National Association of Insurance and Financial Advisors

GovUpdate: DOL Rule Would Limit Consumer Choice and Advisor Compensation

February 26, 2015

Issue: DOL Redefinition of Fiduciary Advisors Date: February 25, 2015 Action Taken: The Office of Management and Budget (OMB) has received the DOL proposal, the first step in the release of DOL’s Notice of Proposed Rulemaking that will re-define who is a fiduciary when working with retirement accounts. The proposed rule could limit the choices consumers have when choosing how to pay for help, education, and advice about their retirement savings accounts and may prohibit advisors from ...

House Introduces Bill on Medical Loss Ratio

February 13, 2015

The Access to Professional Health Insurance Advisors Act of 2015, H.R. 815, is a bill introduced this week in the House of Representatives that would remove insurance agent and broker fees from the medical loss ratio (MLR) calculation in the Affordable Care Act. The bill has 15 original cosponsors. Convincing evidence shows that including broker compensation in the MLR has seriously harmed brokers who provide health insurance, as well as the individuals and small businesses they serve. ...

House Approves Bills to Make Permanent Expensing, IRA-to-Charity Rules

February 13, 2015

The House has approved two bills to make permanent two special tax rules (that lawmakers routinely let expire and then reinstate retroactively) that allow for year-of-acquisition deduction of certain business purchases, and permit limited direct tax-free gifts from IRAs to charities. The two bills are: H.R.636—this bill, which carries an un-offset cost of $77.1 billion over 10 years, makes permanent the section 179 rule that allows a business to deduct in the year of acquisition the ful...

Troubled ACA Co-Ops; Agent Commissions Suspended in Iowa

February 13, 2015

NAIFA members should be aware that health insurance Co-Ops established under the Affordable Care Act (ACA) appear to be encountering financial difficulties which could be of significant concern to advisors and their clients.    ACA Co-Ops are designed to be private non-profit insurers which underwrite ACA-compliant plans and are entities owned by their policyholders.  They are intended to compete in the individual and small group health insurance markets and are eligible to receive federa...

House Passes Two Regulatory Reform Bills-Presidential Vetoes Promised

February 13, 2015

Carrying out its Congressional opening day promise to address issues of overregulation, the GOP-controlled House approved two regulatory reform bills the week of February 2. Both bills, however, drew immediate veto threats from the Administration.    The House passed the Small Business Regulatory Flexibility Act (H.R. 527) and the Unfunded Mandates Information and Transparency Act (H.R.50) by wide majorities on February 4 and 5. H.R. 527 would require federal regulatory agencies to broade...