NAIFA Washington Advisor: APIC

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Tuesday, December 17, 2013

December 2013 Advocacy

NAIFA Washington “Day on the Hill” 2014

“Day on the Hill” is scheduled January 21st in Olympia. When it comes to political advocacy and protecting the interests of its members, NAIFA is one of the best in the business. Our many successes have hinged on NAIFA Washington's favorable relationships with their legislators.

Challenges remain to bring the uninsured Washingtonians into the system and to reduce the high cost of health care for everyone. We will have an update from the CEO of the Washington Health Benefits Exchange.

2013 August/September Immediate Past President

Congratulations NAIFA Washington!

We did it! As a result of this state operating as a T.E.A.M., we have earned the coveted national award, The Jack E. Bobo Award of Excellence at the GOLD level! I am super proud of everyone’s effort and perseverance through some difficult challenges! The level of our achievement may or may not register with every member, but this award is our measure of success as an association and can be earned at both the local and state levels! The reason it’s a “big deal” is if you are earning this award, you are succeeding as an association. It matters! If your local did not earn this award, you should be asking your leadership why not.

NAIFA will be recognizing our achievement in San Antonio at the NAIFA National Convention! I look forward to seeing all who are attending and again…GREAT JOB! Let’s do it again and again!

Jeff Kyle, LUTCF, LTCP

2013 August/September IFAPAC

Pay It Forward

Pay it forward is a term describing the beneficiary of a good deed repaying it to others instead of to the original benefactor. The concept is old, but the phrase may have been coined by Lily Hardy Hammond in her 1916 book In the Garden of Delight. She wrote, “You don’t pay love back; you pay it forward.”

The phrase is even older than that. Pay it forward was used as a key plot in the play by Menander, Dyskolos (a title which can be translated as “The Grouch”). Dyskolos was a prizewinning play in ancient Athens in 317 BC; however, the text of the play was lost and it was not re-published until 1957. The concept was rediscovered and described by Benjamin Franklin in a letter to Benjamin Webb dated April 25, 1784: “I do not pretend to give such a deed; I only lend it to you. When you meet another honest Man in similar Distress, you must pay me by lending this Sum to him; enjoining him to discharge the Debt by a like operation, when he shall be able, and shall meet with another opportunity. I hope it may thus go thro’ many hands…This is a trick of mine for doing a deal of good with a little money.”

It is summer recess and most congressmen/women are currently in district. If you are an APIC contact for your local association, or involved in a key position such as President or National Committee person, you have received two email reminders in the last few weeks from yours truly asking you to set up a face-to-face meeting with your representative or a staff member for the purposes of reinforcing NAIFA’s position on tax reform. To date I have had two responses regarding meetings with legislators; NAIFA-Snohomish and NAIFA- Tri-Cities.

It is particularly important to contact and meet with legislators who sit on key committees. Four of our Congressmen/women serve on key committees; Cathy McMorris-Rodgers, 5^th district, Energy & Commerce; Jim McDermott, 7^th district, Ways & Means; Dave Reichert, 8^th district, Ways & Means; and Denny Heck, 10^th district, Financial Services. These committees and the decisions they make directly impact our industry, the clients we serve, and the legislator’s constituents.

2013 June/July Advocacy

NAIFA Washington Advocacy for Members in Constant Motion

Whew…what a year 2013 turned out to be! But there is no time to rest on past successes. Let’s look at NAIFA-Washington’s successes:

· “Day on the Hill” huge success. Information, Attendance, Speaker line-up, Legislative Contacts, 13 Locals represented, Profitability

· “Call to Action” stopped a 271% increase for ALL Agents/producers paying B&O Taxed. Leadership Coalition testifies in Olympia, NAIFA WA, WAHU, IIABW, PIA, Farmers, American Family, 1000’s of the Producer Community call their legislators!

Strong NAIFA WA representation on the Office of the Insurance Commissioner’s Agent/Brokers Life, Health, Disability Advisory Council…keeping NAIFA WA informed and involved with the OIC.

NAIFA WA Members: (L/R )Sharon Sparling, Kathy Smithson,
Andrew Hooper, Brian Berg, Alan Zalewski, Robert “Bob” Mertz, Matt Ryan

· **NEW VICTORY** “Agent/Producer” presence on the new Washington healthplanfinder. Mel Sorensen, NAIFA WA Lobbyist notified us that after the June 16^th Washington Health Benefits Exchange meeting with the Exchange’s Agent/Broker Advisory Group raised a number of priority issues for the producer community. The meeting was about the Exchange website and making sure that agents/brokers get credit for bringing business to the Exchange.

