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LILI Application Deadline Quickly Approaching
Classes begin February 1, 2010 and run through July of 2010. Completed applications are due to NAIFA-Texas by Monday, November 9, 2009. The Leadership in Life Institute (LILI) is NAIFA-Texas's greatest opportunity for professional development and personal growth. Each year, students from across the state gather for six sessions of intense discussion and instruction, aimed at helping students get the most out of their personal, professional and association lives. Acceptance to the Institute is by application only, with space limited to 12 students each year. Please take a moment to consider applying to be a part of LILI.
"Don't Miss the Boat!"
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NAIFA-Texas Position on Healthcare Reform
NAIFA-Texas is committed to the preservation of the private delivery of health insurance. We oppose the creation of a public plan that would unfairly compete against private insurance companies in the health insurance marketplace. We oppose any plan that diminishes or eliminates the important role that agents perform in the marketing, selling and servicing of health insurance. NAIFA-Texas believes that we must build upon the strengths of the current system, reduce costs, insure coverage for more Texans, and improve value throughout our health-care system without resorting to new government programs or jeopardizing the high quality of care we enjoy and expect as Texas consumers. |
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NAIFA Policy Statement on Standard of Care for Investment Advisors and Broker/Dealers
NAIFA supports the efforts by the Administration and Congress to address consumer confusion discussed in the RAND study about the roles of investment advisers and broker-dealers, and to better protect consumers from predatory "bad actors". NAIFA has multiple concerns about legislative and regulatory efforts to address the problem by establishing a harmonized fiduciary standard of care for investment advisers and broker-dealers. We believe this "one size fits all" approach overreaches in addressing the problem of consumer confusion, and fails to recognize the inherent differences in the process of selling advice for a fee as opposed to selling financial products. It also ignores the RAND study finding that consumers are generally happy with their financial professionals and their services.
This issue is important to NAIFA because nearly three-quarters of NAIFA's members are registered representatives of broker-dealer firms, and many NAIFA members are registered investment adviser representatives (IAR's) under a corporate RIA, or have become their own Registered Investment Advisor (RIA); thus the outcome will have a significant impact on the millions of clients we serve.
NAIFA generally opposes the application of a harmonized fiduciary standard of care on investment advisers and broker-dealers because it raises the potential for increasing the cost of competent financial services for middle and lower income consumers - which will lead to reduced access to these services. We are also concerned that it will result in an unwarranted increase in professional errors and omissions liability for our members, and we also question if it is compatible for investment-advisers and broker-dealers to operate under the same "fiduciary standard" because they provide very different services to their clients. The term "fiduciary standard" is subject to a variety of different legal interpretations under common law and may, in fact, impose different obligations under different sets of circumstances. This makes it very difficult to determine with certainty the standard of care owed by an investment adviser or broker-dealer to a client -- particularly given the differing levels of engagement between financial professionals and consumers, and the contractual relationships between financial professionals and their registered broker-dealer, registered investment adviser, or insurance company(s).
Click here to view what NAIFA believes that any new standard of care for broker/dealers and investment advisors must accomplish.
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MEMBERSHIP COLUMN
Membership September 30th Benchmark Goal
Local Associations That Have met the Membership Benchmark:
Medium Local:
NAIFA-Pineywoods
Small Locals:
NAIFA-Wichita Falls
NAIFA-Waco
Local Associations That Have Exceeded the Membership Benchmark:
Medium Local:
NAIFA-TX Gulf Coast
Small Locals:
NAIFA-Abilene
Plainview AIFA
Heart of Texas AIFA
NAIFA-Texoma
NAIFA-South Texas |
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NAIFA-Texas and 360 Training have partnered together to bring members an unlimited amount of insurance continuing education courses for only $35.00. Click here to view the courses offered.
As you know, the Texas Department of Insurance requires that you complete 30 hours of continuing education every two years. Fifteen of the thirty hours must be completed in a classroom or classroom equivalent setting. Online courses through 360 Training qualify as "CLASSROOM EQUIVALENT" courses that can be completed in your office or home.
Click here for more information and requirements on Texas insurance continuing education. |
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Endorsed Professional Liability Program |
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Errors & Omissions Insurance
The NAIFA-endorsed Professional Liability Insurance Program provides quality errors and omissions coverage (E&O) to NAIFA members. The program offers comprehensive professional liability insurance, superior customer service, an easy application process, and competitive rates. For information on all available coverage options and features, and/or how to apply, visit: www.naifainsurance.com | |
Looking for Resources from NAIFA's National Website?
You can Join, Renew and Obtain information critical to NAIFA Members by visiting
www.naifa.org
Download a Quick Guide to NAIFA's Website Here | |
| Congress, The White House and the Insurance
Industry Spar Over Health Reform Legislation The gloves clearly have come off in the public debate over health care reform, with President Obama denouncing as a "desperate and deceptive" tactic the release of a PricewaterhouseCooper study by AHIP showing premiums will increase under the Senate Finance Committee's version of reform, reported out last week. AHIP is strongly defending its release of the report. Statements and clips can be viewed at http:/www.americanhealthsolution.org./blog/.
