Attach to Form 990 or 990-EZ.| Identifier | Return Reference | Explanation |
|---|---|---|
| PART VI, SECTION A, LINE 8B | THE AUDIT COMMITTEE IS THE ONLY COMMITTEE AND MEETS QUARTERLY BEFORE EACH BOARD OF DIRECTORS MEETING. THEIR MINUTES ARE TAKEN ORALLY AND THEN ADDED TO THE OFFICIAL MINUTES FOR EACH BOARD OF DIRECTORS MEETINGS. THEY ARE NOT HOWEVER AUTHORIZED TO ACT ON BEHALF OF THE GOVERNING BODY (BOARD OF DIRECTORS). | |
| PART VI, SECTION B, LINE 11B | I. Purpose of Form 990 Review Policy National Insurance Producer Registry is exempt from Federal Income tax as an organization described in Section 501 (c) (6) of the Internal Revenue Code ("NIPR"). As an exempt organization, NIPR must annually file the IRS Form 990. The purpose of this Form 990 Review Policy ("Policy") is to ensure that a substantive and independent review of the Form 990 is undertaken by NIPR's Audit Committee. The Form 990 is a comprehensive self-audit of NIPR's activities including, without limitation, its compensation arrangements, transactions with interested persons, transactions with related organizations and it requires disclosure of its governance framework, policies and procedures. The form is a public document so anyone who wishes to review the form must be permitted to do so and if anyone requests a copy, they must be provided one. II. General Policy It is the general policy of NIPR to have its Audit Committee conduct a substantive review of the Form 990 during its preparation by an outside accountant with the assistance of NIPR's counsel, officers and staff. The final version of the Form 990 shall be provided to all of the members of NIPR's Board of Directors before it is filed with the IRS. III. Procedures In accordance with its review function, the Audit Committee shall take the following actions: -Approve the Form 990 Preparer. -Carefully monitor the description of NIPR's purpose and activities reported on the Form 990 to ensure that the description provided accurately describes NIPR's purposes and activities and that the stated purposes and activities further the exempt purpose of NIPR within the meaning of Section 501 (C) (6) of the Code. -Ensure that the mission statement stated in the form 990 has been approved by the Board of Directors in a formal Board resolution. -Conduct a detailed review and analysis of the material tax and financial issues as well as disclosure issues raised by the Form 990. -Consult directly with the Form 990 Preparer and legal counsel, when appropriate, relative to any tax, financial or disclosure issues that are presented on the form. -After consideration and analysis of all of the material issues and after discussions with the Form 990 Preparer and legal counsel, forward the final version to the Board of Directors for its review and approval prior to filing. -Approve and distribute the annual questionnaire to officers, directors and key employees to acquire information on their respective family and business relationships, transactions with NIPR, potential conflicts of interest, and other information needed to answer various Form 990 questions and comply with NIPR's Conflicts of Interest Policy. | |
| PART VI, SECTION B, LINE 12C | THE ORGANIZATION HAS ITS Board of Directors and employees sign and submit annual questionnaires disclosing their potential conflict of interest. The board of directors forms are kept on file with the Executive Director. The employee forms are retained in the employee's personnel file in Human Resources. Newly signed forms are required annually. | |
| PART VI, SECTION B, LINE 15A & 15B | 15A: The NIPR has a formal executive compensation policy for the Executive Director including an annual performance review, comparabillity data, and review and approval by the Board of Directors. 15B: There are no officers or key employees other than the Executive Director compensated by the organization. | |
| PART I, LINE 1 & PART III, LINE 1 | NIPR is a unique public-private partnership that supports the work of the states and the NAIC in making the producer-licensing process more cost-effective, streamlined and uniform for the benefit of the regulators, the insurance industry and the consumers they protect and serve. | |
| PART III, LINE 4A | THE NIPR SUPPORTS THE MEMBERS OF THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS, A 501(C)(3) ORGANIZATION, THROUGH A SERVICES AGREEMENT, BY MAINTAINING THE NAIC'S STATE PRODUCER LICENSING DATABASE WHICH CONTAINS RECORDS REGARDING INSURANCE AGENTS AND OTHER SUCH PRODUCERS THROUGHOUT THE FIFTY STATES, THE DISTRICT OF COLUMBIA, AND ONE U.S. TERRITORY. THESE RECORDS ARE ACCESSED ELECTRONICALLY BY THE INSURANCE COMMISSIONERS OF ALL SUCH JURISDICTIONS AND THEIR STAFFS AND MAY BE EMPLOYED TO EXPEDITE THE PRODUCER LICENSING ACTIVITIES THEREOF. THE PRODUCER DATABASE MAY BE ACCESSED BY INSURANCE COMPANIES. IN ADDITION, THE GATEWAY FACILITATES THE PRODUCER LICENSING, APPOINTMENT, AND TERMINATION PROCESS BETWEEN STATE INSURANCE REGULATORS AND THE INSURANCE INDUSTRY. | |
| PART VI, SECTION C, LINE 19 | NIPR includes their annual audited financial statements in the annual report, which is posted to their website at www.NIPR.com. Governing documents and the conflict of interest policy are available upon request. | |
| SCHEDULE R, PART II | The National Association of Insurance Commissioners (NAIC) is an organization of the chief insurance regulatory officials of the 50 states, the District of Columbia, American Samoa, Guam, Puerto Rico, the U.S. Virgin Islands and the Northern Mariana Islands. Formed in 1871, it is the oldest association of state officials. The NAIC acts as a national standard setter and provides its members with national forums for discussing common issues and interests, as well as for working cooperatively on regulatory matters that transcend the boundaries of their own jurisdictions. Collectively, members work to develop model legislation, rules, regulations and white papers to coordinate regulatory policy. The overriding objective is to protect consumers and help maintain the financial stability of the insurance industry. The NAIC provides a wide range of services to support the work of its committees, the state insurance departments, state and federal officials and the public. The Association maintains three offices: the Executive Office, in Washington, D.C.; the Central Office, in Kansas City, MO; and the Securities Valuations Office (SVO) in New York, NY. | |
| PART VII, SECTION B, LINE 1 | DETAIL FOR INDEPENDENT CONTRACTORS PAID MORE THAN $100,000 | Vision Consulting 4801 Emercon Avenue, Suite 202 Palatine, IL 60067 Service: Computer Consulting Compensation: $323,294 MEGA Force LLC 12880 Metcalf Overland Park, KS 66213 Service: Computer Consulting Compensation: $237,912 |
| Part IX, Line 18 | Certain NIPR Board Members are state appointed or elected officials. NIPR Board Members are reimbursed for their travel expenses related to NIPR business. The instructions are not clear on whether expense reimbursements for those individuals should be reported on Part IX, Line 18. In the interest of full disclosure, we have included expense reimbursements for NIPR Board Members who are state officials. | |
| Part VI, Section A, Lines 6 & 7a | The National Association of Insurance Commissioners (NAIC) is the sole member of the NIPR. The NAIC appoints the regulatory members of the governing body of the NIPR. The NAIC does not have any voting rights. The members appointed by NAIC do have voting rights. | |
| Part XI, Line 5 | $1,414,893 represents NIPR's net unrealized gains. It is NIPR's policy to monthly adjust the securities held in their portfolio from the price that they paid to the current market price. This in turn creates an "unrealized" loss or gain that isn't truly a loss or gain until the security is sold. Until the time the security is sold, the gain or loss is only a "paper" loss or gain. Once the security is sold, the gain or loss will then be realized and become part of investment income. |
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