In This Issue

jctJCT Estimates Underscore Timeliness of NAIFA Congressional Conference

The Joint Committee on Taxation (JCT) has just updated their estimates for 2013-2017 tax expenditures, defined as provisions in the tax code that allow exclusions, exemptions or deductions from income -- or that offer a tax credit, reduced tax rate or deferral of tax liability. Life insurance, annuities, retirement savings plan and employer provided benefits are examples from our industry of tax expenditures for which JCT has updated its estimates. These estimates are very relevant in that these amounts are the basis on which a piece of legislation would be "scored". Lawmakers rely upon the "core" provided by JCT for specific bills under consideration to determine the amount of revenue spent or saved by the government if the legislation is enacted. The new estimates are listed below:

 

  • $157.6 billion-Life Insurance and Annuity Cash Values
  • $760.4 billion-Employer-Provided Health and LTC Insurance
  • $29.6 billion-Self-Employed Health and LTC Insurance
  • $192.3 billion-Cafeteria Plans
  • $19.9 billion-Employer-Provided Accident and Disability Insurance
  • $17.1 billion-Group Term Life Insurance
  • $11.4 billion-Health Savings Accounts
  • $616.2 billion-Capital Gains and Dividends (Investment Products)
  • $258.0 exclusion of capital gains at death (step-up in basis)
  • $547.8 billion-Employer-Provided Pensions ($212.2 for Defined Benefit Plans; $335.6 for Defined Contribution Plans)
  • $64.1 billion-Self-Employed Pension Plans*
  • $96.8 billion-IRAs* ($24.8 for Roth IRAs, $72.0 for traditional IRAs)

 

This extensive list of tax expenditures impacting the insurance industry underscores the threats we face as Congress seeks to close "loopholes" and find new sources of revenue in the face of mounting national debt.

 

Nearly 1,000 agents and advisors -- 64 and counting from Texas -- will be in the nation's capital April 8-9 for the NAIFA Congressional Conference. Delegates will be in DC solely to reeducate members of Congress on why the tax treatment of permanent life insurance and annuities is not a "loophole" but rather sound public policy that should be continued. If you are interested in attending, please email CEO Des Taylor. Reimbursement of up to $500 of travel expenses is still available, subject to certain criteria.

trainingNAIFA-Texas Leaders Among 150 attending Political Training in DC
More than 150 insurance and financial advisors from around the country concluded NAIFA's annual Political Involvement/Political Action training meeting with visits to congressional offices Tuesday, January 29. NAIFA members held more than 160 meetings with senators, representatives and staffers. Texas' delegation, consisting of CEO Des Taylor, Government Relations Chair Jason Talley, and IFAPAC Chair Roland Barrera, met with Senators Cornyn and Cruz and staffers from the offices of Congressmen Cuellar, Doggett, and Farenthold. Topics of discussion included the importance of life insurance products to 75 million American families and the importance of maintaining the current tax treatment of these products when Congress considers tax-reform proposals later this year.

 

From left, Senator Cornyn, Roland Barrera, Des Taylor, Jason Talley, and Senator Cruz.
Pat Raffaniello, a principal in Raffaniello & Associates lobbying firm, was a guest speaker at NAIFA's morning program before the advisors went to Capitol Hill.

 

"We are correct on the policy when it comes to taxation and life insurance," Raffaniello said. "Now, you have to make members [of Congress] and staff understand why this is important to them and the people back home in their districts."

 

Even though there are no current bills to change the taxation of life insurance, now is the time to start talking to Congress about the issue, Raffaniello said.

 

"Repetition and addition are key, because majority rules," he said. "We need to repeat our story often enough to get to 51 percent. You can't just show up in July when a bill is going to the floor and expect to get your message across."

 

Tuesday's Hill visits were the first in a series of grassroots events planned for early this year. They will culminate with NAIFA's Congressional Conference on April 8-9.

capitolupdate83rd Texas Legislature: Update from the Capitol

The 83rd Session of the Texas Legislature is in its sixth week, with Senate and House committees meeting regularly and with groups of NAIFA-Texas members reviewing bills of interest to agents.

