The Advocacy Newsletter of the National Association of Insurance and Financial Advisors http://www.naifa.org/advocacy/govtalk/text.html The Senate Banking Committee (Chairman Tim Johnson, D-SD) held a hearing on July 12 entitled “Enhanced Investor Protection after the Financial Crisis.” The intent of the hearing was to focus on the investor protection provisions of the Dodd-Frank Act that “are finished” and thus to report on the Act’s accomplishments. http://www.naifa.org/advocacy/govtalk/2011/July1911/govtalk8.html Bipartisan bills introduced in the House of Representatives (H.R. 2529) and Senate (S. 1368) would reverse a provision in the health care reform law that now requires people to get prescriptions for over-the-counter medications to qualify for reimbursement from tax-exempt health savings accounts or flexible spending arrangements. http://www.naifa.org/advocacy/govtalk/2011/July1911/govtalk7.html On July 11, the Department of Health and Human Services (HHS) issued a proposed rule for minimum standards that states must meet to set up their own health insurance exchange markets in 2014 under the health reform law. http://www.naifa.org/advocacy/govtalk/2011/July1911/govtalk6.html The U.S. House of Representatives on July 12 approved—by a vote of 406-22—a five-year extension of the National Flood Insurance Program (NFIP) under FEMA. The fate of the Program now awaits Senate action. http://www.naifa.org/advocacy/govtalk/2011/July1911/govtalk5.html Have you heard the fantastic news? The NAIFA Board of Trustees just approved a motion for NAIFA’s federal IFAPAC to convey to the state associations IFAPACs 100% of the shareable political and administrative contributions received in the months of August and September 2011. http://www.naifa.org/advocacy/govtalk/2011/July1911/govtalk4.html During a July 12 call, the NAIC Executive Committee/Plenary discussed the treatment of agent commissions in the medical loss ratio. Florida Insurance Commissioner Kevin McCarty, chairman of the Professional Health Insurance Advisors Task Force, explained to the executive committee that the MLR concerns are complicated and a number of solutions in addition to changing federal law have been discussed. http://www.naifa.org/advocacy/govtalk/2011/July1911/govtalk3.html Americans from Wall Street to Main Street are biting their nails as the country nears hitting the debt ceiling, which Treasury Secretary Tim Geithner says will happen on August 2. http://www.naifa.org/advocacy/govtalk/2011/July1911/govtalk2.html According to a recent survey of NAIFA members, 84 percent say clients nearing retirement age are more interested in products with risk-protection components, while 57 percent say clients under the age of 40 are more interested in those types of products. http://www.naifa.org/advocacy/govtalk/2011/July1911/govtalk1.html NAIFA President Terry K. Headley established NAIFA’s SEC “Pay-to-Play” Working Group (PTP Working Group) to help implement NAIFA policies designed to reinstate the joint fundraising and fund-sharing with state IFAPACs. The PTP Working Group has been making important progress in meeting this goal. http://www.naifa.org/advocacy/govtalk/2011/June1511/govtalk7.html The NAIC Health Insurance and Managed Care Committee on June 7 approved a report regarding producer compensation in the Affordable Care Act (ACA) medical loss ratio (MLR) calculation. http://www.naifa.org/advocacy/govtalk/2011/June1511/govtalk6.html The count continues to grow of Members of Congress writing to the Department of Labor (DOL) to express concern about the proposed expansion of the term “fiduciary” for retirement plan service providers, including advisers and Registered Representatives to IRA accounts. http://www.naifa.org/advocacy/govtalk/2011/June1511/govtalk5.html NAIFA-backed legislation that would expand health savings accounts (HSAs) and flexible spending accounts (FSAs) was introduced in the both the House and Senate. Senator Orrin Hatch (R-UT) authored the Senate bill, S.1098. http://www.naifa.org/advocacy/govtalk/2011/June1511/govtalk4.html The U.S. Department of Health and Human Services (HHS) recently announced changes to the Pre-Existing Condition Insurance Plan. http://www.naifa.org/advocacy/govtalk/2011/June1511/govtalk3.html A new McKinsey & Company report predicts that PPACA will lead to "a radical restructuring of employer-sponsored health benefits." http://www.naifa.org/advocacy/govtalk/2011/June1511/govtalk2.html In the last few weeks, three rating services (Standard & Poor's, Moody's and Fitch's) have issued warnings that they will review the U.S. credit rating, likely for a downward adjustment, if Congress does not act on a debt-management/debt ceiling increase package "soon"--some say before the end of July. These statements have added emphasis to the already-urgent federal fiscal situation. http://www.naifa.org/advocacy/govtalk/2011/June1511/govtalk1.html The SEC enacted its new Pay-to-Play Rule to make sure political campaign contributions have no bearing on who receives financial advisory contracts granted by state and local governments. There has been much confusion about how broadly the SEC will interpret the rule, and a number of RIA companies reacted by telling their agents to stop contributing to state PACs altogether. http://www.naifa.org/advocacy/govtalk/2011/may11/index.html In three separate