Article III, Section 3 of the Society’s Bylaws provides the following specific qualifications for Directors of the Society: (1) Directors must be beneficial members of the Society; (2) they shall have a demonstrated devotion to the purposes of the Society; (3) all outside Directors shall be women; (4) they shall not be or have been an employee, field representative, sales agent, or a broker of the Society, or the spouse (including a partner to a legally recognized civil union) or former spouse (including a partner to a legally recognized civil union) of any such person; (5) they must not be a current corporate officer, employee, field manager, sales agent, broker, or director of any other fraternal benefit society or organization issuing any line of insurance products offered by the Society; and (6) they must not be an immediate family member (parent, spouse (including a partner to a legally recognized civil union), natural or adopted child, sibling) of any person in any of the prohibited categories.
In addition, Section 3 provides for the Board of Directors to establish additional qualifications for Directors that reflect the complexity and magnitude of the business and affairs of the Society. At the February 2006 Board meeting, the Board of Directors established the following additional qualifications for Directors:
Board Membership Qualifications and Evaluation Principles - The Directors of the Society should reflect a mix of skill sets including expertise in corporate governance, financial accounting, insurance, investments, financial services, policy-making, operations, human resources, marketing and sales, technology, law, economics, high level general management, volunteer organization management, membership development, and public relations. At least one of the Directors should have expertise in a not-for-profit organization environment. It is not expected that any individual Director will have experience in all of these areas; rather the goal is to have a balanced representation of relevant skill sets and experience among the Board as a whole. An additional important objective is to have the Board membership represent a broad spectrum of thoughtful members with a wide range of experience and diverse problem-solving talents. Finally, candidates for Director positions need to be evaluated in view of expected vacancies in the Board committees and the committee chairperson positions with the objective of identifying candidates who have the necessary qualifications to fill the expected vacancies. For example, pursuant to their committee charters, (a) the Audit Committee Chair is required to have accounting or auditing expertise preferably including a CPA, (b) at least one Compensation Committee member is required to have specific and relevant human resources experience, and (c) the Investment Committee Chair and at least one other member of that committee are required to have relevant financial backgrounds.
In evaluating candidates for Director positions, the following factors shall be considered:
a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder).
The calculations contained within this calculator are specific to Royal Neighbors of America. It is intended to estimate an amount of life insurance coverage if death occurred in the near future. It is not a recommendation for specific coverage amounts. Your financial needs may differ from the estimates. Royal Neighbors does not guarantee that the amount illustrated here will meet your financial needs. You are responsible for selecting the appropriate amount of coverage. To evaluate your specific needs, please contact Royal Neighbors directly at (866) 845-6665.
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Calculations include your answers to the previous questions, in addition to the following: 3% investment return; 2.6% anticipated inflation rate; $8,500 for funeral expenses which is based on the national median cost for an adult funeral in 2014 according to the National Funeral Directors Association1; 75% of your annual combined income for desired annual income needs; and 15 years for the number of years’ income needed or the calculation of the number of years it will take your youngest child to complete higher education, whichever is greater. Social Security benefits were factored based on the age of your youngest children (up to 4). Immediate needs include your mortgage, other debts, and $8,500 for funeral expenses.
College cost estimates are based on the following parameters (based on data provided by [College Board] . The inflation rate for college costs (5.48% annually) is based on the Bureau of Labor and Statistics Consumer Pricing Index average from January 1996-June 2016. This rate will factor into college cost assumptions for future years, adjusted annually.
1 “The national median cost of a funeral with viewing and burial for calendar year 2014 was $7,181. If a vault is included, something that is typically required by a cemetery, the median cost is $8,508. The cost does not take into account cemetery, monument or marker costs or miscellaneous cash-advance charges, such as for flowers or an obituary.” http://www.nfda.org/news/statistics