EMERGENCY NAIFA-CA "Best Interest" Legislative Zoom Call

[DHK]

No, I'm not exaggerating.

If you are an agent and advisor licensed in California... YOU NEED TO GET ON THIS CALL!

TOMORROW, FEBRUARY 28TH, 3PM PACIFIC TIME

The California Department of Insurance and Senator Dodd have introduced what many consider the most onerous “Best Interest” legislation proposed in the United States. Major components of this bill will have immediate and future ramifications on product availability, carrier access, compensation and many other aspects of how insurance and financial services have been provided to Californians for over 150 years.

As a NAIFA member, you have been instrumental in addressing and defeating legislation that threatens your ability to serve your clients.

Please join your NAIFA-California Government Relations committee and our state lobbyist, Shari McHugh of McHugh Koepke Padron Government Relations tomorrow, February 28th for an inside look at this misguided legislation and the actions we can take to stop it.

Register at this link to join in the call:
[EXTERNAL LINK] - NAIFA-California  State Legislative Action Alert: SB 263 (Dodd)

 

[DHK]

And yes, I'd get on this call if you have a NON-RESIDENT license too. This should not just impact how you sell and serve people in California (regardless of YOUR location), but it may spread to other states as model legislation.

 

[DHK]

I was not allowed to re-stream this emergency call. However, let me share with you my notes that I posted in the Facebook group:

This bill is sponsored by the California Department of Insurance with extensive commission disclosure beyond even the New York requirements.

3 page commission disclosure document disclosing 10 years of commissions on a new policy.

It is acknowledged that "best interest' will happen (as it has in many other states)... but we want a standard that is workable.

We're looking to fall back on the NAIC level of best interest.

Yes, we are getting support from NAIFA-National and Finseca.

[EXTERNAL LINK] - NAIFA-California Sales Summit

NAIC model language:
https://content.naic.org/sites/default/files/inline-files/MDL-275.pdf

"This is a commission disclosure bill masquerading as a fiduciary bill."

"The NY law has essentially shut down the market for the low and middle income market." (Any opinions on that?)

"It's a solution without a problem."

And I thought that not having our license # next to our name was "the problem".

Apparently there's a disclosure similarities between term, UL, and annuities? They have so little in common, so that's one way that this bill can be just crazy.

[EXTERNAL LINK] - NAIFA-CA: LegislativeDay

 

[DHK]

I need to make a clarifying announcement regarding NAIFA and the current bill being considered in California:

I've forgotten a lot of the rules regarding association that have PAC (Political Action Committee) funds as well as other confidential areas that are limited to current MEMBERS.

I've been 'chastised' about my posts (although they were in response to someone else posting - which have been removed).

Those of you who have heard about the bill either in the Zoom call OR the recording I shared... you may now see the reason to join YOUR local advocacy association.

I encourage you to join NAIFA and/or Finseca. This bill in California will get attention from NAIFA-National as well as Finseca. Joining either or both will help garner support to having a "best interest" bill that is workable.

You can learn about NAIFA membership options here:
https://belong.naifa.org/

 

[DHK]

NAIFA-California and Industry Partners Secure Huge Legislative Victory on SB263 (Dodd) Best Interest

NAIFA-California, in conjunction with several key industry partners, has secured a major victory in the regulation and distribution of insurance and annuity products in California. SB2639 (DODD-D) was a “Best Interest” bill developed by the California Department of Insurance and Sponsored by Senator Bill Dodd in the 2023 legislative session. This bill would have dramatically changed the way life insurance and annuity products are distributed by agents in our state. Some of the more onerous aspects of the bill would have needed a fiduciary level process, far outside the nationally recognized best interest standards approved in over forty states. Additionally, aggressive commission disclosures and suitability wording would have created a duplicative and unnecessary focus on a small part of insurance product design and delivery. The bill as originally written would have put traditional commission-based representatives at a disadvantage over fee-based producers, which would create a lack of product and servicing agents for many of our most underserved lower- and middle-income communities.

NAIFA-California, and its individual members with the help of one of the most effective lobbyists in the state, Shari McHugh of McHugh, Koepke and Padron, held a well-attended Legislative Day in March 2023, holding over fifty meetings with Regulators, Legislators and Staff to explain the impact this misguided bill would have on the financial security of millions of Californians. Our efforts, coupled with industry partners, including New York Life, who also had a large presence in Sacramento for their Legislative Day, ACLHIC, IIABCal, CAHU and others were the driving force to develop a best interest standard more in line with the nationally recognized regulation.

NAIFA-California’s efforts didn’t cease at our legislative meetings, as Shari McHugh and our partners worked closely with Senator Dodd’s office as well as Department of Insurance regulators for the last few months to develop the exact language in the legislation that further our industry’s high ethical standards while also ensuring agents and advisors will have the ability to meet clients’ needs regardless of economic status. I have seen much trumpeting of “Victory” over the last few months but know our team has been working from the first proposal of this legislation all the way through multiple committee meetings to get the finished legislation across the finish line with wording and intent that meets the needs of our members.

NAIFA-California has adopted a “Neutral” stance on the SB236, as while duplicative in many ways of the increased suitability already in place in life and annuity product sales, the legislation meets the spirit of the best interest standard and client focus paramount to our members’ practices.

This is why we get involved in our advocacy associations like NAIFA, FINSECA, and others!

 

[goillini52]

TOMORROW, FEBRUARY 28TH, 3PM PACIFIC TIME

Tomorrow's the 25th.....not the 28th.

 

[DHK]

Tomorrow's the 25th.....not the 28th.

That's the original post back in February.

Today is July 24th.

 

[goillini52]

That's the original post back in February.

Today is July 24th.

Well duhhh, I missed that.

 

[DHK]

If you haven't heard this, this is GREAT NEWS!!

Initially, I thought that the passing of SB263 was horrible... until I realized it was the ADJUSTED SB263 to model NAIC best interest standards, NOT the originally proposed Fiduciary Bill requiring up to 10 years of commission disclosure!

This should ALSO mean a slowing down of the proposed DOL ruling.

California Governor Signs Annuity Best Interest Sales Rule Bill | ThinkAdvisor

Gavin Newsom's support for the NAIC approach could stop the DOL fiduciary definition proposal.

www.thinkadvisor.com