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  National Association of Insurance 
    and Financial Advisors - Texas              
 
 
         September 2010 eNewsletter

September is "Life Insurance Awareness Month" in Texas

Governor Perry Signs Texas Proclamation 
 
Perry, Taylor, Currey 2

The nonprofit LIFE Foundation coordinates this yearly observance to remind Americans of the need to include life insurance in their financial plans. Each September, LIFE is joined in this educational initiative by more than 100 of the nation's leading insurance companies and industry groups.

Shown here are NAIFA-Texas CEO/CLO Des Taylor, Governor Rick Perry and 2009-2010 NAIFA President Tom Currey during a LIAM Proclamation presentation at the Governor's Capitol Office.


 

Alan Kifer and NAIFA's Bobo Award Promote IFAPAC Contributions
Alan Kifer-Capitol Club Contributor
The "Put Your Forks Down and Listen" presentation by Alan Kifer at the NAIFA-Texas TLRT Roundup/ALC/Annual Meeting in July brought on a "lightbulb moment" that garnered many immediate contributions to the NAIFA-Texas PAC.  Understanding that a PAC contribution has a direct impact on maintaining the profession and income that supports your family is a must for success in today's world.  Total contributions collected at the events in July totaled almost $20,000.

Alan will be speaking at several local associations in Texas.
Check out, and attend one of these scheduled meetings:
  • September 22:  NAIFA-Austin Luncheon at Westwood Country Club
  • September 23:  NAIFA-San Antonio Luncheon at Oak Hills Country Club
  • October 13:  NAIFA-Waco - venue to be announced
  • October 14:  NAIFA-Houston Luncheon at Houston Racquet Club
  • October 26:  NAIFA-Fort Worth Luncheon at Ridgewood Country Club
  • October 28:  NAIFA-Dallas Luncheon at Prestonwood Country Club
  • November 9:  NAIFA-Upper Valley at McAllen Country Club
  • December 9:  NAIFA-Great South WestIFAPAC Logo 2010 at Shady Valley Golf Club in Arlington

The Jack E. Bobo Award of Excellence requires local associations to have PAC Chairs that hold PAC fundraisers and actively work on increasing PAC contributions and contributors each year.  NAIFA members must support office holders who support the insurance and financial advisors profession. 

This year three local associations in Texas were awarded the Bobo Award's Gold Achievers - the highest level of recognition: NAIFA-Austin, NAIFA-Houston and NAIFA-TX Gulf Coast.  Conversations with local leaders and executives from these outstanding local associations could assist other local associations in Texas with earning this prestigious award.

 

Agents & Life Insurance Important to Well Being of Texas Families
Recent LIMRA, International, Inc. Study Findings:

Almost 8 in 10 U.S. households currently do not have a personal life insurance agent or broker, and most say they never did have one.

Half of households said they felt they needed more life insurance --- the highest level LIMRA has ever found.  Moreover, 24% of households with children under 18 want to speak with a financial professional about their life insurance needs; and 25% of all households plan to buy life insurance in the next year.

About 1 in 4 middle-market households admit not knowing how to obtain or reach their financial goals, including buying life insurance.

Not having life insurance leaves families financially vulnerable, LIMRA notes.  The number of households with no life insurance coverage at all has grown to 30% of households (35 million), up from 22% in 2004.  Among households with children under age 18, 11 million have no coverage.  Many of these would immediately or in a few months have trouble meeting everyday living expenses if the primary breadwinner died today.
 
 
Role of Agent Not Yet Defined in TDI's "Healthy Texas" Plan

Texas Department of Insurance (TDI) announced on September 10 that it had signed contracts with two private health plans to provide supplemental coverage within TDI's new "Healthy Texas," a private/public health insurance product that targets low income, uninsured small business workers and companies that qualify.

Healthy Texas public funds will cover 80% of health care costs between $5,000 and $75,000 per employee and the private health plans will cover the remaining costs.  While it should help close the gap of 6 million Texas workers without health insurance, the role of the agent is less defined.

So far, TDI is only saying that it ". . . wants both agents and health plans to have flexibility to market Healthy Texas.  During the coming months, TDI will work with insurance agents and health plans to develop marketing requirements that will be most effective and beneficial to all participants."

Click here for more information on the TDI Healthy Texas website.
Go to
http://www.tdi.state.tx.us/pubs/newsletters/tdinsight.html to sign up for TDInsight newsletter for helpful insurance news/updates in Texas.

