The insurer or insurance group shall be as descriptive as possible in completing the CGAD. This means that attachments or example documents may be included if they are used in the governance process since these may provide a means to demonstrate the strengths of the insurer’s or insurance group’s governance framework and practices. The CGAD shall describe the insurer’s or insurance group’s corporate governance framework and structure, including the following: The Board and its various committees ultimately responsible for overseeing the insurer or insurance group and the level or levels at which that oversight occurs; The rationale for the current Board size and structure; The duties of the Board and each of its significant committees; How the Board and its significant committees are governed, which may include documents such as bylaws, charters, and informal mandates; and How the Board’s leadership is structured, including a discussion of the roles of Chief Executive Officer and Chairman of the Board within the organization. The insurer or insurance group shall describe the policies and practices of the most senior governing entity and significant committees thereof, including a discussion of the following factors: How the qualifications, expertise, and experience of each Board member meet the needs of the insurer or insurance group; How an appropriate amount of independence is maintained by the Board and its significant committees; The number of meetings held by the Board and its significant committees over the past year as well as information on director attendance; How the insurer or insurance group identifies, nominates, and elects members to the Board and its committees, including, for example: Whether a nomination committee is in place to identify and select individuals for consideration; Whether term limits are placed on directors; How the election and re-election processes function; and Whether a Board diversity policy is in place and, if so, how it functions; and The processes in place for the Board to evaluate its performance and the performance of its committees, as well as any recent measures taken to improve performance, including any Board or committee training programs that have been put in place. The insurer or insurance group shall describe the policies and practices for directing Senior Management, including a description of the following: Any processes or practices, such as suitability standards, used to determine whether officers and key persons in control functions have the appropriate background, experience, and integrity to fulfill their prospective roles, including: Identification of the specific positions for which suitability standards have been developed and a description of the standards employed; and Any changes in an officer’s or key person’s suitability as outlined by the insurer’s or insurance group’s standards and procedures to monitor and evaluate such changes; The insurer’s or insurance group’s code of business conduct and ethics, the discussion of which considers, for example: Compliance with laws, rules, and regulations; and Proactive reporting of any illegal or unethical behavior; The insurer’s or insurance group’s processes for performance evaluation, compensation and corrective action to ensure effective senior management throughout the organization, including a description of the general objective of significant compensation programs and what the programs are designed to reward. The description shall include: Sufficient detail to allow the Commissioner to understand how the organization ensures A discussion of the elements used in determining the organization’s compensation programs, which may include, for example: The Board’s role in overseeing management compensation programs and practices; The various elements of compensation awarded in the insurer’s or insurance group’s compensation programs and how the insurer or insurance group determines and calculates the amount of each element of compensation paid; How compensation programs are related to both company and individual performance over time; Whether the compensation programs include risk adjustments and how those adjustments are incorporated into the programs for employees at different levels; Any clawback provisions built into the programs to recover awards or payments if the performance measures upon which they are based are restated or otherwise adjusted; and Any other factors relevant in understanding how the insurer or insurance group monitors its compensation policies to determine whether its risk management objectives are met by incentivizing its employees; and The insurer’s or insurance group’s plans for Chief Executive Officer and Senior Management succession. The insurer or insurance group shall describe the process by which the Board, its committees, and Senior Management ensure an appropriate amount of oversight to the critical risk areas impacting the insurer’s business activities, including a discussion of: How oversight and management responsibilities are delegated between the Board, its committees, and Senior Management; How the Board is kept informed of the insurer’s strategic plans, the associated risks, and steps that Senior Management is taking to monitor and manage those risk; and A description of how reporting responsibilities are organized to allow the Commissioner to understand the frequency at which information is reported to and reviewed by Senior Management and the Board in the following critical risk areas of the insurer: Risk management processes, which may include reference to an insurer’s ORSA Summary Report pursuant to Insurance Article, §32-105, Annotated Code of Maryland, if applicable; Actuarial function; Investment decision-making processes; Reinsurance decision-making processes; Business strategy or finance decision-making processes; Compliance function; Financial reporting or internal auditing; and Market conduct decision-making processes.