“ADVOCATE” It is just a word, but oh does it have such important meaning.

I’ll come back to that in a few moments. Last month at the State Convention in Richland I was elected your President for the 2013/2014 NAIFA year. I am happy to serve in this capacity and I plan to have a very successful year in several areas but today I am going to speak about advocacy. You might be thinking that has to do with calling, emailing, writing and visiting our state and national legislators. You would be correct most of the time but now I am going to broaden the scope of the word and its significance to our profession, our association and our clients.

NAIFA’s mission statement reads: The mission of the National Association of Insurance and Financial Advisors is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of our members.

NAIFA is using the word advocate as a verb which according to Webster means “to plead in favor of.” Of course we are in favor of and plead for the benefit of our industry and our clients in encouraging positive action from our legislators. But I think it is equally or more important to view the word in its definition as a noun. Webster says: 1. One that pleads the cause of another, specifically one that pleads the cause of another before a tribunal or judicial court. 2. One that defends or maintains a case or proposal. 3. One that supports or promotes the trust of another.

What is the number one issue we should be discussing with members and non-members alike as we point up the importance of our association and the impact we have? B & O tax. Some of the usual objections we get from potential members such as “I don’t sell much life insurance” or “ I’m primarily an investment advisor” don’t wash. The B & O tax is an equal opportunity tax for those in our industry. We are all subject to it and we can’t necessarily pass it on to our clients, not that we’d want to!

Now just how did we manage to defeat a potential 271% increase in the B & O tax? With a classic grassroots effort, of course! Our lobbyist put out the call to action, our State advocacy team contacted the local chapters, and the locals contacted their individual members. In addition, many of us contacted non-members and ask them to voice their concerns to legislators as well. The end result was Olympia getting a loud and clear message not to increase our taxes.

So what’s on tap for APIC this summer? Our Congressmen/women will be in district during the month of August for summer recess, and we should continue solidifying our relationships by scheduling meetings to discuss issues and offer to be a resource. You will receive additional information from me in July.
One final note; we do not have listed contact for our newest congressman, Denny Heck of the 10^th district. Who knows this guy?! Let your APIC chair know! NAIFA is relevant and powerful!

Richard L. Miller,

NAIFA-WA APIC Chair

Monday, April 15, 2013

2013 April/May APIC Report

A recent Wall Street Journal article chronicled the advocacy efforts of approximately 100 members of an industry group during a visit to the nation’s capitol, and how their lobbying activity was essential for maintaining a favorable business environment. While I doubt we will garner WSJ coverage, 13 NAIFA-Washington members joined over 1000 NAIFA members nationwide for the Congressional Conference April 8-9, 2013. Our primary purpose was to discuss tax reform policy with our legislators as it relates to our industry, products, and the clients we serve.

2013 February Legislative Report

House and Senate Committees Kill Bills at Deadline for Approval

Hundreds of bills introduced in the House and Senate were killed on Friday when they were not approved before the close of business on February 22—the last day for passing bills out of committee in the house of origin.

Having reached the first cut-off date, action now turns to the fiscal committees in the House and Senate which have until the close of business on Friday, March 1 to approve bills that that pose a fiscal impact for the state. Following the cut-off for fiscal committees, all legislative activity will turn to the floors of the House and Senate. The cut-off resolution calls for bills in the house of origin to be approved by Wednesday, March 13 at 5:00 p.m. With rare exception, bills failing to be approved by the cut-off dates will not be considered further this session.

House Committee Approves OIC Request Bill Intended to Allow Consideration of Financial Reserves when Non-Profit Health Plans Make Rate Filings

On a divided vote, the House Health & Wellness Committee has narrowly approved HB 1349—a bill that was introduced at the request of Insurance Commissioner Mike Kreidler to allow consideration of reserves and surplus when non-profit health carriers submit rate filings. For the third year in a row, the controversial proposal was strongly opposed by health carriers, agent/broker groups, and the business community. Although similar bills were introduced at the request of Insurance Commissioner Kreidler in 2011 and 2012, and the bill was not brought to a vote in committee last year. Senator Randi Becker (R, 2^nd Legislative District), Chair of the Senate Health & Long Term Care Committee has indicated that she does not plan to consider the proposal in 2013. Although the issue is likely dead in the Senate, Rep. Eileen Cody (D, 34^th Legislative District), the Chair of the House Health Care & Wellness Committee, made a decision to bring HB 1349 to a vote on the last day for committee action. The bill was approved on a 9-7 vote that was entirely partisan, with no Democrats voting against the measure and no Republicans voting for it.

