NAIFA-AZ Activity Report | NAIFA-AZ Association Representing Licensed Insurance Agents

In This Issue

Welcome to NAIFA — YOUR Professional Organization

Welcome to NAIFA – YOUR professional organization. We started the year with over 75 leaders attending the ALC in August. The enthusiasm and energy could be felt through-out the room. Your state board positions are filled with very qualified, dedicated volunteers who are committed to making the 2011-2012 NAIFA year successful – both in membership numbers and activities. We are excited and proud to work with our locals and members to make NAIFA the organization that agents and financial advisors look to for their advocacy, education, mentorship and involvement in their industry. If you have any questions or concerns at any time, feel free to contact any of our board members. We are here for you.

Diana Brettrager, CIC, FSS, LUTCF
NAIFA-Arizona President

NAIFA-Arizona Community Service Project – PLEASE READ

Liver Life Walk – You Can Help

NAIFA-Arizona Past President Tod Lashway and his wife, Sally, have a beautiful story of love and life which NAIFA-Arizona wishes to share with you. PLEASE take the time to read their story by clicking on this link. And, NAIFA-Arizona is asking you to make a contribution to support their walk. We are all so grateful. Thank you for the consideration. The following is Tod’s personal note:

Hello all,

If you are in my address book you are receiving this “shameless” solicitation. Sally and I will be walking and raising money for liver disease on April 14th at the Liver Life Walk in Phoenix having joined Team Mayo (Clinic) for the event! We have a real fondness for them and all they have done (and continue to do) for us! You can go to the links below and see our stories, then make a donation, if you are so moved – any amount can help the cause to fight liver disease! Thank you!

Sally & Tod Lashway

http://go.liverfoundation.org/goto/sallylashway

http://go.liverfoundation.org/site/TR/LiverLifeWalk2012/LiverLifeWalk?px=1750615&pg=personal&fr_id=2871

Did you know?

Primary liver cancer is one of the only primary cancers on the rise in the United States.
There are 5.4 million people in the United States living with chronic Hepatitis B or C.
It is estimated that nearly 25% of the U.S. population has Non-Alcoholic Fatty Liver Disease (NAFLD); a condition that can lead to life threatening liver damage.
Thousands of individuals wait every year for a life-saving liver transplant.

In your area and across the country, the American Liver Foundation is funding research, education, support services, and advocacy efforts related to liver health. Your support will help us change lives. It is supporters like you who help us dream big, challenge ourselves, and reach new heights in the fight against liver disease.

To learn more about the American Liver Foundation, visit: www.liverfoundation.org

Membership

“Click on this membership video link” – http://youtu.be/448xFApz820
Share this video with a colleague who is not yet a member!

On January 1, 2011, CalSurance Associates, a division of Brown & Brown of California, Inc, became NAIFA’s selected program administrator for the Errors and Omissions (E&O) Professional Liability Insurance Program. NAIFA wanted to provide members with a program that offered improvements and enhancements to the policy, outstanding customer service and opportunities for program growth. The following enhancements to the policy are included for NAIFA members at no additional premium charge:

Privacy Breach Coverage – Up to $25,000 coverage for claims involving loss, theft or unauthorized disclosure of Personal Information (as defined in the policy)
Public Relations Extension Coverage – Up to $10,000 for Public Relations firm fees and expenses in the event of a “crisis” (as defined in the policy)
Subpeona Compliance Coverage – Up to $15,000 for Attorney Fee and Costs in connection with document production or representation in giving sworn testimony

And coming early 2012… an online risk management course that is available directly to NAIFA members! This course not only provides you with a greater understanding of risk management and the importance of E&O insurance, but in addition, NAIFA members receive a 10 % discount off their policy upon completion of the course. CE is also available! Look for information on this exciting new member benefit on the NAIFA website (www.naifa.org), and in such member-centric email newsletters as the NAIFA Connections and NAIFA SmartBrief.
Look for the NAIFA Logo. If you receive a renewal notice that doesn’t include the NAIFA logo, it is not the NAIFA endorsed program. CalSurance® welcomes new and returning NAIFA E&O program participants.
Visit www.naifaeo.com for more information. The NAIFA team at CalSurance can be reached toll free at (888) 833-2304 for additional details.
Advocacy Highlight: The National Association of Insurance and Financial Advisors submitted a comment letter <http://naifa.typepad.com/files/naifa-fio-comments.pdf> to Federal Insurance Office Director Michael T. McRaith on the FIO’s Dodd-Frank required study on the modernization and improvement of insurance regulation. For more information, visit http://www.naifa.org/newsevents/releases/20111216_commentsonfederalinsuranceoffice.cfm.

