Rep. Lois Kolkhorst

With eight days left in the first called special session of the 82^nd Texas Legislature, lawmakers have tackled the major issue -- school finance -- and now are at odds over how to reform the Texas Windstorm Insurance Association (TWIA).   One change the Senate and House have agreed to in House Bill 3 is the elimination of the 18 percent penalty on TWIA for unnecessary delays in paying policyholders.

Another piece of legislation of interest to NAIFA-Texas is House Bill 5 by Rep. Kolkhorst (R-Brenham) which authorizes Texas to participate in an interstate compact effort to secure Congressional consent to regulate healthcare with less federal interference.  The bill has passed the House and has been received by the Texas Senate.  The bill establishes the Interstate Advisory Health Care Commission to make recommendations on healthcare delivery and enables member states to receive federal money which should require less federal interference.  

The plan, already created in Oklahoma and Georgia, asserts that interstate compacts are a way to move control from the federal government to the states, but these compacts can only do so with the approval of the United States Congress. 

Brian Ashe CLU

Brian Ashe CLU who is past president of MDRT and past chair of LIFE reminds NAIFA members that "whenever Congress gets hungry, the life insurance business is the proverbial 'low hanging fruit.'" This time the problems are larger and rather than reduce spending, it always is easier to go get tax money from the people who have money. And, that is us, the life insurance industry.

According to the ACLI, U.S. life insurance assets in 2008 totaled $4.6 trillion, and 92% of that was invested in the U.S. economy. And, those assets increased in 2009 -- a pretty mean feat when the S&P 500 and Dow Jones indices were still finding their bottoms. That means American jobs for American businesses.

And while those markets tanked and people's fortunes were being destroyed, our business kept its promises and paid out $59 billion in largely income-tax-free death benefits and another $48 billion in cash values of voluntarily terminated life insurance contracts, not even counting the cash-value increases for "in force" business.

If life insurance ownership is discouraged by unfavorable taxation, where will the death benefits and cash values come from to help our clients the next time the great gurus of government screw up? We've been to this dance before and things have not gotten better under recent government nostrums. They have gotten worse.

A wise financial commentator once said that most Americans just want three things -- they want to get married and buy a house, raise and educate their children and retire with dignity. Message to Congress: When it comes to proposed life insurance taxation, don't overreact. Rather, do nothing.

Taken from an article by Brian Ashe CLU in NAIFAs Advisor Today.

In an effort to save the Pre-existing Condition Insurance Plan (PCIP) program, the U.S. Department of Health and Human Services (HHS) is paying agents and brokers enrollment commissions. Texas is one of 23 states and the District of Columbia that opted to let HHS run its PCIP. Click here to access the Texas PCIP website.

So far, only about 18,000 enrollees nationwide have enrolled for the PCIP program. Eligibility is not based on income and risk pools cannot charge higher rates for people with more severe health problems.

Starting July 1 (already in effect for children under age 19), applications for coverage can simply provide a letter from a doctor, physician assistant or nurse practitioner dated within the past 12 months stating that the person has or had a serious medical condition, disability or illness and has been without coverage for 6 months. Applicants no longer have to wait for a health insurance company denial letter. Applicants need to show U.S. citizenship or legal U.S. residency. 

NAIFA-Texas 2011 LILI Participants     top row - left to right   James Stoner, Fort Worth;     Lance Kroesch ChFC, CASL, FIC - Austin Ryan Aschenbeck FIC - Brenham    Jeremy David CLTC - Austin Thomas Posey LUTCF, FSS - Victoria   Dale Dowlearn - San Antonio     bottom row - left to right Peter Rothe CLU, LUTCF - Houston   Lilia Arandela LUTCF, ChFC, CLU - Corpus Christi Janella Matias LUTCF, FSS - Hallettsville  Sonia Martinez-Garcia - McAllen  Joshua Hernandez CIC - San Antonio  Brandon Green, LUTCF, CLTC, Katy

The 2011 NAIFA-Texas Leadership in Life Institute (LILI) has scheduled graduation services for 12 graduates (pictured above) at its Career Conference and Annual Meeting to be held July 21-24, 2011 at the Hilton Houston NASA Clear Lake in Houston, Texas.

The Leadership in Life Institute is a six-month leadership-development course offered exclusively to NAIFA members. The program offers:

• The best in leadership and personal-development thinking
• Tools to improve your practice and create a business plan
• Increased understanding of self and improved interpersonal relationships
• Expanded professional network
• Continued opportunities for growth through LILI alumni programs
• Skills graduates will use to strengthen their local association

NAIFA-Texas members interested in the LILI program may contact their local associations or call Monica Lopez at the NAIFA-Texas office: monica.lopez@naifa-texas.org or 512.716.8800.