF CALIFORNIA, A RELATED ORGANIZATION. SENIOR MANAGEMENT OFFICIALS ARE COMPENSATED IN ACCORDANCE WITH THE UNIVERSITY OF CALIFORNIA REGENTS POLICY 7701. A NUMBER OF FACTORS ARE CONSIDERED TO DETERMINE FAIR AND REASONABLE COMPENSATION INCLUDING: PERFORMANCE, PEER COMPARABILITY, EXTERNAL MARKET COMPARABILITY, SCOPE AND BREADTH OF EXPERIENCE AND RESPONSIBILITIES. COMPENSATION IS APPROVED BY THE REGENTS. PROCESS OF DETERMINING COMPENSATION OF OTHER OFFICERS FORM 990, PART VI, SECTION B, LINE 15B NONE OF THE LISTED INDIVIDUALS RECEIVED ANY COMPENSATION FROM THE FILING ORGANIZATION. ALL OFFICERS ARE EMPLOYEES OF THE REGENTS OF UNIVERSITY OF CALIFORNIA, A RELATED ORGANIZATION, AND ARE COMPENSATED THE SAME AS DESCRIBED ABOVE FOR PART VI, SECTION B, LINE 15A. DISCLOSURE OF DOCUMENTS FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. REGENTS OF THE UNIVERSITY OF CALIFORNIA 1111 FRANKLIN ST 10 FL OAKLAND CA 94607 943067788 EDUCATION CA 501(C)(3) 6 STATE OF CA false false false false false false false false false false false true false true true true false false false