Pay to Play: The Securities and Exchange Commission recently enacted a new Rule – called Pay-to-Play – that impacts a number of NAIFA members and their contributions to IFAPAC. Prior to the Rule’s enactment, your IFAPAC contributions were automatically shared between the federal PAC and your state PAC. Sharing your IFAPAC contribution with both your state IFAPAC and your federal IFAPAC is in the best interests of our advocacy program. To ensure that your IFAPAC contribution continues to be shared with your state PAC, contact your company or broker-dealer compliance department, then complete the NAIFA member directive at www.naifa.org/advocacy/ifapac/ and click on SEC Pay to Play Rule.

Renew your NAIFA membership today online at www.naifa.org/renew. To renew online, you will need your user name (NAIFA ID number) and password (last name). Don’t wait, renew today!

Check out this USA Today article talking about the financial advising profession:

“Time picking a financial advisor is time well spent”

What is IFAPAC

The Insurance and Financial Advisors Political Action Committee (IFAPAC) is a term used to describe collectively the PAC sponsored by NAIFA at the federal level and the PACs sponsored by each state association. Each PAC is a fund that supports the campaigns of candidates for public office who understand issues important to insurance agents and financial advisors. IFAPAC’s goal is to help the associations advance the legislative and regulatory interests of the members of NAIFA. While any U.S. citizen can contribute to IFAPAC, only members of local NAIFA associations may be solicited to do so. Contributions must be voluntary. Contributions are not tax deductible for federal income tax purposes. Of approximately 4,600 political action committees registered with the Federal Election Commission, IFAPAC ranks in the top tier. 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.

The IFAPAC network is needed even in years when there aren’t federal elections. The candidate evaluation and support processes go on all the time. PACs that have the resources to make contributions when candidates need them most are highly visible in the political arena. IFAPAC occasionally makes debt-retirement contributions following elections and some states hold elections in odd-numbered years.

On the national level, a panel of ten NAIFA members, appointed by the Executive Committee of NAIFA, determines which candidates for federal office will receive PAC contributions. This group is called the Candidate Selection Group. Input from state and local association officers and current contributors is vital to the ability of the national selection committee to make informed decisions regarding which candidates to support. IFAPAC encourages contributors to provide factual information on candidates.
NAIFA’s Political Action Committee is one of the largest PACs in the insurance industry and ranks among the top percent of the 4,600 PACs registered with the Federal Election Commission.

Membership is easily obtained by a minimum $50 a year contribution. Won’t you join our efforts as a PAC member?

Jim Bennett, LUTCF
IFAPAC-Arizona Chair

Ensuring Professional Service for American Consumers

The Issue: Today’s difficult economic environment presents a number of financial challenges for individuals, families, businesses and the government. There are many variables involved in putting together a sound financial plan. Ensuring consumers have access to ethical, professional and personalized risk management advice and services at affordable rates must be balanced with appropriate regulations to curb and respond to abuses in the marketplace.

Background: Historically insurance agents and financial advisors have been responsible for distributing all types of insurance and annuities products to consumers and small businesses. The cornerstone of this system is the ability of agents and advisors to develop close long-term relationships with clients in order to see them through the entire process of ensuring long-term financial security for themselves, their families, their businesses and their employees. NAIFA members build relationships with their clients over many years and even decades, and offer products and services that allow those consumers in the lower and middle income markets to have access to affordable insurance and retirement products and services. NAIFA’s agents and advisors deliver and service these products while educating Americans on how to manage risks and how to make informed choices regarding their purchases. More than ever, individuals and small business owners rely on the advice of their agents and advisors regarding cost-savings measures and coverage options—or they do not receive any advice at all.

