Congressional Conference What You Need to Know April 28, 2015.

Congressional Conference What You Need to Know

April 28, 2015

Diane R. Boyle, HIASenior Vice President

Government Relations

NAIFA’s Advocacy Strength

Industry Protection

Protecting the insurance industry is a multi-faceted advocacy approach involving agents, companies, and their associations.

Together, the industry forms a strong alliance, with each entity bringing unique assets to advancing our missions.

Successful Advocacy

• Public Policy • People• PAC• Public Relations

Public PolicyUnified industry messages communicated consistently by all industry groups to each of the 535 U.S. Senators and Representatives.

NAIFA’s Public Policy Strength

• Members serve middle-income American families - the population that all policymakers want to help.

• Industry expertise puts policy into context, promoting mutual understanding and giving a voice to this important constituency.

People

• Constituents & Key Contacts• Company CEOs • Association Leadership• Industry Experts• Professional Lobbyists

NAIFA’s People Strength• NAIFA member contact for every member of Congress.

• Annual gathering of NAIFA members from every state on Capitol Hill.

• NAIFA members regularly organize in-district meetings.

• Long-term state level relationships with NAIFA members that

carryover when state officials are elected to national office.

Political Action Committees• Help fund campaigns• Establish industry credibility • Enhance relationship development • Strengthen existing relationships

NAIFA’s PAC Strength

Insurance PACs

1. National Assn of Insurance & Financial Advisors

2. New York Life Insurance

3. AFLAC Inc

4. Independent Insurance Agents & Brokers/America

5. USAA

6. Massachusetts Mutual Life Insurance

7. Council of Insurance Agents & Brokers

8. Association for Advanced Life Underwriting

9. Metlife Inc

10. Liberty Mutual Insurance

Top PACs

1. National Assn of Realtors

2. National Beer Wholesalers Assn

3. National Auto Dealers Assn

4. Honeywell International

5. Lockheed Martin

6. American Bankers Assn

7. AT&T Inc

8. Intl Brotherhood of Electrical Workers

9. Credit Union National Assn

10. Operating Engineers Union

11. Northrop Grumman

12. National Assn of Insurance & Financial Advisors

Largest Insurance Industry and 12th Largest in U.S.

Public Relations

• Advertising• Media outreach• Industry voice & influence• Social media & community

NAIFA’s PR Strength• Represent middle-market American households• Members in all major media markets• Members’ range of financial services expertise• Interviews sought by industry and business

media

Jill E. HoffmanVice President

Government Relations

Objectives & Preparation

Meeting Objectives

1. Establish that our products contribute to the common good.

2. Express concern that public policy could create barriers for personal financial security.

3. Establish yourself and NAIFA as resources.

Preparation

• Read the Issue Papers• Department of Labor Fiduciary Rule• Tax Reform/Revenue Challenges

• Relate the Topics to Your Practice and Your Clients • Be prepared to share those examples

• Review the State Fact Sheets

Preparation

Know Your Members of Congress

• Republican/Democrat/Independent• Committee Assignments• Insurance Connections

NAIFA’s Legislative Action Center at www.capwiz.com/naifa

Member Chamber Party State Industry ConnectionTony Cardenas House D CA Life Insurance Salesman

John Garamendi House D CA Former Insurance CommissionerMark Takano House D CA Mother NAIFA memberJuan Vargas House D CA VP Safeco Ins & Liberty Mutual Group

Ken Buck House R CO Wife AgentJohn Larson House D CT AgentTom Carper Senate D DE Father Nationwide AgentBill Nelson Senate D FL Former Insurance Commissioner

Austin Scott House R GA Agent/NAIFA MemberMark Takai House D HI AgentMike Bost House R IL Licensed Agent

Randy Hultgren House R IL AgentAdam Kinzinger House R IL Brother Northwestern Mutual

Bill Cassidy Senate R LA Father New York Life AgentJamie Mayo House D LA Agent/Operations ManagerRichie Neal House D MA MassMutual Agent

Susan Collins Senate R ME Former Insurance CommissionerGary Peters Senate D MI Financial AdvisorTom Emmer House R MN Insurance Attorney

