THE ONLINE NEWSLETTER OF NAIFA - JACKSONVILLE: SEPTEMBER 2010
OFFICIAL FAMILY: Click HERE for NAIFA-Jacksonville's Officers and Board of Directors
Christopher E. Veenstra
My fellow NAIFA-Jacksonville Members,
September is Life Insurance Awareness Month (LIAM). I would like to use this opportunity to point out all the valuable information available to you to help increase your Life sales for LIAM.
We all know the facts regarding Life insurance and how important Life insurance is for our clients. LIAM has created the “Producers Tool Kit” to help you promote your life sales for the month of September. All the information to make September your best LIAM month ever is located at www.lifehappens.org/liamkit.
In my last president's message, I shared information on the TV commercial we have been working on with Fox 30 television. We now have everything finalized and ready to go, only if you want this opportunity to happen. We NEED to hear from you. Are you interested in participating in this program?
Space is limited. If you are interested in learning more details about this exciting campaign, email me at firstname.lastname@example.org.
September starts our new monthly meeting time. We have changed the time of our meetings from lunch to breakfast. We are still meeting at the University Club, but our meeting will begin at 8:30 a.m. on September 29th (registration starts at 8:00 a.m.).
Please RSVP for this great meeting we have prepared for you by clicking HERE. Andy Laino from Prudential is our guest speaker, who spoke at our last Awards meeting. Since we heard from you how great Andy's message was last time, we asked him to come back and kick off our first fiscal year meeting with a new topic.
We recently received a report on our 40 Hour pre-licensing course from the Florida Department of Insurance regarding how NAIFA – Jacksonville stands. Compared to all other 40 Hour Course providers in Florida, I was happy to see that NAIFA - Jacksonville had one of the highest passing rates for students. 71% of all agents that come through our course have passed and only 50% pass through SFCC (formerly called FCCJ). I want to thank our instructors and course leaders for making that happen. Were it not for you, we wouldn't have a successful course. If you are interested in teaching or sending a student to our class contact Van Mullinax at email@example.com.
Our Annual NAIFA-Jacksonville Golf Tournament is coming up quickly. The date is set for Monday, November 8th at South Hampton starting at 12:30 with registration at 11:30. We need your help, if you would like to get involved with the Golf Tournament contact Chris Harclerode at chris.Harclerode@capitasfinancial.com. Hole sign sponsorships are available and we'll be holding a silent auction at the event. This is an opportunity for our members to make contact with your businessowner clients, not only to invite them to play, but to see if they are willing to provide silent auction items.
Once again, thank you all so much, and I look forward to seeing you at our September breakfast meeting.
presents a live
NEW START DATE!
SEPT. 22, 2010
Bob Kershner, CFP
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FOLLOW US ON FACEBOOK!
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September 29, 2010
Andrew E. Laino,
CFP®, CLU, CLTC
Register TODAY for NAIFA-Jacksonville's Exciting, Upcoming Events!
Check our website's Event Calendar for our latest event announcements..
Friday, September 24, 2010: YAT Breakfast & WCH Tour
The Young Advisors Team breakfast meeting featuring a preview of the NAIFA-Jacksonville Endowment at Wolfson Children's Hospital. Updates by Marlene Spalten, Executive Director, Baptist Health Foundation, and special guest speaker on Charitable Planning. Attendees are asked to please register in advance for this event.
The cost is only $5.00. Breakfast will be provided by Anthony’s Catering.
Location: The Aetna Building, 2nd Flr., the Mai Corrientes room, 841 Prudential Dr., Jacksonville, FL 32207
Seating is limited so please register online today! Click HERE to register and secure your seat!
Tuesday, October 26, 2010: Legislative Reception
NAIFA Members and guests: enjoy an evening with local Legislators and Representatives to discuss issues that affect our industry.
5:00 - 6:00 p.m. NAIFA Members special session with NAIFA Florida Lobbyist Tim Meenan
6:00 - 7:30 p.m. Legislators and Representatives visit
"Gaining members to have our voices heard in Tallahassee and Washington"
Location: The University Club, 1301 Riverplace Blvd., 27th Floor, Jacksonville, FL 32207
The cost is $25.00. Click HERE to register online! For additional questions regarding this event, please call Cherri Coombs Ohmer, LUTCF at 904-695-2300 or e-mail cherri@NAIFA-Jacksonville.org.
Wednesday, October 27, 2010: Legislative Breakfast and Program
Annual Legislative Updates: attend our monthly program and breakfast meeting with your NAIFA friends!
8:00 a.m. Check In & Registration
8:30 a.m. Breakfast
9:00 - 10:00 a.m. Program
Topic: "2010 Regulatory Update for Florida Insurance Agents"
Program Speaker: Timothy J. Meenan, NAIFA-Florida Lobbyist
Attendees will receive 1 hour of insurance credit, Course ID #73869
Location: The University Club, 1301 Riverplace Blvd., 27th Floor, Jacksonville, FL 32207
The cost is $20.00. Members who RSVP by Friday, October 22nd, the cost is only $15.00.
