NAIFA-Texas eNewsletter
March 2007
NAIFA-Texas in Action
State Legislative Issues

At the half-way point in the 140 day Regular Session of the Texas Legislature, several issues have surfaced that are of significance to insurance agents and financial advisors. Among those TAIFA is closely following:

Suitability in Replacement of Annuities
(HB 2761; HB 2762)
Legislation regarding suitability in the sale or replacement of annuities was recommended by Texas Insurance Commissioner Mike Geeslin in his biennial report to the Texas Legislature. The purpose of this legislation is the protection of consumers, with particular regard to the elderly.

Proposed legislation would require agents and insurers to seek information regarding a consumer’s 1) financial status, 2) tax status, and 3) investment objectives to determine the suitability of a sale or replacement of an annuity. If the consumer fails to provide this information, the agent/insurer would be free from obligation relating to a recommendation for replacement.

The legislation would require a statement to be signed by both the agent and consumer, disclosing existing policies or contracts. It would also require that all sales materials used in the sale or replacement of annuities be left with the consumer, and copies of these sales materials be given to the insurer with filed applications.

NAIFA-TX supports increased suitability requirements and oversight of employed sales methods as a means to ensure the highest ethical practices of insurance agents and financial advisors.

"Life-only" and "Personal Lines-only" Licenses (SB1263/HB 2771)
Texas is one of only three states (including California and Florida) that do not allow for a life-only option. With a significant decrease in the number of new recruits to the life insurance industry, it is believed that the creation of a "life-only" license will open the door for greater emphasis on life insurance products and bring new recruits to the business.

Further, legislation would create a “Personal lines- only” license. Agents holding this license would be authorized for the sale of property and casualty insurance to individuals and families primarily for personal or household use.

NAIFA-TX supports the creation of both a "life-only" and "personal lines-only" license as an attempt to facilitate greater uniformity among states in licensing, as sought by the Gramm-Leach-Bliley Act of 1999.

On March 20, SB 1263 was reported favorably from the Business and Commerce Committee, with the recommendation that it be place on the Senate local calendar.

Captive Agent Termination (HB 1047)
Legislation relating to grounds for termination by an insurer of contractual agreements with captive agents was left pending following public testimony March 19 before the House Insurance Committee. Capitol observers believe the measure is unlikely to garner sufficient support to be reported from the Committee, ensuring its defeat for the fourth consecutive time in a Regular Session of the Texas Legislature.
NAIFA in Action
Federal Legislative Update

Repeal/Modification of the McCarran-Ferguson Act
The Senate Committee on the Judiciary is looking into the possible connection between anti-trust immunity given to the insurance industry by the McCarran- Ferguson Act and the claims paying practices of insurers after Hurricane Katrina. Key members of the committee believe that McCarran-Ferguson is directly responsible for non-payment by insurers and are seeking to modify or repeal it. Doing so would place the entire insurance industry, including the life and health insurance components, under the investigative authority of the Federal Trace Commission. NAIFA believes that the discussion of the repeal of the McCarran-Ferguson Act should only take place in the context of the overall picture of insurance regulatory structure rather than that of a knee-jerk response to hurricane Katrina.

Repeal of the Alternative Minimum Tax
A subcommittee of the House Ways and Means committee is meeting to discuss issues relating to the Alternative Minimum Tax (AMT). The AMT was enacted in 1969 as a means to extract at least a minimum amount of federal income tax from very high income individuals who paid no tax. Because the AMT was not indexed, it has affected a larger and larger segment of the population each year.

As the subcommittee seeks to modify or repeal the AMT, and as the Congress faces increasing pressure to fund medicare, medicaid and an ailing Social Security system, sources to replace lost tax revenues must be identified. Since individuals and businesses purchasing life and health insurance products enjoy substantial tax benefits from those purchases, NAIFA is concerned that the repeal or substantial modification of the AMT would put life and health insurance tax benefits in jeopardy.
YAT Awareness Month
March 2007

Does your local association have a YAT (Young Advisors Team) group?

Only a small percentage of people make it more than three years in the insurance industry. Many fail because they have no support system for mentoring, networking and sharing sales ideas. YAT was created to fill this need for young agents, adding incredible value to local associations and letting young agents know that NAIFA is committed to their success. How many opportunities has your local missed out on to gain new, young members because there was no YAT in place?

