2015 September/October The Back Page

Are You Sleeping Through the Opportunities??

Nearly 200 years ago, the American short story “Rip Van Winkle” became an instant classic. The main character, Rip, is an unambitious man who is very good at avoiding two things: work and his wife.

One day, while wandering in the mountains with his dog, he discovers a group of strangely dressed men drinking and playing games. After accepting some of their liquor, Rip becomes drowsy and closes his eyes for a moment. When he opens his eyes again, he is surprised to find that his dog is gone, his rifle has rusted, and he now has a long beard.

Rip makes his way back to his village only to discover that everything has changed. His wife has died, his friends are gone, and the portrait of King George III in the tavern has been replaced by a portrait of someone he does not recognize—by General George Washington.

2014 November/December In Memoriam

Our beloved Leader for Life of NAIFA-Lower Columbia Major Robert M. Otteraaen USMC Ret., 86, of Kelso passed away Nov. 15, 2014, at home. Many of you experienced Bob’s dry wit, undoubtedly a left over from his career as a U.S. Marine. As a Marine, Bob served in three wars….WWII, Korea and Vietnam. Not too many Generals get to say that!

.......Wayne Lunday

He was born April 25, 1928, in Seattle, to Dr. Andrew O. and Anna (Nelson) Otteraaen. Robert graduated from Wenatchee High School and earned a Bachelor of Science degree in horticulture and a Master of Education in counseling from Washington State University.

On June 13, 1953, he married Marion J. Copeland in Seattle. They moved to Kelso from Camp Lejune Marine Corps Base in 1974. During his military career, Robert served in World War II, Korea and Vietnam. He went on to teach high school and run a small business in Kelso for financial tax strategies.

2014 May/June NAIFA Washington Award Recipients

Congratulations to the following NAIFA-Washington Award Recipients...

Step Up to the Plate Award
Alan Zalewski, CLU, ChFC, LUTCF
NAIFA South Puget Sound

YAT Agent of the Year Award
Alexander Collins, ChFC
NAIFA Seattle/Eastside

Lifetime Achievement Award
Thomas E. Fowler, CLU, ChFC
NAIFA Seattle/Eastside

Inspirational Award
Randy Kimm, LUTCF
NAIFA Spokane

Advocacy Award
Sharon L. Sparling, CIC, NAIFA Northwest
Richard Ek, LUTCF, NAIFA-Snohomish

Retiring Regional Vice Presidents Award
Neal Kloke, Region I RVP, NAIFA Northwest
Kay Mielke-Crookshanks, Region V RVP, NAIFA Twin Harbors

President's Plaque and Gavel
Kevin Gleim, LUTCF, FICF, NAIFA South Puget Sound
2013-2014 President NAIFA Washington

NAIFA Washington thanks you for your service and dedication. Well Done!

2014 May/June APIC



(L-R Jeff Johnston, Senator Cantwell, Richard Miller)

Much to my dismay, I was unable to attend our recent State Convention.  Jeff Johnston and I instead made the trek to Washington DC for the Congressional Conference; NAIFA National’s super-sized version of Day on the Hill.  I must admit that I didn’t have the best attitude prior to the trip.  I was grousing about missing the State Convention and grumbling about the gridlock in the other Washington, and wondering out loud to anyone within earshot, whether we would have any impact.

Well as things often play out, I received a loud and clear message.  We started out the day with just one appointment at Senator Cantwell’s office.  With some last minute calling and a little help from Kyle Kunkler at the National headquarters, we managed to set up 2 additional appointments with Senator Murray’s office and 8th congressional district Congressman Dave Reichert.  Not only were we happy to be using our time in Washington DC wisely, but all of our appointments were with key legislators; those who sit on committees that directly impact our industry.

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!”

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

“SURVEY SAYS…”

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 5^th of 2015. Save the date in your calendar.

2014 March/April President's Message

NAIFA’s Mission is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of our members. I know that you are reading this message and newsletter because you are a dues paying valued member of NAIFA and that you understand and aspire to live up to this mission. Many of you have sponsored new members over the years and continue to do so with my sincere gratitude.  I can’t say it enough how important it is to our profession, our clients and prospects that we grow the numbers of NAIFA members. You know as well as I that legislators listen more intently when a large number of their constituents are affected by issues. Therefore I am going to share with you some research relating to other professions and their respective organizations.

There are approximately 1 million doctors in America with 250,000 of them paying $420 annual dues to The American Medical Association.  

In Loving Memory

Our friend and mentor Jim Mitchell passed away March 25, 2014 in Bellingham, WA.  


Jim served as a local leader for NAIFA Northwest (WA), as State President and IFAPAC Chair for many years. He is known far and wide in the northwest and has friends all over the country through his involvement with the PAC. He led our Washington IFAPAC for about 15 years before handing the baton to me in 2008. (I handed off to a YAT, Alex Collins, this year).

