April 24, 2014 AGENTS DESCEND ON CAPITOL HILL Several IIAI members recently visited our Nation’s Capital, joining over 1,000 agents from across the nation for the Annual Big “I” National Legislative Conference. Up for discussion at congressional visits are national issues impacting the insurance industry, agents and their clients, including: • • •
The need for Congress to approve an extension to the current terrorism insurance program Support for non-resident producer licensing reform through the National Association of Registered Agents & Brokers (NARAB II) Opposition to any additional efforts to raise taxes on individuals and small businesses
BIG “I” RELEASES WHITE PAPER ON ACA CHALLENGES AND OPPORTUNITIES The Big “I” released a white paper titled “The Affordable Care Act: Challenges and Opportunities for Employers and Advisers” by Dr. Adam Beck, The American College assistant professor of health insurance. To download the full document, http://www.independentagent.com/Education/VU/Insuranc e/Life-And-Health/Health/ACA-white-paper.aspx?sid=1 you must be logged in to the Big “I” website. This is an internal document. Please do not share outside the association.
Go to: http://www.ambest.com/v.asp?v=bigi414, to see A.M. Best coverage of the Big “I” Legislative Conference. There is great footage of the conference and speakers, along with interviews.
The white paper was commissioned by the Big “I” as part of this ongoing effort. The association is also actively involved with numerous legislative efforts on Capitol Hill that address the needs of independent agents, brokers, their clients and insurance consumers. The paper addresses the following important topics, as well as their relevance and impact:
FEMA RESPONDS TO FLOOD REFORM LAW
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Impacts of the Homeowner Flood Insurance Affordability Act are becoming clearer. FEMA released Bulletin W14011, http://www.nfipiservice.com/Stakeholder/pdf/bulletin/w14011.pdf to share its next steps and provide an overview of the law, which triggers retroactive changes and the establishment of new programs, processes and procedures.
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The memo also encourages policyholders who were impacted by subsidy phase-outs in the Biggert-Waters Flood Insurance Reform Act of 2012 to maintain their current flood insurance policies. The agency will provide instruction in the coming months on how refunds should be issued.
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Implications for the individual, small group and large group markets Medical Loss Ratio (MLR) and its effect on agent commissions New federal taxes and fees Self-funding as an avenue Considerations in serving employer clients Employer mandate requirements for agents to navigate
“The Affordable Care Act has permanently altered the health insurance industry and is a topic of tremendous importance to agents and brokers in all areas of insurance and financial advising,” says Professor Beck in his executive summary. “For many brokers, there are substantial changes to the marketplace that necessitate considerations of changing business models, including adding consulting services and supplemental insurance