The month of March is your opportunity to connect with younger agents in your area. Here are a few ideas of activities your local can host:

Present the Program in a Box “Survive and Thrive in Your First Three Years”,

Collaborate with other young professional CPA’s, attorneys, mortgage brokers, bankers, etc. to have a networking event, or

Create a purely social event at a local hot spot. This is often a good kickoff event for new YAT groups.

All of these activities can open the door for young agents to meet one another and contribute to each other’s success! Visit www.naifa.org/yat for all the latest information on YAT and more activity ideas.
NAIFA Offers Few Details on Taskforce Meetings

While information has slowly seeped out of the NAIFA in the 21st Century Taskforce meetings, March 1-6 in Washington, D.C., NAIFA has offered few official details of taskforce proposals. In a letter released by NAIFA President John Davidson on March 14, members were offered brief overviews of the actions of the Advocacy, Networking, Membership and Career Development Taskforces. However, the findings of the Governance Taskforce, which addressed the concern over "Optional Local Dues", have been delayed pending presentation to the board at its meeting April 13-14.

Local leaders across the state have voiced their opposition to "Optional Local Dues," and while rumors persist that the Governance Taskforce withdrew the plan from consideration, that claim has yet to be substantiated. All recommendations made by the taskforce are subject to the approval of the NAIFA Board of Trustees. It appears that all information regarding the Governance Taskforce meeting will be withheld until the April National Leadership Conference.
Payne, Quigley Added to NAIFA-Austin Hall of Fame

Tyson Payne, CLU, ChFC and Maurice Quigley, CLU, LUTCF became the fourth and fifth members of NAIFA- Austin’s Hall of Fame. Their contributions to the insurance and financial services industry were recognized at NAIFA-Austin’s March luncheon at the Westwood Country Club. Both honorees were in attendance with family and friends who gathered to pay tribute to their great accomplishments.

After a distinguished career with the Army National Guard and the Army Reserve, Colonel Maurice Quigley began his career in insurance and investments, continuing today with Quigley Insurance and Financial Services. He is a life member of the Million Dollar Round Table and a forty year recipient of NAIFA’s National Qualifying Award. He and his wife Tinka have served faithfully on many civic organizations, and now continue to live in Austin, enjoying their many exceptional grandchildren.

Tyson Payne began his career in insurance in 1953, making many outstanding contributions to the industry in his more than 50 years of service. In that time he has served as an agent, a general agent, a company officer, association member, volunteer committee member and committee chairman, legislative advocate for agents, continuing education instructor, insurance school director, a consultant, an expert witness and in many other capacities to influence the insurance market in the state of Texas. To this day, Tyson stands as the utmost professional, working with the Texas Department of Insurance to draft rules and regulations and serving as liaison between the Department and agents.
Local Leaders Headed to Austin for Team Texas Forum '07 May 18-19

Registration is now open for the 2007 Team Texas Forum, May 18-19, 2007. The forum includes training for local leaders through the Presidents’-Elect Meeting and Local Success Planning session. Over two days, leaders from across the state will be equipped with skills applicable not only in their professional lives, but their personal lives as well. TTF lead moderator Glen Baecker said, “We know there is much more to life than being an association leader, so it is important that our leaders are equipped to succeed personally and professionally. When leaders bring their success into the local associations, they will set the tone for association success.”

Pricing for the Forum is designed with your pocketbook in mind, with three levels of registration:

$45/registrant – based on double-occupancy room (roommates may be requested or assigned)

$90/registrant – based on single-occupancy room

$25/registrant – for those not requiring a room (Austin based members only)

Your registration dollars include the training sessions, a welcome party on the evening of the 18th and breakfast and lunch on the 19th. Sign-up yourself and other leaders within your local association today!
March Madness Membership Month

March is NAIFA’s National Membership Month, kicking off a final push for membership between now and the end of the year. In the spirit of National Membership Month, the NAIFA-TX Membership committee has launched the March Madness Membership Campaign.

Local associations have been divided into three categories (large, medium, and small), based on the number of members in each local. They will be competing with other locals in each category to bring in the most new and lapsed members. The winning local in each category will win $500 cash!