Value of Insurance Agents and Financial Advisors
Commissions or other types of compensation earned by insurance agents and financial advisors compensate them for their work in uncovering the factors that lead an individual or business to purchase an insurance product or service. In addition, agents and advisors perform these critical services for insurance and retirement plan consumers:

Needs Assessment—work with clients to evaluate their need for insurance and retirement plan protection. This may involve substantial research and fact finding about the client’s needs. This is an on-going process since needs continuously change as a person’s family and employment situations change or as their business grows.
Education—explain the various insurance and retirement plans available and provide appropriate cost indexes.
Planning—recommend plans that fulfill the client’s objectives and budget.
Follow Through and Execution—encourage clients to act in a timely fashion to assure that the proper coverage is in place when needed. Agents and advisors also see to it that accurate and complete information is provided to the insurer to make sure that the client gets the very best plan at the lowest premium cost available.
Change Management—review or update plans on a periodic basis. Agents and advisors suggest changes when appropriate and counsel clients on ways to reduce cost. Often they must assist their client in reviewing the need for legal and tax compliance, recommending other professional assistance when necessary.
Claim Documentation and Service—assist with claims, answer questions and serve as ombudsmen in helping their clients deal with insurance companies, other product providers and government programs.
Employer/Employee Relations—assist business owners in communicating the value of employer provided benefit packages to employees, often assisting employees in seeing how the benefits coordinate with their personal financial programs.
Business Continuation Planning and Funding—assist business owners in insuring their business and developing and funding business succession plans.

Trained Professionals
All insurance agents are licensed and regulated by state insurance departments. Insurance agents and financial advisors offer different services depending on a number of factors, including licenses, credentials and specific areas of expertise. Many agents and advisors are also licensed by federal and state regulators that govern the sale of securities products and services. Prospective agents and advisors receive extensive training prior to taking a written exam leading to licensing. Continuing education is usually required for agent/advisors to maintain licensure. In addition, many agents/advisors have taken a sequence of college-level courses leading to one or more professional designations.

NAIFA Position: NAIFA believes consumers should have unfettered access and freedom of choice in engaging competent, knowledgeable and ethical agents and advisors, in order to receive professional risk management and closely related financial planning services. NAIFA strongly condemns all sales practices that are misleading to consumers and not in conformity with State and Federal Unfair Trade Practices. NAIFA supports a variety of the National Association of Insurance Commissioners (NAIC) model laws that provide effective regulation and supervision of insurance agents. NAIFA opposes any and all inappropriate attempts or ill-advised proposals to create laws, regulations, rules or policies by any government entity that would effectively undermine, modify, intervene with, or otherwise, forcibly sever the nature or integrity of the agent/client relationship.

About NAIFA: Founded in 1890 as the National Association of Life Underwriters, NAIFA comprises more than 600 state and local associations representing the interests of approximately 200,000 agents and their associates nationwide. NAIFA members focus their practices on one or more of the following: life insurance and annuities, health insurance and employee benefits, multiline, and financial advising and investments. The Association’s mission is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of its members.

FOR MORE INFORMATION, CONTACT:
Diane R. Boyle
Vice President
Federal Government Relations
(703) 770-8252
dboyle@naifa.org

Advisors Political Involvement Committee

During the Congressional Summer break, NAIFA-Arizona met with Rep. Flake, Rep. Schweikert, Rep. Pastor, Rep. Quayle. In September and again in January, NAIFA-Arizona representatives met with federal legislators at their Washington, DC offices. All were receptive to our message – Rep. Schweikert, who is a ranking member of the House Finance Committee, is extremely supportive of our association. We are always looking for opportunities for NAIFA-Arizona members to grow our relationships with both state and federal legislators. As an example, Rep. Schweikert will be addressing the NAIFA-Arizona leadership during the annual Area Leadership Conference in August 2012.