Claire McCaskill Senate D MO Father Prudential AgentWilliam Lacy Clay House D MO Father Life Insurance Co Manager

Emmanuel Cleaver House D MO Mother MetLife AgentBlaine Luetkemeyer House R MO Agent

Jason Smith House R MO Previously Licensed Agent

Insurance Industry Connections

Insurance Industry Connections

Member Chamber Party State Industry Connection

Thom Tillis Senate R NC Provident Insurance Staff

Walter Jones House R NC Agent

Adrian Smith House R NE Father State Farm Agent & NAIFA Member

Frank Guinta House R NH Agent

Donald Norcross House D NJ Brother owns an insurance agency

Donald Payne House D NJ Father Prudential Employee

Tom MacArthur House R NJ Chairman & CEO York Risk Services

Carolyn Maloney House D NY Father Agent

Sean Patrick Maloney House D NY Father and Brother Agents

Jim Inhofe Senate R OK Insurance Executive

Mike Doyle House D PA Agent

Scott Perry House R PA Agent

Tim Scott Senate R SC Agent/NAIFA Member

Mike Rounds Senate R SD Insurance Agency Owner

Kristi Noem House R SD Staffer married to an agent

Jim Cooper House D TN Son Northwestern Mutual

Kay Granger House R TX Agent

Gerry Connolly House D VA Father MetLife Executive

Randy Forbes House R VA Father "debit" agent for VA Ins Co

Rob Whitman House R VA Brother-in-law agent

Magenta M.R. IshakVice President

Political Affairs

Logistics

36 Hours of Motion!

• Tuesday Event Locations• Hotels Galore!• Bring Your Walking Shoes!• Breakfast on Wednesday• Getting to Congressional Appointments on

Wednesday

Crystal City Hilton, Hampton Inn (Arlington), Radisson at National Airport

Capitol Hill Meetings, Reserve Officers Association

Residence Inn Marriott, Hampton Inn at National Harbor

Shuttle Bus Schedule for Tuesday, May 19th  

Shuttle Bus Round Trip Between:

Residence Inn National Harbor

&

Hilton Crystal City in Arlington

Shuttles will run continuously during the hours of:

10:30 am – 2:15 pm

(Last pick-up at the Residence Inn is at 2:15 pm)

&

6:30 pm – 9:15 pm

(Last pick-up at the Hilton Crystal City is at 8:30 pm)

Please note: The shuttle will not run between 2:15 pm and 6:30 pm

AgendaTuesday, May 19, 2015

12:00 pm-7:00 pm Registration/Congressional Appointments Desk (Hilton Crystal City Hotel)1:30 pm-4:00 pm Advocacy Briefing (Hilton Crystal City Hotel)4:15 pm-5:00 pm State Caucuses (Hilton Crystal City Hotel & Crystal City Sports Pub) *5:30 pm-6:30 pm Welcome Reception (Crystal City Sports Pub)

Wednesday, May 20, 2015

7:00 am-10:00 am Registration/Congressional Appointments Desk7:00 am-8:30 am Breakfast at Your Own Hotel8:00 am-5:00 pm Congressional Appointments Desk/Luggage Storage/Refreshments/

Debriefings (Reserve Officers Association)9:00 am-4:00 pm Congressional Appointments on Capitol Hill

* Location assignments will be available at NAIFA registration

State Caucuses• Review Congressional Meeting Protocol• Study Talking Points & State Facts• Select the Personal Stories to Tell • Decide Who is Doing What:

– Opening the Meeting– Discussing Each Issue– Asking the Lawmaker to Join the new Caucus– Closing the Meeting

Luggage Storage, Refreshments, Debriefing

Guest Speakers

Rep. Ann Wagner (R-MO)Member, House Financial Services Committee

Dirk KempthornePresident & CEO, American Council of Life Insurers

Maggie Fogg

Political Involvement

Program Manager

Advocacy Preparation

Advocacy Preparation

• Participate in Webinar & On-site Preparation

• Attend Your State’s Caucus

For a state fact sheet sneak peak visit: www.securefamily.org

Advocacy Preparation• Understand the Leave-Behinds

– NAIFA Issue Papers– State Fact Sheet– NAIFA Business Card Jacket– Your Business Card

• Only Congressional Appointment Organizers (CAO) Should Be Making/Organizing the Congressional Appointments

A list of CAOs can be found at www.naifa.org/caphill

GR MobileUse GR Mobile for easy access to:

• Talking Points

• Up-to-date Appointment

Schedule

• Meeting Debriefing form

• Much more! 

