North Carolina Association of Life Underwriters

NAIFA NORTH CAROLINA BOARD OF DIRECTORS

DATE: February 5, 2014

MEMBERS PRESENT:

Mark Griffin, President Ed Mullis, Member-at-Large Bill Gribble, Secretary Todd Grantham, Member-at-Large Matt Stone, Treasurer Terry Gaither, Member-at-Large Fred Joyner, National Committeeman Jim Coviello, Immed. Past President John Nee, Member-at-Large Bill Gribble, President of NCIFAF Ken Morgan, Executive Director

Absent: Paul Farr, President-elect; Rhonda Cobb, Member-at-Large; Fran Albritton, Member-at- Large

Guests:

MINUTES:

The meeting was called to order at 10:15 AM by President Mark Griffin with invocation by Jim Coviello.

Minutes of Last Meeting MOTION by Joyner, SECONDED by Grantham, and APPROVED the minutes of the September 18, 2013 meeting.

Action Between Meetings: NONE

Treasurers Report Treasurer Matt Stone reviewed the tentative Balance Sheet Comparison for Assets and Liabilities for 1-21-14 compared to 1-21-13; the Account Comparison for Assets and Liabilities for 1-21-13 compared to 1-21-14; the Income and Expense comparison for 7-1-13 to 1-21-14 compared to current year for same period; and actual compared to budget for FY 2013-2014. Current year income is the same as last year. Expenditures for the first six months are down by $23,598.

Treasurer Matt also reported that the Finance Committee had voted to move $5,000 from the Local Account to the General Fund.

MOTION by Gribble, SECONDED by Nee, and APPROVED receipt of the Treasurer’s Report.

1 Report of National Committeeperson The 2014 NAIFA Convention will be September 6-8 in San Diego, California. The meeting will adjourn following voting on Monday at 5:00 PM .

Fred then discussed federal and state legislative issues. Their will be a committee of the NC General Assembly reviewing the impact of ACA on North Carolina. Jeff Collins is serving as Co-Chair of the committee and has requested information on any experiences as an agent. Fred requested that members share the information with him and he will develop a summary for the committee.

NAIFA is determining its position on the issue of “automatic revocation of insurance license on revocation of securities license.” Fred will keep the Board informed on the issue.

There are several other legislative issues currently being monitored by the NAIFA Government Relations Committee.

Ed Mullis reported that 25 from North Carolina have registered for the Congressional Conference in May.

OLD BUSINESS: NONE

NEW BUSINESS

Approval of Lease Agreement and Management Contract MOTION by Gribble, SECONDED by Grantham, and TABLED the approval of the Management Contract and the Lease Agreement.

NAIFA Insurance Program Effective April 1, 2014, NAIFA will no longer provide General Liability Coverage to the states and locals. NAIFA North Carolina has coverage through Erie Insurance. Mark Rice is the agent of record for the association.

MOTION by Coviello, SECONDED by Grantham, and APPROVED that NAIFA North Carolina does not have funds available to provide general liability coverage to all the Locals and that it will be up to each Local to determine if they need coverage.

Report of President Elect Ken Morgan reported on the plans for the 2014 Convention on June 24. Commissioner Goodwin, and NAIFA Trustee Matt Huntington will be with us for part of the Convention. The Board agreed that the sleeping room should be paid for any Board member traveling over 50 miles to attend the Annual Meeting.

2 Report on 2014 Symposium Ken Morgan reported on the 2014 Symposium and the need for additional ticket sales. Members of the Board were encouraged to make contacts for potential sales.

Report of Membership Chairman Jim Coviello, Chairman of the Membership Committee reported on the current membership status. We continue to have a decline in membership and Jim emphasized the need for all Board members to assist with recruitment.

Foundation Report Bill Gribble, President of the Foundation reported on Foundation activities. Everyone was encouraged to sell their raffle tickets. Foundation scholarships for 2014 are directly related to the number of tickets sold for the raffle.

PAC Committee Todd Grantham reported on PAC Committee activities for the past year. Our total income for 2013 was $68,574 with only 293 members contributing to PAC.

Review of Committee Minutes: MOTION by Gribble, SECONDED by Joyner, and APPROVED the minutes of the Finance Committee, September 17, 2013 Gov Relations & PAC Committee, November 6, 2013 Finance Committee, January 23, 2014

Discussion of Future Operations As a follow up to the motion made at the September 2013 meeting requesting that an ad-hoc committee study ideas, options, and viability of NAIFA North Carolina, the president agreed to have the full Board discuss the issue at this meeting.

The Board reviewed data on membership, revenue, and current operations. Discussions on the feasibility of continuing to rent space from the Foundation was also discussed and the potential impact of the 501c3 status of the Foundation. Following extensive discussions, the following actions were approved.

MOTION by Joyner, SECONDED by Coviello, and APPROVED to discontinue the annual Financial Symposium after the 2014 event.

MOTION by Grantham, SECONDED by Nee, and APPROVED to recommend a $10 state dues increase effective January 1, 2015 to partially offset the loss of income from the Symposium

3 MOTION by Gribble, SECONDED by Coviello, and APPROVED that the current “sense of the Board” is that it is important to continue operations of the state office with a captive staff and to further investigate the tax issue involving the condo owned by the Foundation.

MOTION by Grantham, SECONDED By Gaither, and APPROVED that the Board is open to discussions with Locals on the benefits of consolidation and merger where the local feels it is appropriate. Any actions would be at the request of the Local.

Report of Executive Director: Ken Morgan reported on upcoming meetings scheduled with First Command in Fayetteville, and with the leadership of NAIFA Blue Ridge. He also reported that he attended the recent meeting of the NAIFA Board of Directors in Falls Church.

Report of President: Mark Griffin thanked everyone for attending and for their participation in the difficult decisions on the future operations of the state.

The meeting adjourned at 2:40 PM.

______Mark Griffin Bill Gribble Ken Morgan President Secretary Executive Director

Bdmn1402