South Carolina Captive Insurance Association, Inc

SOUTH CAROLINA CAPTIVE INSURANCE ASSOCIATION, INC. Board of Directors’ Meeting Agenda March 5, 2012 – 10:00 AM Nelson Mullins, Columbia, SC

Present: Robert Johnson, Chair; Tom Brumgardt, President; Andrea Bartlett, Randy Collins, Mike Coulter, Margie Heggie, Chris Stormer and Laura Stuckey.

Teleconference: Jay Seibels, Gavin Foggon and Art Salvadori

1. Call To Order / Introductions Robert Johnson, Chairman The meeting was called to order at 10:05 AM and a quorum was established. 2. Review / Approval of Minutes The minutes of the December 5, 2011 and the January 12, 2012 Board meetings were reviewed. A motion was made and seconded to approve the minutes as presented. With all in favor motion passed. 3. Committee Updates a. Education Committee Gavin Foggon Gavin Foggon stated the information for the conference is being placed on the website as it is confirmed. Patrick Hickey, the 7 Summits of Life, has been discussed as the keynote at a cost of $4,000. The committee shall move forward with committing Mr. Hickey to do the keynote. We will need to market the fact that the proceeds from his honorarium will go to a scholarship fund. Marketing will also need to be done in coordination with the SCACPAs for the Captive Academy. Another potential keynote is Randolph Bresnick, a NASA astronaut who graduated with a bachelor’s degree from the Citadel. He does not require an honorarium but his room and travel will need to be covered if he comes. These expenses were both approved since the speaker budget is set at $7,500. b. Marketing Committee Art Salvadori Art Salvadori stated the committee is moving forward writing letters to the President of the SC Economic Developers’ Association and Jennifer Noel at the Department of Commerce in order to get an audience in front of local developers. The committee reviewed participation in RIMS and Captive Live and found the best possible marketing would be at the CICA. Postcards have been designed and mailed to all members, in addition to their distribution at this conference. Also, the conference has been placed on various calendars and LinkedIn group accounts, of which will continuously be monitored for their appearance. Emails have started going out to all members and will continue on a 3 week cycle until we get closer to the conference, at which time they will go out sooner. c. Membership Committee Laura Stuckey reported the membership committee has met and contacted each of the lapses to determine if they will be rejoining. The SCCIA Board would like to see what a new member basket would look like. In addition, there should exist a member prospect packet that includes the mission statement, committee charter information, a link to the website and any pertinent information happening at that time. The Board requested a matrix of new, renewed members and lapses with the reason why they chose not to renew. To bring attention to the new members or first time attendees, their nametags will have ribbons denoting their attendee type. In addition, at the annual conference there should be a host committee of captive owners to help show the new members, attendees around. d. Governmental Affairs This committee continues to work with the SCCIA lobby team to coordinate efforts within the Department of Insurance. The SCCIA is working towards a deputy director level person in charge of captives, however a director of DOI still has yet to be named. The legislation to be rewritten, reworded is still in the drafting subcommittee. The legislation should do more than just the incorporated cell language, but also take out the certificate of general good and expand special purpose captives. The Annual Economic Report to determine the fiscal impact of the captive industry in South Carolina should b completed for this year. In addition, monitoring should be done of the NAIC website as it relates to captives, special purpose captives, etc. SCCIA Board should be kept informed of any NAIC industry updates. Discussion ensued on the value of possible position papers on Dodd-Frank and other issues relevant to captives. There may be some items that are suited for inclusion in the journal and some that may need immediate action so it can be a value to the membership. For those more immediate items, emails should be sent with this information. To help further define the Government Affairs Committee, their responsibility shall be to determine an expert (preferably within the membership) who can write a synopsis of a finding, such as Dodd-Frank, to then be put in the Journal or sent via email. Items should be kept short, and should not be an opinion or offer advice. e. Other As the association moves forward, there needs to be defining of roles for the committees. Now the association has 5 committees; repurposing the Education Committee as a way of bringing in trainings and webinars; the Annual Conference Committee (which was the Education Committee), and the Marketing, Membership and Government Affairs Committees. Ms. Stuckey will request of each committee chair to define their roles and responsibilities in order to develop charters for each of the committees. Draft committee charters should be sent to the SCCIA Board on May 1, 2012 for review. 4. The Friendly Society Restored, LLC Jay Seibels explained the partnership idea between the USC Darla Moore School of Business, TFSR and SCCIA. Students going through the program would potentially work during the summer doing research within the captive industry. The Board discussed the positives of having a relationship with the Darla Moore School of Business, but also would like to know how effective this will be for the captive industry. Many programs like this expect a percentage to be hired once the students graduate so further questions would need to be answered. More information is needed on marketing perspectives, committing on an unknown expectation but it can be an added value for the industry. The Board would like for Jay to move forward in finding out more information. Robert Johnson motioned to open two registrations for the Captive Academy to the program, with no requirement on who attends. The motion was seconded by Margie Heggie and with all in favor motion passed. Mr. Seibels will relay this information to the appropriate people and find out more information for the next meeting. 5. Education Committee Tom Brumgardt stated he has tried to contact Alicia Smith McCrory and Jocelyn Lyman as potential chairs for the re-established Education Committee. The purpose of this committee is to put together webinars (nationally), trainings, etc. for the purpose of educating the members. With the impending naming of a new Director for the SC Department of Insurance, an AM Best presentation should be developed for informational purposes. The committee needs to have members and names that were mentioned included Ann West, Dan Hughes and John Whetsel. Ms. Stuckey will send out an email to membership asking for volunteers to serve on the Education Committee. 6. Financial Report Andrea Bartlett The FY11 Year End Financials were reviewed along with the proposed budget for FY12. There was some discussion on the dues, etc. Chris Stormer motioned to approve the FY12 budget as presented, seconded by Mike Coulter. With all in favor motion passed. The current financials were reviewed. 7. CIPAC Update A list of approved contributions through CIPAC was distributed. The report shows checks were delivered to Governor Haley, Chairman Bill Sandifer and Ms. Stuckey is to research the delivery of the check to House Speaker Bobby Harrell. The guidelines for contributions was distributed and it was noted that the CIPAC Board needs to meet. 8. New / Other Business SC Department of Insurance Discussion ensued on the current state of the SC Department of Insurance while Gwen McGriff is serving as the Interim Director. The SCCIA would like to focus on having a deputy director level position within the SCDOI whose sole job is the oversight of the captive industry. Scenarios included having a meeting with Governor Haley and if so, would we want to mention possible names, or should it go through the current Interim Director. Richard Davis could also discuss some of the issues with Ted Pitts, a member of Governor Haley’s staff. Any regulator should be acutely aware of the insurance programs and be able to accurately communicate the different programs and benefits. Tom Brumgardt will discuss with Richard Davis and report back to the SCCIA Board on a possible strategy. 9. Next Meeting Date The SCCIA Board determined the dates for the 2012 Meetings. June 18, 2012 at 11:00 AM in Charleston, SC September 19, 2012 in Charleston, SC December 3, 2012 in Columbia, SC 10. Adjournment The meeting was adjourned at 2:40 PM.