In a rush to beat the filing deadline, more than 900 bills and resolutions were filed in the Texas House and Senate Friday, March 11, bringing the total to 7,269. The 82nd Regular Session adjourns May 30, 2011.

It will take some time to analyze the bills filed in the past few days. So far, NAIFA-Texas has been active in reviewing and/or in testifying on a number of bills impacting agents and financial advisors including ones relating to (1) the Texas Guaranty Association protections for annuities; (2) the creation of health insurance exchanges; (3) new disclosures to life insurance policy owners; (4) the reduction of the number of annuity specific and Medicare specific CE requirements for agents; (5) onerous new requirements for the partial withdrawal/surrender of annuities; (6) new suitability requirements for the sale of annuities; (7) creation of a statutory 20-day "free look" period for purchasers of annuities; (8) sunset review of the Texas Department of Insurance; (9) the overhaul of the Texas Windstorm Insurance Association; (10) life settlements; and (11) the exemption of agents as covered entities under HIPPA in regard to prohibitions in the sale of protected health information that could place at risk agent commissions in the sale of life, disability and LTC insurance.

For the latest bill action and text of filed bills, visit the Texas Legislature Online.

"A solution in search of a problem" is how NAIFA-Texas incoming President-elect Doug Massey characterized SB 381 by Sen. Jeff Wentworth in testimony March 7 before the Senate State Affairs Committee. Senate Bill 381 relates to a partial withdrawal from and/or surrender of annuity contracts and life insurance policies, requiring notarized signatures of the owner and the presentation of the annuity contract/insurance policy to the agent who sold the product or the current agent of record.

"If it ain't broke, don't fix it," Massey told members of the Committee, citing his own experience of 26 years as an agent handling 50-plus withdrawals, on average, a month. "I do not see that allegations of fraud in one cited instance is a problem that requires changes in the Insurance Code as proposed in SB 381," Massey said.

H.B. 504 is the House companion.

The National Association of Insurance Commissioners' (NAIC) Professional Health Insurance Advisors Task Force recently posted a draft medical loss ratio (MLR) commission exclusion bill on the NAIC website and plans to address compensation concerns at a public hearing March 27, during its spring meeting in Austin.

NAIFA and industry partners continue work on keeping producer commissions out of PPACA medical loss ratio (MLR) calculations despite attacks by some members of Congress including Sen. Jay Rockefeller (D-WestVA) who believe that excluding commissions from the MLR formula will hurt consumers. 

NAIFA President Terry Headley welcomed news that a new NARAB (National Association of Registered Agents and Brokers Reform Act) was introduced in the U.S. House with the support of Texas Congressman Randy Neugebauer.

Neugebauer, who honored the 2010 Leadership in Life Institute (LILI) class by meeting with them during a visit to Austin last spring, said that "[t]he legislation is straightforward: insurance agents and brokers who are licensed in good standing in their home states can apply for membership to NARAB which will allow them to operate in multiple states. Our legislation addresses only market-entry procedures. It would not impact the day-to-day state regulation of insurance, and insurance agents would still be subject to the various consumer protection laws of the states."

The NARAB II bill will: 

• Establish NARAB as a national, nonprofit producer licensing corporation.
• Encourage NARAB to develop one set of producer licensing and continuing education standards for the entire country. 
• Give producers who are licensed in various lines in their home states the ability to conduct business in those lines in any state.
• Let states keep regulatory jurisdiction over consumer protection, market conduct and unfair trade practices matters.
• Let states continue to handle producer licensing, supervision, disciplining and licensing fee collection.

Texas consumers will also benefit through increased choices and competition among producers.

The U.S. House passed H.R. 4, a bill that would repeal the new, expanded Form 1099 tax reporting requirements created by the Patient Protection and Affordable Care Act. This vote sets the stage for contentious talks with the Senate over how the 1099 reporting fix should be paid for.

Analysts estimate repealing the 1099 reporting provision could increase the federal debt by about $22 billion over 10 years. The Senate 1099 fix legislation calls for paying for the fix by letting the federal Office of Management and Budget take away about $44 billion in discretionary budget authority from all departments and agencies except for the Defense Department, the Veterans Affairs Department and Social Security.

The House would pay for 1099 provision repeal by having the IRS be more aggressive about getting excess PPACA health insurance purchase tax credits back from consumers who earn 400% to 500% of the federal poverty level.

Ardena Gojani (top) and Maurice Watkins (bottom) will speak at the Conference

Register today for the NAIFA-TX Career Conference & Annual Meeting in Houston, Texas at the Hilton Houston NASA Clear Lake Hotel on July 21-24, 2011.

Spring Training has just started and now it's time for Team NAIFA to showcase its new member recruiting skills and take the diamond for the 2011 NAIFA National Membership Drive, so "Let's Play Ball!" First pitch is scheduled right now and the 9th inning will conclude at midnight on March 31st.

Earn a cash signing bonus of $100 if you recruit 3-5 new members before March 31^st, or $300 for 6+ recruits.

For more information and to access tips, testimonials, and tools coming from the Team NAIFA Coaches-the NAIFA Board, National Membership Committee and NAIFA Professional Staff-visit www.naifamembershipmonth.com.  

Congratulations to Texas' own Joey Ussery, Jeff Reeter, and Khalid Alrashed, who were named 2010 Team NAIFA All Stars for their outstanding recruitment efforts! Who will step up to the plate for Texas this year during Membership Month?