In This Issue


conference86th NAIFA-Texas Conference Could Not Have Been Better!

Nothing about the NAIFA-Texas 86th Leadership Training / Career Conference / Annual Meeting could have been better than it was. From the moment attendees spotted beautiful Clear Lake spread out in front of the high rise Hilton Hotel, everyone began to have a good time. The weather and food were great. Fantastic MDRT speakers. Enthusiastic sponsors and exhibitors.

 

Leadership Training

NAIFA-Texas Board members and local association executives Ellie Kennedy, Karen True and Kim Kieschnick shared proven techniques and personal experiences for recruiting/maintaining members and insuring a successful association year. Joey Ussery presented his proven agency membership presentation which successfully recruited numerous new NAIFA members. IFAPAC National Committee member Alan Kifer spoke about writing the proper check (1% of annual income) to IFAPAC which keeps all of us in business. Larry Lambert, 1998-1999 NAIFA President and MDRT member who was instrumental in starting the LILI program, spoke at the World Class Leaders Dinner.

 

Career Conference / Annual Meeting / Presidents' Gala

Four outstanding MDRT speakers and two speakers with inspiring personal stories provided the backdrop for the LILI commencement ceremony and exhibitions with the 21 sponsors and exhibitors.

 

After the annual business meeting elections to fill vacancies on the 2011-2012 NAIFA-Texas Board, everyone enjoyed the Texas PAC reception/silent auction and the presidents' gala where Stephen Ehlers, NAIFA-Texas President; Doug Massey, President-Elect; Joey Ussery, Secretary/Treasurer; Ron Mullen, National Committeeman; and Trustees Lane Boozer, Stella Castaneda, Kirk Haworth, Jason Talley, Alan Kifer, Eddie Tate and Michael Kennedy were installed by John Ruckel 1987-1988 NAIFA-Texas President and 2008 recipient of the Lifetime Achievement award.  Click on an individual's name to read his/her press release.

 

Legislative Luncheon

Everything came together when one of our own, 38-year NAIFA-Texas member, 38-year State Farm Insurance agent and 20-year State Representative Joe Driver, spoke at the legislative luncheon. Thank you State Farm and Joe Driver for all you do for NAIFA-Texas! 

 

For more pictures, click here.

 


ehlersStephen M. Ehlers, LUTCF, to Lead NAIFA-Texas as 87th President

Robert Ehlers (left) and son Steve Ehlers, LUTCF

For only the second time in NAIFA-Texas history, the son of a former president was installed to lead the organization. Stephen M. Ehlers, LUTCF, was sworn in as the 87th President of NAIFA-Texas during the 2011 Career Conference and Annual Meeting. His father, Robert A. Ehlers, served as NAIFA-Texas (TALU) President 1978-79.

 

A slideshow honoring NAIFA-Texas Past Presidents, including Ehlers, was featured during the 86th Annual Conference's culminating event, the President's Gala. To view the slideshow, click here.


awardsCurrey, Robertson, Talley Award Recipients at Annual Conference

Tom Currey, CLU, ChFC, LUTCF

Tom Currey, CLU, ChFC, LUTCF received the Lifetime Achievement Award, an award that is reserved for an individual that has demonstarated oustanding service to the NAIFA organization and has excelled in his profession.  Currey was President of NAIFA in 2010-2011 and was President of NAIFA-Texas in 1998-1999.  He also led development and implementation of the Leadership in Life Institute (LILI). Click here to read the press release announcing his award.

  

Randy Robertson, LUTCF

Randy Robertson, LUTCF was the recipient of this year's NAIFA-Great Southwest Bruce Murray Tall Texan Award.  The Bruce Murray Tall Texan Award recipient is determined based upon the demonstration of the following criteria: political involvement, general association involvement, community service, education, and membership.  Robertson most recently served as President of NAIFA-Texas 2009-2010. Click here to read the press release announcing his award.

 

Jason Talley, LUTCF

Jason Talley, LUTCF was named "Outstanding Trustee of the Year," an honor bestowed upon one NAIFA-Texas trustee each year by the President for exemplary service. Also during the conference, Talley was re-elected to serve another two-year term as Trustee and was also elected by fellow board members to serve as a member of the executive committee.


pacBarrera & Kifer Urge All NAIFA-Texas Members to 'Write the Proper Check'

Roland Barrera NAIFA-Texas  

PAC Chair 2011

The recent 86th annual NAIFA-Texas state conference attendees and Delegate Council for the 2nd year in a row set the bar for PAC (political action committee) contributions. Members and leaders alike from across the Lone Star State rose to the ongoing challenge to NAIFA as expressed by State PAC Chairman Roland Barrera.

 

"Too few of our members are 'writing the proper check' when it comes to PAC. Those who contribute carry a heavy load on behalf of those who don't contribute but benefit from the same successful legislative advocacy efforts."