letters to Securities and Exchange Commission, members of the U.S. House and Senate have urged the SEC to consider the potential for increased costs to investors before moving forward with a proposed rule to establish a fiduciary duty for broker-dealers. http://www.naifa.org/advocacy/govtalk/2011/April11/govtalk1.html On March 27 during the Spring NAIC meeting, NAIFA President Terry Headley explained to state insurance regulators the urgent need to remove agent commissions from the medical loss ratio (MLR) provision of the health care reform law. Headley’s testimony focused on three main points: http://www.naifa.org/advocacy/govtalk/2011/April11/govtalk2.html In a March 15 letter to the heads of the Securities and Exchange Commission (SEC), Department of Labor (DOL), and the U.S. Commodities Future Trading Commission, three House Republican Committee Chairmen urged the agencies to consult and coordinate with each other on their fiduciary duty and related proposals. http://www.naifa.org/advocacy/govtalk/2011/April11/govtalk3.html On March 29, the Internal Revenue Service issued interim guidance for employers that explains reporting on Forms W-2 with respect to the cost of employer-sponsored health insurance coverage. http://www.naifa.org/advocacy/govtalk/2011/April11/govtalk4.html Representatives Randy Neugebauer (R-TX) and David Scott (D-GA) on March 16 reintroduced the National Association of Registered Agents and Brokers Reform Act, H.R. 1112, for consideration by the 112th Congress. http://www.naifa.org/advocacy/govtalk/2011/April11/govtalk5.html Treasury Secretary Timothy Geithner on March 17 named Illinois Insurance Director Michael McRaith as the first director of the Federal Insurance Office (FIO), a non-regulatory federal source of insurance expertise created by the Dodd-Frank Act. http://www.naifa.org/advocacy/govtalk/2011/April11/govtalk6.html On March 31, the Centers for Medicare & Medicaid Services (CMS) announced the Early Retiree Reinsurance Program will no longer accept applications after April 30. http://www.naifa.org/advocacy/govtalk/2011/April11/govtalk7.html In recent weeks, several bills have been introduced in Congress that NAIFA supports. http://www.naifa.org/advocacy/govtalk/2011/April11/govtalk8.html The Networks Financial Institute (NFI), a non-profit organization that facilitates meetings and dialogues regarding the financial services marketplace, held its 7th Annual Insurance Reform Summit in Washington, D.C on March 16. http://www.naifa.org/advocacy/govtalk/2011/April11/govtalk9.html As Congress and state governments confront increasing budget challenges and constraints, lawmakers are looking at a variety of ways to increase revenues. http://www.naifa.org/advocacy/govtalk/2011/March11/govtalk5.html IFAPAC chairs across the NAIFA federation are in a full court press for IFAPAC Madness. http://www.naifa.org/advocacy/govtalk/2011/March11/govtalk4.html One positive tidbit in President Obama’s Fiscal Year 2012 budget proposal is the proposal to make it possible for non-spouse beneficiaries of IRAs or qualified retirement plans to rollover these inherited amounts into new IRAs. http://www.naifa.org/advocacy/govtalk/2011/March11/govtalk3.html The legislative and regulatory bodies with jurisdiction over health care are actively involved in efforts to ensure the new health law is implemented and/or modified to provide a better health insurance market. http://www.naifa.org/advocacy/govtalk/2011/March11/govtalk2.html On February 17, the House Ways & Means Committee approved two separate pieces of legislation to repeal the new 1099 reporting requirements enacted in 2010. http://www.naifa.org/advocacy/govtalk/2011/March11/govtalk1.html Recent weeks have featured numerous Congressional hearings on issues important to NAIFA members. Find out where the winds are blowing with this overview. http://www.naifa.org/advocacy/govtalk/2011/February1611/govtalk4.html On February 11, House Republicans unveiled a government-funding measure for the remainder of fiscal year 2011 that would cut spending by $100 billion. http://www.naifa.org/advocacy/govtalk/2011/February1611/govtalk3.html Congressional attempts to completely repeal the new health reform law passed the House, but have failed as an amendment in the Senate. http://www.naifa.org/advocacy/govtalk/2011/February1611/govtalk2.html On February 14, President Obama sent his fiscal year (FY) 2012 federal budget proposal to Capitol Hill. The proposal calls for $1.1 trillion in deficit reduction over 10 years. About two-thirds of the deficit reduction comes from spending cuts; the other third comes from revenue (tax) increases. http://www.naifa.org/advocacy/govtalk/2011/February1611/govtalk1.html NAIFA is pleased to announce that Lillian Vogl has joined the Government Relations Team as the Director of Federal Relations. http://www.naifa.org/advocacy/govtalk/2011/February11/govtalk4.html The National Association of Insurance Commissioners (NAIC) met earlier this month to name its 2011 committee chairs and vice chairs. http://www.naifa.org/advocacy/govtalk/2011/February11/govtalk3.html US Senator Ben Nelson (D-NE) on February 1 spoke to over 150 NAIFA members at the Annual IFAPAC/APIC Training Meeting and Legislative Summit held in Washington DC. http://www.naifa.org/advocacy/govtalk/2011/February11/govtalk2.html On Feb. 2 in connection with