National Association of Insurance and Financial Advisors

NAIC Continues Discussing Best Interest Standard for Annuity Sales

January 17, 2018

The NAIC is in the process of considering/developing revisions to the existing NAIC Suitability in Annuity Transactions Model Regulation that would replace the current model’s suitability standard with a ‘best interest’ standard of conduct for insurers and producers who solicit/negotiate/recommend the sale of an annuity. Towards this end, the NAIC Annuity Suitability Working Group has been discussing this issue for roughly the past 9 months, both through in person sessions at NAIC national me...

NAIC Fall 2017 National Meeting Report

January 17, 2018

The National Association of Insurance Commissioners (NAIC) held its 2017 Fall National Meeting from December 1-4, 2017 in Honolulu, Hawaii. NAIFA State Government Relations staff attended the meeting on behalf of NAIFA. Overall attendance at the meeting was approximately 1,000 insurance industry professionals, regulators and consumer representatives. The following matters of interest to NAIFA and its members were discussed and/or acted upon:   Best Interest Standard for Annuity Sales   ...

President Signs Tax Cuts/Reform Bill into Law

January 17, 2018

On December 22, 2017, President Trump signed into law a sweeping new tax bill (H.R.1) that cuts corporate, business and individual tax rates and eliminates many deductions. The new law does not impose new taxes on life or health insurance, annuities, most retirement savings, or employer-provided benefits. It creates a new deduction for qualified pass-through business income that may benefit some NAIFA members and/or their small business clients   Generally, the individual provisions of th...

Pass-Through Business Deduction Complexity Requires IRS Guidance

January 17, 2018

The new deduction from net business income for pass-through businesses (subchapter S corporations, partnerships, LLCs and sole proprietorships) is a complex brand-new section of the tax code. It could be beneficial to some NAIFA members—those who are not employees of their insurance companies, who qualify under the salary threshold test, and/or possibly after guidance on whether they are financial services businesses that are not eligible for the deduction if they earn over the threshold amou...

DOL Releases Proposed AHP Regulation

January 17, 2018

On January 4, the Department of Labor (DOL) released a proposed new regulation that would broaden the availability of association health plans (AHPs) as a way for employers to obtain health insurance.  The proposed regulation is in response to an Executive Order (EO 138133) that directed DOL to expand health care choice by modifying regulations governing AHPs, sales of health insurance across state lines, and short-term health insurance policies.  The DOL proposal would expand the “commonalit...