Healthy Texas Logo

 

NAIFA-Texas Partners with IIAT and TAHU to Protect Agents

Texas Coalition of Health Insurance Agents

           Taylor/Manross/Loftis Head Shots              

 NAIFA-Texas and two other high profile agent oriented associations in Texas - Independent Insurance Agents of Texas (IIAT) and Texas Association of Health Underwriters (TAHU) - have formed a coalition, Texas Coalition of Health Insurance Agents for the 2011 Texas Legislative Session.  The Coalition will work together to protect the role of insurance agents and promote good public policy by working with the Texas Legislature, Texas Department of Insurance and state agencies on healtTX Health Insurance Coalition Logohcare reform and insurance legislation. 

Des Taylor, Chief Executive Officer/Chief Legislative Officer of NAIFA-Texas is working closely with his counterparts this fall to develop plans and prepare for the 82nd Texas Legislative Session that opens on Tuesday, January 11, 2011.

TAHU lobbyist Lee Manross combines years of work in the Texas Legislative and political arenas with two decades in the insurance business to bring deep experience and understanding of the processes at the Texas Capitol.  IIAT's Governmental Affairs Director H. Lee Loftis Jr. and Manager Annie Spilman and the association's Grassroots Leadership Team have consistently worked with state lawmakers for many years to safeguard the business interests of its members throughout Texas.


In addition, NAIFA-Texas will partner again with IIAT for the 2011 Legislative Lunch to be held on Tuesday, February 1, 2011 at the AT&T Conference Center on the University of Texas Campus in Austin.  Mark your calendar, and invite your Texas Senator and Representative to attend.  Details will be provided soon.

 

 

Will MLR Requirements Squeeze Agent Healthcare Commissions?

Beginning January 1, 2011, the Patient Protection and Affordable Care Act (PPACA) requires health plans to spend a minimum of 85% in the large group market and 80% in the individual and small group market of premium on medical claims and rebate any excessive overhead to enrollees.

Des Taylor, NAIFA-Texas CEO/CLO has asked TDI Commissioner Mike Geeslin to recognize that agent commissions are not part of company premium revenue and to treat them as a pass-through expense to be excluded from the Medical Loss Ratio (MLR) calculation. Texas has been identified as a state where there could be particular concern given current statutory MLR levels and the number of people with individual coverage. 

Responding to a request for agents to contact Commissioner Geeslin on this issue, Steve Harris CLU, ChFC with NAIFA-Dallas sent his realistic view of this issue to the Commissioner:

"For calculating MLRs under the PPACA, I encourage you to consider agent commissions as a pass through item.  Having sold medical insurance, especially small group plans in Texas for over 25 years, I can attest that the idea of a 'commission' for sale of a medical insurance product is a misnomer.  Once the client decides to proceed with the chosen plan of coverage, a service relationship is established.  We offer ongoing enrollment services, answer questions regarding COBRA, State Continuation and provide assistance with claims issues.  We interface weekly with many clients and guide new HR employees through the ongoing administrative regulations and paperwork of employer plans.

"I could forgo commissions and bill clients for my services, but that is administratively burdensome and is an additional expense for both me and my clients.  The current system of allowing the employer to pay for my consulting and services by way of a compensation pass through from the incumbent carrier is a very viable means of compensation."

Click here to email your response to Commissioner Geeslin.

 


 NAIFA Protests Fiduciary Proposal in Letter to SEC

Eliminating the broker-dealer exclusion from fiduciary requirements could result in a substantial increase in "frivolous litigation" that could result in "catastrophic costs" for its members, NAIFA has told the SEC.

That could ultimately force many of them to shut down, NAIFA stated in its comment letter filed with the agency Monday. That was the last day of the comment period set for a study the agency must complete within six months on the fiduciary standard issue.

Under the provision, the SEC would then draft a new standard-of-care rule based on the findings of the report. Click here to view article in it's entirety.
 
 
U. S. Senate Fails to Fix Onerous 1099 Reporting
As reported on the NAIFA-Texas website on August 11, the new federal Patient Protection and Affordable Care Act (PPACA) to take effect in 2012 will increase greatly the required number of IRS 1099 forms to be filed each calendar year by all businesses, tax-exempt organizations and federal/state/local government entities for all purchases of property and services worth $600 or more. 

This provision is designed to raise $18 billion in revenue over 10 years.  However, critics claim that the record keeping, accounting and compliance issues will be very costly to the self-employed, small businesses and the federal government.

Although work was underway to repeal or at least restrict this portion of PPACA, on September 14 the U.S. Senate voted to bring H.R. 5297 - the Small Business Jobs Act that includes the expanded 1099 reporting requirement - to the Senate floor with no changes.