consideration of the Federal Aviation Administration (FAA) reauthorization bill (S. 223), an amendment offered by Sen. Debbie Stabenow (D-MI) to repeal the new expanded 1099 reporting requirements passed, 81-17, with broad bipartisan support. http://www.naifa.org/advocacy/govtalk/2011/February11/govtalk1.html The National Conference of Insurance Legislators held its 2010 Annual Meeting in Austin, Texas on November 18 – 21. http://www.naifa.org/advocacy/govtalk/2010/December10/govtalk4.html After several years of deliberation, the SEC recently issued a proposed rule that would reform SEC Rule 12b-1 and the fees that are authorized under that rule. http://www.naifa.org/advocacy/govtalk/2010/December10/govtalk3.html The Patient Protection and Affordable Care Act (PPACA) requires state-based exchanges to be set up by states or the federal government and to be fully implemented by 2014. http://www.naifa.org/advocacy/govtalk/2010/December10/govtalk2.html On December 1, the co-chairmen of the President’s Deficit Reduction Commission (DRC) released the commission’s plan for reducing the deficit by $4 trillion over the next five years. http://www.naifa.org/advocacy/govtalk/2010/December10/govtalk1.html In spite of the coming turnover, NAIFA members will be well positioned after the swearing in of the 112th Congress. From Mississippi to Texas to Arkansas to North Dakota to Delaware to Indiana, NAIFA members were heavily involved in the campaigns of candidates for the U.S. Senate and U.S. House of Representatives. http://www.naifa.org/advocacy/govtalk/2010/NovSE/govtalk5.html If you are like us, you are extremely grateful to no longer be getting dozens of recorded phone calls each day from candidates breathlessly telling you why they need your support and, more importantly, your money. http://www.naifa.org/advocacy/govtalk/2010/NovSE/govtalk4.html Tax issues come under the jurisdiction of the House Ways and Means Committee and the Senate Finance Committee. As anyone who spends even a short amount of time keeping up with doings in Congress and the Administration knows, tax issues in general are among the most contentious in Washington. http://www.naifa.org/advocacy/govtalk/2010/NovSE/govtalk3.html Come January 3, 2011, the two year long 112th Congress will begin. The biggest change in the legislative landscape will be reflected in the change in control of the House of Representatives to the Republican Party leadership. http://www.naifa.org/advocacy/govtalk/2010/NovSE/govtalk2.html It has yet to be decided whether Congress will spend just a few days in the November “Lame Duck” session—ending just before Thanksgiving—or continue on into December and wrap up just before Christmas. http://www.naifa.org/advocacy/govtalk/2010/NovSE/govtalk1.html When the first session of the 112th Congress begins in early January, 2011, it will be composed of more than 100 Members of the House and Senate who have not served there previously. (That’s about a 20% turnover.) http://www.naifa.org/advocacy/govtalk/2010/NovSE/govtalk0.html The November 2 elections promise to bring about great change to the dynamic of the political landscape. http://www.naifa.org/advocacy/govtalk/2010/November10/govtalk3.html It has been a turbulent year in terms of the legislative and regulatory challenges facing our industry, and many more challenges lie ahead. http://www.naifa.org/advocacy/govtalk/2010/November10/govtalk2.html The National Association of Insurance Commissioners (NAIC) held its Fall Meeting on October 18 – 21 at the Gaylord Palms Hotel in Orlando, Florida. http://www.naifa.org/advocacy/govtalk/2010/November10/govtalk1.html The IFAPAC team does it again! IFAPAC state and local chair volunteers passed the initial Seattle Career Conference fundraising goal set by the National Subcommittee ($125,000) within 36 hours of the opening of the IFAPAC booth. Once again, NAIFA members attending the General Session on the closing day were treated to a mercury-busting fundraising thermometer graphic while the audience applauded with pride and joy. http://www.naifa.org/advocacy/govtalk/2010/October1510/govtalk7.html On October 12, the Department of Labor (DOL) released guidance in the form of frequently asked questions regarding grandfather plans. http://www.naifa.org/advocacy/govtalk/2010/October1510/govtalk6.html On October 12, the Obama administration announced a one-year delay of the W-2 reporting provision requiring employers to report the cost of health insurance coverage on employees' W-2 tax forms. http://www.naifa.org/advocacy/govtalk/2010/October1510/govtalk5.html On September 23, Sen. Lindsey Graham (R-SC) introduced S. 3829, the Long-Term Care Bailout Prevention Act to repeal the CLASS Act. The CLASS Act was included in the health reform law enacted this past March. It sets up a voluntary federal long-term care/disability insurance program under which workers may choose to pay an actuarially sound monthly premium for a daily cash benefit (also to be calculated to be actuarially sound) if they become unable to perform two or more activities of daily living. http://www.naifa.org/advocacy/govtalk/2010/October1510/govtalk4.html NAIFA recently filed comment letters with the SEC expressing concerns about two proposed revisions to FINRA rules, which require SEC approval to become final. http://www.naifa.org/advocacy/govtalk/2010/October1510/govtalk3.html