 

Alan Kifer

IFAPAC Regional Asst Vice Chair

NAIFA President Terry Headley applauded the conference's efforts and successes on the local legislative level. He reiterated "the necessity for continued vigilance in light of current and ongoing regulatory measures aimed at the insurance industry."

 

Alan C. Kifer, who contributes to IFAPAC at the highest level, was high bidder for the silent auction pen that Gov. Rick Perry used to sign Senate Bill 567 into law. This legislation was another example of NAIFA-Texas' ability to successfully advocate for legislation that positively impacts the lives of families and their financial futures. "Membership in NAIFA is proof of involvement, and writing the proper check to PAC is proof of commitment to the advocacy that keeps agents in business." 


liamSeptember is Life Insurance Awareness Month in Texas 

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.  Visit www.lifehappens.org/wondersoflife for more information.

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

Click here to view the proclamation. 

  


kitzmanKitzman Named New Texas Insurance Commissioner

Eleanor Kitzman

TDI Commissioner  

Eleanor Kitzman

Eleanor Kitzman will be the state's new insurance commissioner, effective August 15. Governor Rick Perry announced the appointment last week. Kitzman will replace Commissioner Mike Geeslin, who announced in January that he planned to resign from the position.

 

Kitzman is the outgoing executive director of the South Carolina Budget and Control Board. She also is past director of the South Carolina Department of Insurance and a former clerk for the Texas Supreme Court. "I'm confident that Eleanor's expertise in the insurance industry will make her a strong advocate for insurance customers in Texas, and I appreciate her willingness to serve the state in this capacity," Perry said in a statement.

 


tdiTDI Requests More Time on Health Insurance MLR Requirements

The Texas Department of Insurance (TDI) has asked for a 3-year implementation period to avoid big disruptions in Texas' health insurance market. The medical loss ratio (MLR) in the federal healthcare reform law requires 80% of premium dollars must be used for direct care.

TDI said that Texas carriers subject to the new rule averaged 70.8% MLR last year. Forcing these carriers to meet the new MLR would disrupt Texas' health insurance market. Agent commissions would be slashed, and some insurers may leave the state.  A stair stepped implementation was suggested by TDI that would start at 71% this year and increase by 3% each year until the 80% standard is met in 2014.

"With the high uninsured rate in Texas and the expected major expansion of the individual market in 2014, including enrollees in the health in
surance exchange," TDI writes, "It is especially critical that Texas retain its current carriers and allow for new entrants in the market."

 


toptenNAIFA-Texas Lobbyists List "Top Ten" Achievements

With the adjournment of the regular session and the first called special session of the Texas Legislature, NAIFA- Texas representatives provide the following list as examples of advocacy in action in Austin during the 82nd Texas Legislature:

  1. Passage of landmark legislation SB 567, increasing consumer protections for annuities from $100,000 to $250,000 effective Sept. 1, 2011;
  2. Maintained exemption for agents/small businesses with less than $1 million in gross receipts from state's primary business tax;
  3. Worked to insure the role of the agent in the creation of any state based health insurance exchange or interstate compact;
  4. Protected agent commissions under state legislation relating to the privacy of protected health and personal information;
  5. Supported change in the reporting requirements for annuity CE while maintaining longevity exemption from attacks by AARP;
  6. Passage of 20-day "free look"/rescission period for purchasers of annuities;
  7. Defeat of HB 504/SB 381 with onerous requirements for agents in the withdrawal/partial surrender of annuities and life policies;
  8. Passage of reasonable suitability requirements/disclosures in the sale, exchange, replacement of life insurance policies, annuities;
  9. Worked to insure that TDI sunset measure, as passed, would not provide Commissioner with authority to modify agent commissions; and
  10. Passage of TWIA reform legislation in special session without inclusion of laundry list of "trial lawyer" demands.

Additionally, NAIFA-Texas had one of the largest attended "Day at the Capitol" luncheons at the beginning of the session and a historic bill signing ceremony with Gov. Perry at the end of the regular/beginning of the special session.  

 


liliLILI Class of 2011 Graduates; Applications for Class of 2012 Due Oct 25

NAIFA-Texas is 12 leaders stronger! Congratulations to the LILI Class of 2011:

 

Jeremy L. David, CLTC of Austin; Lance G. Kroesch, ChFC, CASL, FIC of Georgetown; Dale Dowlearn of San Antonio; Joshua R. Hernandez, CIC of San Antonio; James F. Stoner of Ft. Worth; Lilia A Arandela, LUTCF, ChFC, CLU of Corpus Christi; Sonia I. Martinez-Garcia of McAllen; Ryan K. Aschenbeck, FIC of Brenham; Peter H. Rothe, CLU, LUTCF of Houston; Brandon T. Green, LUTCF, CLTC of Katy; Janella B. Matias, LUTCF, FSS of Hallettsville; and Thomas S. Posey, LUTCF, FSS of Victoria

 

The participants of the Texas Leadership in Life Institute (LILI) celebrated commencement on Thursday, July 21 at the Hilton Houston NASA Hotel.

