In This Issue
Special Session Update; Regular Session Wrap Up legislature

Monday, May 27, Gov. Rick Perry called the 83rd Legislature's First Called Special Session to ratify interim political boundary maps that were drawn by a federal court last year, as part of continuing litigation over whether minorities' voting clout was illegally diluted when the Legislature drew the original maps in 2011.

 

Gov. Perry has not ruled out expanding the call of the First Called Special Session.

 

Of interest to NAIFA-Texas members are measures passed in the Regular Session including:

  • Bills (HB2783/SB1332) which allow TX employers with 51 to 100 employees to keep their current ability to buy group health plans from the "large employer group" market - as they have done for years-and thereby avoid new "modified community rating" requirements under the federal insurance reform law (ACA) effective Jan. 1, 2014.
  • Bills (SB 1795/HB495) which will allow the TDI to establish standards to regulate navigators for health benefit exchanges established under the ACA.
  • HB 2383 (Eiland/Duncan) which establishes the nation's first Medicaid life settlement law, providing that Texas seniors who are eligible to apply for Medicaid may sell their life insurance policies and apply those proceeds toward their long term care.
  • SB 840 by Senator Kelly Hancock which is applicable to all lines of insurance except title and allows educational and promotional items/gifts valued under $25 to be given potential customers and not be considered rebating.

Please contact NAIFA-Texas CEO & Chief Legislative Officer Des Taylor for additional information and/or questions.

Gov. Perry Appoints New Insurance Commissioner, Julia Rathgeberrathgeber

On the same day that Eleanor Kitzman exited her post as state insurance commissioner, Texas Gov. Rick Perry appointed Julia Rathgeber to take over leadership at the Texas Department of Insurance for a term to expire Feb. 1, 2015.

 

Julia Rathgeber

Kitzman, who was appointed by the governor in 2011, failed to earn support among state senators. Without receiving Senate confirmation within the 2013 session, she was no longer permitted to continue.

 

With the appointment, Rathgeber leaves her position as the deputy chief of staff in the Office of Lt. Gov. David Dewhurst. Dewhurst responded to the May 27 announcement saying, "Governor Perry could not have picked a better individual than Julia Rathgeber to lead the Texas Department of Insurance. Her sharp intellect, proven leadership ability and thorough knowledge of the ins and outs of state government make her the ideal choice for this role."

 

Rathgeber holds a bachelor's degree and law degree from the University of Texas at Austin and is a member of the State Bar of Texas.

NAIFA-Texas Questions Blanket Depiction of Financial Advisors in PSAs psa

Television and radio stations across Texas are airing three public service announcements to inform investors about the dangers of "free lunch" seminars and the importance of investigating the background of anyone who offers an investment opportunity. The PSAs highlight the danger of committing money to a "can't miss" investment opportunity just because a friend, co-worker, or fellow church congregant offered the investment. The "free lunch" seminar spot helps investors realize that the offer of a free lunch, or dinner, may be a set-up for a hard sell for an inappropriate and costly investment.

 

"I'm a Con Man" PSA

 

Produced by the State Securities Board, the PSAs were recently brought to the attention of NAIFA-Texas via our local member network with concerns over their indiscriminate characterization of all financial advisors as "con artists."

 

NAIFA-Texas CEO Des Taylor and National Committeeman Mayor Ron Mullen took these concerns direct to the source, meeting with Securities Board Commissioner John Morgan in his Austin office earlier this week. Mullen emphasized to Commissioner Morgan that the PSAs appear to paint all advisors with the same broad brush and fail to identify what the consumer should look for in determining whether the consumer's advisor may be placing the consumer at risk such as, by way of example, offering a "too good to be true" type return on the investment. Additionally, Mullen told the Commissioner, "75 million American families rely on our industry to help ensure their financial futures. It would be to the detriment of all should the PSAs effectively discourage others from seeking any financial guidance." Taylor remarked that it is in our members' interest as well to root out bad actors and went on to highlight the Code of Ethical Conduct which governs NAIFA members, leaving a copy with the Commissioner.

 

Commissioner Morgan proved a receptive audience, cordially welcoming the dialogue and promising to review the PSAs with NAIFA-Texas' suggestions and concerns in mind. NAIFA-Texas wishes to be a part of the solution and is at the ready to assist as needed. 

NAIFA's Influence Grows with Every Member Contribution to IFAPACifapac

For better or worse, 535 members of Congress shape the way business is conducted every day. From the federal healthcare law to the SEC and DOL consideration of a fiduciary standard of care rule, the issues are neither simple nor insignificant. Fortunately, NAIFA is uniquely situated to help educate and influence the lawmakers and regulators that can directly impact your business.