Senate Committee Approves SB 5065—ACLI Proposal to Adopt Section 711 of the NAIC Insurance Receivership Model Act

The Senate Financial Institutions and Insurance Committee has approved SB 5065—a measure that would enact section 711 of the NAIC Insurance Receivership Model Act (IRMA), establishing a framework for recognizing netting agreements of qualified financial contracts between a life insurer and one or more counterparties. The bill was requested by the American Council of Life Insurers. The committee approved the measure on a vote of 6-1, and referred the bill to the Senate Ways and Means Committee for consideration.

When the bill was considered at hearing, Representatives from the American Council of Life Insurers and Symetra Financial testified in support of the bill—noting that this language has been enacted in at least 20 states and was adopted unanimously by the National Association of Insurance Commissioners as a Model Act. A companion measure in the House—SHB 1033—has already been considered and approved by the House Business & Financial Services Committee. The House measure was approved on a committee vote of 14-0. The measure has been referred to the House Rules Committee in preparation for consideration on the House floor.

Senate Committee Kills Bill that Would Repeal Premium Tax Credit for Assessments Paid to the Washington Insurance Guaranty Association

The Senate Financial Institutions, Housing & Insurance Committee has killed SB 5168—a measure introduced by Senator Marilyn Chase (D, 32^nd Legislative District) that would have repealed the premium tax credit that insurers can take for assessments paid to the Washington Insurance Guaranty Association. When the bill was considered during a hearing on Thursday, January 31, PCI and other industry representatives testified in opposition to the bill. Committee Chairman Steve Hobbs (D, 44^th Legislative District) decided not to bring the measure to a vote after determining that it lacked sufficient support for passage. There is no House version of the bill. Although SB 5168 appears to be dead in committee, we will continue to monitor this and other tax threats that may appear as the legislature moves into negotiations on the 2013-2015 budget. Bills that are necessary to implement the budget are exempt from the cut-off rules that apply to other measures. Thus, we will continue to carefully watch for any adverse tax proposals that are targeted at the insurance industry.

Committee Approves Model Bill Dealing with Long Term Care Insurance Claims

On Thursday, February 21 the Senate Health Care Committee approved SB 5216—a measure that was introduced at the request of Insurance Commissioner Mike Kreidler. The bill would establish standards for the handling of long term care insurance claims, and is consistent with the NAIC model on the issue. The OIC has also indicated that any rules adopted on the issue will be consistent with NAIC model rules. The American Council of Life Insurers testified in support of the measure.

Senate Committee Approves Key Bill Dealing with Confidential Information—Kills Controversial Claims Data Bills

On Thursday, February 21 the Senate Health Care Committee approved SB 5434—a that was introduced at the request of health carriers, following extensive negotiations with the Insurance Commissioner regarding the confidential treatment of sensitive portions of provider contracts which the OIC requires to be filed. The bill would exclude the proprietary reimbursement aspects of the contracts from being subject to public disclosure. The OIC, together with AHIP, AWHP, and individual health carriers testified in support of the measure. The Allied Daily Newspapers testified with concerns about protecting this information from public inspection.

The Committee, however, killed a trio of other controversial claims data bills—SB 5265 (requiring billing transparency), SB 5537 (creating an all payor claims database), and SB 5538 (requiring the OIC and Dept. of Health to work with health carriers to address transparency of cost information and submit annual reports to the legislature). AHIP and other carrier representatives expressed caution about the adverse effects of disclosing competitive pricing and reimbursement information among direct market competitors. SB 5265, SB 5537 and SB 5538 were killed in committee when they were not brought to a vote before the deadline for action.

OIC Prepares Legislative Proposals

Insurance Commissioner Mike Kreidler has prepared a slim package of legislative proposals that he intends to submit to the 2013 Legislature. His proposals can be found on the OIC’s website at http://www.insurance.wa.gov/laws-rules/legislation-rules/legislation/ . Commissioner Kreidler’s proposals include an NAIC model bill addressing long term care insurance claims (SB 5216), a renewed effort to allow him to consider the surplus and reserves of non-profit health plans when reviewing rate filings (HB 1349), and a technical corrections bill.