 

Many NAIFA-Texas state and local leaders joined in the festivities, which included a certificate presentation and acceptance speeches from all graduates. The commencement address was provided by 98-99 NAIFA President Larry Lambert, CLU, CFP. It was during his presidency that the Leadership Development Task Force Committee (LDTFC) was formed and the development of the LILI curriculum began. Other honored guests included past NAIFA & NAIFA-Texas President and LDTFC Chair Tom Currey, CLU, ChFC, LUTCF and past NAIFA-Texas President and Texas' first LILI Moderator Glen Baecker, CLU. Openingremarks were provided by current Texas LILI Moderator Ken Quach, CLU, ChFC, CASL and NAIFA-Texas LILI Chair Karen Easterling.

  

The mission of LILI is to develop leaders by fostering personal growth, enhancing business practices and developing skills necessary for effective leadership. The NAIFA-Texas LILI Committee is accepting candidate applications for the 2012 Institute, scheduled to begin on February 6, 2012 at the NAIFA-TX offices in Austin, Texas. The 2012 Institute moderators are Ken Quach, CLU, CHFC, CASL and Geordie M. Hrdlicka, JD, LLM, CFP, both of Houston.

  

The application submission deadline is October 25, 2011.  Applicants must be recommended by their local association and will undergo further screening by the NAIFA-Texas LILI Candidate Selection Committee. Additional information including tuition, session dates and related issues are provided on the NAIFA-Texas 2012 LILI application and curriculum

 

Please contact the NAIFA-TX office at (512) 716-8800 with any questions.

 

To view more photos of this year's LILI commencement, click here.


secSEC Considers Searches for Missing Securityholders

The Securities and Exchange Commission (SEC) is asking for public comment on rules that would require efforts from transfer agents, brokers and dealers, and paying agents to locate missing securityholders.

Unclaimed property operations have been in the news in the insurance industry recently because of states' efforts to audit insurers' efforts to locate policyholders who may have passed away and their beneficiaries.


naifaNAIFA Monitors Hearing: Standard of Care /Commission Disclosure

US Senator Tim Johnson

U.S. Senator  

Tim Johnson 

In a hearing held by U.S. Senate Banking Committee Chair Tim Johnson (D-SD) witnesses provided information about the standard of care issue and the Department of Labor (DOL) fiduciary definition issue.

 

US Senator Robert Menendez

U.S. Senator Robert Menendez 

Standard of Care  

U.S. Senator Robert Menendez (D-NJ) questioned Barbara Roper, Consumer Federation of America Director of Investor Protection, on the fiduciary issue. Roper said the standard of care issue is the most important issue for retail investors and pointed to RAND study's finding that investors can't distinguish the difference between broker-dealers and investment advisers even when the difference was explained to them. Roper said that the fiduciary standard and the suitability standard start at the same place, but fiduciaries take it to the additional level of ensuring the product is not only suitable, but is the best for the client. She did say that some investors would benefit from a commission, transaction-based relationship, and that's why Dodd-Frank created that carve-out,

Barbara Roper
Barbara Roper 

along with carve-outs for proprietary products.

 

Commission Disclosure  

Roper stated that she believes a fiduciary standard for broker-dealers should mean that brokers should be required to disclose conflicts of interest, including when the sale of a suitable product will pay a higher commission than that of another suitable product. Roper referenced the section of the Dodd-Frank Act that clarifies the SEC has the authority to require broker-dealer disclosures, including compensation disclosure.

 

NAIFA staff has previously reported that the provision of Dodd-Frank that Roper mentioned was included in Dodd-Frank as the result of SEC staff requesting it. The provision states that, should the SEC choose to use their authority, the disclosure must be presale, in a clear simple format, and must include "any compensation or other financial incentive received by a broker-dealer, or other intermediary in connection with the purchase of retail investment products." Roper serves on the SEC's Investor Advisory Committee, and her highlighting of this provision represents that the SEC may be preparing to act on that authority.

 

US Senator Kay Hagan

U.S. Senator  

Kay Hagan 

DOL Fiduciary Issue  

U.S. Senator Kay Hagan (D-NC) brought up the DOL's proposal to expand the definition of fiduciary under ERISA. She focused her questioning primarily on the lack of coordination between the DOL and SEC on this issue. Hagan expressed concern that the DOL will unilaterally produce a fiduciary definition that is divergent from the SEC's definition. Former SEC Chairman Harvey Pitt and SEC Commissioner Paul Atkins both expressed that federal agencies should always work in concert with each other, and Pitt pointed out that the SEC has quite a bit of expertise in pension investments. Barbara Roper stated that the DOL hasn't clearly defined what will qualify as an exemption to the prohibited transaction rule.


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