| Return Reference | Explanation |
|---|---|
| Form 990, Part VI, Section A, line 3 | Due to the nature and complexity of the Association's operations, areas of management and administration may be contracted out to qualified third-party service providers. Accordingly, and for this reporting period, the Association engaged APM Management Services, Inc. to maintain the Association's member database and to administer the Association's member assessments. The Association compensated APM Management Services $22,800 for these services. (Such amounts are also shown on this Form 990, Part IX, Line 11a.) Furthermore, during this tax year, the Association engaged and compensated Robert Burke ($86,500) and Carla Lawrence ($37,200) to serve as the organization's Administrator and its Secretary and Assistant Treasurer, respectively. These engagements represent contractual arrangements with third-parties to provide services on behalf of the Association which would customarily be performed by Officers of the organization. Therefore, both Robert Burke and Carla Lawrence have been deemed "Officers" on this Form 990, Part VII. As the administration of the Association's assessments and member database is a central function and core operating priority of the Association and its exempt purpose, and because Mr. Burke and Ms. Lawrence function as engaged Officers on behalf of the Association, this Form 990, Part VI, Line 3 has been marked "Yes, and this additional information has been provided for clarity and transparency purposes. |
| Form 990, Part VI, Section A, line 6 | The Vermont Life & Health Insurance Guaranty Association is a statutory entity created in 1971 when the Vermont legislature enacted the Vermont Guaranty Association Act. The Association is composed of all insurers licensed to sell life insurance, accident and health insurance, and individual annuities in the state of Vermont. Given the history and nature of the Association, there exist different treatments of membership relative when a member-insurer joins the Association, or, conversely, ceases to be an admitted member. - Insurers which were admitted as of April 28, 1972, to transact the kinds of insurance covered by the Vermont Life and Health Insurance Guaranty Association Act in the State of Vermont, shall be members of the Association. - Each insurer admitted after April 22, 1972, to transact the kinds of insurance covered by the Vermont Life and Health Insurance Guaranty Association Act, shall automatically become, effective on the date of its admission, a member of this Association. - An insurer which ceases to be admitted after April 28, 1972, shall automatically cease to be a member effective on the day following the termination or expiration of its license to transact the kinds of insurance covered by the Vermont Life and Health Insurance Guaranty Association Act. However, such insurer shall remain liable for any assessments based on impairments occurring prior to a termination of its license. Such insurer shall also be entitled to a refund of all or part of any assessments which were made prior to termination of its license which later proves to be excessive. |
| Form 990, Part VI, Section A, line 7a | The Association is composed of all insurers licensed to sell life insurance, accident and health insurance, and individual annuities in the state of Vermont. Member insurers may therefore impose rights and responsibilities upon the Association's Board composition and election procedures. Primarily, the Association hosts an annual meeting whereby member insurers shall hold an election for the Association's Board of Directors. The Board itself must be composed of no less than seven, nor more than eleven, representatives of the member insurers. (Member insurer representation should be divided as equally between the membership classes as possible.) However, the Board of Directors elects themselves, among the Board Directors, those individuals to serve as officers of the Association. |
| Form 990, Part VI, Section A, line 7b | The Association is composed of all insurers licensed to sell life insurance, accident and health insurance, and individual annuities in the state of Vermont. Member insurers may therefore impose rights and responsibilities upon the Association's governance and operating decisions. - The provisions of the Association's Articles of Operation may be amended or repealed by the member insurers, provided however that no amendment or repeal of such provisions shall adversely affect the rights of a person or entity entitled to indemnification under the Articles with respect to acts or omissions occurring prior to such amendment or repeal. - Member insurers also retain the right to appeal against the Association and the Board of Directors for grievances or perceived damages as a result of the Association's administration and management of claims and funds. - Member insurers reserve the right to object the Association's determinations of indemnification. - Member insurers may constitute representatives and participants in the Association's various committees, such as the audit committee, which are involved with the Association's claim and fund administrative functions. - Member insurers may be involved in lending or assessment decisions or actions of the Association. |
| Form 990, Part VI, Section A, line 8b | The Association does not contemporaneously document Board committee meetings; given the size of the Association and its documentation practices for its full Board meetings, it is not deemed necessary to keep minutes for committee meetings, if and when they occur. Notes and support for any governance or organizational decisions are provided and circulated among the full Board when appropriate. |
| Form 990, Part VI, Section B, line 11b | The Association engaged Baker Newman & Noyes ("BNN"), an independent certified public accounting firm, to audit its financial statements and to assist in the preparation and filing of its annual Form 990 for this tax year. BNN prepared a draft of the Form 990 based on both information provided directly from the Association and as available in the Association's audited financial statements. A drafted copy of the Form 990 tax return was then provided to the Association's Board its own review and approval prior to the tax return's filing with the IRS. |
| Form 990, Part VI, Section B, line 12c | The Board of Directors of the Vermont Life & Health Insurance Guaranty Association, hereinafter referred to as the "Association", requires high ethical standards from its Board of Directors and others who are working on Association business. Accordingly, all Board members are expected to understand and comply with the Association's conflict-of-interest policy and its code of conduct, which requires the following: 1. Association representatives may not accept gifts, favors, or bribes that may influence the decisions or policies of the Association. 2. Association representatives may not use their position to derive personal monetary or economic benefits or gains, including the inappropriate or unauthorized use of nonpublic information. 3. All Association representatives are expected to immediately and fully disclose any interests or matters which might represent a conflict of interest. 4. Association representatives should never engage in unlawful, improper, or unethical conduct. 5. Association representatives who become aware of a potential conflict or violation should report the facts-and-circumstances to the Board. Failure to comply with the conflict-of-interest policy may result in adverse actions such as limitation of terms, censure, removal from the Board, or legal action if deemed warranted. The conflict-of-interest policy is communicated to all applicable Association representatives, and such persons are required to read, understand, and agree to be bound by the policy's provisions. |
| Form 990, Part VI, Section B, line 15 | Compensation paid to third-parties or contractors engaged to function as officers, administrators, managers, or to fulfill other similar executive functions is subject to the review and approval of the Association's Board of Directors. Such compensation arrangements are agreed upon and formalized by contract, subject to rates and fees that are deemed reasonable and necessary given the services offered and the needs of the Association. Members of the Board shall serve without compensation, but they may be reimbursed for reasonable travel expenses, upon submission of a statement thereof. |
| Form 990, Part VI, Section C, line 19 | The governing documents, conflict of interest policy, and financial statements are made avaialble to the public upon request to the extent required by applicable law. |
| Form 990, Part XI, line 9: | 481(a) Adjustment -1,496,761. |
| Form 990, Part XII, Line 1: | For the year ending December 31, 2025, the Association changed its accounting method from accrual to cash. This change in accounting method is reflected both in the Association's 2025 Form 990 tax return filing, as well as within its audited financial statements for the same reporting period. |
| Form 990, Part XII, Line 2c: | For its year ending December 31, 2025, the Association engaged Baker Newman & Noyes, an independent certified public accounting firm, to audit its financial statements and to assist in the preparation and filing of its annual Form 990. Baker Newman & Noyes was not engaged by the Organization prior to this filing period. Accordingly, the engagement with Baker Newman & Noyes represents a change in audit procedures and processes. However, the audit was subject to the same oversight and review procedures by the Organization as was done with the predecessor firm. |
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