The picture is of Jim in New Orleans where he and I attended IFAPAC training in 2008. We were out watching the Mardi Gras parades in the cold rain but he was having the time of his life. That big smile was Jim’s trademark – he had one for everybody.

His wife, Diane, also a long-time member of NAIFA, is surrounded by their children and many local friends inside and outside of NAIFA. Jim always said she was his sustaining influence for every success he had. In case you want to send a card or note:

Dianne Mitchell

2209 Ontario St.
Bellingham, WA  98229-4027

Richard Ek
IFAPAC Co-Chairman

2014 March/April IFAPAC

Forks

I remember hearing the story about a traveler who came to a fork in the road and wasn't sure which of the two roads to take.

There was a little boy standing by the side of the road so he asked him if it mattered which road he took to get to his destination. The little boy said, "It don't matter ta me". His answer wasn't the one that the stranger wanted to hear but it was honest.

‘Forks' are decision points and each of us will come to many of them during our lifetime for they can't be avoided, Some are critically important and some make very little difference which road or direction we end up taking either from the short or long term point of view. It seems as though there is always someone standing near our ‘forks' to give us advice as to which road to take and often it doesn't matter to them which one we choose.

2014 March/April LILI

Wanted: Leadership In Life Institute Class of 2014...Are YOU Ready??

 

2012 LILI Class Students and Now Alumni

L/R: Stan Fortier, Alex Collins,

Jim Thompson, Stan Fortier, Jason Hastie

and Randy Kimm

Mission: The NAIFA Leadership in Life Institute (LILI) develops leaders by fostering personal growth, enhancing business practices and developing skills necessary for effective leadership.

·     Encounter the very best in leadership and personal development thinking as presented by outstanding leaders

·     Learn at a highly accelerated rate while surrounded by highly motivated peers

·     Engage in deep introspection and deal with topics such as time management, vision and mission statements, business plans, and ways to create deeper, more meaningful relationships

2014 January/February OIC

OIC Accepts Additional NIPR Applications

The OIC has expanded the types of applications being accepted through the National Insurance Producer Registry (NIPR) online interface as of December 20, 2013.  New insurance license applications and renewals may now be submitted for the following license types:

Ø  Resident producer (full lines only)*

Ø  Resident surplus lines broker*

Ø  Non-resident surplus lines broker*

2014 January/February Advocacy

“2014 Day on the Hill Success!”

 

We had over 75 attendees at this year’s “NAIFA Washington Day on the Hill”.   Here are the Talking points:

I.          Protect the Role of NAIFA Members with Respect to Retirement Planning—Oppose Bills Allowing the State to Deliver Retirement Programs to Private Employers/Employees—Section 134(1), HB 2185/SB 6002 (Supplemental Budget Appropriation) and Policy Bills Yet to be Introduced

 

(a)   These Bills Would Authorize the Creation of Retirement Accounts to be Offered by the State Department of Retirement Systems to Private Employers and Employees;

(b)   The State Should Not Compete with NAIFA Members and Other Licensed Securities Professionals Who Assist Private Employers and Employees with Retirement Planning and Investments;

(c)    These Bills Threaten Jobs within NAIFA Membership.  These Bills Will Cost the State Money in Lost Tax Revenue in the event that Services Currently Provided by NAIFA Members are Transferred to the State.  These Bills Expose the State to New Liabilities if the State Takes on a Fiduciary Responsibility for Investors.

 

2014 January/February Lobbyist Report

House and Senate to Focus on Floor Action as Fiscal

Committees Complete Work on Policy Bills

House and Senate Fiscal Committees completed their review of policy bills on Friday, February 11.  With the Fiscal Committee Cut-off behind them, legislators have been working on the House and Senate floors to consider bills passed by committees in the House of origin.  Floor action will dominate activity in Olympia until the deadline for the House and Senate to act on their own bills.  The cut-off resolution calls for bills in the House of origin to be approved by Tuesday, February 18 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.

Divided House Approves Bill Allowing the State to Provide

Retirement Accounts to Private Employers—

Future in Senate Doubtful

Despite a wall of opposition from business groups, insurers, agents/brokers, and others appears, a controversial plan that would allow the State Department of Retirement Systems to provide private employers and their employees with retirement accounts was approved by a divided House on a final vote of 54-43 with one member absent.  SHB 2474 would require the State Department of Retirement Systems to design a plan for retirement savings accounts to be offered to private small and mid-sized employers and their employees.  The proposal was roundly criticized during hearings.  Additionally, opposition was voiced regarding Governor Inslee’s supplemental budget proposal, which includes a $250,000 appropriation to the Department of Retirement Systems “to explore alternatives for retirement savings accounts for employees of private sector…small and mid-sized firms.”  (See section 134 of HB 2185 and SB 6002).  

