2016-11-08T10:54:23-06:00 2015-12-31 351178661 Blue & Co LLC 500 N Meridian St Suite 200 Indianapolis IN 46204 990 2015-01-01 363678111 National Conference Of Insurance Guaranty Funds Inc NATI 3174648192 300 N Meridian Street No 1020 Indianapolis IN 46204 AMY J BALLAIN CFO 3174648192 2016-10-20 1 Angela N Crawford CPA P00573197 3176334705 2016-10-20 2015 2017-02-10 21:41:12Z AMY J BALLAIN 300 N Meridian Street No 1020 Indianapolis IN 46204 3865642 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 3728857 3850126 12732 15516 0 0 3741589 3865642 0 0 0 0 2196034 2300507 0 0 0 1390098 1521096 3586132 3821603 155457 44039 2474325 2616037 1349687 1459007 1124638 1157030 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 2015 SERVICE ACCOMPLISHMENTS HIGHLIGHTS.Highlights of our 2015 accomplishments include: 1) NCIGF BOARD APPROVES THE FORMATION OF A SUBSIDIARY. IN SEPTEMBER 2015, THE NCIGF FILED THE ARTICLES OF INCORPORATION AND RELATED DOCUMENTS TO CREATE GUARANTY SUPPORT INC. ("GSI"), A SUBSIDIARY WHOLLY OWNED BY THE NCIGF. GSI provides electronic data services for NCIGF members and receivers in order to support their claims handling functions. GSI may also provide services to NCIGF members, insurance receivers and other entities with activities consistent with the GSI Mission Statement that are beyond those considered to be "core services" of the NCIGF. Non-core services, also known as "on-request services, and "extraordinary services to receivers" may be performed by GSI, and when provided are provided on a fee-basis. 2) DATA MANAGEMENTa) UDS Data Mapper. In 2015 the NCIGF marked a milestone for the UDS Data Mapper. The utility has processed 42.3 million UDS records. The five largest insolvencies account for nearly half of all the records processed by the Data Mapper. b) UDS Data Mapper Retention Policy. In August, NCIGF staff, working in conjunction with the IT Advisory and Governance committee, implemented the UDS Data Mapper Retention policy. The policy requires the automatic deletion of data after 24 months. The policy is a significant development in safeguarding UDS Data Mapper data.3) The Reverse Data Mapper. As 2015 drew to a close, 37 of 40 guaranty fund organizations have uploaded summary UDS C-Records (claims) and UDS D-Records (financial insolvency expense data) into the Reverse Data Mapper for 2011-2013. Collection of 2014 records is underway. The Reverse Data Mapper simplifies and streamlines the collection of data from the guaranty funds. By extracting, organizing, and aggregating the required UDS data efficiently, the program reduces the likelihood of human error and provides for greater consistency and integrity in data collection. The utility saves time for member guaranty funds and reduces duplication of work. The Reverse Data Mapper single-handedly takes care of various reporting needs, including those associated with the NCIGF Expense Review reporting, insolvency financial information, and federal data requests - all through a single annual request from the NCIGF. 4) TRAINING AND CONFERENCESa) Guaranty Fund State Board Training Program Revision. Early in the year, the NCIGF completed revisions to our Guaranty Fund State Board Training Program. The program was designed to give guaranty fund state board directors a good working knowledge about the property and casualty guaranty fund system and guaranty fund board governance standards. b) Conferences. Three conferences were hosted in 2015, including the NCIGF Legal Seminar in July. Attended by guaranty fund counsel and others, the event was planned by members of the NCIGF Legal Committee.5) 2015 ESTATE GUARANTY FUND DISTRIBUTIONS - COMPLETE AND PROPOSED - TOTALED AT LEAST $749.4 MILLION6) GUARANTY FUND READINESS THROUGH INSOLVENCY SUPPORT.Insolvency support services remained the cornerstone of the NCIGF's service offerings throughout 2015. These support services help member guaranty funds remain insolvency-ready and prepared to protect policyholders. Services include: a) Coordinating Committee Support. NCIGF staff performs a number of valuable functions that include monitoring insolvencies, acting as a conduit for insolvency-related information to the guaranty funds, providing information on "best practice" approaches, and working with the insolvency community to identify and resolve potential issues prior to liquidations. We also maintain records of committee meetings and actions, and provide prompt updates on important developments. b) IT Consulting Services. The NCIGF provides IT consulting services to help guaranty funds and receivers convert digital claims data via the NAIC's Uniform Data Standards (UDS) and Secure Uniform Data Standards (SUDS) formats. Services also include the UDS Data Mapper, a proprietary software utility that helps receivers create, process and manage UDS records. c) Medicare Secondary Payer Compliance. The NCIGF, together with a special member task force, assists members in compliance awareness with the Medicare Secondary Payer laws.7) NCIGF MEMBER SERVICESThe NCIGF delivers education, training and communications support services. These include:a) Federal Education Program. Since 2002, the NCIGF has conducted an education program in Washington, DC, to inform policymakers about the state-based guaranty fund system and the consumer protection it delivers. In conjunction with the National Organization of Life & Health Insurance Guaranty Associations (NOLHGA), 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. b) Data Communication. Each year, the NCIGF collects and provides financial and assessment information related to the property and casualty