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 Bill Number

 Title           AMEC Captive Insurance Company

 Reference       Part VII, Section IH, Pages 169-171

 Intent          To create a new business structure
                 to more adequately serve the
                 insurance needs of the African
                 Methodist Episcopal Church

 Rationale       The existing insurance
                 services underwritten by
                 secular insurance providers
                 fail to meet the protective
                 needs of the Church and provide
                 no potential for financial
                 opportunities that may directly
                 benefit the Church.




 CURRENT TEXT: Delete Current Text


 AMENDED TEXT:

1    Part VII, Section IH, Pages 169-171

2    The African Methodist Episcopal Church Captive Insurance Company, formerly

3    incorporated as “The Connection Insurance Company” hereinafter referred to as “The

4    Company” is incorporated under the governing insurance laws of the state of Hawaii and

5    registered as a nonprofit Class 2 insurer/reinsurer of both general and long term business

6    under the Hawaii Insurance Commissioner (“Commissioner”) with a minimum

7    contributed capital of $250,000. The African Methodist Episcopal Church is the sole



 Proposal for Legislation—AME Church     Office of the General Secretary/CIO.   Updated 9/24/07   Page 1 of 5
 8   owner and member of the Company. The Company is a distinct and separate entity of the

 9   African Methodist Episcopal Church, administered by a separate, uncompensated Board

10   of Directors as approved by the General Conference and shall be engaged in, but not

11   limited to, the insurance underwriting of all “Church” properties deeded, owned or

12   operated through or by Church corporations, schools and land assets in trust to the

13   African Methodist Episcopal Church, Incorporated, whenever and wherever applicable.

14   The Company shall have, by this legislation, the participation of all of these properties

15   provided that the rate of premium is competitive and the insurance product provided is

16   comparable through the functioning of properly licensed and acceptable insurance “sub

17   agents”, located in the respective Presiding Elder and Episcopal Districts. Participation,

18   by this legislation, shall be confirmed by, recorded on and included in each Pastoral

19   Report to the Annual Conference as a separate line item entry and shall include the

20   amount of insurance coverage in effect and the cost of premium for said coverage so as to

21   maximize the business potential for the financial benefit of the Connectional Church and

22   protection of all related property assets. The Company shall offer and underwrite other

23   lines of insurance products as deemed beneficial and appropriate by the Board of

24   Directors of The Company. The maximum liability of The Company for claims shall be

25   established by its Board. All net revenue earned after the payment of claims and in excess

26   of required and prudent levels of capital reserves and organizational and operating

27   expenses shall be retained in The Company or distributed (subject to approval of the

28   Commissioner) entirely to and for the benefit of the African Methodist Episcopal Church

29   and its duly established component organizations on a percentage basis as determined by

30   the Board of Directors of The Company.




     Proposal for Legislation—AME Church   Office of the General Secretary/CIO.   Updated 9/24/07   Page 2 of 5
31   The Company shall comply with all Hawaii statues and regulations governing the

32   operation of a Class 2 captive insurance company, including without limitation, all

33   provisions relating to investments of capital and surplus reserves. The Company shall

34   comply with all annual and other filing regulations imposed upon Class 2 captive

35   insurance companies by Hawaii law, including without limitation, the following which

36   are due on or before the last day of the sixth month following the end of The Company’s

37   fiscal year end:

38       a. Financial statements audited by an independent certified public accounting firm

39           approved by the Commissioner and the Audit Committee of The Company’s

40           Board; and

41       b. a statement of actuarial opinion approved by the Commissioner and The

42           Company’s Board, regarding the year end loss and loss expense reserves.

43   The Company shall provide an Annual Report to the AMEC General Board which shall

44   be included in and a part of the Annual Report submitted to each meeting of the AMEC

45   General Board by the Commission for Annuity Investments and Insurance and the

46   Executive Director of the Department of Annuity Investments and Insurance.

47   In accordance with the Hawaii Revised Statutes (HRS), The Company shall maintain, at

48   its registered office in Hawaii, a copy of all books and records. The registered agent for

49   The Company in Hawaii is Christina Kamaka of AON Insurance Managers (USA) Inc.,

50   and its registered office in Hawaii is located at 201 Merchant Street, Suite 2400,

51   Honolulu, Hawaii 96813.

52   The Company is controlled by its Board, which is comprised of two (2) ex officio

53   representatives of the Church who hold              the position of Executive Director of the




     Proposal for Legislation—AME Church   Office of the General Secretary/CIO.   Updated 9/24/07   Page 3 of 5
54   Department of Annuity Investments and Insurance and the Chairman of the Commission

55   for the Department of Annuity Investments and Insurance respectively, and at least one

56   (1) but no more than five (5) other voting directors who do not hold a leadership position

57   in the Church (but who may otherwise be affiliated with the Church in a membership

58   capacity), and two (2) nonvoting directors who are affiliated with Dickerson Employee

59   Benefits and the Captive insurance managers, respectively. The Board of The Company

60   shall have ultimate authority to manage The Company and to take any such actions as

61   necessary to maintain and ensure a fiscally sound and viable business consistent with the

62   requirements of Hawaii law and the approved business plan of The Company. The Board

63   of The Company may appoint standing and advisory committees, and professional

64   service providers, and elect officers to assist in the oversight and sound operation of The

65   Company.

66   Subject to The Company’s Bylaws, the Board of The Company may, in its sole

67   discretion, declare distributions, which shall be made to and for the exclusive benefit of

68   the Church, in the form of cash, policyholders’ dividends, premium holidays, risk

69   management grants and specific initiatives that improve and enhance the effectiveness of

70   the mission of the Church. The distributions, when made available and after repayment of

71   the organizational expenses, shall be allocated to and for the exclusive benefit of the

72   African Methodist Episcopal Church as follows:

73       (1) Benefits to Local Churches (30%)

74       (2) General Church Treasury (10%)

75       (3) General Church Endowment & Contingency (20%)

76       (4) Connectional Lay Organization (5%)




     Proposal for Legislation—AME Church   Office of the General Secretary/CIO.   Updated 9/24/07   Page 4 of 5
77       (5) Women’s Missionary Society (5%)

78       (6) Overseas Development (10%)

79       (7) Young People Division (YPD) (5%)

80       (8) Women In Ministry (WIM) (5%)

81       (9) Church Family Support Service (10%)

82

83   Submitted by:

84   Dr. Jerome V. Harris, Executive Director

85   Department of Annuity Investments and Insurance and

86   The Commission for the Department of Annuity Investments and Insurance

87   African Methodist Episcopal Church




     Proposal for Legislation—AME Church   Office of the General Secretary/CIO.   Updated 9/24/07   Page 5 of 5

								
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