Prior to adjourning, the U.S. Senate rejected attempts to repeal two provisions of the Patient Protection and Affordable Care Act (PPACA) signed into law in March. http://www.naifa.org/advocacy/govtalk/2010/October1510/govtalk2.html The Wall Street Journal on October 4 published an article titled "Shift to Wealthier Clientele Puts Life Insurers in a Bind" that suggests that permanent life insurance is a "rich person's" product that is little used by the middle class. LIMRA statistics tell a different story. http://www.naifa.org/advocacy/govtalk/2010/October1510/govtalk1.html http://www.naifa.org/advocacy/govtalk/2010/October10/govtalk5.html http://www.naifa.org/advocacy/govtalk/2010/October10/govtalk4.html http://www.naifa.org/advocacy/govtalk/2010/October10/govtalk3.html http://www.naifa.org/advocacy/govtalk/2010/October10/govtalk2.html http://www.naifa.org/advocacy/govtalk/2010/October10/govtalk1.html http://www.naifa.org/advocacy/govtalk/2010/August1510/govtalk1.html http://www.naifa.org/advocacy/govtalk/2010/August1510/ http://www.naifa.org/advocacy/govtalk/2010/August10/govtalk7.html Senior Vice President Bill Anderson Represents NAIFA http://www.naifa.org/advocacy/govtalk/2010/August10/govtalk6.html http://www.naifa.org/advocacy/govtalk/2010/August10/govtalk5.html http://www.naifa.org/advocacy/govtalk/2010/August10/govtalk4.html http://www.naifa.org/advocacy/govtalk/2010/August10/govtalk3.html http://www.naifa.org/advocacy/govtalk/2010/August10/govtalk2.html http://www.naifa.org/advocacy/govtalk/2010/August10/govtalk1.html http://www.naifa.org/advocacy/govtalk/2010/August10/govtalk7.html http://www.naifa.org/advocacy/govtalk/2010/August10/govtalk6.html http://www.naifa.org/advocacy/govtalk/2010/August10/govtalk5.html http://www.naifa.org/advocacy/govtalk/2010/August10/govtalk4.html http://www.naifa.org/advocacy/govtalk/2010/August10/govtalk3.html http://www.naifa.org/advocacy/govtalk/2010/August10/govtalk2.html http://www.naifa.org/advocacy/govtalk/2010/August10/govtalk1.html http://www.naifa.org/advocacy/govtalk/2010/July1510/govtalk5.html http://www.naifa.org/advocacy/govtalk/2010/July1510/govtalk4.html http://www.naifa.org/advocacy/govtalk/2010/July1510/govtalk3.html http://www.naifa.org/advocacy/govtalk/2010/July1510/govtalk2.html http://www.naifa.org/advocacy/govtalk/2010/July1510/govtalk1.html The insurance and financial services industries have seen unprecedented federal and regulatory changes in recent months. http://www.naifa.org/advocacy/govtalk/2010/July10/govtalk4.html On June 25 President Obama signed into law H.R.3962, a bill that provides relief for defined benefit (DB) plan sponsors that are struggling with their annual required contributions due to the precipitous drop in 2008 in the value of their plans’ assets. http://www.naifa.org/advocacy/govtalk/2010/July10/govtalk3.html Senate Subchapter S Tax Hike Set Aside While Senate Grapples with Jobs, Tax Law Extenders and Unemployment Benefits (H.R. 4213) The Senate Leaderships’ June 25 decision to set aside H.R.4213, the jobs-extenders-unemployment extension bill means the bill’s tax pay-for/offset package was also put on hold. http://www.naifa.org/advocacy/govtalk/2010/July10/govtalk2.html The House-Senate Conference on the financial regulatory reform bill initially completed its work on June 25 and approved the newly christened “Dodd-Frank Act” along a party line vote. http://www.naifa.org/advocacy/govtalk/2010/July10/govtalk1.html http://www.naifa.org/advocacy/govtalk/2010/June1510/govtalk1.html http://www.naifa.org/advocacy/govtalk/2010/June1510/govtalk2.html http://www.naifa.org/advocacy/govtalk/2010/June1510/govtalk3.html http://www.naifa.org/advocacy/govtalk/2010/June1510/govtalk4.html http://www.naifa.org/advocacy/govtalk/2010/June1510/govtalk5.html http://www.naifa.org/advocacy/govtalk/2010/June10/govtalk2.html http://www.naifa.org/advocacy/govtalk/2010/June10/govtalk5.html http://www.naifa.org/advocacy/govtalk/2010/June10/govtalk4.html http://www.naifa.org/advocacy/govtalk/2010/June10/govtalk3.html http://www.naifa.org/advocacy/govtalk/2010/June10/govtalk1.html http://www.naifa.org/advocacy/govtalk/2010/May1710/index.html http://www.naifa.org/advocacy/govtalk http://www.naifa.org/advocacy/govtalk http://www.naifa.org/advocacy/govtalk http://www.naifa.org/advoccy/govtalk http://www.naifa.org/advocacy/govtalk http://www.naifa.org/advocacy/govtalk Last Night, the House of Representatives passed H.R.3590, a health insurance reform bill passed by the U.S. Senate in December. http://www.naifa.org/advocacy/govwatch/2010/20100322_healthbill.cfm House and Senate Democrats, along with White House officials, continue to meet to develop strategy and finalize a package of changes to the Senate-passed health reform bill – H.R. 3590. http://www.naifa.org/advocacy/govtalk/2010/March1510/govtalk1.html Health Insurance Antitrust Immunity Repealed by U.S. House of Representatives http://www.naifa.org/advocacy/govtalk/2010/March10/govtalk1.html Statutory Pay-Go Now Law http://www.naifa.org/advocacy/govtalk/2010/March10/govtalk2.html Producer Compensation Disclosure Moves Forward in New York http://www.naifa.org/advocacy/govtalk/2010/March10/govtalk3.html Tax Reform Debate Kicks Off With Bipartisan Tax Reform Plan http://www.naifa.org/advocacy/govwatch/2010/20100224_taxreform.cfm Health Summit Leaves No Clear Path for Enactment