Haydee Dawson, LUTCF, MBA
NAIFA-Arizona APIC Chair

Now Available to NAIFA Members: AmeriCard – The New Dental, Vision and Prescription Discount Program

Sign Up and Save big on your dental, vision and prescription needs

AmeriCard provides NAIFA members and their families with significant discounts on dental care, vision care & prescription drugs. We work with national provider networks like Aetna Dental Access® and one membership includes both you and your immediate family. The cost is only $12 per month and an annual membership includes two free months.

30 day money back guarantee
Online provider and drug price lookup
One membership for your immediate family
No limitations on how many times you can use the card
Easy to use – you pay the discounted amount at the point of service

To learn more, join and download your product brochure, visit www.americardsolutions.com.

*This is not an insurance program.

For more information, contact Teri Shaw, Marketing Director, Professional Development and Education at tshaw@naifa.org or 703-770-8225.

NAIFA—helps to protect your business, grow your business and save you money!

What is NAIFA-Arizona’s ‘LURN’ Program’?

SHIC-LURN Annual Report
By
Harry Markham

LURN is an acronym for Life Underwriters Resource Network. It is a carefully structured Community Outreach & Referral Program fori Medicare Beneficiaries. The Program offers free information statewide on Medicare. Medicare Supplements, Prescription Drug Programs, Home Health Care& long Term Care Insurance.

LURN is sponsored and administered by NAIFA-Arizona. It is being offered by the cooperative networking of selected participating association advisors who have met strict eligibility requirements.

Qualified LURN advisors respond to phone requests from Medicare beneficiaries to answer their questions and provide professional guidance on Medicare and Supplemental Insurance Programs.

My sincere thanks go out to our dedicated LURN counselors who have volunteered their time and talents to make this a program that our association can be proud of.

For further information on the SHIC-LURN program call: Harry Markham at 480-951-1014 or email harrymarkham@cox.net

“Life Insurance Industry Reacts to 2013 Federal Budget Proposal”

Washington, D.C. (February 13, 2012) – “As an industry that helps 75 million American families and thousands of businesses responsibly plan for their financial futures, the life insurance industry is deeply concerned about provisions in the administration’s proposed 2013 budget that amount to new taxes on products that provide security and peace of mind.

“The 2013 budget reasserts two provisions—one on corporate owned life insurance (COLI) and one on life insurers’ dividends-received deduction (DRD)—that were initially proposed in the 2010 budget but rejected by Congress.

“The COLI proposal would impose new taxes on life insurance used by businesses small and large. Many businesses use COLI to protect against financial or job loss stemming from the death of owners or key employees. COLI is also used to ensure business continuation. In addition, COLI is a widely-used funding mechanism for employee and retiree benefits. Congress affirmed the benefits and tax treatment of COLI and assured its responsible use in bi-partisan legislation enacted in 2006.

“Another proposal would undercut longstanding rules regarding life insurers’ DRD that are designed to prevent double taxation of corporate earnings. The administration’s proposal would reduce the DRD that life insurers use in accounts that fund variable life insurance and variable annuity contracts—key products for financial and retirement security.

“We are also concerned with a new proposal that would impose new taxes on contributions to retirement plans and Individual Retirement Accounts.

“At a time of low individual savings, it makes no sense to propose taxing products that help people build their nest eggs. Keep in mind that 20 percent of Americans’ long-term savings is in life insurance and annuities. The administration’s budget proposal would discourage people from turning to products they want and need. Indeed, it does not make sense when you consider the importance of industry products in people’s lives. On a daily basis, life insurers paid out $1.5 billion on average in 2010. At the same time, Social Security paid out $1.9 billion daily.

“Wisely, Congress has rejected similar proposals in past years. We urge the administration to withdraw its proposals on COLI and DRD.”

New NAIFA National Promotional Video – promotes the ‘free’ benefits of
membership

NAIFA has a new promotional video! This 7 minute video highlights the products, programs and services that comprise NAIFA member benefits including advocacy, benefits free with membership, continuing education, sales training and tools, NAIFA Young Advisors Team (YAT) and preferred provider discounts.

Click on the link below to preview: http://www.youtube.com/naifavideo#g/c/E378E03DC3AF76ED

Join NAIFA-Arizona on LinkedIn Now –

http://www.linkedin.com/company/naifa-arizona