Legislature Adopts Cut-Off Resolution for the Consideration of Bills

On the first day of the 2013 session the legislature adopted a cut-off resolution establishing dates for the consideration of bills. Key dates are as follows:

February 22—the last day for committees in the House of origin to take action on bills;

March 1—the last day for Fiscal committees in the House of origin to take action on bills;

March 13—the last day for the House of origin to take action on bills;

April 3—the last day for committees in the opposite House to take action on bills;

April 9—the last day for Fiscal committees in the opposite House to take action on bills;

April 17—the last day for the opposite House to take action on bills (except exempt bills and bills passed by both Houses in different forms);

April 28—the last day of the 2013 Regular Legislative Session

Melvin Sorensen

NAIFA-Washington Lobbyist

Wednesday, February 20, 2013

2013 February President's Message

Greetings NAIFA Participants! I am SO excited as I write this! We have a LOT of great things happening on the State level…because great things are happening at the local levels! My question is…Who is going to be Local of the Year this year? Who is going to be Agent/Member of the Year? How about Y.A.T. of the Year? I want you to make it really tough on me! Have pride in your local…and in your own individual service! We will find out the answer to these and many more questions at the 2013 State Convention in May!

For those of you who made it to the Day on the Hill, I am so proud of you all! We had record attendance, record participation and record profit! Don’t stop there! Continue to communicate with your legislators, continue to meet with them and build meaningful relationships with them…NO MATTER their politics! A super big shout out to Sharon Sparling for putting on a superb event! Also,a big thanks to Chris Free and NAHU for their attendance and participation!

Please be sure to block out May 15^th-17 on your calendars! Convention in the Sunshine this year!! Craig Foreman and the Tri-Cities local are busily preparing an incredible experience for our annual business meeting and sales conference (convention)! Please keep checking the web site as registration will begin soon! Here will be incredible “Top of the Table” speakers, more first time events, LILI Alumni Event and SO much more. Also, Local leadership…don’t forget that Thursday the 16^th will be your LSP (Leadership Success Planning). If there’s any one thing to invest in within the locals is the continuing leadership! Again…get used to checking the website for all events local & state! Radical Leadership – Radical Sacrifice!

There will be a LILI class this year and we only have three more openings, so please hurry and register so you can secure your spot. Contact Sharon Sparling at ssparling@jeffkyle.com and she can give you all the details! Again, investing in leadership is the responsibility of every local! Those of you who were at last year’s convention KNOW how fun and exciting it was! I promise that this year will be more, bigger, better than last year! Do NOT miss this one…or you WILL be sorry! I look forward to seeing each of you there!

Blessings,

Jeff

Tuesday, February 12, 2013

2013-03 Legislative Report

House Committee Considers Measure
Establishing a Single Payer Health Plan

On Friday, February 1 the House Health Care and Wellness Committee held a hearing to consider HB 1085—a measure introduced by Rep. Sherry Appleton (D, 23^rd Legislative District) which would establish a single payer health plan—the “Washington Health Security Trust” to provide coverage to all residents of the State of Washington. NAIFA, WAHU, business groups, and health carriers noted their opposition to the measure, but proponents greatly outnumbered opponents as the bill was considered. The bill would abolish the Washington Health Care Authority, and require all Washington employers to pay an assessment to the Department of Revenue to fund the Washington Health Security Trust. The bill would also require the submission of an application to the Federal Government to allow for a waiver from the Affordable Care Act and abolishing the Health Benefits Exchange. A fiscal note for the measure estimates expenditures at over $770 million by the 2017-’19 biennium, but there are many unknown aspects of the prospective costs because HB 1085 relies upon a variety of federal waivers which may or may not be granted. Even if the House Health Care & Wellness Committee chooses to move the bill, it is very unlikely that the measure will be seriously considered by the House Appropriations Committee.

Senate Committee Considers SB 5065—

ACLI Proposal to Adopt Section 711

of the NAIC Insurance Receivership Model Act

The Senate Financial Institutions and Insurance Committee held a hearing on Thursday, January 31, to consider SB 5065—a measure that would enact section 711 of the NAIC Insurance Receivership Model Act (IRMA), establishing a framework for recognizing netting agreements of qualified financial contracts between a life insurer and one or more counterparties. The bill was requested by the American Council of Life Insurers.

At the Senate hearing Representatives from the American Council of Life Insurers and Symetra Financial testified in support of the bill—noting that this language has been enacted in at least 20 states and was adopted unanimously by the National Association of Insurance Commissioners as a Model Act. Symetra commented that the language is necessary to provide a competitive regulatory structure for Washington-domiciled life insurers who compete in the same market space with life insurers who are domiciled in states that have already adopted the language. In a surprising development, Senator Marilyn Chase (D, 32^nd Legislative District) and one of her constituents—Brian McCullough (a former candidate for Insurance Commissioner)—testified in opposition to the bill. It does not appear that their testimony damaged the bill. The measure is scheduled for a vote on Thursday, February 7. A companion measure in the House—SHB 1033, has already been considered and approved by the House Business & Financial Services Committee. The House measure was approved on a committee vote of 14-0. The measure has been referred to the House Rules Committee in preparation for consideration on the House floor.