Thursday, May 29, 2014

2014 May/June IFAPAC

I have a dear friend who, in the early years of his marriage, was convinced he and his family needed a four-wheel-drive pickup truck. His wife was sure that he did not need but merely wanted the new vehicle. A playful conversation between this husband and wife initiated their consideration of the advantages and disadvantages of such a purchase.

“Sweetheart, we need a four-wheel-drive truck.”

She asked, “Why do you think we need a new truck?”

He answered her question with what he believed was the perfect response: “What if we needed milk for our children in a terrible storm, and the only way I could get to the grocery store was in a pickup?”

His wife replied with a smile, “If we buy a new truck, we will not have money for milk—so why worry about getting to the store in an emergency!”

Tuesday, May 27, 2014

2014 May/June OIC

Avoiding Compliance Issues with your State Regulator

There are many producer compliance issues my staff routinely addresses, ranging  from timely response to an OIC inquiry, updating a producer’s address in the proper time frame, or naming a designated responsible licensed person (DRLP) for a licensed insurance agency. Our approach to most producer compliance issues has been to educate our licensees and assist them  in meeting compliance standards rather than beginning with fines and penalties.  Here, I will address two common compliance issues: the use of DBAs--that’s “doing business as” for those not familiar with the term--and affiliations.

Let’s begin with DBAs. While not the norm in the insurance industry, some agents and agencies use them. If you do use  a DBA, there are laws and rules you need to follow to avoid compliance issues.


2014 May/June Professional Development

This past year has presented the Association with more significant changes than we have experienced in recent memory.  First, NAIFA announced that the LUTCF designation which has been around more than 30 years was to be going away, with only a short period of time for active students to attain their designation within a fairly short period of time.  Then came additional information on the reintroduction of the designation, but under the College of Financial Planning instead of The American College.  Later this year (September of 2014) a more formal announcement of the new LUTCF program will be made, most likely during the Annual NAIFA Convention in San Diego.  In my last communication with Ms Booth at NAIFA national, no reimbursements to local associations had been determined at this time.
In addition to the LUTCF news, the American College has introduced a new designation aimed at advisors, initially to replace the LUTCF designation, known as FSCP or Financial Services Certified Professional.  A program to further the education of Agents in an ever changing society.  Content designed to address many of the more modern aspects of our society, such as divorce, non-marital relationships, etc.  This program will not provide local association tuition reimbursements like the old LUTCF courses had done in the past.

2014 May/June NAIFA-Washington Survey Results

Your intrepid National Committeeman put together a survey of the NAIFA Delegates and attendees at our 2014 State Convention in Kirkland and we got some interesting responses.  Here are the actual questions and the results in a capsule:
General Survey Information.  Tell us a little about yourself:
Of survey respondents:
Age: Under 30 only 1%, 30-40 20%, 41-50 23%, 51-60 27%, 61-65 6%, 66 -70 13%, 71+ 10%
Male 70%  Female 30%
Years experience: <5 15%,  6-10 10%,  11-15 15%,  16-20  10%,  21-25 15%,  26-30 6%,  31-35 10%, 36-40 10%,  41+   9%  (1 person had 50, and a second had 51!)
86% describe themselves as Producers, 10% as General Agents, and the rest as Service Reps or Home Office.
So by this I take it we had a good representation of a broad swath of the producer community.
Then we asked: Why Did You Join NAIFA?

2014 May/June President's Message

NAIFA Washington year 2013/2014 is nearing its close. I want to thank all of the volunteers that make our organization function. This includes your state officers, regional vice presidents, committee chairs and local presidents. These elected and appointed members give of themselves throughout the year so that our organization continues to operate for the benefit of our members as well as the benefit of the public (our prospects and clients). There are many others that serve at the Local Association level as both directors and officers. 

In addition we have each year a convention committee and local that is responsible for conducting the annual NAIFA WA convention. This year’s convention was held at the Woodmark Hotel on Lake Washington in Kirkland May 19 – 21. Seattle Eastside was the host Local Association with Michael Staeb as Committee Chair. In my opinion and several others this ranks as one of the best state conventions ever. One respected member thought of it as National level in regards to the speaker line up. If you attended, you know what I mean. If you did not attend, you missed great fun, great location and great education and experience. Plan to attend next year’s convention in Tacoma at the Tacoma Dome Hotel. A dinner will be planned at the Lemay America’s Car Museum as well as other fun activities along with top notch speakers. This will be held June 3rd through 5th of 2015. Save the date in your calendar.