North Carolina Self Insurance Security Association

What it reported doing in 2024

Pursuant to the 2006 and 2011 statutory amendments, the association expanded its program services to include the purchase of financial guarantees, insurance, reinsurance or other instruments to collectively secure all outstanding individual member self-insurer workers' compensation liabilities based upon actuarial reports provided by each member self-insurer. In accordance with its statutory mandate, the association may annually implement an alternative security program known as the association aggregate security system (aass) the aass provides for a portfolio based program which replaced individual statutory deposits posted by member self-insurers based on their workers' compensation liabilities, which was also required as a condition of receiving a North Carolina license to self-insure by the North Carolina department of insurance.. For the portfolio based program in order to protect all member self-insurers, the aass may use a combination of the security fund, financial guarantees, insurance policies or other instruments which are purchased by the association.as of december 31, 2024, the association had coverage through a three-year insurance policy which covered all participating member self-insurers in the aass as of december 1, 2022, and will remain in effect through november 30, 2025. The annual costs of the aass include the insurance policy as well as design and implementation which are paid from the aass assessments of participating self insurers as determined by the association board of directors. Aass assessments are based on the credit worthiness of participating self insurers and their pro-rata share of the aggregate outstanding workers' compensation claims liabilities. The association is authorized to monitor the credit worthiness of each participating member self-insurer and engages in financial evaluation of each participant in the 2024-2025 aass. Although member group self-insurers do not participate in the aass, the association is required to pay covered claims incurred against insolvent group self-insurers in accordance with its statutory mandate therefore, the association has discretion to conduct a separate assessment of group self insurers.

Financial Efficiency

• Mission deployment rate: Limited
• Program expense ratio: Limited
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: Limited
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Limited
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 6 of 7 controls in place; rating input score 86
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: NotApplicable
  • Other executive compensation review process: NotApplicable
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Missing
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 77.2%; rating input score 97; 97th percentile among comparable filings
• Total-asset coverage ratio: 54.91; rating input score 99; 99th percentile among comparable filings
• Liabilities to assets ratio: 0.22; rating input score 42; 42nd percentile among comparable filings
• Officer compensation ratio: 0%; rating input score 91; 91st percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: -2% per year; rating input score 0; 6th percentile among comparable filings
• Asset growth: 5.1% per year; rating input score 100; 35th percentile among comparable filings