Estate Tax Vote Expected Thursday
The House of Representatives is gearing up to vote on H.R. 4154 as soon as Thursday, December 3.  Introduced by Rep. Earl Pomeroy (D-ND), the bill would permanently freeze the estate tax exemption at $3.5 million ($7 million for couples) at a subsequent maximum rate of 45%.

The estate tax is set to expire in 2010 and revert to its original exemption level of $1 million and 55% rate in 2011.

H.R. 4154 is not indexed for inflation and does not include gift tax reunification or portability.  Two versions of permanent estate tax reform legislation in the Senate, one by Senator Max Baucus (D-MT) and another by Senator Tom Carper (D-DE) would be indexed for inflation and include both portability and reunification.

Portability would allow credit from the death of a spouse to be carried over by the surviving spouse, while reunification would minimize tax penalties for pre-death transfer of assets valued at more than $1 million.

Senators Blanche Lincoln (D-AR) and Jon Kyl (R-AZ) have introduced permanent estate tax reform legislation with a higher exemption level of $5 million and a lower tax rate of 35%, but it is unlikely to gain enough support in the Senate for passage.

If none of the proposals for permanent reform come to fruition, Congress would be expected to pass a one-year patch extending the 2009 estate tax level through 2010, and then revisit the issue next year.

NAILBA is monitoring progress on the estate tax issue and will provide updates as they become available.

NAILBA Meets with Senate Banking Chairman Dodd
On Monday evening, November 23, NAILBA Chairman Mark Rosen, Executive Director Jack Chiasson and lobbyist Alex DelPizzo attended a small reception in Greenwich, CT hosted for Senate Banking Chairman Chris Dodd (D-CT).

The dinner was a small affair consisting of less than a dozen guests.  The NAILBA representatives were the only attendees at the event representing the financial services industry.  They shared their concerns with Senator Dodd regarding Section 913 of the regulatory reform draft he introduced to the Senate Banking Committee last month and its effects on independent distribution.

Mark, Jack and Alex echoed the need for a study period of the appropriate regulation of brokers, dealers and investment advisors as outlined in a joint letter to the Senate Banking Committee by NAIFA, AALU and NAILBA.  Senator Dodd agreed on the need for further study of Section 913 and will continue working with us on the issue.  The goal of a comprehensive study is to determine if the unintended consequences of this provision would have serious negative outcomes for consumers by disrupting the life insurance delivery system.

NAILBA’s top priority in any regulatory reform legislation is to ensure the uninterrupted distribution of life insurance products providing consumers with the greatest access to the most competitively priced products that only independent brokerage provides.  We continue to work with our industry partners and key lawmakers on Capitol Hill to make improved changes to the draft.

New Disclosure Requirement Guidelines from the Federal Trade Commission 
Beginning today, producers and advisors who endorse products or services using social media (such as Blogs, Facebook, Twitter, etc.) must disclose any compensation they receive from the company issuing the products they are discussing.  The disclosures should be brief and, while they do not need to include details of the actual compensation, they need to be associated with each specific endorsement.  

Download the new guidelines and please read them carefully to determine your responsibilities.  Penalties can be assessed by the Federal Trade Commission for non-compliance.  The guidelines furnish contact information should you have any questions regarding the requirements.

Former NAILBA Chairman Jack Dewald Named LIFE Foundation Chairman of the Board
The Life and Health Insurance Foundation for Education (LIFE) has announced that Jack Dewald will serve as the organization's Chairman of the Board effective Jan. 1, 2010. A nonprofit organization supported by more than 140 of the nation’s leading insurance and financial services organizations, LIFE is dedicated to educating consumers about the important role insurance products play in safeguarding families’ financial futures.

“Jack Dewald’s stellar reputation as a respected industry leader will enhance LIFE’s ability to gain even greater industry support for its important mission and use of its programs and products,” said Marvin H. Feldman, CLU, ChFC, RFC, president and CEO of LIFE. “Jack has already demonstrated through his leadership on LIFE’s board of directors and tireless dedication to LIFE’s efforts that he will make an excellent chairman.”

