2025-09-26T08:02:03-05:00 2024-12-31 521446779 JOHNSON LAMBERT LLP 4242 SIX FORKS ROAD SUITE 1500 RALEIGH NC 27609 990 2024-01-01 237355707 NORTH CAROLINA INSURANCE GUARANTY ASSOCI NORT 9197839790 4140 PARKLAKE AVE 320 RALEIGH NC 27612 EDITH DAVIS CHIEF FINANCIAL OFFICER 9197839790 2025-09-25 1 0 J CALVIN MARKS P01226973 9197196400 2024 2025-03-06 01:10:19Z EDITH DAVIS 4140 PARKLAKE AVE 320 RALEIGH NC 27612 87758467 0 X WWW.NCRB.ORG/NCIGA X 1971 NC THE PURPOSE OF THE NORTH CAROLINA INSURANCE GUARANTY 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 OF POLICYHOLDERS BECAUSE OF THE INSOLVENCY OF AN INSURER, TO ASSIST IN THE DETECTION AND PREVENTION OF INSURER INSOLVENCIES, AND TO PROVIDE AN ASSOCIATION TO ASSESS THE LOSS OF SUCH PROTECTION AMONG INSURERS. 7 7 11 7 -2129 0 0 0 28602008 13319738 2882707 2673512 0 0 31484715 15993250 0 0 0 0 3587698 3635903 0 0 0 12911660 20623973 16499358 24259876 14985357 -8266626 131600660 123336163 0 0 131600660 123336163 X THE PURPOSE OF THE NORTH CAROLINA INSURANCE GUARANTY 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 OF POLICYHOLDERS BECAUSE OF THE INSOLVENCY OF AN INSURER, TO ASSIST IN THE DETECTION AND PREVENTION OF INSURER INSOLVENCIES, AND TO PROVIDE AN ASSOCIATION TO ASSESS THE LOSS OF SUCH PROTECTION AMONG INSURERS. 0 0 PER NORTH CAROLINA GENERAL STATUTES OF CHAPTER 58, ARTICLE 36, ONE OF THE NORTH CAROLINA INSURANCE GUARANTY ASSOCIATION'S RESPONSIBILITIES IS TO PROVIDE A "MECHANISM FOR THE PAYMENT OF COVERED CLAIMS UNDER CERTAIN INSURANCE POLICIES". FUNDS FOR THE PAYMENT OF COVERED CLAIMS ARE RECEIVED FROM THE FOLLOWING SOURCES:1) THE NORTH CAROLINA DEPARTMENT OF INSURANCE NOTIFIES THE GUARANTY ASSOCIATION WHEN A COURT OF COMPETENT JURISDICTION DECLARES AN INSURANCE COMPANY INSOLVENT. AFTER THE NOTIFICATION, THE GUARANTY MANAGEMENT STAFF MAKES A FORMAL REQUEST FOR THE INSOLVENT INSURANCE COMPANY'S SECURITY DEPOSIT (ALL LICENSED INSURANCE COMPANIES IN NORTH CAROLINA ARE REQUIRED TO MAKE A SECURITY DEPOSIT PAYMENT TO THE DEPARTMENT OF INSURANCE). THIS SECURITY DEPOSIT WILL BE USED TO PAY THE INSOLVENT COMPANY'S UNPAID CLAIMS AND UNEARNED PREMIUMS.2) THE GUARANTY ASSOCIATION MAY ALSO RECEIVE PROCEEDS FROM THE INSOLVENT COMPANY'S LIQUIDATOR. THE GUARANTY ASSOCIATION DOES NOT HAVE ADVANCE NOTICE OF WHEN LIQUIDATOR FUNDS WILL BE REMITTED. THE LIQUIDATOR PROCEEDS ARE ALSO USED TO MAKE UNPAID CLAIM AND UNEARNED PREMIUM PAYMENTS. THE LIQUIDATORS ALSO TRANSFER CLAIM DATA TO THE GUARANTY ASSOCIATION.THE GUARANTY ASSOCIATION'S CLAIMS STAFF IS RESPONSIBLE FOR REVIEWING CLAIM DETAIL AND ENSURING IT MEETS REQUIREMENTS TO BE PROCESSED. ONCE THE CLAIMS ADJUSTERS DETERMINE THE REQUIREMENTS HAVE BEEN MET, THE CLAIMS ADJUSTERS WILL ACTIVATE THE CLAIM FILE AND BEGIN TO PROCESS CLAIM UNPAID CLAIMS AND UNEARNED PREMIUMS PAYMENTS. AS OF THE END OF CALENDAR YEAR 2024, THERE WERE 44 INSOLVENCIES WITH A TOTAL OF 249 OPEN CLAIMS. A TOTAL OF 8,225 CLAIMS HAVE BEEN CLOSED. TOTAL CLAIMS EXPENSE AND PREMIUM