guaranty fund system. We also respond to requests for this information from guaranty funds and other parties such as insurers, the media and trade associations.c) National Media Liaison. The NCIGF interacts with the national media on guaranty fund issues and develops relationships that are essential to good media relations. This plays a key role in the NCIGF's ability to "tell the guaranty fund story and to communicate the consumer protection benefits of the system to key audiences. d) Publications. The NCIGF publishes our Manager News newsletter, which informs guaranty fund managers about insolvency-related and other news, regulatory developments and NCIGF activities. In addition, each year we also publish two issues of our widely read Insolvency Trends white paper. These publications are essential in promoting a better understanding of the state-based property and casualty guaranty fund system to industry, trades and policymakers. e) Educational Forums. The NCIGF hosts conferences and educational programs that bring together representatives of guaranty funds and the insolvency community, trades and industry. f) Public Policy. The Public Policy Committee supported the work of the Katie School of Insurance in Illinois to develop a study on The Role of Large Deductible Policies for PEOs in the Failures of Small Workers' Compensation Insurers. This study was jointly funded by the Florida, Illinois, and Louisiana guaranty associations and the NCIGF. It provides data and case studies relating to some recent insolvencies that involve large deductible PEO business. A package of recommendations relating to large deductible business written by smaller companies (often with PEOs as policyholders) also was developed jointly by the Public Policy and NCIGF Legal committees. This package suggests a combination of legislative changes and accounting and auditing practices designed to better manage these programs with the goals of preventing insurance insolvencies and ensuring that the programs are adequately secured should the insurance company become insolvent. The NCIGF also serves as a liaison for our members to the National Association of Insurance Commissioners (NAIC). 0 0 0 1 0 0 0 0 0 1 0 0 0 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 20 0 1 15 1 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 Ballain 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 X 0 0 0 D Keith Bell DIRECTOR 1.00 X 0 0 0 Charles P Breitstadt DIRECTOR 1.00 X 0 0 0 Joseph L DellaFera DirECTOR 1.00 X 0 0 0 Henry W Edmiston DIRECTOR 1.00 X 0 0 0 David C Edwards DIRECTOR 1.00 X 0 0 0 Janis B Funk 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 Joanne M Locke DIRECTOR 1.00 X 0 0 0 Philip E Love Jr 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 Cina D Welch 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 Chief Executive Officer 40.00 X 327256 0 32268 Amy J Ballain Vp Chief Financial Officer, Treasurer 40.00 X 157192 0 13731 BARBARA F COX Svp Legal&Regulatory Affairs, Corp. Secretar 40.00 X 208966 0 29798 Robert N Crews Vp Guaranty Fund Support Services 40.00 X 146815 0 30321 Andrew D Holladay Vp Chief Information Officer 40.00 X 160344 0 28699 Mark D Steckbeck Asst VP Legal Affairs, Asst. Corp. Secretary 40.00 X 177793 0 16798 1178366 0 151615 6 0 1 0 Locke Lord LLP 111 South Wacker Drive Chicago IL 60606 Legal CONSULTING 772641 FAeGRE BAKER DANIELS 300 N Meridian Street Indianapolis IN 46204 Federal Education Services 401812 2 Membership Dues & Asse 900099 3691430 3691430 Registration Income-Wo 900099 155560 155560 Services Revenue 900099 3136 3136 3850126 15516 15516 3865642 3850126 0 15516 1330031 497946 240321 128507 103702 386164 27551 10171 227911 55779 110396 121024 143106 252265 42015 60678 Dues & Sub. 76213 Federal Proxy Tax 7823 3821603 250 250 2220830 2173308 36249 160385 47002 37238 332630 283686 70430 48944 76314 89833 23250 106079 2474325 2616037 184878 300474 37054 7800 1127755 1150733 1349687 1459007 X 1124638 1157030 1124638 1157030 2474325 2616037 X 44039 -11647 X X 0 1 X 1 0 0 0 0 3691430 10171 10171 10171 332630 283686 48944 48944 Deferred Compensation 89833 Pension Long Term Liability 1060900 1150733 X 3865642 0 3865642 0 3865642 3821603 0 3821603 0 3821603 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 $8,000 and $1,000 for 2015 and 2014, 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, 2015 AND 2014, 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 Chief Executive Officer 260157 0 62109 0 4990 0 11925 0 20343 0 359524 0 0 0 Amy J Ballain Vp Chief Financial Officer, Treasurer 136224 0 20000 0 968 0 7074 0 6657 0 170923 0 0 0 BARBARA F COX Svp Legal&Regulatory Affairs, Corp. Secr 174838 0 30699 0 3429 0 9092 0 20706 0 238764 0 0 0 Robert N Crews Vp Guaranty Fund Support Services 131552 0 12722 0 2541 0 6609 0 23712 0 177136 0 0 0 Andrew D Holladay Vp Chief Information Officer 133686 0 26000 0 658 0 7215 0 21484 0 189043 0 0 0 Mark D Steckbeck Asst VP Legal Affairs, Asst. Corp. Secretary 159293 0 15391 0 3109 0 8001 0 8797 0 194591 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 11 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, EACH INDIVIDUAL IS REQUIRED TO FILL OUT AND SUBMIT A CONFLICT OF INTEREST FORM. THE PRESIDENT AND CEO WILL DETERMINE IF THERE IS A CONFLICT OF INTEREST AND THE BOARD WILL REVIEW ANY CONFLICT FOR A FINAL RESOLUTION. 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 XI, line 9: Changes in Defined Benefit Pension -11,647. 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 -921 177465 1.00000 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 Guaranty Support Inc B 100000