Weekly progress reports are sent to each local every Friday. Now is the time to organize call-a-thons, agency visits and other membership campaigns. Remember, locals achieving 80% membership by March 31st receive points towards the Jack E. Bobo Award!
TLRT Members Save $100 at '07 Events July 13-14 in Austin

With registration soon to be launched for the 2007 TLRT Roundup and NAIFA-TX annual meeting, significant savings are extended to TLRT members. The Roundup and Annual Meeting, taking place July 13-14, 2007, will be offered to TLRT members at a discount of $100. With this savings, the $110 TLRT dues are almost entirely offset.

"We hope that the discount for TLRT members will encourage more NAIFA-TX members to join TLRT," said Alan Carl, NAIFA-TX President-Elect. He added, "We also hope that the savings for the event will encourage TLRT members to stay for the NAIFA- TX Legislative Lunch and Annual Meeting."

With details being finalized for the 2007 TLRT Roundup, it appears that those in attendance will be eligible to receive up to 4 hours of self-study CE and 2 hours of classroom CE. TLRT President Cherry Martin said, "The goal for the 2007 Roundup is to pack the most value into the event as possible."

The total cost for TLRT members attending the '07 Roundup will be $85, with $50 covering Roundup attendance and $35 covering a joint TLRT/TAIFA party at the beautiful Oasis Cantina on Lake Travis.

Click here to download the 2007 TLRT Application

Click here to download the 2007 TLRT Production Certification Form
Did you Know?
Membership Ideas from Across the State

The NAIFA-Tyler board of directors met early this year to discuss ways in which they could improve their organization this year. One of the great ideas taken from this meeting has greatly impacted their membership efforts this year.

Each member from the local association was assigned to a team. Team leaders contacted their team every month with information on meetings and upcoming events.

$1,000 was designated to the team with the most points at the end of the year. $100 was assigned to be awarded to the captain of the winning team, with the remainder of the money to be divided among the other members. In order to receive any of the money awarded to the winning team, the member must have been present at least 4 of the eight meetings for the year.

Points are awarded to the teams at each of the monthly meetings. A team may earn points as follows:

50 Points- First Time to Meeting as a new member

25 Points- Prospective Members – 1st time in attendance

20 Points- Inactive Members (someone who has not attended the past 4 meetings)

15 Points- Active Members and Other Guests

Additionally, at monthly local association meetings, the name of each member is entered into a drawing to win a $50 bank card. However, if a member’s name is drawn, they have to be present to claim their prize. If the member is not present, the prize is carried over to the next meeting and the drawing goes up to $100. This continues until a present member has his/her name drawn, with escalating dollar amounts each week.
NAIFA-TX Remembers Dick Waterfield

Our friend and TAIFA tenant Dick Waterfield, whose office was the Austin D. Rinne suite for the past five years, passed away suddenly at his home early Monday February 26. The staff mourn the loss of a good, kind, gentle man whose friendship we will cherish and whose presence in our building we will miss.

Below is Mr. Waterfield's obituary from the Austin American Statesman:

Richard "Dick" Allen Waterfield, age 68, former Texas State Representative, rancher and cattleman, died on Monday, February 26, 2007. Dick owned and operated Waterfield Ranch in Hemphill County, was president and co-owner of Canadian Feed Yards, Inc. Dick served as president of Texas Cattle Feeders Association and served on the board of directors of the First State Bank of Canadian.

Dick served in the Texas House of Representatives from 1986 to 1990, was voted Outstanding Freshman Legislator, and remained active in politics until his death. In addition, Dick served a Deputy Secretary of Agriculture and established the Texas Agricultural Finance Authority.

After completing his term in the legislature, Dick was active in the Austin business community, owning Waterworks Productions and Waterfield and Associates, Inc. In addition to being a cattleman, Dick was a avid thoroughbred horse racing enthusiast, co- owning Longfield Farm in Goshen, Kentucky and owning several very successful horses including 1986 Kentucky Derby contender Bachelor Beau. Dick was a member of Riverbend Church and was an active member with a local bible study group.

Dick was a passionate volunteer in the Austin community and became Austin's 2006 Volunteer of the Year through his tireless efforts with Meals on Wheels and More.

Des Taylor
NAIFA-Texas
phone: 512-716-8800