Click HERE to register online!
Check our website at www.naifa-jacksonville.org for updates on all of our upcoming events!
NAIFA-Jacksonville 40-Hour Prelicensing Course
Available Live and Online! Click HERE for complete details!.
CLASS SCHEDULE THROUGH 2010:
Approved by the Department of Financial Services / Course ID 38274.
Check our website at www.naifa-jacksonville.org for more information.
NAIFA-Jacksonville 2010-2011 Membership Contest
Submitted by Gene Bryant, NAIFA-Jacksonville President Elect
If I Was to Guess:
If I was to guess, I’d guess your favorite color is green. I’d guess two favorite numbers are 5 and 0. I’d also guess your favorite President is Grant. How did I do? I’m neither a psychic, nor a psycho. I learned these things from our Membership Committee: Margie Harner, Cindi Cook, Cheryl Canzanella, and Jon Castle.
Here’s the rest of what I learned: If it’s green with a 5 and a 0 and it has Grant’s picture, it is a Fifty-Dollar bill! That $50 will be yours if…
• you are a “Sponsor” of a new member of NAIFA-JAX;
• your name is drawn at our monthly meeting;
• you are present to win; and
• you are not currently a Board member.
Then, I’d guess that you are either picking up your phone, jotting a note, or chatting with our next member of NAIFA-JAX. That’s exactly what our Membership Committee said you will be doing.
Are we right? Come to our next meeting so you can claim your $50!
NAIFA-Jacksonville Blood Drive Update
Submitted by Alicia Burst, Blood Drive Chair
Thank you to the 19 donors listed below who took time from their busy day on August 19, 2010 to Save Lives! Their companies are also listed, and if we know for a fact they are NAIFA - Industry related, they will all qualify for APPS' $100 drawing. The drawing will be done at our September 29th breakfast meeting and the donor does not need to be present to win.
KATHY BIRDWELL (APPS PARAMEDICAL SVCS.)
BECKY BROTHERS (PRINCIPAL FIN. GRP.)
CHERYL CANZENELLA (NEW ENGLAND FIN.)
NIKKI COLON (APPS PARAMEDICAL SVCS.)
CHIP DEMPSEY (COMPASS CONSULTING GRP.)
MARGIE HARNER (STATE FARM)
JOE MALTESE (DELLAPORTA GRP.)
JEANNIE PETERSON (METLIFE)
MICHAEL SCHLUETER (MASSMUTUAL)
CRYSTAL STREET (NATIONAL FIN. RESOURCES GRP.)
Photo Highlights from our August 19th Blood Drive:
Mike Schlueter, Joe Maltese & Chip Dempsey
Look at the all the units! We ended up
with 19 viable donors this time.
Leadership In Life Institute Now Accepting
Student Applications for 2011
The NAIFA–Florida Leadership in Life Institute (LILI) is accepting student applications for the 2011 class. Space is limited and applicants will be screened by the NAIFA-Florida LILI Student Selection Committee.
The deadline for applications is September 30, 2010. Please send all completed applications to the NAIFA-Florida office. The links below for the brochure, curriculum, and application provide additional information about cost and related details.
If you have questions, please contact Steven Saladino, LUTCF, NAIFA-Florida State LILI Chair, at (800) 431-2687 or firstname.lastname@example.org, or visit www.naifa.org/lili to learn more about this exceptional leadership development program.
• LILI Experience Brochure
• LILI Curriculum
• LILI Application
As a member of NAIFA, you now have free, unlimited 24/7 access to the NAIFA Virtual Library. Whether you are a new advisor or agent, or an experienced producer, the NAIFA Virtual Library is your key to a myriad of sales support tools and resources that will help you grow and succeed in your business. Click HERE to visit the members-only NAIFA Virtual Library.
The latest news headlines from the
National Association of Insurance and Financial Advisors
• The Latest Case Against STOLI (NAIFA Blog)
• NAIC Recognizes the Role of the Agent (NAIFA Blog)
• Life Insurance Awareness Month Resources Now Available
• "Double Your Sales in 90 Days" presentation added to webinar archives (NAIFA members only)
Visit www.naifaflorida.org for the latest news and updates.
NEW! NAIFA MEMBER BENEFITS GUIDE!
Click HERE for a comprehensive guide to all of the benefits enjoyed by NAIFA members!
Thank You to NAIFA-Jacksonville's IFAPAC Contributors!
( JANUARY 1, 2010 - AUGUST 20, 2010 ).