Health reform legislation has now cleared Congress' committee process, and leadership is preparing bills for both House and Senate votes. While the two Senate versions and three House versions need to be melded prior to the floor votes, the following FAQ will provide valuable information on the role of the agent, the fate of HSAs, details of a new long term care program and much more. Click here to view the FAQ.
While it is too soon to make predictions about how the debate will ultimately turn out, one of NAIFA's lobbying consultants Raffaniello and Associates sees potential worrisome tax policy trends imbedded in the Senate Finance Committee's version of health care reform legislation. Click here to access Raffaniello and Associates "thought piece" on the subject.
In what some are describing as retaliation against the insurance industry, Congress has begun to review the industry's limited antitrust exemption, with only thinly-veiled references to the antitrust exemption's relationship to the industry's stance on health reform. Among the attacks and threats against the industry were those made by David Axelrod on ABC's This Week with George Stephanopoulos and the President's weekly address October 17th entitled "Taking the Insurance Companies on Down the Stretch" Both mention repealing the antitrust exemption for health insurance companies.
There is also some talk about a COLI bill (by Rep. Gutierrez) that would make it a criminal offense for a company to insure any worker other than a key person who earns at least $1 million. It's expected to get even uglier as Congress, the Obama Administration and the insurance industry continue debating health care reform. | |
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NAIFA Seeks Proposed Changes to Investor Act
NAIFA recently presented a proposal to the staff of the House Financial Services Committee suggesting that the proposed Investor Protection Act be amended to allow broker-dealers and their representatives to offer a limited number of financial products without violating fiduciary standards proposed in the legislation.
"The draft Investor Protection Act continues to be a critical issue for NAIFA, and we have provided a second round of comments to the FSC staff to address our concerns," said Thomas Currey, NAIFA president. "Our changes, if adopted, would preserve the ability of the middle and lower income markets to have access to and receive competent and professional services and financial products," he said.
The changes would amend current language in the proposed legislation that insurance agents and brokers fear would impose a "one-size-fits-all" standard governing the sale of securities products. Under the NAIFA proposal, the bill would add a safe-harbor provision that would allow broker-dealers and their registered representatives to offer a limited number of products and not be held in violation of the fiduciary standard currently proposed in the legislation.
NAIFA also suggests other technical changes in the proposed legislation, according to Currey. "The key here is preserving a variety of competitive cost-effective compensation arrangements, including the payment of commissions, that allow small- and middle-income investors to access suitable financial products and professional service to assist them in the pursuit of their financial objectives and financial independence," Currey said.
Currey said NAIFA is concerned about certain references in the bill that imply financial professionals are generally interested in steering clients to products that will pay the highest commission, without regard to what is in the client's best interest. "This issue is a real source of contention with our membership," he said. He said professional advisors consider various factors before recommending a product.
"These include suitability-a rigorous standard that includes a questionnaire to assess the clients' income, risk tolerance, age, tax status, liquidity needs, financial time horizon, investment objectives etc.-surrender charges, investment experience of clients, price of product relative to benefit, internal expense structure, carrier rating, policy coverage features, and the historic service standards of the company underwriting the product," Currey said. "We believe any post-transaction analysis by a regulator to determine if an advisor acted in their client's best interest should take all of these factors into consideration." |
Reform Bill Could Bar LTC Incentives
The National Association of Health Underwriters (NAHU) is voicing concern that healthcare legislation reported out last week by the Senate Finance Committee would reduce incentives to buy long term care insurance.
An amendment by Sen. Olympia Snowe (R-Maine) to the bill, America's Healthy Futures Act, would exempt fixed indemnity health coverage purchased by employees with after-tax dollars from the excise tax on so-called "Cadillac health plans," notes Kelly Loussedes, a NAHU spokesperson.
At the same time, the panel "dropped language from the bill that would allow a cafeteria plan to offer as a qualified benefit contributions to a qualified long term care insurance contract on a pre-tax basis," Loussedes said. The amendment also deleted language that would allow flexible savings reimbursement for employee-paid qualifying LTC premiums, she said. "We will be working to urge lawmakers to reconsider these helpful LTC provisions," she said. |
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Rules Impact Agents Selling "Complex Products"
The Texas Department of Insurance (TDI) will be publishing, for formal comment, proposed rules to implement legislation passed by the 81st regular session of the Texas Legislature and signed into law by Gov. Perry. The legislation relates to continuing education and/or certification requirements for the sale of annuities, Medicare advantage plans, and certification for agents marketing/selling small employer group health insurance. The first public meeting on the proposed rules, to solicit input from agents and company representatives, was held on September 8, 2009, with NAIFA-Texas lobbyists participating. NAIFA-Texas is advised that the effective date for the proposed rules for agents selling annuities will be April 1, 2010. |
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Texas IFAPAC Issues Appeal for Broader Support
An Open Letter to NAIFA-TX Members from the 2009 PAC Chair
I am reaching out to you on behalf of NAIFA-Texas PAC. 2009 has been one of the most active legislative and regulatory years we've ever faced as agents and advisors and NAIFA is there for you, as a member.