Dewald is president and owner of Agency Services, Inc., a full-service life and health brokerage agency operating in Memphis since 1962. Dewald is a graduate of the University of Arkansas.

In addition, Dewald is vice chairman and a member of the Board of Directors for The Marketing Alliance, a publicly traded company specializing in the distribution and administration of various life, annuity and long-term care insurance products on a wholesale basis throughout the U.S.  Previously, Dewald served as NAILBA chairman; a NAILBA Charitable Foundation officer; Memphis NAIFA Chapter president; and as a Memphis Health Underwriters Association resident.

 “Whether helping to coordinate Life Insurance Awareness Month, growing the rapidly expanding LIFE Lessons scholarship program, or simply providing quality resources and tools to insurance professionals, it is an exciting time to be involved with the LIFE Foundation,” said Dewald. “I look forward to working with the LIFE staff and board to help fulfill the organization’s mission and educate consumers about the importance of insurance within a sound financial plan.”

Dewald is active in his community and had served on three different Boards of Trustees for private schools over the past 20 years. He is an Elder of Grace Evangelical Church member and a Memphis East Rotary Club member.  In 1998, the Memphis Business Journal recognized Dewald as one of their "Top 40 under the age of 40", and in 2002, he was a finalist in the Memphis Business Journal's “Executive of the Year.”

The Future Is Not Cancelled
Peter Ricchiuti

Over the past couple of years you’ve gone through hell and high water with both your business and personal investments. Don’t give up now …we’re beginning to see the recovery!

In fact, I think the recession actually ended this past summer.  Several top leading economic indicators make me quite bullish on the future:

• the stock market has risen an impressive 60% since early March. The stock market is usually about six months ahead of the economy.
• oil prices have doubled over the past few months. This says that world oil demand (driven by an improving economy) is headed up.
• the yield curve between rates offered on three month and ten year U.S. treasury securities has grown to a positive 335 basis points.  This usually points to an expanding economy.
• credit markets are beginning to thaw. The rate difference between corporate and treasury securities has narrowed from 8.00% to just 3.85% in the past year.  Economic optimism brings out an appetite for risk on the part of investors.

Many of TV’s “talking heads” are mistakenly focused on the nation’s unemployment rate. This is a lagging not leading economic indicator. Even if we’re already out of the recession, unemployment numbers may look bleak through early 2010 as companies gradually bring back their workforces.

There are some troubling economic issues still out there. I think that the U.S. dollar will continue to weaken and it’s hard not to forecast a bit more inflation down the road. Additionally, some bubbles such as commercial real estate have yet to burst.

Uncertainty creates opportunity. These times allow leaders to pick up market share and successfully innovate. Be ready for what’s ahead. Recessions always end and the economy always rises to a higher plateau.

Tulane University Professor and finance industry expert Peter Ricchiuti will be featured at the upcoming NAILBA Executive Forum, January 28, 2010 in New Orleans.  Limited sponsorship opportunities do exist, so please call Susan Haning at NAILBA today at (703) 383-3068 or shaning@nailba.org for more information.

NAILBA-imize Your Competitive Advantage
Representing more than 250,000 independent producers who deliver over $4 billion in insurance premiums annually, NAILBA has been a trusted source of strategic information, data and trends for many years.  

By joining NAILBA, our members have expressed an interest in improving their businesses, they want to be the first to see new products, discover cutting-edge best practices and advocate for their industry on Capitol Hill.  No other brokerage publication can boast of that level of engagement. 

With several multi-platform, customized and integrated marketing opportunities — Perspectives, NAILBA.org, NAILBA Now and the NAILBA 29 event site, and our dynamic events (including the industry’s premier event, NAILBA 29; the Executive Forum and the Agency Management Institute) — NAILBA reaches the most influential audience of brokerage general agency principals.  Why not capture this audience’s attention by advertising with NAILBA? 

Contracts for space for the March / April issue of Perspectives are due by January 4^th with the ads due by January 18^th.  Please contact Susan Haning with questions at (703)383-3068 or shaning@nailba.org or download the 2010 Media Kit.