Sheraton Yankee Trader
Ft. Lauderdale, Florida
January 27th through January 29th, 2008
Click here for registration
Who
is The National Catholic Risk Retention Group?
Click
here to view the Company's
2006 Annual Report, which includes our financials.
Background—The Company was conceived in
1985, licensed in 1987, and commenced operations June 30, 1988, in
response to a commercial insurance market instability which had resulted
in limited availability of coverage, limited underwriting capacity, and
unjustified premium increases.
National Catholic is owned and ultimately managed by its
Shareholders. Company policies are therefore established by Shareholders
for the benefit of Shareholders.
The Company currently has 67 Shareholders consisting of 66
archdioceses and dioceses and one risk pooling trust.
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Shareholder Benefits and Services—In
addition to providing an efficient and effective mechanism for transfer
of risk, National Catholic provides other valuable services to
Shareholders.
For many years, the Company has sponsored a two-day Winter
Meeting, which is open to Shareholders as well as all interested
diocesan or Church personnel. This meeting involves a Company business
meeting plus several risk management related seminars, which are
presented by outside experts. It is anticipated that the Winter Meeting
will not only be continued, but may be expanded in the future.
Also, each year, in conjunction with the Diocesan Fiscal
Management Conference (DFMC), the Company has sponsored an Annual
Shareholders’ Meeting at which Shareholders elect certain Directors
and present issues and concerns to Officers, Directors or staff.
Additionally, as part of the DFMC, the Company has sponsored an exhibit
attended by staff, which is intended to disseminate information and
materials describing National Catholic activities, programs and
services.
The Company provides on-site risk control and litigation
planning and management consultation services and, also, comprehensive
loss prevention and loss control services via its VIRTUS® program.
VIRTUS® elements include publications, audio/video training, web-based
training and, eventually, on-site training and “train the trainer”
programs.
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Company Strategic Action Plan—The
Company’s Strategic Action Plan is reviewed and approved annually by
the Board. It establishes the following long-term goals for the National
Catholic Risk Retention Group, Inc.:
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To provide the Church with innovative risk management solutions.
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To expand our Shareholder and client base and enhance their satisfaction level.
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To ensure financial stability through growth, organizational efficiency, and cost effectiveness.
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To comply with all legal, regulatory, professional and ethical standards.
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To take a leadership role in promoting collaborative alliances.
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To promote risk management policies within Shareholder and client
organizations.
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Executive Oversight—Company operations are directly
supervised on a day-to-day basis by an employed, full-time President and
CEO who reports to the Board of Directors. The Chairman of the Board
presides over meetings of the Board of Directors, which consists of 11
members, each of whom is elected by Shareholders to serve a three-year
term. Each current Director represents a Shareholder diocese or risk
pooling trust.
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Internal Staff—The Company has seven full-time
employees, including:
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Michael J. Bemi—President and CEO
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Sandra M. Barutha—Director of Underwriting
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Steve Henne—Director of Claims Management
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Standing Committees—The Board of Directors has
established the following standing committees to review various aspects
of Company operations and to submit appropriate recommendations to the
Board.
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Outside Professional Service Providers—
Actuary
Milliman, Inc.
Auditors
Johnson Lambert & Co.
Captive Manager
Champlain Captive Management, Inc.
Investment Consultant
Ennis, Knupp & Associates
Investment Managers
Baird Advisers
State Street Global Advisers
Corporate Counsel
Downs Rachlin & Martin, PLLC Burlington, VT
Coverage Counsel
Vandeveer Garzia PC, Troy, MI
Brokerage Consultants
HRH
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Outside Consultants—Outside consulting expertise is
utilized when deemed to be advantageous and necessary, in areas such as
strategic planning, reinsurance, and computer services.
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State Regulation—National Catholic is domiciled
in the state of Vermont and operates under the regulation of the
Department of Banking, Insurance, Securities and Health Care
Administration of the state of Vermont. As a risk retention group
established under the federal Liability Risk Retention Act, Company
business is subject primarily to regulation by the state of Vermont and
is subject to only limited oversight in other states in which it is
registered.
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Federal Income Taxation—The Internal Revenue
Service has ruled that the Company is exempt from federal income tax as
an organization described in Section 501(c)(3) of the Internal Revenue
Code. The Service has also ruled that the Company is a public charity
under Section 509(a)(3) of the Code and not a private foundation.
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Confidential Offering Memorandum—National
Catholic is authorized to issue insurance
only to its Shareholders, pursuant to the federal Liability Risk
Retention Act. Eligible Catholic archdioceses, dioceses, risk pooling
trusts, and other Catholic organizations must review the Company’s
Confidential Offering Memorandum and, if eligible for insurance
coverage, must execute a Participation Agreement and purchase stock in
the Company prior to issuance of insurance coverage.
This is neither an offer to sell nor a solicitation of an
offer to buy the stock or the insurance issued by National Catholic.
Such an offer is made only by the Confidential Offering Memorandum,
which contains important information concerning the required investment
and the insurance and should be read carefully. The Memorandum explains
various risk factors associated with the purchase of stock and insurance
from the Company, and provides further information with regard to
insurance regulation, terms of participating, federal income taxation,
and other matters.
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Program
Summary—The
National Catholic Risk Retention Group, Inc. is a licensed insurance
company domiciled in the State of Vermont, operating as a risk retention
group pursuant to the federal Liability Risk Retention Act. It was
incorporated on August 12, 1987, and began formal operations on June 30,
1988. National Catholic now operates in 25 states and the District of Columbia and is authorized to
write liability insurance in all 50 states subject to the requirements
of the federal Liability Risk Retention Act. National Catholic insures a
multitude of exposures for the Catholic Church throughout the country.
Underlying insurance programs are provided variously through local
insurance agents, national brokers, insurers, and self-insurance
programs.
National
Catholic provides a basic program of $750,000 excess of $250,000 (either
insurance or a self-insured retention) Excess Liability coverage on
either a claims-made or on an occurrence policy form as determined by
the participant, with alternate retention limits available. The program
includes the following coverages: General Liability, Personal Injury,
Automobile Liability, Directors’ & Officers’ Liability, School
Board Legal Liability, Counseling Errors & Omissions, Limited
Professional Healthcare Services Liability, Employee Benefits Liability,
Contractual Liability, Employment Practices Liability, Diocesan Review Board Coverage, and Sexual
Misconduct. The claims-made format includes an automatic “mini-tail”
provision along with an optional 5-year Supplemental Extended Reporting
Period. Full Prior Acts Coverage, except for Sexual Misconduct, is
available for participants who may wish to convert from a claims-made to
an occurrence form.
National
Catholic shareholders each maintain their own anniversary-expiration
date for coverage. National Catholic also offers a $9,000,000
excess of $1,000,000 Excess Liability. This program follows form with the underlying National Catholic coverage
with the exception that it does not automatically include Directors' & Officers' Liability or Sexual Misconduct
Limited coverage; however, these coverages may be quoted contingent upon a specific underwriting analysis.
National
Catholic participates in an Excess of Loss Treaty Agreement with
American Re-Insurance Company, which is rated A (Excellent) XV, Hanover Re, which is rated A (Excellent) XV, Liberty Syndicate 4472 rated A (Excellent) XV and Odyssey Re, which is rated A (Excellent) XV in the 2005 edition of Best's Insurance Reports.
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