http://www.naifa.org/advocacy/govtalk/2010/March10/govtalk5.html Obama Health Care Proposal Recommends Hospital Insurance Tax on Annuity Income http://www.naifa.org/advocacy/govtalk/2010/March10/govtalk6.html Deficit Reduction Commission Created by President Obama http://www.naifa.org/advocacy/govtalk/2010/March10/govtalk7.html CFPA May Hold Jurisdiction Over Retirement Plan Service Providers http://www.naifa.org/advocacy/govtalk/2010/March10/govtalk8.html Budget Proposal Puts Restrictions on Business Use of Life Insurance, Internal Value of Variable Life Insurance and Annuities http://www.naifa.org/advocacy/govtalk/2010/March10/govtalk9.html DOL Issues New Proposed Investment Advice Regulations http://www.naifa.org/advocacy/govtalk/2010/March10/govtalk10.html NAIFA’s Bill Anderson to Speak on NCOIL Panel Regarding Annuity Suitability http://www.naifa.org/advocacy/govtalk/2010/March10/govtalk11.html 170 Association Leaders Meet in Las Vegas to Scratch Their Advocacy Itch http://www.naifa.org/advocacy/govtalk/2010/March10/govtalk12.html 2009 was an unprecedented year for legislation affecting the insurance and financial advising industries, and 2010 shows no signs of relief. http://www.naifa.org/advocacy/govtalk/2010/january10/index.html Passage in House aimed at kick starting House-Senate negotiations for a year end compromise on the contentious estate tax issue http://www.naifa.org/advocacy/govtalk/2009/december09/govtalk1.html NAIFA Outside Counsel Provides In-Depth Analysis: As reported in the November 10 GovWatch, Senate Banking Committee Chairman Chris Dodd (D-CT) released his draft legislation that would restructure and reform federal financial services regulation. http://www.naifa.org/advocacy/govtalk/2009/november1609/govtalk1.html The Centers for Medicare and Medicaid Services (CMS) is looking for input into their proposed new "Enrollment Assistance Demonstration Project." http://www.naifa.org/advocacy/govtalk/2009/november1609/govtalk2.html Will Examine Worker Classification (Employee/Independent Contractor), Other Issues http://www.naifa.org/advocacy/govtalk/2009/november1609/govtalk3.html House Ways and Means Committee Democrats met privately on October 14 to map out plans for the rest of the year. http://www.naifa.org/advocacy/govtalk/2009/october1909/govtalk1.html With numerous political storms on the horizon that could severely impact every NAIFA member’s business, NAIFA’s Government Relations team set out for the 2009 NAIFA Annual Convention and Career Conference with the goal of educating members on the challenges ahead, and trying to get members actively engaged in the fight. http://www.naifa.org/advocacy/govtalk/2009/october09/govtalk5.html Data gathered by the NAIC indicates that consumer complaints dealing with claims handling delays, claims denials and unsatisfactory settlement offers top the list of complaints received by state insurance regulators. http://www.naifa.org/advocacy/govtalk/2009/october09/govtalk11.html In connection with the efforts of Vice-President Biden’s Taskforce on the Middle Class, the Treasury Department released a report September 9, making recommendations on how to make Section 529 college savings plans a more effective and reliable tool for families to save for college. http://www.naifa.org/advocacy/govtalk/2009/october09/govtalk10.html The Joint Committee on Taxation (JCT) released on September 7, a lengthy description and analysis of the individual income tax and estate and gift tax provisions that are included in President Obama’s fiscal year 2010 budget. http://www.naifa.org/advocacy/govtalk/2009/october09/govtalk9.html The U.S. House Financial Services Committee held several hearings last week to explore the Obama Administration’s plan to reform financial services regulation. http://www.naifa.org/advocacy/govtalk/2009/october09/govtalk8.html At their Annual Fall Meeting held last week, the NAIC met to discuss and revise several model regulations of vital interest to NAIFA members. Below is a description of some of these outcomes. http://www.naifa.org/advocacy/govtalk/2009/october09/govtalk7.html On September 5, President Obama and Secretary of the Treasury Tim Geithner introduced several steps the Administration will be backing to make it easier for working families to save, particularly for retirement. http://www.naifa.org/advocacy/govtalk/2009/october09/govtalk6.html Congress and the Obama Administration have not yet completed work on the Herculean health care/insurance reform or financial services reform projects, but both are starting to gear up for major tax legislation next year. http://www.naifa.org/advocacy/govtalk/2009/october09/govtalk4.html The National Association of Insurance Commissioners (NAIC) held its fall meeting in National Harbor, MD, just south of Washington, DC on September 21-24, 2009. http://www.naifa.org/advocacy/govtalk/2009/october09/govtalk3.html The last few weeks have garnered great attention from federal legislators and regulators on the topic of securitizing life settlement transactions. http://www.naifa.org/advocacy/govtalk/2009/october09/govtalk2.html On September 29, after approximately five hours of debate, the Senate Finance Committee rejected two amendments to add a new government-run health care plan to health care reform legislation. http://www.naifa.org/advocacy/govtalk/2009/october09/govtalk1.html