The National Association of Insurance and Financial Advisors, Falls Church, Va., has joined other insurance and employer groups in seeking repeal of the new Form 1099 reporting requirements to ease the burden on small businesses.

Other sections of H.R. 5297 include:
  • simplifying rules governing partial withdrawal of funds from an annuity contract;
  • allowing the self-employed to deduct their health insurance premiums for one year; and,
  • allowing traditional 401(k), 403(b) and 457 plans to be rolled into Roth versions of these accounts.  NAIFA President Tom Currey commented that Plan participants now can roll traditional plan assets only into Roth individual retirement accounts.  The Roth rollover provision in H.R. 5297 "expands the universe," Currey says.
Put NAIFA Membership Logo to Work for You

 Stella Castaneda, NAIFA-Texas Public Relations Chair
As Public Relations Chair for NAIFA-Texas, Stella Castaneda asks every NAIFA member to put the NAIFA logo to work for you on business cards, letterhead, email signatures, office window/door, etc.  This will let clients and business associates know that you are a professional agent who belongs to the largest national association for insurance and fianancial advisors which promotes professional standards and education along with advocacy and good public policy.  Check out the logo choices below, and follow the directions to download your membership logo today.

  • Click here to go to NAIFA membership logos on the NAIFA website. 
  • Sign in with your membership number and last name
  • Click the blue arrow and you will see 4 choices for membership logos (pictured below).
  • Scroll down for instructions to add your join date and download membership logos.   

4 NAIFA Membership Logos

 

 

 2010 NAIFA Convention in Seattle: 

New NAIFA-Texas Leaders Step Up to the Mission / NAIFA President Tom Currey Steps Down

NAIFA-Seattle TowerTexas Gov. Rick Perry extended his greetings to delegates at the NAIFA Career Conference and Annual Meeting in Seattle Sept. 11-14.  "On behalf of NAIFA President -- and lifelong Texan -- Tom Currey, I thank you all for your leadership of and service to this outstanding organization," said Perry.


"Your industry plays a vital role in the Texas, U.S. and global economies," he added.  "As agents and advisors, you are performing noble work in the long Texas tradition of self-reliance and limited government."

Over 50 Texans were on hand to hear their Texas colleague Currey deliver his last address as National President and to welcome incoming President Terry Headley, Nebraska.  In a three-way contested race for Secretary (and 2012-2013 President) attorney/financial advisor Robert O. Smith, CLU, ChFC, JD soundly defeated, on the second ballot, Californian Russell A. Smith, CLU, ChFC, CFP, CSA.  Robert Smith will serve one year as NAIFA Secretary and each year, move up until he serves as NAIFA President.

NAIFA-Texas President-elect Stephen Ehlers organized the opening session's Parade of States marking the 27th anniversary of a flag ceremony that was started by his father Robert Ehlers.  The senior Ehlers was appointed by the NALU Board in 1982 as the NALU vexillologist, the standard bearer of flags.

In addition to attending outstanding educational workshops and hearing nationally renowned conference speakers, attendees were able to network with colleagues from across the NAIFA federation and to spend time with a large number of exhibitors.  In between business sessions several delegates including three Texans engaged in a little fun including a NAIFA "We Got Talent" Show and a pie throwing event.  Texan Tom Currey played the trombone and sang a couple of memorable old classics, accompanied by a pianist, while NAIFA-Texas Trustee Lane Boozer played guitar, sang and, finally, brought out his harmonica to join others on stage in a finale, encore presentation.  Boozer also earned the right, as did NAIFA-Trustee Joey Ussery, to toss a pie in the face of national membership Chair Van Land, Georgia, who had issued a challenge:  persons who sponsored at least five new members in the waning days of last year's membership campaign would be able to throw a pie at him in Seattle.  Boozer and Ussery did just that, adding a moment of levity between business sessions.

NAIFA Texas CEO Des Taylor, who completed his term as Chair of the Association Executives Advisory Council, served as emcee for the prestigious C. Carney Smith Memorial Award Dinner during the Association Executives Conference that preceded the NAIFA events.  He was joined by President Currey who announced the 2010 recipient Sara Decatoire, Illinois state executive.

Next year's annual meeting and career conference is scheduled for September 10-14 in Washington, D.C.

Photos below represent some the happenings and events at the NAIFA Convention this September. NAIFA Convention Photos

2010 Platinum and Gold Sponsors
 Gov. Perry, Littleton, Dodson