Dennis Axman, CLU, ChFC, AEP, CFP
Alicia S. Burst
Cherri Coombs Ohmer, LUTCF
Craig A. Dewhurst
Garland S. Hudson, CLU
Maureen A. Kirschhofer, CLU, ChFC
Joseph J. Maltese, CFP, ChFC, CLU, LUTCF
Emmett W. Mankin, LUTCF, CFP
Robert D. Markwalter, II
Kyle P. Mooney
Michael P. Saunders, CLU
Kathleen A. Scott
Robert Warren Tison, LUTCF
Timothy L. Von Ebers, CLU, ChFC
Gary L. Webster, LUTCF
Robert A. Zeiner
The Insurance and Financial Advisors Political Action Committee (IFAPAC) is a term used to describe collectively the PAC sponsored by NAIFA at the federal level and the PACs sponsored by each state association. Each PAC is a fund that supports the campaigns of candidates for public office who understand issues important to insurance agents and financial advisors. IFAPAC’s goal is to help the associations advance the legislative and regulatory interests of the members of NAIFA.
Have you made your 2010 PAC contribution?
For more information about IFAPAC and to make contributions securely online, please click HERE. To download a printable IFAPAC contribution form in PDF format, please click HERE.
STOLI on the Rocks?
Submitted by Robin S. Weinberger, CLU, ChFC, CLTC and Peter N. Katz, JD, CLU, ChFC
The life insurance marketing scheme known as STOLI (Stranger Originated Life Insurance) appears to be taking its last breath. STOLI was usually sold under some sort of non-recourse or partial recourse financing arrangement in which elderly insureds were persuaded to obtain life insurance policies for investors, circumventing or violating insurable interest laws. A variety of factors have come together to eradicate this unsavory activity.
Life settlement legislation has now been passed in about 40 states. Although the legislation is intended to broadly regulate life settlements, these statutes usually include some anti-STOLI provisions. Most common is the type of provision contained in the NCOIL (National Conference of Insurance Legislators) Model which makes almost any sort of agreement to sell a life insurance policy within two years of issue a fraudulent act punishable by criminal and civil penalties.
Less common, and not as effective in combating STOLI, is the NAIC (National Association of Insurance Commissioners) Model which, subject to limited exceptions, bans all sales of life insurance for the first five years after issue. This model does not close a major loophole which is the sale of beneficial interests in a policy (that is, selling an interest in a trust that owns the policy rather than selling the policy itself).
Insurance Company Behavior
Until December 2005, when the New York Insurance Department issued an opinion stating that STOLI type arrangements violated insurable interest laws, insurance company practices regarding STOLI fell into four categories: 1) those that promoted it as a sales technique; 2) those that turned a blind eye towards the activity; 3) those that actively tried to prevent it; and 4) those that were unaware that STOLI activity was even going on. Once the NY Opinion was published, almost all companies "got religion" and began vigorously trying to prevent STOLI promoters from using their policies. This has been accomplished by monitoring sales of policies fitting the STOLI profile, large face amounts on insureds around age 75.
Complementing the regulatory actions and increased vigilance of insurance companies, are numerous lawsuits that have been brought by insurers, regulators, and other parties involved in STOLI arrangements. These lawsuits typically involve the rescission of policies that were issued under suspected STOLI schemes: policies that were issued based on misrepresentations or fraudulent statements and policies for which there may have been no insurable interest. In addition to rescission, insurers frequently seek to keep all premiums received and recover all sales commissions that were paid.
One of the most compelling reasons for the demise of STOLI occurred in the fall of 2008 when the mortality tables used by some major life expectancy companies were increased by 20 to 30%. Until that change, the moment a policy was issued, there was usually a discrepancy between the insurer's life expectancy and that of life expectancy providers. That discrepancy increased the projected rate of return on death benefits to levels that were attractive to third party investors. With that arbitrage gone, newly issued life insurance policies are no longer an attractive investment.
Investors have been burned by STOLI. Not only will the policies, that were previously originated, likely produce very disappointing results (due to apparently incorrect life expectancies projections), but investors have come to realize that they also bear substantial legal and headline risks. As a result, at a time where capital is already in short supply due to the recession, investors have lost their appetite for STOLI life insurance schemes.
STOLI IS NO LONGER A BIG PROBLEM
Some in the insurance industry want to perpetuate the myth that STOLI is still running rampant as a means to attack legitimate life settlements. This fear card is played to misinform the media and to negatively influence legislators into supporting draconian life settlement legislation that has even shut down legitimate settlement activity in a few states. This causes irreparable harm to consumers who have a valid need to sell their policies.
So Is That It?
Sadly, no. Unscrupulous schemes to sell life insurance have existed before and others will likely appear again. With the demise of STOLI, however, at least one of these undesirable activities, which hurt both the life insurance and life settlement industries, has been put to an end.
So the next time someone asks you about STOLI, let's hope it's wanting to know if you'd like it "straight up" or "on the rocks."
Jax Advisors Online is a monthly publication of the Jacksonville, FL chapter of the National Association of Insurance and Financial Advisors. Opinions expressed are those of the authors and advertisers and do not necessarily represent those of NAIFA-Jacksonville.
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For the latest NAIFA-Jacksonville news and events, please visit our website at
www.naifa-jacksonville.org, or contact Association Executive Cherri Coombs-Ohmer, LUTCF:
P.O. Box 37028, Jacksonville, FL 32236
Phone (904) 695-2300 • Fax (904) 783-6857