Congressional Conference
What You Need to Know
April 28, 2015
NAIFA’s Advocacy Strength
Diane R. Boyle, HIA
Senior Vice President
Government Relations
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
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Public Policy
People
PAC
Public Relations
Public Policy
Unified 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
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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
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Help fund campaigns
Establish industry credibility
Enhance relationship development
Strengthen existing relationships
NAIFA’s PAC Strength
Largest Insurance Industry and 12th Largest in U.S.
Top PACs
Insurance PACs
1. National Assn of Insurance & Financial Advisors
2. New York Life Insurance
3. AFLAC Inc
1. National Assn of Realtors
2. National Beer Wholesalers Assn
3. National Auto Dealers Assn
4. Honeywell International
4. Independent Insurance Agents & Brokers/America
5. Lockheed Martin
5. USAA
6. American Bankers Assn
6. Massachusetts Mutual Life Insurance
7. AT&T Inc
7. Council of Insurance Agents & Brokers
8. Intl Brotherhood of Electrical Workers
8. Association for Advanced Life Underwriting
9. Metlife Inc
10. Liberty Mutual Insurance
9. Credit Union National Assn
10. Operating Engineers Union
11. Northrop Grumman
12. National Assn of Insurance & Financial Advisors
Public Relations
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Advertising
Media outreach
Industry voice & influence
Social media & community
NAIFA’s PR Strength
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Represent middle-market American households
Members in all major media markets
Members’ range of financial services expertise
Interviews sought by industry and business
media
Objectives & Preparation
Jill E. Hoffman
Vice President
Government Relations
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
Insurance Industry Connections
Member
Tony Cardenas
John Garamendi
Mark Takano
Juan Vargas
Ken Buck
John Larson
Tom Carper
Bill Nelson
Austin Scott
Mark Takai
Mike Bost
Randy Hultgren
Adam Kinzinger
Bill Cassidy
Jamie Mayo
Richie Neal
Susan Collins
Gary Peters
Tom Emmer
Claire McCaskill
William Lacy Clay
Emmanuel Cleaver
Blaine Luetkemeyer
Jason Smith
Chamber
House
House
House
House
House
House
Senate
Senate
House
House
House
House
House
Senate
House
House
Senate
Senate
House
Senate
House
House
House
House
Party
D
D
D
D
R
D
D
D
R
D
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R
R
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D
D
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D
R
D
D
D
R
R
State
CA
CA
CA
CA
CO
CT
DE
FL
GA
HI
IL
IL
IL
LA
LA
MA
ME
MI
MN
MO
MO
MO
MO
MO
Industry Connection
Life Insurance Salesman
Former Insurance Commissioner
Mother NAIFA member
VP Safeco Ins & Liberty Mutual Group
Wife Agent
Agent
Father Nationwide Agent
Former Insurance Commissioner
Agent/NAIFA Member
Agent
Licensed Agent
Agent
Brother Northwestern Mutual
Father New York Life Agent
Agent/Operations Manager
MassMutual Agent
Former Insurance Commissioner
Financial Advisor
Insurance Attorney
Father Prudential Agent
Father Life Insurance Co Manager
Mother MetLife Agent
Agent
Previously Licensed Agent
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
Logistics
Magenta M.R. Ishak
Vice President
Political Affairs
36 Hours of Motion!
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Tuesday Event Locations
Hotels Galore!
Bring Your Walking Shoes!
Breakfast on Wednesday
Getting to Congressional Appointments on
Wednesday
Capitol Hill Meetings, Reserve
Officers Association
Crystal City Hilton,
Hampton Inn
(Arlington),
Radisson at
National Airport
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
Agenda
Tuesday, May 19, 2015
12:00 pm-7:00 pm
1:30 pm-4:00 pm
4:15 pm-5:00 pm
5:30 pm-6:30 pm
Registration/Congressional Appointments Desk (Hilton Crystal City Hotel)
Advocacy Briefing (Hilton Crystal City Hotel)
State Caucuses (Hilton Crystal City Hotel & Crystal City Sports Pub) *
Welcome Reception (Crystal City Sports Pub)
Wednesday, May 20, 2015
7:00 am-10:00 am Registration/Congressional Appointments Desk
7:00 am-8:30 am Breakfast at Your Own Hotel
8:00 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
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Review Congressional Meeting Protocol
Study Talking Points & State Facts
Select the Personal Stories to Tell
Decide Who is Doing What:
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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 Kempthorne
President & CEO,
American Council of Life Insurers
Advocacy Preparation
Maggie Fogg
Political Involvement
Program Manager
Advocacy Preparation
• Participate in
Webinar & Onsite 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 Mobile
Use GR Mobile for easy access to:
• Talking Points
• Up-to-date Appointment
Schedule
• Meeting Debriefing form
• Much more!
Pocket-Sized Talking Points+
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Agenda
Talking Points
GR Mobile
Metro Map
Map of Congressional
Office Buildings
Congressional Appointments
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
Talking Points/Messages to Be Delivered on Capitol Hill
Judi A. Carsrud
Director
Government Relations
Talking Points
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.
Three Topics
• Department of Labor Expansion of
Fiduciary
• Tax Reform Proposals
• Retirement Readiness and Industry
Products Education
DOL Background
• 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 Exemption
• 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 Talking Points
• 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.
Tax Reform 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.
Industry 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.
Caucus 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).
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?