2014 January/February President's Message

"Wins and Challenges"

I want to take some time here to recognize the many NAIFA members that attended Day on the Hill to become more informed of the healthcare issues regarding the exchange and some life and retirement issues as well. They followed up the morning session with visits to legislators educating them and encouraging them to vote in a manor favorable to our profession and our clients, their constituents.  One issue remaining of concern was the plan to have retirement plans offered to small business by the state. We felt pretty confident the Senate would not condone it but the House was a different story. Thank you Sharon Sparling and Richard Ek, along with Mel Sorensen for testifying before the House Committee on our behalf! As I write this it appears the House will pass the bill.  This is where you as our members will be urged to contact legislators soon. Please open all of your NAIFA email and take action when asked.

Recently we have seen several new members joining our Association, thank you. To those who have sponsored a new member – Thank you! Remember the contest of bringing in 10 new members and having a week stay in Eastern Oregon at the very nice home of our National Committeeman Al Zalewski. If you have any questions contact Al or Jim Scott our Membership chair. While these are surely wins for our Association we are far short of where we need to be in numbers to remain a force for good in Olympia and Washington. I challenge each of you to sponsor at least one new member between now and the next newsletter, two months from now. Many of the companies have endorsed NAIFA to their agents and brokers so it may be as easy as asking. You can ask Linda for a brochure or just go to the NAIFA website and print one to give to the prospect. Ask them to join while you are there either online or with the paper form and check or bank withdrawal part completed. I want to thank you in advance for making the effort.

2014 January/February Health & Employee Benefits

STATE OF THE UNION

While discussing his healthcare agenda, President Obama also stressed how he’d have to go at it alone if Congress didn’t start cooperating with him more. Time after time, he promised to act via executive order or other regulatory action if Congress did not pass legislation to address his priority initiatives. The reality is that executive orders will only take you so far, but as we health nerds know all too well, if a law is already on the books on a topic, the president generally does have substantial authority to impose the technical parts of his agenda through regulations. With regard to health reform, he invited alternative approaches by saying, “If you have specific plans to cut costs, cover more people, increase choice, tell America what you'd do differently. Let's see if the numbers add up.” But the president made no pledge to support legislative changes to the law, even those that might make it work better for millions of Americans or help improve the law’s economic impact.

In contrast, during the GOP’s response to the SOTU, Representative Cathy McMorris Rodgers (R-WA) called for Congress to take action to change the law and replace it with something that works. She did not stress full repeal, as GOP leaders have in the past, but instead noted that “We’ve all talked to too many people who have received cancellation notices they didn’t expect or who can no longer see the doctors they always have. No, we shouldn’t go back to the way things were, but the president’s healthcare law is not working.” She went on to say, “Republicans believe healthcare choices should be yours, not the governments. And that whether you’re a boy with down syndrome or a woman with breast cancer, you can find coverage and a doctor who will treat you.” Senator Mike Lee (R-UT) provided a Tea Party response and called for repeal of the law and stated that the best way to stop Obamacare was to offer better healthcare solutions.

2014 January/February IFAPAC

The Best Time To Plant A Tree

In ancient Rome, Janus was the god of beginnings. He was often depicted with two faces--one looking back on the past, the other looking forward to the future. Some languages name the month of January after him because the beginning of the year was a time for reflection as well as planning. Thousands of years later, many cultures throughout the world carry on a tradition of making resolutions for the new year.

There is something incredibly hopeful about a fresh start. You have certainly realized this when you bought a new computer with a clean hard drive. For a time it works perfectly but as the days and weeks pass by and more programs get installed the computer begins to stall, and things it used to do quickly and efficiently become sluggish. Sometimes it doesn't work at all. Even getting it started can become a chore as the hard drive becomes cluttered with miscellaneous chaos and electronic debris. There are times when the only recourse is to reformat the computer and start over.

2013 December President's Message

Integrity, Honesty, Commitment and Service

These are just a few qualities that can be used to describe NAIFA members and how they run their business. NAIFA members believe that what they do really does make a difference in the lives of their clients and our society as well. If you are reading this you know what I mean and you live by them. You also make the commitment via your dues to promote these values within our profession as well as with our legislators. For this I commend you and thank you! This is a great organization and will continue to thrive, but only with your continued support and recruitment of new members as well as keeping the members we have. Together we can make great things happen.

Our winter Board Meeting took place December 9 in Dupont to conduct Association business and build stronger relationships. Mel Sorensen, our Lobbyist presented the latest information on the Healthcare Act and some things to look out for down the road. You will get timely information regarding topics of concern, possibly needing your attention and action. Our special guest was Jill Judd, newly elected NAIFA Trustee from California. She is assigned to our state and made a presentation from the National Board as well as giving valued input. Your Board is made up of officers, vice presidents, committee chairs and local association presidents, all volunteers – all committed to preserving our great profession. I believe we are called to this profession. I believe that any agent or representative that does what we do just for the money will not last, or at least not very happily. We are rewarded with the satisfaction of truly helping our clients to be in a better financial position after working with us and knowing they are prepared when tragedy or retirement happens.