Attach to Form 990 or 990-EZ.
Go to www.irs.gov/Form990 for the latest information.
| Return Reference | Explanation |
|---|---|
| FORM 990, PART VI, SECTION A, LINE 2 | TWO MEMBERS OF THE NIPR BOARD OF DIRECTORS HAVE A BUSINESS RELATIONSHIP WITH EACH OTHER BECAUSE THEY ARE ALSO MEMBERS OF THE NAIC EXECUTIVE COMMITTEE WHICH SERVES AS THE GOVERNING BODY OF THE NAIC AND MANAGES ITS BUSINESS AND AFFAIRS. THE TWO MEMBERS ARE THE HONORABLE LORI WING-HEIER AND THE HONORABLE LARRY DEITER. |
| FORM 990, PART VI, SECTION A, LINE 6 | 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 THE NAIC DO HAVE VOTING RIGHTS. |
| FORM 990, PART VI, SECTION A, LINE 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 THE NAIC DO HAVE VOTING RIGHTS. |
| FORM 990, PART VI, SECTION A, LINE 8B | THE AUDIT COMMITTEE MEETS AT LEAST THREE TIMES A YEAR AND THE INVESTMENT COMMITTEE MEETS ON AN AS NEEDED BASIS. BOTH OF 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). |
| FORM 990, PART VI, SECTION B, LINE 11B | NATIONAL INSURANCE PRODUCER REGISTRY ("NIPR") IS EXEMPT FROM FEDERAL INCOME TAX AS AN ORGANIZATION DESCRIBED IN SECTION 501(C)(6) OF THE INTERNAL REVENUE CODE. 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 WITH 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 PURPOSES 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 PURPOSES 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 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 CONFLICT OF INTEREST POLICY. |
| FORM 990, 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 GENERAL COUNSEL. THE EMPLOYEE FORMS ARE RETAINED IN THE EMPLOYEE'S PERSONNEL FILE IN HUMAN RESOURCES. NEWLY SIGNED FORMS ARE REQUIRED ANNUALLY. |
| FORM 990, PART VI, SECTION B, LINE 15A | 15A: NIPR HAS A FORMAL EXECUTIVE COMPENSATION POLICY FOR THE CHIEF EXECUTIVE OFFICER INCLUDING AN ANNUAL PERFORMANCE REVIEW, COMPARABILITY DATA, AND REVIEW AND APPROVAL BY THE BOARD OF DIRECTORS. 15B: THERE ARE NO OFFICERS OTHER THAN THE CHIEF EXECUTIVE OFFICER COMPENSATED BY THE ORGANIZATION. KEY EMPLOYEES HAVE AN ANNUAL PERFORMANCE REVIEW PERFORMED BY THEIR IMMEDIATE SUPERVISOR. |
| FORM 990, 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. |
| FORM 990, PART XII, LINE 2C | THE PROCESS FOR AUDITING THE FINANCIAL STATEMENTS HAS NOT CHANGED FROM PRIOR YEARS. |
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