NAIFA Weekly Connections

InsuranceNewsNet Interviews Robert Miller

Robert Miller is midway through his tenure as president of the National Association of Insurance and Financial Advisors (NAIFA) and has developed a reputation of being an outspoken, straight-shooting representative for the advisor community. He brings a different perspective to his position because his practice, Miller-Pomerantz and Associates, is in lower Manhattan, where he advises Wall Street workers and other high-net-worth clients. But he is far from elitist in understanding and acting on the concerns of NAIFA’s members. Miller covered so much ground – and did it so well -- that we made this longer version available online.

For more information: Visit http://insurancenewsnet.com/article.aspx?id=327975.

 

Audit Report for Fiscal Year 2011 Now Available

The NAIFA Audit Committee has recently received and approved the issuance of this report, and the report has been posted on the Members website at: http://www.naifa.org/about/annualreports/, under “Consolidated Financial Statements”, “2010 and 2011.”

Or at http://www.naifa.org/about/annualreports/documents/FY11FS.pdf.

 

John Newton Russell Memorial Award

NAIFA is accepting applications for the John Newton Russell Memorial Award through February 10, 2012.  Nominees represent the best and most dedicated individuals to the industry.  Click here for information and an application.

For more information: Visit http://www.naifa.org/benefits/awards/jnr.cfm.

The Presidential Blue Ribbon Task Force

The Presidential Blue Ribbon Task Force has been convened by NAIFA President Robert Miller to examine the governance model, structure and bylaws of the NAIFA federation, to ensure that they are best aligned to meet the mission of the association.  The task force met via conference call on January 17, 2012.  The minutes are available at http://www.naifa.org/about/taskforce.cfm.

For more information: Visit http://www.naifa.org/about/taskforce.cfm.

NAIFA Presidential Blue Ribbon Task Force Update From Robert A. Miller, M.S., M.A., NAIFA President 2011-2012

As 2011 draws to a close, I wanted to provide an update on the work of the NAIFA Presidential Blue Ribbon Task Force. I announced the creation of the Task Force at the 2011 NAIFA Career Conference and Annual Meeting, with the goal of producing recommendations aimed at strengthening the operation of the NAIFA federation.

The Task Force charge is to examine the governance model, structure and bylaws of the NAIFA federation, to ensure that they are best aligned to meet the mission of the association. The group has pursued its charge by asking: If NAIFA were created today, how would it be structured in order to achieve its mission now and in the future?

As previously reported in messages to NAIFA national, state and local leaders, and to all NAIFA members in NAIFA Weekly Connections, the Task Force met twice by conference call and once in person during October and November, and this month the Task Force has met by phone in three working groups to examine the following topics:

Working Group One is examining the NAIFA Board selection process, including whether a slate of NAIFA Trustee candidates, proactively vetted by the Governance Committee, should be presented for National Council approval, while permitting candidates to run from the floor, and whether NAIFA Officers should be appointed.

Working Group Two is considering the NAIFA Bylaws amendment and national dues determination processes, including whether the responsibility for bylaws changes should reside with the NAIFA Board, while retaining National Council authority to consider resolutions and Board policy, and whether the NAIFA Board should have sole responsibility for setting national dues.

Working Group Three is studying NAIFA’s structure, including whether the NAIFA federation should be redesigned to include only individual and state association membership, with states determining their own local association structures, and whether there are other organizational models or improvements to the association’s operation that might better serve to achieve the NAIFA mission moving forward.

Information about the Task Force, including minutes of its meetings, is available on the NAIFA website at http://www.naifa.org/about/taskforce.cfm.

As NAIFA President, I am committed to a transparent process and an open dialogue as we explore opportunities to strengthen our great association for years to come. Toward that end, I invite you to review the Task Force minutes and to share your thoughts about this important initiative. Please send any comments you may have to Jennifer Corcoran at NAIFA, at jcorcoran@naifa.org.

Thank you all for supporting NAIFA, your professional association, as together we work to protect and grow our essential industry for the benefit of American families and businesses.

 

Investment News Features Q&A with NAIFA President Robert Miller

In a recent interview, NAIFA President Robert Miller indicated a need for compromise on the fiduciary standard under discussion at the U.S. Securities and Exchange Commission (SEC). He said that NAIFA members operate small businesses and continue to build relationships with the middle-income clients they serve. However, the fiduciary duty could force those advisers to eliminate commissions, a model thriving under the current suitability standard. Miller said that NAIFA's message is that the group's members are "in a relationship-building business. We insure 75 million families across the country, and our products are responsible for about 20 percent of all savings in this country. Most of the incomes we're dealing with are people who earn less than $100,000. I don't think [regulators] understand that we are not a transactions-oriented group." He noted that the group continues to converse with the SEC and other regulators and that regulators are examining the "potential consequences of overregulation or even changing regulations from suitability to fiduciary." In terms of the fiduciary duty proposal from the U.S. Labor Department, Miller is less optimistic, noting, "They're already on record saying they're going to include IRAs in their re-proposal [early next year]. The Department of Labor is very rigid right now." NAIFA members, according to Miller, are not opposed to "becoming fiduciaries as long as . . . we can sustain a business model that still allows us to make a living."