 

NAIFA's Insurance and Financial Advisors Political Action Committee (IFAPAC) is the largest insurance PAC in the country. In the last election cycle, the national IFAPAC contributed approximately $1.1 million to federal candidates and committees. Coupled with a strong grassroots network of member contacts and an experienced government relations staff team, NAIFA is able to deliver on its top priority of unparalleled agent advocacy.

 

However, NAIFA-Texas PAC Chair Roland Barrera makes a key observation, noting, "We have in no way reached the potential for our influence. If even one in three members would make a modest contribution to IFAPAC, we would surely see a return on that investment as an industry." Currently, one in five members in Texas contributes to IFAPAC. Contribute $100 today.

Join Us for the NAIFA National Convention in San Antonio, Sept 28-Oct 1convention

The NAIFA National Convention is coming to the Lone Star State this fall! Plan to be in San Antonio September 28-October 1 for the event, which will offer opportunities to network with top insurance agents and financial advisors from across the country and to gain knowledge via numerous educational sessions. Additionally, association business will be conducted, including officer/trustee elections.

 

1. REGISTER!

 

Register for the conference by July 18 to save $120 off the onsite registration price. Don't forget to sign up to volunteer during the registration process. Commitments are as short as one hour.

2. RESERVE A ROOM

 

There are two official hotel options. The Grand Hyatt San Antonio ($199+ tax) is adjacent to the Henry B. Gonzalez Convention Center. LaQuinta Inn & Suites Convention Center ($159+ tax) is a few walkable blocks from the convention center and expected to sell out quickly.

 

3. ORDER A SHIRT

 

Wear your state affiliation with pride! A NAIFA-Texas embroidered shirt ($40), with its accompanying complimentary lapel pin, will complete your state uniform. Order by September 2 to ensure timely delivery.

 

Earn Your RICP Designation and Master Retirement Income Planning ricp

With three focused courses, the RICP� (Retirement Income Certified Professional) is rapidly becoming the choice of companies, regulators and advisors who want to create sustainable streams of retirement income for their clients. The program offers practical information from industry experts, all designed to help you grow your business.

 

Enroll in the American College's 3-course RICP package and save as much as $499. Top reasons to earn this designation include:

  • The RICP program sets out a clear, systematic process to create substantial retirement income for clients-even in an environment with persistently low interest rates.
  • With RICP you'll gain a comprehensive understanding of how to choose the right Social Security claiming age-a critical and complex issue facing clients.
  • You'll have a new understanding of retirement plan risks and mitigation strategies in the areas of investments, inflation, longevity, long-term care, estate issues, taxes, healthcare costs and more.
  • The RICP designation will arm you with critical information you can use to advise the population of over 78 million baby boomers now approaching retirement.
  • You'll learn how to dynamically manage a retirement income portfolio to meet the changing needs of your clients over time.

 Click here or call 888-263-7265 to learn more.

CalSurance Tip: Don't Cancel Your E&O Coveragecalsurance

"I've never had a claim, so I am not worried about having one now."

 

After many years of underwriting, selling and servicing agent professional liability insurance, we continue to see experienced agents close up shop and cancel their coverage because they are retiring or leaving the business.

 

A claim can still be made against you after you've left the business and you can still be found liable. Many policies grant a limited automatic extended reporting period ("ERP") to cover claims reported after a policy expiration and some provide for an endorsement purchase option. If you cancel your coverage, you may be giving up that free ERP or the option to purchase one. A claim reported after the policy is expired has the potential to cost you personally and that's never a good thing for a retirement nest egg.

 

Tip: Cancelling your E&O coverage is never a good idea. Consider an improper beneficiary designation or an undisclosed early termination penalty. These type of errors may not develop into a claim for years from the date of issuance. Under the claims made E&O policy, you must have a policy in force when the claim is made and it must also cover the period of time when you committed the error (referred to as the "retroactive date" or "prior acts coverage.")

 

For more information about CalSurance E&O coverage 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, click here.

newsINDUSTRY NEWS HIGHLIGHTS

Social Media Advice for Today's Advisor social

Industry executives at LinkedIn's FinanceConnect conference offered advice on how marketers need to reinvent social media strategies for the financial services industry to communicate effectively with consumers. New strategies should offer more personalized content that is relevant with the consumer, so ultimately there is more positive influence. Full story.

FINRA: Americans Have Poor Financial Habits finra

The only good news in a new report on the personal finances of Americans is that now everyone can find out more about how badly many of them are handling their personal finances. Full story.

Divided Congress Unlikely to Tweak ACA aca
When he talks to Republicans in Congress, Scott DeFife, a restaurant industry lobbyist, speaks their language: President Obama's health care law is a train wreck well down the track. There will be collateral damage if changes are not made. Friends of the industry cannot sit back and let that happen. Full story.
Will SEC and DOL Coordinate Fiduciary Rules? fiduciary

Republicans and Democrats in Congress may have a hard time working together but they're pushing the Securities and Exchange Commission and Labor Department to do just that. Full story.

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