In This Issue


liamGov. Perry Proclaims September Life Insurance Awareness Month

Gov. Rick Perry recently issued a proclamation declaring September to be Life Insurance Awareness Month in Texas.

 

The proclamation reminds Texans of the importance of life insurance in protecting their family's future.
 

The observance of Life Insurance Awareness Month in September is coordinated annually by the nonprofit Life and Health Insurance Foundation for Education (LIFE).  Visit   

lifehappens.org/life-insurance-awareness-month for more information and to access a planning toolkit.

 


hb2277TDI: Does Longevity CE Exemption Apply to Annuity Training?

Are agents who have obtained the longevity CE exemption exempt from the new annuity product training requirements of House Bill 2277 which was passed by the 82nd Texas Legislature?

 

NAIFA-Texas has asked that question and awaits a response from the Texas Department of Insurance (TDI). HB 2277 [authored by Rep. Craig Eiland (D-Galveston) and sponsored by Sen. Tommy Williams (R-The Woodlands)] relating to suitability standards and life settlements has an effective date of September 1, 2011. Insurance companies are alerting their agents to the impact of the new law. Click here to view the legislation in its entirety.


sanmarcosNAIFA-Texas Looks Back to Clear Lake, Ahead to San Marcos

A month removed from the 2011 Career Conference & 86th Annual Meeting, NAIFA-Texas members are still abuzz with talk of the fantastic MDRT speakers, welcome dinner at the NASA Space Center, Presidents' Gala festivities, Local Leadership Training and other highlights from Clear Lake.

 

Relive a few of those memories from this year's conference by viewing the 86th Annual Conference Photo Gallery.

 

Now NAIFA-Texas President-Elect Doug Massey begins implementing his vision for the 2012 NAIFA-Texas Career Conference & 87th Annual Meeting, to be held in San Marcos on Monday, July 23 through Wednesday, July 25, 2012. He hopes to capture the momentum from this year's conference and build on its successes. Massey's schedule incorporates the Local Leadership Training and Leader's Recognition Dinner beginning Sunday, July 22-23, 2012. 

 
Spend your free time in San Marcos tubing on the Guadalupe (left), braving the newest water ride at Schlitterbahn (center), or hitting the Tanger Outlets (right).

 


naifaconfNAIFA Conference Set for September 10-14 in Nation's Capitol 

More than 40 Texans have registered to attend the NAIFA Career Conference & Annual Meeting in Washington, DC on September 10-14, 2011. Conference events will include realLIFEstories, NAIFA's Got Talent and reveal the 2011 recipient of the John Newton Russell Memorial Award.

 

Attendees will hear firsthand accounts from 9/11 survivor Chief Richard Picciotto, NYFD, who led his battalion into the World Trade Center; and General Colin Powell, whose presentation will illustrate precisely what it takes to be a leader.

 

NAIFA-Texas President Stephen Ehlers will organize the Parade of States marking the 28th 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.

 

NAIFA's advocacy work will take center stage when members adorn the halls of congress during NAIFA's Day on the Hill event on Wednesday, September 14.   


nylNew York Life Study Finds NAIFA Members Out-Produce Non-Members

 

NAIFA members are leaders within their industries.  Let colleagues and clients know that you are a member by adding a NAIFA graphic to your email signature, and encourage peers to join by sharing the results of this New York Life study. 


directiveCompleted Directives = More Money for Texas IFAPAC

 Here are the DIRECTIVE facts:

  • Hundreds of NAIFA-Texas members have NOT completed their DIRECTIVES.
  • NAIFA-Texas IFAPAC will receive 100% of contributions sent by members until September 31st if they have completed their DIRECTIVES. 

Why should I complete a DIRECTIVE?

  • NAIFA now asks every member to complete a DIRECTIVE in the event that the member contributes to the PAC at a future date. 
  • If a member gives to the PAC and does not complete a DIRECTIVE, the NAIFA-Texas IFAPAC loses its 50/50 share of the contribution.

What is a DIRECTIVE?

  • A DIRECTIVE tells our national IFAPAC that it is okay - or not okay - to share your PAC contributions equally between NAIFA's IFAPAC and NAIFA-Texas IFAPAC.
  • NAIFA members who are registered with the Securities & Exchange Commission (SEC) will need to contact their compliance officers prior to completing the DIRECTIVE.

What is a PAC?