For more information: See the NAIFA Blog.

NAIFA Survey Shows Federal Health Care Rule Harming Agents and Consumers

A new survey by NAIFA shows the federal health care law’s medical loss ratio (MLR) provision is threatening the ability of insurance brokers to make a living and hurting consumers who rely on these professions for advice and customer service. At the same time, state insurance commissioners passed a resolution recognizing that the MLR is disrupting insurance markets and harming consumers.

The MLR provision, which requires insurers to spend at least 80 percent of individual and small group health insurance premiums and 85 percent of large group policies on medical or quality improvement expenses, prompted most insurance companies to slash the commissions of insurance agents and brokers when it went into effect last January.

According to the NAIFA survey conducted Nov. 18-22, nearly a quarter of the brokers and agents (22.4 percent) have had to reduce customer service because of the lost compensation. Another 29 percent say they will do so if their commissions remain depressed. One out of five of the brokers surveyed said they have had to lay off employees or reduce the hours of customer-support staff.

A White Paper by NAIFA featuring interviews with NAIFA members examines the damage done by the health care law’s MLR Rule.

For more information: See the NAIFA Blog.

NAIFA Presidential Blue Ribbon Task Force

The minutes from the November 15, 2011 NAIFA Presidential Blue Ribbon Task Force meeting are now available online. NAIFA President Robert Miller has convened the task force to examine the governance model, structure and bylaws of the NAIFA federation and to ensure that they are best aligned to meet the mission of the association.

For more information: Please visit http://www.naifa.org/about/taskforce.cfm.

Looking for a Jobs Program? Ditch the MLR

The Obama administration yesterday announced a $1 billion plan to create jobs in health care fields. Ok, but here’s a thought: how about preserving jobs that already exist?

As we’ve explained before on the NAIFA Blog, the national health care law’s medical loss ratio (MLR) provision has severely damaged the ability of health insurance brokers to provide important services to their clients and has forced many to lay off employees and, in some cases, retire or leave the business.

A survey we conducted in April found that 75 percent of NAIFA members who sell health insurance had seen their commissions drop since the MLR went into effect January 1. More than five out of ten (53 percent) of the agents reported that their commissions had been lowered by 25 percent or more, which includes 17 percent who said their companies had cut commissions by 50 percent or more.

Studies by other organizations, including the Government Accountability Office and the National Association of Insurance Commissioners, have confirmed that many agents’ commissions are decreasing.

The NAIFA survey found that 13 percent of the agents with reduced commissions had laid off or reduced the hours of their support staff by April, affecting an average of two employees per agency. Another 23 percent were considering staff reductions. More than a quarter (27 percent) said they would be forced to reduce staff if commissions remained depressed.

NAIFA is conducting a follow-up survey to explore how conditions have changed since April. The results will be available soon.

In the meantime, the MLR continues to do damage: driving insurance brokers out of business, eliminating jobs, depriving consumers of valuable customer service, and reducing competition in the health care marketplace.

Additional Resources: NAIFA White Paper – No Premium on Value: The Health Care Law’s Medical Loss Ratio Brings Dangerous Consequences for Consumers and the Agents Who Serve Them.

NAIFA Presidential Blue Ribbon Task Force

The minutes from the November 8, 2011 NAIFA Presidential Blue Ribbon Task Force conference call are now available online. NAIFA President Robert Miller has convened the task force to examine the governance model, structure and bylaws of the NAIFA federation and to ensure that they are best aligned to meet the mission of the association.

For more information: Visit the NAIFA website at www.naifa.org.

NAIFA Member Organizes Public Forum with Elected Official, Residents

Sycamore, Ill. – NAIFA member and State Farm Agent Jeff Keicher is a big believer in connecting local officials with the citizens they serve, so last Saturday, Keicher’s Sycamore office served as the venue for a two-way conversation between Rep. Randy Hultgren (R-Winfeld) and the residents of Illinois’ 14th Congressional District. Read more on the NAIFA Blog.

For more information: Visit the NAIFA Blog.

NAIFA Presidential Blue Ribbon Task Force Assembled

NAIFA President Robert Miller has convened a Presidential Blue Ribbon Task Force to examine the governance model, structure and bylaws of the NAIFA federation and to ensure that they are best aligned to meet the mission of the association. The Task Force will pursue its charge by asking: If NAIFA were created today, how would it be structured in order to achieve its mission now and in the future? The minutes from the initial conference call are available online at http://www.naifa.org/leaders/documents/MinutesNAIFAPresidentialBlueRibbonTaskForce.pdf.