From helping to enact anti-STOLI legislation, to staving off harmful provisions in health care legislation, NAIFA has been highly successful this year. http://www.naifa.org/advocacy/govtalk/2009/august09/govtalk10.html In the notice, FINRA pointed out that settlements of variable life policies are directed almost exclusively at elderly policyholders, who may not be aware of the various risks of selling their policy. http://www.naifa.org/advocacy/govtalk/2009/august09/govtalk9.html You’ll discover the many ways to participate in grassroots and grasstops political activity. http://www.naifa.org/advocacy/govtalk/2009/august09/govtalk8.html NAIFA recently filed comments with the SEC on two proposed rule changes that NAIFA feels will be burdensome to our members without providing any additional protection to consumers. http://www.naifa.org/advocacy/govtalk/2009/august09/govtalk7.html Learn more about the revised NAIC model regulation, which includes major changes to Medigap plans and benefits. http://www.naifa.org/advocacy/govtalk/2009/august09/govtalk6.html Since life insurers can’t adjust premiums on existing policies, a tax increase of this type would disproportionately impact new life insurer purchasers, and drive up insurance costs. http://www.naifa.org/advocacy/govtalk/2009/august09/govtalk5.html The rule, which would classify most indexed annuities as securities, was adopted by the SEC in early 2009. http://www.naifa.org/advocacy/govtalk/2009/august09/govtalk4.html The meeting is part of NAIFA's ongoing efforts to establish an ongoing dialogue with the key regulators on securities-related issues of interest and concern to NAIFA and its members. http://www.naifa.org/advocacy/govtalk/2009/august09/govtalk3.html NAIFA supports Administration’s efforts to establish an Office of National Insurance, but we continue to have concerns with systemic regulation proposal. http://www.naifa.org/advocacy/govtalk/2009/august09/govtalk2.html All members should meet with their U.S. Representative and Senators; attend town hall meetings; and also encourage friends, clients and colleagues to weigh in with lawmakers. http://www.naifa.org/advocacy/govtalk/2009/august09/govtalk1.html On July 9, House Financial Services Committee Chairman Barney Frank (D-MA) formally introduced legislation to establish a Consumer Protection Financial Protection Agency (CFPA). http://www.naifa.org/advocacy/govtalk/2009/july09/govtalk_20090720_1.html The New York Insurance Department on July 9 released its second draft of a rule governing when and how insurance producers must disclose their compensation and competing quotes to customers. http://www.naifa.org/advocacy/govtalk/2009/july09/govtalk_20090720_2.html On July 8 the House Energy and Commerce Committee’s Subcommittee on Commerce, Trade, and Consumer Protection held a hearing titled "The Proposed Consumer Financial Protection Agency: Implications for Consumers and FTC." http://www.naifa.org/advocacy/govtalk/2009/july09/govtalk_20090720_3.html July 15th was a historic day for NAIFA. The Health Insurance Agent and Broker Alliance, a group formed to promote the industry's health care agenda, brought more than 1,200 licensed insurance agents from 49 states to Capitol Hill. En mass you descended on Washington, DC, to meet with members of Congress to lobby critical health care insurance issues. http://www.naifa.org/advocacy/govtalk/2009/july09/govtalk_20090720_4.html With September just around the corner, plans for Life Insurance Awareness Month (LIAM) 2009 are in high gear. http://www.naifa.org/advocacy/govtalk/2009/july09/govtalk_20090720_5.html Missouri became the 36th of the Interstate Insurance Product Regulation Commission (the compact) on July 13, 2009 when Governor Jay Nixon signed House Bill 577 into law. http://www.naifa.org/advocacy/govtalk/2009/july09/govtalk_20090720_6.html Missouri became the 36th member of the Interstate Insurance Product Regulation Commission (the compact) on July 13, 2009 when Governor Jay Nixon signed House Bill 577 into law. http://www.naifa.org/advocacy/govtalk/2009/july09/govtalk_20090720_7.html The three House committees with jurisdiction over health care reform all recently held hearings on the “Tri-Committee” discussion draft put forth by House Democrats on June 19. http://www.naifa.org/advocacy/govtalk/2009/july09/govtalk_20090701_1.html Twenty-five of the forty-one members of the tax writing House Ways and Means Committee have written to the Secretary of the Treasury, Timothy Geithner, taking issue with Treasury Department tax proposals impacting life insurance and annuities. http://www.naifa.org/advocacy/govtalk/2009/july09/govtalk_20090701_2.html When Congress returns after July 4th and starts up again on health care reform, one of the most difficult issues it will face is how to pay for the cost of the bill. http://www.naifa.org/advocacy/govtalk/2009/july09/govtalk_20090701_3.html NAIFA Staff Attends, Participates in Vital Discussions; The National Association of Insurance Commissioners held its Summer National Meeting in Minneapolis last week. The meeting centered on the issue of financial services reform and how insurance regulation would factor into the many proposals circulating among the Administration and members of Congress. http://www.naifa.org/advocacy/govtalk/2009/july09/govtalk_20090701_4.html On a mostly party line 29 to 17 