NAIFA Marks Another Successful Day on the Hill
NAIFA Podcast
Length: 8:04 minutes
More than 1,200 members of the National Association of Insurance and Financial Advisors (NAIFA) brought their message to Capitol Hill last week during NAIFA’s 118th Annual Convention, which took place in Washington, DC. On Tuesday, September 11, NAIFA members visited their representatives in Congress to discuss the key issues facing the life insurance and financial services industry.
In more than 400 meetings with members of the Senate and House of Representatives, financial advisors and insurance agents from across the country voiced their opposition to the proposed Insurance Industry Competition Act of 2007 (S.618 and H.R.1081), a bill that would undermine state insurance regulatory authority and ultimately reduce competition in the industry. They also explained the important role that life insurance, annuities and other financial protection products play in the financial security of Americans. Under the current “Pay As You Go” budget rules, there has been concern that Congress may consider revising the tax treatment of these products in favor of other budget priorities.
“Only life insurance and related products transfer away from the individual the financial risks associated with dying too soon, living too long or becoming disabled. This unique guarantee protects individuals, families and businesses from financial peril despite life’s inevitable risks,” explained NAIFA President Jeffrey J. Taggart, CLU, ChFC, LUTCF.
NAIFA members also encouraged their legislators to urge the Securities and Exchange Commission to retain the payment of fees to advisors under SEC Rule 12b-1. These asset-based fees compensate advisors for providing ongoing service to their clients.
“The 12b-1 fees are a cost-effective way for investors to receive professional assistance and advice. In the absence of 12b-1 fees clients would end up paying more in either hourly or asset-based fees to receive the same level of service,” said Taggart.
“We are very pleased with the outcome of the Day on the Hill” said NAIFA CEO John Healy. “Our members have a keen interest in these crucial issues before Congress and they presented a strong, unified voice in front of their elected officials. NAIFA members help ensure the financial stability of millions of Americans and they believe it is also their responsibility to share their insight with Members of Congress.”
Day on the Hill participants also spoke at length about September as Life Insurance Awareness Month and the importance of promoting insurance literacy among Americans.
President George W. Bush sent a letter acknowledging September 2007 as Life Insurance Awareness Month. Thirty-four state governors and Washington, D.C., Mayor Adrian Fenty have signed written proclamations in support of this year’s public awareness campaign. In addition, the National Association of Insurance Commissioners and the National Conference of Insurance Legislators signed similar proclamations earlier this year. In Congress, Life Insurance Awareness Month resolutions (S.Res.201 and H.Res. 584) have been introduced in both chambers and are expected to be adopted this month.
Materials from the NAIFA Day on the Hill