REFUND EXPENSES TOTALED $5,975,951 AND $9,528, RESPECTIVELY. ASSESS MEMBER COMPANIES FOR AMOUNTS NECESSARY TO PAY EXPENSES OF HANDLING COVERED CLAIMS; REFUND MEMBER COMPANIES EXCESS AMOUNTS PREVIOUSLY ASSESSED.PER NORTH CAROLINA GENERAL STATUTES OF CHAPTER 58, ARTICLE 36, ONE OF THE NORTH CAROLINA INSURANCE GUARANTY ASSOCIATION'S RESPONSIBILITIES IS TO PROVIDE A "AN ASSOCIATION TO ASSESS THE LOSS OF (INSURER INSOLVENCIES) AMONG INSURERS". TO ACCOMPLISH THIS, THE GOVERNING BOARD WILL REVIEW OPERATING EXPENSES AND COVERED CLAIMS COSTS TO DETERMINE IF A NEW ASSESSMENT IS NECESSARY TO COVER EXPENSES, OR IF A REFUND OF A PRIOR ASSESSMENT IS PERMISSIBLE. ANY ASSESSMENTS ARE BORNE BY THE GUARANTY ASSOCIATION'S MEMBER INSURANCE COMPANIES IN PROPORTION TO NET DIRECT WRITTEN PREMIUMS.DURING CALENDAR YEAR 2024, THE GUARANTY ASSOCIATION'S BOARD OF DIRECTORS ASSESSED MEMBER INSURERS $9,800,000 AND APPROVED REFUNDS OF $13,237,716. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 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 1 130 0 1 11 1 1 1 0 0 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 0 1 0 1 1 0 1 1 0 X EDITH DAVIS 9197839790 4140 PARKLAKE AVE SUITE 320 RALEIGH NC 27612 JOANNA BILIOURIS GENERAL MANAGER 7.50 30.00 X 0 348034 36409 EDITH DAVIS CHIEF FINANCIAL OFFICER 12.38 25.12 X 0 272657 101600 DONNA KALLIANOS CHIEF OPERATING OFFICER 36.00 1.50 X 230997 0 90137 TAMMY CHOBOY TECHNICAL & ADMINISTRATIVE MANAGER 37.50 0.00 X 138969 0 42927 KIM POWELL CLAIMS MANAGER 37.50 0.00 X 135283 0 65753 KATHLYN GORMAN LITIGATION MANAGER 37.50 0.00 X 115573 0 21500 ROBIN WOODARD MULTI-LINE CLAIMS COORDINATOR 37.50 0.00 X 112217 0 16211 NC FARM BUREAU MUTUAL INSURANCE COMPA BOARD CHAIRMAN 1.00 1.00 X 0 0 0 STATE FARM MUTUAL AUTO INSURANCE COMP VICE CHAIRMAN 1.00 1.00 X 0 0 0 ALLSTATE INSURANCE COMPANY DIRECTOR 1.00 1.00 X 0 0 0 BUILDERS MUTUAL INSURANCE COMPANY DIRECTOR 1.00 1.00 X 0 0 0 ERIE INSURANCE DIRECTOR (INCOMING 2024) 1.00 1.00 X 0 0 0 NATIONWIDE MUTUAL INSURANCE COMPANY DIRECTOR 1.00 1.00 X 0 0 0 TRAVELERS INDEMNITY COMPANY DIRECTOR 1.00 1.00 X 0 0 0 733039 620691 374537 5 0 1 0 0 DUES AND ASSESSMENTS 900099 9732310 9732310 INSOLVENT COMPANY LIQUIDATION 900099 3587428 3587428 13319738 2570743 -2129 2572872 71867986 71765217 102769 102769 102769 15993250 13319738 -2129 2675641 254877 2459157 403917 436950 81002 156681 41922 6609 27276 9217 119117 484667 141031 19110 22426 183643 REFUNDS TO MEMBER COMPA 13237570 CLAIMS PAID 5454484 CLAIM EXPENSES PAID 521467 DUES AND SUBSCRIPTIONS 181114 17639 24259876 40125965 42529922 91474695 80806241 131600660 123336163 0 0 X 0 0 0 0 131600660 123336163 131600660 123336163 131600660 123336163 X -8266626 2129 X 0 1 X 1 0 0 X 15988770 0 15988770 6609 -2129 4480 15993250 24253267 0 24253267 6609 6609 24259876 PART X, LINE 2: MANAGEMENT HAS CONCLUDED THAT THERE ARE NO UNCERTAIN TAX POSITIONS THROUGH DECEMBER 31, 2024. PART XI, LINE 4B - OTHER ADJUSTMENTS: INCOME FROM PASSTHROUGH INVESTMENT X X X 