 

At the first meeting of the House Insurance Committee February 19th, the agenda included invited testimony from Insurance Commissioner Kitzman and Associate Commissioner for Life & Health Katrina Daniel. Kitzman said that seventy-five percent of her time had been spent on issues relating to the stability of the Texas Windstorm Insurance Association (TWIA) which remains under administrative oversight from a year ago. Daniel fielded questions regarding implementation of the Afforable Care Act relating, in particular, to the federal government's implementation of a state health insurance exchange in the face of Texas' decision not to create one of our own.

March 8th will mark the deadline for filing bills and joint resolutions other than local bills. To date nearly 2,500 bills and resolutions have been filed. Standby for legislative alerts from now to the session's end May 27th.

committeeSpeaker Straus Names Texas House Insurance Committee

Speaker Joe Straus appointed members of the Texas House January 31 to 38 standing committees and three select committees for the 83rd Legislature. 

 

NAIFA-Texas President Doug Massey (right) visited with Rep. Smithee (left) during NAIFA-Amarillo's Legislative Luncheon last fall. (TAHU Lobbyist Lee Manross also pictured.)

Of greatest interest to our members, of course, is the House Insurance Committee. There was no surprise in the re-appointment of John Smithee (Dist. 86, Amarillo), Chair, and Craig Eiland (Dist. 23, Texas City), Vice Chair. Also appointed to the committee are Chris Turner (Dist. 101, Arlington); Geannie Morrison (Dist. 30, Victoria); Kenneth Sheets (Dist. 107, Dallas); Van Taylor (Dist. 66, Plano); Brandon Creighton (Dist. 16, Conroe); Sergio Munoz, Jr. (Dist. 36, Mission); and Greg Bonnen (Dist. 24, Friendswood).

 

Investments & Financial Services will be chaired by Mike Villareal (Dist. 123, San Antonio) with Dan Flynn (Dist. 2, Canton) as Vice Chair. Finally, the all-important Calendars Committee will be chaired by Todd Hunter (Dist. 32, Corpus Christi), with Eddie Lucio lll (Dist. 38, Harlingen), Vice-Chair.

 

NAIFA-Texas is fortunate to have a key contact for seven of the nine legislators named to the Insurance Committee. If you are represented by (or otherwise have a relationship with) Rep. Munoz, Jr. or Rep. Bonnen, we want to hear from you! To browse all committee appointments, visit the Texas House of Representatives website.

 

shirtsNAIFA-Texas Shirts, Pins Available for Purchase for NAIFA Conference

This year's NAIFA Career Conference and Annual Meeting will be held in San Antonio, Texas, making it the ideal year to attend for seasoned and new members alike. NAIFA-Texas hopes to have extremely strong representation at the event, September 28 - October 1.

 

To stand out as a cohesive group, we ask that every NAIFA-Texas member in attendance dress in our official uniform. Available for purchase now through September 2 are four styles of embroidered shirts and a lapel pin to complete the look. Browse our site and order yours today, and we'll see you in San Antonio!

liliLILI Alumni Gather for 5th Annual Summit; New Class Begins in August

On the back end of the NAIFA-Texas Legislative Day and Annual Business Meeting, twenty-five Leadership in Life Institute (LILI) alumni gathered January 22-23 for the 5th Annual Texas LILI Alumni Summit.

 

Recently retired Barr (left) with LILI Summit Chair Johnston.

In preparation for the event, attendees watched Secretariat and The Secret and read Juggling Elephants by Jones Loftin and Todd Musig. During the Summit, the core principles of each piece were discussed, in addition to completing a study about their independent learning styles, gathering sales techniques from NAIFA-Texas President-Elect Joey Ussery, and hearing a powerful presentation from former Director of LILI Jean Barr on emotional intelligence quotient (EQ) and why it matters. Barr reminded the past graduates that you can improve your EQ significantly and that EQ is the largest component of what makes successful superstars.

 

Remarking that this summit was the best yet, Summit Chair Robin Johnston of Austin said, "While there are new attendees each year, the core group of alumni have gotten to know each other and created a bond similarly to that bond that develops in each LILI class.  This helps carry on the LILI culture through the years.  As it should, LILI becomes a part of your being and the Summit is something you look forward to each year.  It helps you stay accountable to yourself because others are counting on you."

