Should TAIFA support legislation to create a “life only” license? Texas is one of only three states (including California and Florida) that do not allow for a life-only option. In Texas, agents are required to complete mandatory pre-licensing and continuing education for life and health insurance. They must also answer health insurance questions on the license examination in order to obtain and maintain their license to sell life insurance.

Recently, TAIFA representatives met with lobbyists for the American Council of Life Insurers (ACLI) and the Texas Association of Health and Life Insurers (TALHI) to discuss the pros and cons of an amendment to the Texas agent’s licensing statute to provide for a “life-only” insurance license. ACLI’s position is that the inclusion of health insurance information in the education and testing process for life insurance licensing detracts from the agent’s ability to learn more about life insurance products he/she seeks to sell and diminishes the testing results on the actual line of insurance the agent wants to sell.

Recent studies cited by ACLI point to a persistent decline in the number of career life insurance agents available to serve the public. Since 1975, there has been a 46% decline in the number of new recruits. The average age of a life agent today exceeds 55 years old.

Two years ago, TAIFA vigorously opposed a legislative initiative, pushed by Primerica, for a term only life license. The TAIFA position on a “life only” license will be an action item for the TAIFA Board of Directors at its October 12-13 meeting in Austin.

Throughout the month of September, TAIFA representatives met with the Texas Department of Insurance as part of a work group exploring changes in advertising regulations for agents and their products.

Among the changes being considered by TDI is the abolition of a restriction baring the advertisement of the Insurance Guaranty Assocation Act in insurance sales. The Texas Insurance Code regarding the Guaranty Association currently reads:

A person may not make, publish, disseminate, circulate, or place before the public or cause, directly or indirectly, to be made, published disseminated, circulated or placed before the public, in any newpaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio station or television station, or in any other way, any advertisement, announcement, or statement, written or oral, that uses the existence of the association for the purpose of sales, solicitation, or inducement to purchase any form of insurance covered by this Act.
(Article 21. 28-D)

Other advertising issues that TDI is considering include:

• Ads that refer to rates
• Preventing ads that create an undue pressure to purchase insurance
• Required disclosures with the offer of "inflation protection" (long-term care)
• Disclosure of Medicare supplement "open enrollment"
• Use of terms to describe pemiums in a life/annuity ad

The TAIFA Board of Directors will gather in Austin this month to map out the year and prepare for the upcoming Legislative Session. Local Presidents and Regional Directors from across the state have submitted reports sheding light on what each association is doing to promote membership, increase PAC involvement, and put into practice the principles gathered through the Local Success Planning workshop at the 2006 Team Texas Forum.

Other action items on the agenda for the Fall Board meeting include:

• Endorsement of NAIFA Trustee Tom Currey for NAIFA Secretary
• Reciept of the FY 2005-2006 Audit
• Review of current TAIFA policies and adoption
• Reports on Emerging Legislative Issues of the 80th Legislative Session
• Status report on the transition of certain administrative duties from Texas IFAPAC to National IFAPAC

Last year, Thomson Prometric entered into a contract with the Texas Department of Insurance, to administer licensing exams throughout the state of Texas. The transition, however, was hardly seamless. The first round of tests saw the pass rate for first-time test takers drop by 10%, well below the national average.

Over the subsequent months, TDI has worked with Thomson Prometric on a comprehensive review of the exam, leading to some changes which have brought the pass rate for first-time test takers to around 55%, consistent with the national average.

In an effort to make the test more representative of entry-level standards into the industry, TDI will implement changes to materials covered by the licensing exam, beginning in January. While the official 2007 Licenting Information Bulletin is not yet available from TDI, a list of the changes to the the 2007 exam is available via the TAIFA website.

Texas Department of Insurance Commissioner Mike Geeslin will speak to TAIFA members in San Angelo, TX on October 17, 2006. The Commissioner will provide TAIFA members with a unique opportunity to hear about upcoming legislative and regulatory issues. In addition, those present will also be able to ask questions of the Commissioner. San Angelo AIFA, the host of the event, has invited members of the Abilene and Midland Associations to participate.

Commissioner Geeslin was appointed to lead the Texas Department of Insurance by Governor Rick Perry on July 7, 2005. Previously, Geeslin served as deputy commissioner for policy at the Texas Department of Insurance. During that time, he oversaw and coordinated implementation of major insurance reforms directed by the legislature in 2003. Prior to his service at the insurance department, he was a budget and policy advisor on insurance and regulatory matters to Governor Rick Perry in both the governor's office and lieutenant governor's office. He also worked as chief of staff for state Sen. Tom Haywood, as a legislative aide to Sen. Florence Shapiro, and as an assistant to Congressman Joe Barton.

To participate in this event, please RSVP to Doug Massey, CLU, ChFC, FSS at (325) 942-8896 or doug@dougmassey.com

Kent Lacy, CLU, ChFC, LUTCF is a model of leadership in the TAIFA federation. He has served as President of the San Angelo AIFA, five years as a TAIFA Regional Director, three years as TAIFA treasurer, President of the Tom Green County Cancer Society, President of the Lions Club, Allocations Cairman for the Tom Green County United Way, and Chairman of the Trustees in his local church.

However, like every great leader, Kent Lacy is committed to becoming a better leader for himself, his family, and his clients. His commitment to excellence has brought him into the 2006 session of TAIFA's Leadership in Life Institute.

Q. Tell us a little about yourself. How long have you’ve been in the business and how did you get started?

A.I started as a career agent with State Farm in 1980. I'm married to Nevie Lacy. I have two children, Haley Lacy and Leland Lacy. I graduated from Angelo State University in 1977 with a BBA. I have attained several professional designations including CLU, CPCU, REBA, LUTCF, ChFC, CASL, FSS, RHU.

Q. What interested you about the LILI program?

A.I was on the board for the Texas Association when LILI was first formed. I have watched members who attended LILI grow. I felt LILI had much to offer anyone who attended.

Q. What do you hope to gain/accomplish as a LILI student?

A. I hope to become a more effective leader from the skills LILI recommends. I know I should also grow personally.

Q. As a participant in the LILI program, what do you think you bring to the table to challenge your fellow students?

A. I think I may bring a different perspective to the LILI group as I've been in the insurance arena for 26 years and many of the participants are newer in this great business.

Q. How do you think you can best contribute to your local association now and in the future?

A.I am going through the officers chairs for the second time in my local, San Angelo. I hope to be more effective this time around.

It's not too late to sign up for the 2007 Leadership in Life Institute!

In July, TAIFA leaders Tim Provence, Mark Warren, Tom Currey, and Des Taylor met with Texas Governor Rick Perry to recieve a proclamation declaring September 2006, Life Insurance Awareness Month. This year, 38 other states joined TAIFA in securing proclamations declaring September Life Insurance Awareness month, making 2006 the most effective year of the promotion thus far.

These states include:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Utah, Virginia, Washington, Washington, D.C., Wisconsin, West Virginia, and Wyoming

Since 2000, mold litigation -- and litigation relating to mold, water damage, plumbing leaks, bacteria and construction defects -- has been a hot topic in Texas. Legal and public policy implications have been debated, with various court rulings taking sides for both insurers and for those insured, as to whether to cover damage from mold as a part of their insurance policy.

Recently, on August 30, 2006, in Feiss v. State Farm, the Texas Supreme Court ruled that mold damage is not covered under the HO-B insurance policies in the State of Texas, even in if the mold damage occurred as a result of a covered water peril. The decision was 7-2 with a dissenting opinion. The Feiss decision is expected to have a great impact on litigation involving mold in the State of Texas.