0 0 0 JOANNA BILIOURIS GENERAL MANAGER 0 323034 0 25000 0 0 0 25835 0 10574 0 384443 0 0 EDITH DAVIS CHIEF FINANCIAL OFFICER 0 232206 0 40451 0 0 0 89801 0 11799 0 374257 0 0 DONNA KALLIANOS CHIEF OPERATING OFFICER 205734 0 25263 0 0 0 66084 0 24053 0 321134 0 0 0 TAMMY CHOBOY TECHNICAL & ADMINISTRATIVE MANAGER 123676 0 15293 0 0 0 30726 0 12201 0 181896 0 0 0 KIM POWELL CLAIMS MANAGER 119584 0 15699 0 0 0 41700 0 24053 0 201036 0 0 0 FORM 990, PART VI, SECTION A, LINE 6 INSURERS ADMITTED AS OF JUNE 25, 1971, TO TRANSACT THE KINDS OF INSURANCE COVERED BY THE NORTH CAROLINA INSURANCE GUARANTY ASSOC1AT1ON ACT (ARTICLE 48 OF CHAPTER 58 OF THE GENERAL STATUTES OF NORTH CAROLINA) ARE MEMBERS OF THE NORTH CAROLINA INSURANCE GUARANTY ASSOCIATION. INSURERS ADMITTED AFTER JUNE 25, 1971, TO TRANSACT THE KINDS OF INSURANCE COVERED BY THE NORTH CAROLINA INSURANCE GUARANTY ASSOCIATION ACT BECOME MEMBERS EFFECTIVE ON THE ADMISSION DATE. ALL INSURERS BECOMING MEMBERS AFTER OCTOBER 1, 1985, PAY A NONREFUNDABLE INITIAL MEMBERSHIP FEE. FORM 990, PART VI, SECTION A, LINE 7A MEMBER COMPANIES OF THE NORTH CAROLINA INSURANCE GUARANTY ASSOCIATION ELECT 7 VOTING MEMBERS TO THE BOARD OF DIRECTORS, THE ELECTION OF THE MEMBER INSURERS IS SUBJECT TO THE APPROVAL OF THE NORTH CAROLINA DEPARTMENT OF INSURANCE COMMISSIONER. THERE IS ALSO 1 NON-VOTING BOARD OF DIRECTOR MEMBER THAT IS APPOINTED BY THE NORTH CAROLINA DEPARTMENT OF INSURANCE COMMISSIONER THAT IS A PROPERTY AND CASUALTY INSURANCE AGENT. EACH MEMBER INSURER IS ENTITLED TO ONE VOTE. BOARD OF DIRECTORS SERVE FOR THREE-YEAR TERMS. THE ELECTED BOARD OF DIRECTORS ELECT A CHAIRMAN AND OTHER OFFICERS AS NECESSARY TO SERVE A ONE-YEAR TERM. FORM 990, PART VI, SECTION A, LINE 7B IN GENERAL, THE NORTH CAROLINA INSURANCE GUARANTY ASSOCIATION'S BOARD OF DIRECTORS IS AUTHORIZED AND DOES MAKE OPERATING DECISIONS ON BEHALF OF THE MEMBER COMPANIES IF A QUORUM IS PRESENT. HOWEVER, SOME DECISIONS REQUIRE AN AFFIRMATIVE VOTE OF A MAJORITY OF ALL OF THE ELECTED DIRECTORS (EG. APPROVING CONTRACT, AUTHORIZING A REFUND OR ASSESSMENT, BORROWING MONEY, ETC.). FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990, INCLUDING SCHEDULES AND OTHER NECESSARY SUPPORTING INFORMATION, IS PROVIDED TO THE ORGANIZATION'S CHIEF FINANCIAL OFFICER FOR REVIEW AND APPROVAL. AFTER THE REVIEW AND APPROVAL, THE COMPLETED RETURN IS FILED ELECTRONICALLY TO THE INTERNAL REVENUE SERVICE. THE BOARD OF DIRECTORS IS NOTIFIED WHEN THE RETURN HAS BEEN FILED BUT DOES NOT RECEIVE A COPY UNLESS SPECIFICALLY REQUESTED BY ONE OF THE MEMBER COMPANIES SERVING ON THE COMMITTEE. FORM 990, PART VI, SECTION B, LINE 12C EACH NEW EMPLOYEE RECEIVES AN ORGANIZATIONAL HANDBOOK THAT OUTLINES THE REQUIREMENT OF ALL EMPLOYEES TO DEVOTE THEIR FULL TIME TO EMPLOYMENT WITH THE NORTH CAROLINA INSURANCE GUARANTY ASSOCIATION. IF AN EMPLOYEE IS ENGAGED IN OUTSIDE WORK OR HOLDS ANOTHER JOB, THE HANDBOOK SPECIFICALLY STATES THAT THE OTHER BUSINESS CANNOT INTERFERE WITH SATISFACTORY