 

The Summit served to emphasize some truths of LILI: Leadership is relationships; Winning spirit is the foundation of life; Be true to yourself and do what you love; If you aren't able to serve, recruit one that can - keep your eyes out for potential leaders; and Never stop learning and trying new ideas. Tracey Lumpkin and Christie Bonczek co-chaired the event with Johnston. Applications for the LILI Class of 2014 will be accepted soon. Classes will begin August 29, 2013. If you are interested in learning more, contact Monica Lopez at [email protected] or 512-716-8800.

 

LILI Alumni (spanning classes from 2000-2012) gathered in Austin for the 5th Annual LILI Summit.

 

qualityApply Now for the NAIFA Quality Award

Advisors specializing in Life & Annuities, Financial Advising & Investments, Health & Employee Benefits, Multiline Sales or any combination of these specialties have the opportunity to demonstrate the quality that is the mark of a true professional.

 

One award, the NAIFA Quality Award, reflects all the varied practice specialties of NAIFA members with a singular mark recognized by all. The NAIFA Quality Award is the mark of distinction to be recognized by not just your colleagues, but by your clients and companies. Be recognized for your commitment to excellence in service to your clients and your industry, in your pursuit of education and training and in your adherence to NAIFA's Code of Ethics. It is time for all NAIFA members to display proudly the mark of NAIFA Quality. Click here to learn more and apply today!

 

socialmediaContact your Congressman via Social Media for Increased Exposure

As we work to develop relationships with our legislators, social media can be a useful tool with which to occasionally reach out and remind Members of Congress about issues that affect our industry. Click here for a spreadsheet with the links for the Facebook, Twitter, and YouTube sites for each member of the U.S. House and Senate.

  

For example, if you plan to attend the NAIFA Congressional Conference in April, you could tweet at your Congressman: "Eager to meet with my Congressman April 9 when I will be in DC for @NAIFA's Congressional Conference! @_[Your Congressman's Twitter handle]_". Or, if your Congressman just signed on as a co-sponsor of a bill you support, tweet: "Thank you @_[Your Congressman's Twitter handle]_ for your support of H.B. __." Or, send a general tweet: "Don't remove the tax incentives for life insurance & annuities - so many families and businesses that I serve rely on it!" Whatever your message says, it is additional "touch" keeping you and NAIFA in front of your Congressman and his/her staff.

 

If you have any questions about how to best use these platforms to interact with your Member of Congress, please contact Maggie Fogg, NAIFA Grassroots/Political Involvement Administrator. Additionally, several sample messages relating to the NAIFA Congressional Conference are available for your use here.

calsuranceNAIFA Members Have Access to Exclusive CalSurance E&O Insurance

The NAIFA Endorsed E&O Program offers NAIFA members multiple coverage benefits and customizable coverage options from a top rated carrier.

NAIFA Endorsed E&O Coverage Benefits:

  • Competitive Rates
  • Individually Underwritten Policies
  • Prior Acts Coverage & Optional Extended Reporting Period
  • Multiple Limit & Deductible Options

Professional Services Covered:

  • Life Insurance, Including Variable Life Insurance Products
  • Annuities, Including Variable Annuity Products
  • Accident & Health Insurance, Including Long Term Care and Disability Insurance
  • Optional Endorsements for Financial Products, Mutual Funds, Property & Casualty

"I know we have a lot of individuals in our local association that use the E&O coverage because they are independents and that's important because it is one of those things that you can go out and get on your own, and know that it is a quality product with a quality company. I had a friend of mine who came out of the home office and joined NAIFA specifically because of the E&O."  -  Kevin Bell, CLU, ChFC, JD, NAIFA Member, Indiana

 

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

secSEC to Seek Comments, Weigh Fiduciary Standard

Elisse Walter, chairwoman of the Securities and Exchange Commission, told members of the Senate Banking Committee on Thursday that the SEC is "giving serious consideration" to its rule to put brokers under a fiduciary mandate, and confirmed previous reports that the agency will move forward with a request for public input on the rule. Full story.

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