NAIFA-Florida's Recent Political, Legislative and Regulatory Victories

Stopping Stranger Owned Life Insurance (“STOLI”). These schemes use annuity and life insurance issued on the lives of wealthy strangers with no insurable interest to pay investment returns to investors. FAIFA killed legislation to authorize these deals in Florida and backed efforts to strengthen our insurable interest laws. Turning life insurance into an commodity will cause Congress to reconsider the tax-free status of life insurance and annuity products, killing their value. This continues to be a pre-eminent issue for NAIFA-Florida and for NAIFA.

Passed legislation for Agency “registration” versus “licensure.” The Legislature passed a new law requiring every single location where insurance is sold to be licensed as an insurance agency. A license can be revoked, so FAIFA drafted and passed legislation allowing agent-owned agency locations and companies to simply be “registered” instead of licensed. If regulators ever examine your agency, or take action against an agent in your agency; they won’t have leverage over you by trying to revoke your agency license if one of your agents screws up.

Launched a legislative action plan when the 2008 Taxation and Budget Review Commission attempted to put a sales tax on services on the ballot and continue to watch for similar, new initiatives. Previously we were instrumental in defeating a proposed sales tax on agents’ commissions and insurance products.

Intervened when a 2008 Capitol annuity task force was formed without agent representation. Within one-day the CFO made sure a NAIFA-Florida member was included on the Save Our Seniors Task Force. Also limited legislation requiring substantial suitability standards. These onerous procedures required in sale of annuities could have extended to sale of traditional life insurance products such as term coverage.

Fought for language toallow an insurer to give a discount on auto if that agent also maintains the homeowners policyeven if that policy is placed with Citizens. NAIFA-Florida amended this “multi-line discount” provision to assure the discount is available even if the policy is thereafter removed from Citizens by a takeout company. (2008)

Intervened to thwart effort to require 2 additional hours of Long Term Care Continuing Education, in 2008, for those who had already completed eight hours initial LTC. Previously we secured a six-month extension to allow long term care agents to obtain 8 hours of training necessary to sell qualifying “part­nership” long term care policies. Without the extension many agents would have had to stop selling ALL long term care as they could not have completed the requirements.

Blocked plans in 2008 to change agent commissions for micro-group health plans – having lawmakers address agent commission AT ALL is a slippery slope we zealously oppose. Previously we stopped Citizens Property Insurance Corporation from substantially reducing agents’ commissions on residential coverage. NAIFA-Florida worked with other agent groups to stop Citizens and the legislature from reducing the already low average residential commission of 6.9% for agents on Citizens policies.

Successfully lobbied regulators and lawmakers toinclude full disclosure of limits in Gov. Crist’s Cover Florida Health plan. Trial Bar and top officials succeeded in keeping requirement out of legislation; howeverOIR will require carriers – by rule - to submit disclosures to be signed by policyholders. Agents would potentially have faced costly litigation from those stricken with illnesses not covered by these non-mandated health plans and sharply higher E&O premiums.

Securedmeeting between insurance commissioner and Allstate agents when company was suspended to air agents concerns. Commissioner continually spoke of concern for agents in subsequent press conferences and media, too, asked numerous agent centric questions.

Defeated past attempts by a large auto manufacturer to offer “free insurance.” FAIFA was instrumental in defeating legislation proposed by a large auto manufacturer to allow the inclusion of “free” auto insurance in the sale of an au­tomobile. This proposal would seriously affect those of you who sell auto insurance and could pave the way for similar arrangements on homeowners and life insurance.