  • Simply put, it is "career insurnace" for agents.
  • A political action committee (PAC) receives and raises money from NAIFA-Texas members to contribute to the political campaigns of candidates for the Texas Legislature as well as some statewide offices.  
  • The NAIFA-Texas IFAPAC supports candidates who support and listen to the needs of insurance and financial advisors.

Click here to complete a DIRECTIVE online.

Click here to print a DIRECTIVE to complete and fax to NAIFA. 


boboNAIFA-Austin and NAIFA-TX Gulf Coast Recognized as Outstanding Locals

NAIFA-Austin and NAIFA-TX Gulf Coast join an elite group of other local associations in the federation that have achieved the Jack E. Bobo Award of Excellence for 2010-2011. Both locals earned the highest honor, the Platinum level. 

 

The award recognizes associations in the NAIFA federation that excel in areas critical to their success and growth over a one-year period. Those areas are member benefits, advocacy, membership and governance.

 

Click here to enlarge the certificate.

 


benjaminNAIFA-Texas Remembers James H. Benjamin, CLU

James Benjamin accepting the NAIFA-Texas Lifetime Achievement Award at the 2010 NAIFA-Texas Annual Meeting in San Marcos.

James H. Benjamin, CLU, a past-president of NAIFA-Texas, passed away on Sunday, August 21, 2011.

 

Benjamin, a graduate of Lamar University, had a successful career with Insurance Designers of Dallas spanning over four decades.

 

Throughout his career, Jim was a tireless supporter of his industry and his professional association, serving most notably as President of NAIFA-Dallas and later as President of NAIFA-Texas (2001-2002).

 

Benjamin has numerous industry honors to his name, including the NAIFA-Dallas Life Underwriter of the Year Award, the NAIFA-Dallas Hall of Fame in 1999, and the NAIFA-Texas Lifetime Achievement Award in 2010.

 

Survivors include his wife, 'Bitsy' (Marie); five children; and nine grandchildren.

 

In Lieu of flowers donations may be made to National Brain Tumor Society or American Diabetes Association.


mlrreqTDI Requests More Time on MLR Requirements

As it stands, companies that don't spend at least 80% of premium dollars this year on direct care and quality of care improvements will have to issue refunds to premium payers beginning in 2012.

 

However, Texas carriers subject to the rule averaged 70.8% MLR last year, and if the rule had been in effect, would have to pay back a collective $158.1 million. TDI argues that forcing carriers to immediately meet the 80% standard would result in market disruption and slashed agent commissions.

 

TDI is proposing a graduated implementation instead, starting at 71% this year and increasing by 3 percent each year until the 80% standard is met in 2014.

 

The Texas Department of Insurance is asking the federal government for more time for health insurers in the state to meet the new medical loss ratio (MLR) requirements.


franchisetaxTexas Supreme Court: Is the Texas Franchise Tax Unconstitutional?

An insurance claims adjustment company from the San Antonio area has filed a lawsuit that claims the state business tax known as the Texas Franchise Tax or "margins tax" is an income tax. A state income tax is unconstitutional in Texas. The 2006 tax was approved by several business groups as necessary tax swap legislation that reduced property taxes.

 

Businesses making more than $1 million per year are required to pay the tax which brings in a less than expected $4 billion per year. Special provisions in this law require that any challenge to its constitutionality goes to the Texas Supreme Court which differs from the usual initial trial court and courts of appeal filings. The Supreme Court is required to render a ruling by late November.


secSEC Hurries to Write Uniform Fiduciary Standard

The Securities and Exchange Commission (SEC) is speeding up the process to write a uniform fiduciary standard regulation according to Chair of the U.S. House Financial Services Committee, Rep. Spencer Bachus (R-Alabama). The Dodd-Frank Act requires the SEC to study the need for a uniform fiduciary standard before writing new fiduciary standard regulations. Bachus also said that it "authorizes but does not require the SEC to promulgate rules that would apply the same standards to broker-dealers as to investment advisors," and expressed concern that "the economic analysis has not been done to justify the SEC moving forward on a proposed fiduciary rule."

 

Traditionally, a fiduciary standard has applied to investment advisors. A suitability standard - which requires the seller to verify that a product suits the buyer's needs - applies to broker-dealers and their representatives, including many life insurance agents who have the licenses to sell variable annuities and variable life insurance.


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