NAIFA-TX eNewsletter

On March 13, 2008 a bill was introduced in the U.S. House of Representatives that would allow producers who are licensed and operate in multiple states to comply with a single set of licensing and continuing education rules. The bill, H.R. 5611, would establish the National Association of Registered Agents and Brokers (NARAB), a non-profit organization that would oversee licensing standards and interstate reciprocity on a national scale.

The standards, which would be determined by a board made of up insurance commissioners, producers and insurance companies, would not reduce the standards for agents to be licensed. Rather, insurance agents would be able to apply for membership in NARAB and subsequently obtain a license in states other than their home state by paying the required state licensure fees.

While NAIFA is supporting H.R. 5611, President Jeff Taggart has maintained that NAIFA is still reviewing the issue of the creation of an Optional Federal Charter, which would place regulation of the insurance industry under the central authority of the federal government, as opposed to their current jurisdiction under state law.

While encouraging and understanding the need for uniformity amongst states, NAIFA-Texas maintains a position of support for the current state-run model of insurance regulation.

Florida Moves to Increase Penalties for Replacement Violations; Will Other States Follow?

On March 18, the Florida Senate Banking and Insurance Committee voted unanimously to update the state's annuity sales laws.

The changes include defining churning as a third-degree felony, and churning that involves consumers ages 65 and older or who suffer from mental incapacity as a second-degree felony. Further, insurance agents submitting policy-related documents bearing fraudulent signatures could face charges of a third-degree felony.

The committee's actions reinforce laws already passed in Florida, Texas and a number of other states that seek to ensure the suitability of sale and replacement of annuities and other life products.

TDI Issues Warning against Rebating

TDI Commissioner Mike Geeslin has issued Commissioner's Bulletin #B-0004-08 that addresses the issue of rebating as it relates to the provision by health insurance agents and/or companies that provide certain administrative services to clients without charge.

The Bulletin may be accessed at http://www.tdi.state.tx.us/bulletins/2008/cc3.html. Additional information may be obtained from Matt Ray, Deputy Commissioner, Licensing Division, at 512-463-8917.

NAIFA-Texas News

Southwest Insurance Agency, NAIFA-TX

Enter Strategic Partnership

NAIFA-Texas is pleased to announce its newest strategic partner Southwest Insurance Agency, Inc. and its President, Michael E. Myers. In entering into a strategic partnership with NAIFA-Texas, Southwest Insurance Agency will serve as the exclusive sponsor for the Legislative Luncheon at the 2008 NAIFA-Texas Annual Meeting on July 25-26, 2008 in Kerrville, Texas.

Special thanks to Michael E. Myers and Southwest Insurance Agency, Inc.

NAIFA-Texas to Consider New Governance Model

Is the Regional Director system the best model of representation for locals and members? Is there a better model? This question and others will be considered by the NAIFA-Texas Board when they gather in Austin March 27-28 for what will be the final board meeting in current the 30-year headquarters of TALU/TAIFA/NAIFA-Texas. Any change in the current system would require approval of a bylaws amendment by the Delegate Council. Other items on the agenda for the Spring meeting, include:

Receipt and discussion of the FY 2008-2009 budget recommendations from the NAIFA-Texas Finance Committee;
A report by the Investment Committee regarding the establishment of a Legacy Endowment Fund and the placement of financial reserves with Brinker Capital;
Finalization of plans for the May 2-3 Presidents'-Elect meeting and Team Texas Forum;
Receipt of a report from the NAIFA-Texas nominating committee regarding elections at the 2008 NAIFA-Texas annual meeting;
Comprehensive PIC/PAC training with NAIFA-Texas past-president and current IFAPAC RVC H. Dan Smith, CLU, LUTCF;
An update on the NAIFA-21 initiatives from NAIFA Secretary Tom Currey, CLU, ChFC; and
Approval of local bylaw changes.

Leadership Development: Registration Now Open For 2008 Team Texas Forum in Austin

Registration is now open for the third annual Team Texas Forum, May 2-3 at the Austin Airport Hilton Hotel. The event, which begins with a meeting for local Presidents-Elect on May 2 and continues with a Local Success Planning Seminar and "On the Job" Breakout sessions on the 3^rd, will give local teams the opportunity to plan a successful year for their associations.

Last year, the event drew approximately 75 leaders from NAIFA-Texas's 28 local associations. "Our hope is that every local association will send their President-Elect, Executives and Officers as well as their Membership, PIC/PAC/Government Relations and Programs/Professional Development Chairs," said NAIFA-Texas President-Elect Earl Thompson, RFC. He added, "The more people that each local sends to the training event, the greater the opportunity for development of a plan for local success."

Registration runs throughout the month of March and into early April. Sign up your local leaders today!

Local Leaders to Preview NAIFA-Texas' New HQ

When local leaders meet in Austin for the 2008 Presidents'-Elect Meeting and Team Texas Forum on May 2-3, they will be treated to a special preview of NAIFA-Texas's new headquarters. On the evening of May 2, following the Presidents'-Elect Meeting and a welcome reception, attendees will gather at the sixteenth floor office suite at 515 Congress Avenue in the heart of Austin's financial, legislative and regulatory district.

"Whether construction is completed or not, NAIFA-Texas is looking forward to the first opportunity to showcase our new home to leaders and members," said NAIFA-Texas CEO Des Taylor.

Building Update: Construction Commences on NAIFA-Texas' New Headquarters

Following receipt of bids and the selection of a contractor, construction is now underway on NAIFA-Texas' new headquarters in downtown Austin. A familiar name will be involved with the project, as KTooley Enterprises, L.L.C. will serve as the contractor for the project.

Kent Tooley, the owner of KTooley Enterprises and son of long-time TALU CEO Ken Tooley, expressed his pride at being selected to serve NAIFA-Texas as it transitions from the building over which his father saw the construction in the late 1970s. Additionally, Kent served as the contractor for space added-on to the present headquarters in the 1980s.

The architectural firming overseeing the project is Susman Tisdale Gayle, Inc. Interior planning and furnishing is being conducted by Contract Furniture Services/Nancy Baroody.

With construction commencing on March 18, NAIFA-Texas looks to occupy its new space in mid-May.