Pocket-Sized Talking Points+• Agenda• Talking Points• GR Mobile • Metro Map• Map of Congressional

Office Buildings

Remember:• Meeting with Staff is Important!• Tell Them that You Are Representing

NAIFA & Your Clients• You May Only Have 10 Minutes, So Get

Down to Business ASAP• Not to Discuss $!!• Stay on Message• Wear Business Attire & Your NAIFA Name

Badge• Debrief NAIFA After Your Meetings

Congressional Appointments

Talking Points/Messages to Be Delivered on Capitol Hill

Judi A. CarsrudDirector

Government Relations

Thank you for meeting with us – we’d like to make you aware of three important issues that impact our ability to serve the families and businesses in our communities.

Talking Points

• Department of Labor Expansion of Fiduciary

• Tax Reform Proposals• Retirement Readiness and Industry

Products Education

Three Topics

• The DOL rule is very lengthy and complex – generally, it defines all advisors who receive compensation of any type as “investment advisor fiduciaries,” including advisors to employer plan sponsors, participants and IRA owners.

• DOL rules do not allow advisors to have a conflict of interest under fiduciary rules, and therefore commissions, mutual fund fees and other 3rd party compensation are “prohibited compensation.”

DOL Background

• However, the DOL included with the release of the rule an “exemption” so that some prohibited compensation would be permitted if certain very detailed conditions are met.

• Generally, if the retirement saver, the advisor and the advisor’s financial institution (e.g., broker dealer) sign a contract stating the advice will be in the client’s best interests, that conflicts will be mitigated and disclosed and other numerous requirements, including a public website with copious amounts of data, then conflicted advisor is permitted to work with the saver.

DOL Exemption

• The DOL requirements are costly and complex and we fear that affordable advice and access to advisors will shrink as a result of the burdensome conditions of the new rule.

• The rule does not provide an exemption for prohibited compensation when advising savers at the time of distribution from plans, or at time of a rollover from a plan to an IRA, or at a rollover from one IRA to another. This will leave millions without advice when they are most vulnerable to making a wrong decision with their retirement assets.

DOL Talking Points

• The DOL rule also limits advice on the purchase of an annuity to certain types, and excludes the ability to recommend or sell a variable annuity without violating the “conflicted compensation” prohibition.

• We appreciate the DOL’s improvements over a prior proposal and ask Congress to work with the DOL and stakeholders to create a workable best interest standard.

DOL Talking Points

• Tax reform proposals from the last Congress included reductions in retirement savings plan contributions, limits on the amount that can be saved in retirement plans and elimination of some business uses of life insurance, and new taxes on insurance companies.

• Life insurance, annuities, long term care products and disability income protection are all critical elements of overall retirement planning.

Tax Reform Talking Points

• Helping 75 million American families manage financial risks of death, longevity, and illness is what only life insurance products do.

• Congress should not make it more difficult for companies, agents, and advisors to provide reliable and affordable risk protection options for families and businesses.

• Public policy should encourage this private sector partnering with strained government programs for the financial security and assure that no new taxes undermine this partnership.

Industry Talking Points

• Education is the key! The Financial Protection and Life Insurance Caucus has been created to focus on the importance of education and understanding of industry issues.

• The bi-partisan, bi-cameral coalition is co-chaired by Sen. Murphy (D-CT), and Reps. Tiberi (R-OH) and Neal (D-MA).

Caucus Talking Points

Congressional Ask• Work with stakeholders and the DOL to create a

workable best interest standard.

• Preserve current tax laws that encourage individuals and businesses to manage risks affordably, to save, and to plan for the future in a self-reliant manner.

• And…

Join the Caucus

Questions?