vote, the House Education & Labor Committee approved a bill on June 24 that rolls back NAIFA backed employer investment advice protections created by Congress in 2006. http://www.naifa.org/advocacy/govtalk/2009/july09/govtalk_20090701_5.html NAIFA President Cliff Wilson Testifies; The U.S. House Financial Services Committee (Chairman Barney Frank, D-MA) held a hearing on June 24 to explore financial product regulation and consumer protections. NAIFA President Cliff F. Wilson, CLU, ChFC, LUTCF, CLF testified at this hearing. http://www.naifa.org/advocacy/govtalk/2009/july09/govtalk_20090701_6.html No doubt, you have noticed the flurry of GovAlerts regarding some of the most critical issues NAIFA has ever faced. Today there is an urgency in the legislative process as there has never been before. http://www.naifa.org/advocacy/govtalk/2009/july09/govtalk_20090701_7.html Beginning this week and likely extending though late July, reforming the health care system and the health insurance structure that supports it will be front and center in Congress. http://www.naifa.org/advocacy/govtalk/2009/june09/govtalk_20090615_1.html Obama to unveil regulatory reform plan June 17: As reported in GovWatch on June 4, at the request of the White House, NAIFA President Cliff Wilson attended a discussion meeting on insurance and financial services regulatory reform with key Obama Administration officials. http://www.naifa.org/advocacy/govtalk/2009/june09/govtalk_20090615_2.html The NAIC Suitability in Annuity Sales Working Group continued its work at the NAIC’s June meeting to consider changes to the Model. http://www.naifa.org/advocacy/govtalk/2009/june09/govtalk_20090615_3.html On June 4 Representatives Gregory Meeks (D-NY) and Tom Price (R-GA) introduced H.R. 2733, the "Fixed Indexed Annuities and Insurance Products Classification Act of 2009." http://www.naifa.org/advocacy/govtalk/2009/june09/govtalk_20090615_4.html On June 3, Senator Herb Kohl (D-WI) introduced S.1177, a bill designed to facilitate collection of data that will allow states to strengthen consumer protections and standardize definitions for model disclosures and marketing of long term care insurance (LTCi) policies. http://www.naifa.org/advocacy/govtalk/2009/june09/govtalk_20090615_5.html On June 9, Representative Richard Neal (D-MA), a senior member of the House Ways & Means Committee, introduced H.R.2779, a 401(k) fee disclosure bill. H.R.2779 requires employers to disclose to participants in self directed account 401(k), 403(b) and 457 plans certain information about investment option fees charged to the participants’ accounts. http://www.naifa.org/advocacy/govtalk/2009/june09/govtalk_20090615_6.html On June 8, Reps. Earl Pomeroy (D-ND) and Virginia Brown-Waite (R-FL) introduced H.R.2748, a bill that would give new tax incentives to individuals who elect lifetime payments from their annuities. http://www.naifa.org/advocacy/govtalk/2009/june09/govtalk_20090615_7.html State efforts to enact laws designed to protect their senior citizens from the financial abuses caused by fraudulent transactions known as stranger-originated life insurance (STOLI) continue to gather momentum, as lawmakers in six states recently passed bills aimed at prohibiting STOLI http://www.naifa.org/advocacy/govtalk/2009/june09/govtalk_20090615_8.html FINRA recently issued Regulatory Notice 09-25, in which FINRA is proposing to consolidate its various rules and interpretations governing suitability and "know your customer" obligations into a new consolidated FINRA rulebook. This appears to be an effort to codify existing rules in one place. http://www.naifa.org/advocacy/govtalk/2009/june09/govtalk_20090615_9.html NAIFA members have access to a powerful tool when it comes to communicating with their elected officials. http://www.naifa.org/advocacy/govtalk/2009/june09/govtalk_20090615_10.html Congress is considering a number of concerning health reform options including replacing the professional service of a licensed professional with a government-run 800 number, developing standardized marketing requirements modeled after Medicare Advantage and establishing rate schedules for broker commissions. http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090515_9.html In response to questions that NAIFA leadership and staff have been fielding from the Federation, the Executive Committee decided the best way to answer them was a Q&A video addressing current issues important to NAIFA members. http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090515_8.html NAIFA members across the country continue to lead their state associations’ efforts to be actively involved in state legislative and regulatory issues of interest and concern to the membership. http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090515_7.html The Senate Banking Committee (Chairman Christopher Dodd, D-CT) held a hearing on May 6 titled "Regulating and Resolving Institutions Considered Too Big to Fail." http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090515_6.html Bill Anderson attended the 2009 NAIC E-Reg Conference which was held from April 27 – April 30 in Kansas City. http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090515_5.html NAIFA and NAIFA–Maryland have recently learned that an article from the MD edition of Insurance and Financial Advisor indicates that the state’s Insurance