If you've been following what's going on in Congress, there's not a day that goes by without mention of proposed legislation that will negatively impact the products and services our Agents & Advisors offer. As Congress searches to pay for Stimulus Programs and Health Care Reform and without growing the deficit, it's easy to see why our tax-favored products are right in the crosshairs to solve our economic worries.
Have you thought about how these issues affect your business?
Rest assured, our NAIFA Government Relations Team and Volunteer Members in concert with IFAPAC, are working hard to protect the role we play and take care of the products and services we offer that protect America's Families. To do this, we support our friends in Congress through our political action committee, known as IFAPAC, and your financial support is needed now, more than ever.
Our goal is for all members of NAIFA-Texas to make an annual contribution to IFAPAC in support of their career. We can't do it alone, but together we can make a difference. Can we count on you?
We appreciate your support.
Les Littleton, LUTCF, CLU
2009 NAIFA-TX PAC Chairman
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 In a message from Charles Booth, LUTCF, RFC, to TLRT Members, the 2009-10 TLRT President asks for members' input and issues a call for members to "build on the great tradition of TLRT and our 73-year history." "We need to grab this honor organization by the horns and, together, raise it to an even higher plateau," says Booth.
"First of all we need to develop our board. We need officers, directors and chairs to broaden our impact across the State. Some may say, 'I remember the way it used to be'... and that is great. I want it to be better than it used to be. We are not in competition with anyone... just in competition with what we could do versus what we do."
If you are a TLRT member and have not previously responded please click here to participate in a brief questionnaire. Responses are needed by Friday October 23, 2009.
The TLRT Roundup featuring MDRT-level speakers will be held on July 15-16, 2010 at the Embassy Suites Hotel in San Marcos, Texas. Members of TLRT receive discounted registration for this two day event. |
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2008-2009 Jack E. Bobo Award of Excellence
Congratulations to -
Gold Achievers: (Exceeded Expectations - met 95-99.9% of membership goal)
 NAIFA-TX Gulf Coast Photo (left to right) Daniel Rust, LUTCF, 2008-09 Committee on Associations Chair; Christie Bonczek; Des Taylor, NAIFA-TX CEO; Tom Currey, CLU, ChFC, LUTCF, 2009-10 NAIFA President
 NAIFA- Wichita Falls
Photo (left to right) Daniel Rust, LUTCF, 2008-09 Committee on Associations Chair; Rebecca Raeke; Ryan Raeke; Lane Boozer, LUTCF; Martha Hall, RHU; Sherri Hicks, LUTCF; Tom Currey, CLU, ChFC, LUTCF, 2009-10 NAIFA President
Silver Achievers: (Met Expectations - increased membership total by at least 1 from prior year)
NAIFA-Austin
Photo (left to right) Daniel Rust, LUTCF, 2008-09 Committee on Associations Chair; Joey Ussery, CLU, ChFC, LUTCF; Karen Easterling; Ken Stover; Des Taylor, NAIFA-TX CEO; Lane Boozer, LUTCF; Panate Griffin, LUTCF, CLU; Tom Currey, CLU, ChFC, LUTCF, 2009-10 NAIFA President
 NAIFA-Fort Worth and NAIFA-Great Southwest
Photo (left to right) Daniel Rust, LUTCF, 2008-09 Committee on Associations Chair; Charles Booth, LUTCF, CSA, RFC; Edward Tate, Jr., ChFC, CLU, LUTCF; Frank Correa, Jr., LUTCF; Esther Davis; Tom Currey, CLU, ChFC, LUTCF, 2009-10 NAIFA President
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NAIFA 2009 Convention a "Brilliant" Success
 Nearly 1,700 life and health insurance agents attended the National Association of Insurance and Financial Advisors' (NAIFA) annual Convention and Career Conference, September 12-16, in Orlando, Florida. "By all measures, this was an amazingly successful experience for NAIFA attendees," says 2010 NAIFA President Tom Currey, CLU, ChFC, LUTCF, and 2009 Convention Committee Chair. "We had important business to take care of, and the energy and enthusiasm were far beyond expectations, and the positive response was overwhelming."
The National Council, made up of voting delegates from across the federation, considered and passed two amendments to the governing bylaws. The first amendment increases NAIFA national dues for three consecutive years, and shares a portion of such dues revenue with NAIFA state and local associations in order to continue providing superior member value in the areas of advocacy and professional development, click here to access a dues guideline FAQ. The second expands the National Council by permitting additional delegate appointments based on each state's membership size and future growth, enabling greater participation and more proportional state representation. "These are unprecedented times for our industry. The National Council's vote was a solid vote of continued confidence," continued Currey. "And the level of active participation at this conference reinforced the importance of NAIFA." Currey concluded, "Through its advocacy and professional development efforts, NAIFA is the only organization that helps keep members in business, and also provides the resources to help them grow their businesses."
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