November 2nd Elections: Impact on NAIFA Members and their Clients

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.) The House will switch to Republican control by a substantial margin. The Senate, on the other hand, will remain under Democratic control but by a slimmer margin. This special election edition of GovTalk looks at the major changes and how they impact NAIFA members.

Whether the House flipping to Republican control will bring the “change” that many of the talking heads and pundits are proclaiming the American electorate wants, no one knows for sure. Given the intractable nature of issues dividing the country and how that is reflected in the party and philosophical make-up of Congress,  the next Congress could simply be another case of “the more things change, the more they stay the same.” Until the new and veteran members of Congress get to Washington and start interacting together and start operating under the rules of debate and committee ratios drafted by the majorities in each house, it is not possible to tell.

But there is one thing that is certain: the legislative and social issues that have divided the country will remain. And what is sure to remain are the budget deficits and worries about the economy that play a major role in the threats facing the life insurance and financial products NAIFA members use to help American families achieve financial security. And, to a significant degree concerns about the country’s economic  future and how (or whether) government should manage it also shape regulatory policies in Washington and state governments that in turn shape (many would say impede) the way NAIFA members conduct their businesses.

The 112th Congress offers a glimmer of hope that NAIFA can revisit selected aspects of issues (think health care and Wall Street reform laws) that vexed NAIFA members for the last two years. Similarly, the new Congress could put NAIFA in a good position to defend traditional values associated with life insurance industry products. Or, maybe not!

But that’s next January. Before January comes a “Lame Duck” session of Congress that is scheduled to convene November 15 and last ‘till no one know for sure. Continue reading below to see what may be in store.