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Who is The National Catholic Risk Retention Group?
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 62 Shareholders
consisting of 61 archdioceses and dioceses and one risk pooling trust.
(Updated
Wednesday, May 12, 2004
) (return to list at top of page) 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. (return to list at top of page) 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.:
(return to list at top of page) 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. (return to list at top of page) Internal Staff—The Company has five full-time
employees and three part-time employees, including:
(return to list at top of page) 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.
(return
to list at top of page) Outside Professional Service Providers—Arthur
J. Gallagher & Company, Itasca, Illinois, provides ongoing general
insurance industry and market consulting services. SB & T Captive
Management Company, Burlington, Vermont, manages the day-to-day state
regulatory and internal accounting functions of the Company. Milliman
& Robertson, Inc., Wakefield, Massachusetts, acts as the
Company’s independent actuary. Corporate Counsel is Downs Rachlin
& Martin, PLLC, Burlington, Vermont, and Coverage Counsel is
Vandeveer Garzia PC, Detroit, Michigan. (return to list at top of page) Outside Consultants—Outside consulting expertise is
utilized when deemed to be advantageous and necessary, in areas such
as strategic planning, reinsurance, and computer services. (return to list at top of page) 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. (return
to list at top of page) 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. (return to list at top of page) Confidential Offering Memorandum—National
Catholic is authorized to issue insurance 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. (return to list at top of page) 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 22 states 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 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 additionally offers a $4,000,000
excess of $1,000,000 Excess Liability program and also a $9,000,000
excess of $1,000,000 Excess Liability program to participants who are
in the basic program. These programs generally follow form with the
underlying National Catholic coverage with a few exceptions. National Catholic participates in an Excess of Loss Treaty Agreement with Munich-American RiskPartners, which is rated A++ (Superior): XV in the 2001 edition of Best’s Insurance Reports. (return to list at top of page)
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