Department will be taking a look at commission disclosure. http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090515_4.html AHIA Legislation Committee Chair and Past President Lawrence E. Lounds, CLU, ChFC, LUTCF has been nominated to serve on the newly established Children’s Health Insurance Program (CHIP) Working Group. http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090515_3.html Earlier this month NAIFA President Cliff Wilson, NAIFA CEO John Healy and NAIFA Government Relations staff met with Jennifer McHugh, Senior Advisor to Securities and Exchange Commission Chair Mary Schapiro. http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090515_2.html The Obama Administration’s detailed budget proposal, released May 11, includes several new tax proposals that could negatively impact the business of NAIFA members. http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090515_1.html http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090501_1.html http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090501_2.html http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090501_3.html http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090501_4.html http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090501_5.html http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090501_6.html http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090501_7.html http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090501_8.html http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090501_9.html http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090501_10.html http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090501_11.html http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090501_12.html http://www.naifa.org/advocacy/govtalk/2009/may09/govtalk_20090501_13.html http://www.naifa.org/advocacy/govtalk/2009/april09/govtalk_20090401_1.html http://www.naifa.org/advocacy/govtalk/2009/april09/govtalk_20090401_2.html http://www.naifa.org/advocacy/govtalk/2009/april09/govtalk_20090401_3.html http://www.naifa.org/advocacy/govtalk/2009/april09/govtalk_20090401_4.html http://www.naifa.org/advocacy/govtalk/2009/april09/govtalk_20090401_5.html http://www.naifa.org/advocacy/govtalk/2009/april09/govtalk_20090401_6.html http://www.naifa.org/advocacy/govtalk/2009/april09/govtalk_20090401_7.html http://www.naifa.org/advocacy/govtalk/2009/april09/govtalk_20090401_8.html http://www.naifa.org/advocacy/govtalk/2009/april09/govtalk_20090401_9.html http://www.naifa.org/advocacy/govtalk/2009/april09/govtalk_20090401_10.html http://www.naifa.org/advocacy/govtalk/2009/april09/govtalk_20090401_11.html http://www.naifa.org/advocacy/govtalk/2009/april09/govtalk_20090401_12.html The American Recovery and Reinvestment Act passed by Congress February 13, 2009, imposes the strictest yet executive compensation restrictions on companies participating in the Troubled Asset Relief Program. http://www.naifa.org/advocacy/govtalk/2009/feb09/govtalk_20090217_1a.html In the waning days of the Bush Administration, the Employee Benefits Security Administration (EBSA) of the Department of Labor (DOL) attempted to publish final investment advice regulations in the Federal Register during the week of January 19. http://www.naifa.org/advocacy/govtalk/2009/feb09/govtalk_20090202_1.html The National Association of Insurance Commissioners decided to reject proposed adjustments to several existing NAIC solvency framework components that impact statutory capital and surplus requirements recommended to the full NAIC by the Capital and Surplus Relief Working Group. http://www.naifa.org/advocacy/govtalk/2009/feb09/govtalk_20090202_2.html On January 30, 2009, NAIFA sent a letter and backup documentation to Chairman Herb Kohl (D-WI) of the U.S. Senate’s Special Committee on Aging. http://www.naifa.org/advocacy/govtalk/2009/feb09/govtalk_20090202_3.html In a January 23, 2009, letter to now confirmed Secretary of the Treasury Tim Geithner, seven members of the House Financial Services Committee asked him to use his authority to create an office of insurance information with the Treasury Department. http://www.naifa.org/advocacy/govtalk/2009/feb09/govtalk_20090202_4.html In an action that may have profound implications for NAIFA members’ business clients, Congress completed work on S.181, the “Ledbetter bill,” on January 27th and President Obama then signed it into law January 29. http://www.naifa.org/advocacy/govtalk/2009/feb09/govtalk_20090202_5.html The Senate Homeland Security and Government Affairs Committee held a hearing on Wednesday, January 21, examining the federal financial regulatory system and the regulatory failures that contributed to the financial crisis. http://www.naifa.org/advocacy/govtalk/2009/feb09/govtalk_20090202_6.html Therese M. (Terri) Vaughan, Ph.D., was named Chief Executive Officer of the National Association of Insurance Commissioners (NAIC) effective February 18, 2009. http://www.naifa.org/advocacy/govtalk/2009/feb09/govtalk_20090202_7.html Neal Wolin, president and Chief Operating Officer of The Hartford Financial Services Group's Property and Casualty Operations, on January 28 accepted the position of White House Deputy Counsel to the President for Economic Policy and Deputy Assistant to the President. http://www.naifa.org/advocacy/govtalk/2009/feb09/govtalk_20090202_8.html