JOB PERFORMANCE AND ATTENDANCE AT THE GUARANTY ASSOCIATION. FURTHER, THE GUARANTY ASSOCIATION REQUIRES THAT ALL EMPLOYEES FULLY DISCLOSE ANY POSSIBLE CONFLICT OF INTEREST SUCH AS OUTSIDE EMPLOYMENT TO THEIR SUPERVISOR OR MANAGER IN ORDER TO PREVENT A COMPROMISING SITUATION. CONFLICT OF INTEREST IS ALSO REGULARLY REVIEWED AT EACH NORTH CAROLINA INSURANCE GUARANTY ASSOCIATION BOARD OF DIRECTORS MEETING AS WELL AS EVERY GUARANTY ASSOCIATION COMMITTEE OR SUB-COMMITTEE MEETING. THE NORTH CAROLINA INSURANCE GUARANTY ASSOCIATION'S CONFLICT OF INTEREST STATEMENT IS INCLUDED IN THE AGENDA AND IS REFERENCED IN EVERY BOARD OF DIRECTORS, COMMITTEE, AND SUB-COMMITTEE MEETING AS A REMINDER TO THE GOVERNING COMMITTEE AND EMPLOYEES OF THEIR RESPONSIBILITIES. PER POLICY, MEMBERS ARE NOT TO VOTE, TAKE ACTION OR USE HIS OR HER PERSONAL INFLUENCE ON A MATTER THAT REPRESENTS A PERSONAL CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION DATA IS OBTAINED THROUGH, WORLDATWORK, ECONOMIC RESEARCH INSTITUTE, AND CAPITAL ASSOCIATED INDUSTRIES. INDEPENDENT CONSULTANTS HAVE BEEN UTILIZED IN THE PAST TO PREPARE GUIDELINES AND RANGES FOR THE GENERAL MANAGER'S AND TOP MANAGEMENT COMPENSATION, AS WELL AS CONDUCTING A FULL COMPENSATION AUDIT. THIS DATA IS PRESENTED TO A JOINT COMPENSATION SUB-COMMITTEE, CONSISTING OF 3 MEMBER COMPANIES, DURING THE 4TH QUARTER OF THE YEAR AFTER A REVIEW. THE JOINT COMPENSATION SUB-COMMITTEE WILL RECOMMEND RANGES FOR SALARY INCREASES AND MERIT INCREASES FOR THE FOLLOWING YEAR. THESE RECOMMENDATIONS ARE PRESENTED TO THE ORGANIZATION'S GOVERNING BODY FOR APPROVAL, NORMALLY DURING THE LAST MONTH OF THE CALENDAR YEAR ALONG WITH A COMPREHENSIVE BUDGET PRESENTATION. THE MOST RECENT COMPENSATION REVIEW OCCURRED IN NOVEMBER 2024. FORM 990, PART VI, SECTION C, LINE 19 SINCE THE NORTH CAROLINA INSURANCE GUARANTY ASSOCIATION WAS CREATED BY STATE STATUTE, ITS ORGANIZATIONAL GOVERNING DOCUMENTS ARE PUBLIC RECORD. THE CONFLICT OF INTEREST STATEMENTS ARE DISCLOSED AS AGENDA ITEMS AND MINUTES IN EACH GOVERNING COMMITTEE, COMMITTEE, AND SUB-COMMITTEE MEETING OF THE GUARANTY ASSOCIATION. THE FINANCIALS OF THE ORGANIZATIONS ARE MADE AVAILABLE TO THE PUBLIC IN THESE TWO MANNERS 1) THE ANNUAL FILING OF THE ORGANIZATION'S FORM 990, RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX, AND 2) THE APPOINTMENT OF A NON -VOTING PUBLIC PROPERTY AND CASUALTY INSURANCE AGENT TO THE BOARD OF DIRECTORS BY THE NORTH CAROLINA COMMISSIONER OF INSURANCE. THE AUDITED FINANCIAL STATEMENTS ARE PRESENTED TO THIS AGENT ALONG WITH THE REST OF THE BOARD OF DIRECTORS ON AN ANNUAL BASIS. FORM 990, PART XI, LINE 9: INCOME FROM PASSTHROUGH INVESTMENT 2,129. NORTH CAROLINA RATE BUREAU 4140 PARKLAKE AVE SUITE 320 RALEIGH NC 27612 561179542 INS RATE/RULES ADM NC 501(C)(6) N/A 0 NORTH CAROLINA REINSURANCE FACILITY 4140 PARKLAKE AVE SUITE 320 RALEIGH NC 27612 561051050 REINSURANCE NC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 NORTH CAROLINA RATE BUREAU P 3801419 FMV