In This Issue

 

liamGovernor Perry Proclaims September Life Insurance Awareness Month

Governor Rick Perry has issued a proclamation declaring September Life Insurance Awareness Month (LIAM) in Texas. The nonprofit LIFE Foundation coordinates this yearly observance to remind Americans of the need to include life insurance in their financial plans.

 

The observance of LIAM 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.
 

 

 

 

 

 

    

 

 

ekitMarket Life Insurance Awareness Month with Resources from Across the Web

Many tools are available to help producers promote Life Insurance Awareness Month in their communities. Below are links to several resources from the LIFE Foundation and LifeHealthPro.com.

 

Producer e-Kit

The LIFE Foundation's LIAM Producer e-Kit has the resources you need to be successful during September:

  • Marketing pieces featuring the story of Buddy 'Cake Boss' Valastro, master baker, reality TV star, and this year's LIAM spokesperson
  • Free downloadable flyers and embeddable videos
  • Sales ideas
  • Social media content plan
  • ... and much more!

Producer Webinar

Visit www.lifehappens.org/replayliamwebinar to watch a replay of the recent LIAM Producer Webinar (duration is 1 hour).

 

The webinar features five top agents who share their best LIAM sales ideas that have helped them connect with clients and prospects, schedule more appointments, and close more sales.

 

 

 

 

Life Insurance A-Z Poster

"LIAM is definitely a grassroots movement that relies on industry practitioners to spread the word." Read what Brian Anderson has to say about LIAM, and snag a free copy of Life Insurance Selling's A-Z Poster which breaks down some of the terminology most confusing to consumers. 

boboTexas Boasts Four Bobo Award Winners for 2011-2012

NAIFA-Austin, NAIFA-TX Gulf Coast, NAIFA-Corpus Christi, and NAIFA-Great Southwest are among a small group of prestigious local associations   in the federation that have achieved the Jack E. Bobo Award of Excellence for 2011-2012. NAIFA-Austin and NAIFA-TX Gulf Coast renewed their status from the prior year as "Platinum" award winners, while NAIFA-Corpus Christi received "Gold" and NAIFA-Great Southwest "Silver."

 

The award recognizes associations that excel in areas critical to their success and growth over a one-year period. Those areas are member benefits, advocacy, membership and governance. It honors Jack E. Bobo, CLU, FLMI who served as NAIFA's president and executive vice president and also received the prestigious John Newton Russell Award.

 

Local association leaders will be recognized for their achievements during the NAIFA Conference in Las Vegas next week.

 

  
NAIFA-Austin (left) and NAIFA-TX Gulf Coast (right) accepting their awards last year. 

 

conferenceProposed Bylaws Changes Top NAIFA Conference Agenda

Over 50 Texans will be traveling to Las Vegas this week for the NAIFA Career Conference & Annual Meeting September 8-11. In addition to the usual lineup of speakers, educational workshops, and networking opportunities, delegates will be tasked with voting on several proposed bylaws changes.

 

The first proposed bylaws amendment would change the NAIFA Board selection process to provide for the recommendation of a vetted slate of candidates for the positions of Trustee and Secretary. The second proposed bylaws amendment would give the NAIFA Board the sole authority to set national dues, and the third proposed bylaws amendment would increase national dues by $15.00. Additionally, a resolution has been proposed seeking partnership agreements between the national and state associations.


The proposals have generated heated discussion as of late, with state associations voicing opposition and past NAIFA presidents falling on both sides of the debate. NAIFA-Texas weighed in last week, calling for the internal development of a strategic plan using current financial resources. The full letter can be read here.


Texas delegates will also visit with Keith Gillies, CLU, ChFC, CFP and Juli McNeely, CFP, CLU, LUTCF, who are vying for the position of NAIFA Secretary. To learn more about the candidates, click here.

calsuranceCalSurance Loss Prevention Tip: Joint Cases

Claims arising out of transactions involving more than one agent can present additional risk of an E&O claim. Consider the case where an agent enlisted the help of another agent to cash out a client's existing life insurance policy in order to purchase a new variable life insurance policy.

 

Agent #1 asked Agent #2 to complete the application because of her relationship with the broker dealer. The life policy Insured was Agent #1's client. Agent #2 agreed to do this for Agent #1 because she had known Agent #1 for a long time. In the course of the transaction, Agent #1 directed clients to transfer funds to him. Only 70% of the funds made it to the new policy and the remaining funds are unaccounted for. The clients claimed the actions of Agent #1 caused the cash value of the new policy to erode at an accelerated rate, and the new policy to expire prematurely.

 

Agent #2, along with her broker dealer and the life insurance company, were sued for damages in excess of $100,000 along with Agent #1.

  

Risk Management Tip:

Activities that place your license, contracts and reputation at risk should never occur unsupervised. Tasks left to others should be supervised and confirmed. When dealing with an actual joint case, it's important to develop a checklist of activities. Make sure the responsibilities of each agent are understood. Assumptions should never be made regarding completion of activities and most importantly, make sure the other agent has E&O coverage.

 

For more information about CalSurance and/or to apply online, visit www.naifaeo.com or call 888-833-2304.

 

Additionally, save 10% on your premium by completing a new online risk management course available exclusively to NAIFA members. The course is free, or pay a nominal fee to receive CE credit as well. For more information, visit naifamember.smartpros.com.

 

newsINDUSTRY NEWS HIGHLIGHTS

reachReach out to Middle Market with Life Insurance Education

The "middle market" - who are they and what do they need? Or what do they believe they need, when it comes to life insurance? These are key questions for producers to consider when they are reaching out to this demographic. In terms of defining by income level, the middle market falls within the $50,000 to $200,000 category. And when you consider the "10 times income" rule of thumb for life insurance coverage, they represent a significant market opportunity. Full story.

regulatorsRegulators Unlikely to Impose Fiduciary Rule Soon

While there is a "small chance" that Securities and Exchange Commission (SEC) Chairwoman Mary Schapiro will issue a proposed rule to put brokers under a fiduciary mandate by year-end, the most likely scenario is that, in the "short term (over the next three to four years), we aren't going to see any fiduciary rule with teeth," said Knut Rostad, president of the Institute for the Fiduciary Standard. Full story.

taxTax Issues Unresolved as Congress Takes Break

The month of August is a time for Congressional lawmakers to recess and head back to their home states and districts. In any year, the weeks prior to this recess are the time for both chambers to attempt to finish pressing legislative work. With many contentious elections ahead, this year is no exception. However, the partisan divide is so deep and the elections are so close that all Congress managed in late July were House or Senate passage of differing legislation that has virtually no chance of becoming law prior the election. Thus, many issues of interest to NAIFA members were left unresolved. Full story.

sroIs SRO Debate Causing FINRA to Get Tougher on Advisors?

As the Financial Industry Regulatory Authority Inc. begins its sixth year of existence, the perception of its relationship to the market it oversees has taken on new importance. Full story.

wsjNAIFA Responds to WSJ Editorial on Life Insurance, Tax Reform

Recently, The Wall Street Journal published an editorial stating that elimination of the tax status of inside build-up of life insurance products is "on the table," as Congress looks toward tax reform. Full story.

naicNAIC to Explore Alternatives to Straight-up PPACA

The NAIC has formed a new working group comprised of state insurance commissioners in order to create a forum for the many states - including Texas - that, yielding to political gubernatorial pressure or for other reasons, are not adhering to the formal state health care exchange implementation path outlined in the Patient Protection and Affordable Care Act (PPACA). Full story.

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