Legislative Update



 Legislative and Regulatory Issues

Federal Issue:

The 75 million American families that rely on life, health, disability income and LTC insurance and qualified retirement plans for financial security have historically benefited from very favorable federal tax treatment. Increasingly, some members of Congress, the White House, and state legislatures have put forth proposals that would reduce the favorable tax treatment of life insurance industry products.

Financial Services Regulatory Reform 

Efforts are taking place at both state and federal levels to revamp the regulation of the financial services industry. From broad-sweeping Congressional legislation to the continued work of state regulators and legislators to improve and streamline regulation, NAIFA is monitoring these efforts and participating in the process.

SEC Rule 151A 

NAIFA avidly follows the implementation of SEC Rule 151A, which would classify the majority of indexed annuities as securities. In our view, IAs do not meet the existing test for determining whether a product is a security. An insurance product that does not meet this test should be regulated by insurance regulators and should not fall under the jurisdiction of the SEC or FINRA.

State Issues:
State Action on STOLI 

Acting in cooperation with our coalition partners, NAIFA, our state associations and their members continue to pursue aggressively legislation in numerous states to stop the spread of stranger-originated life insurance (STOLI) transactions. Despite intense opposition and large expenditures of both human and financial resources by STOLI proponents, over half of the states have acted to protect seniors and stop STOLI.

Regulating the Use of Designations 

Legislators, regulators and the media have raised concerns in recent months that senior citizens are being misled and harmed by the use of certain designations and certifications by insurance agents and advisors that may imply the existence of a level of expertise in senior affairs and financial matters that, in fact, does not exist. These types of allegations are potentially damaging to NAIFA members because they affect the reputation of all agents and advisors and could compromise the public’s trust in insurance agents.



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. IFAPAC’s goal is to help the associations advance the legislative and regulatory interests of the members of NAIFA. If you are a life or health agent, or financial service professional, NAIFA asks for your support.  Your contribution supports the campaigns of candidates for public office who understand issues important to insurance agents and financial advisors. 


Please donate now to IFAPAC.


Sacramento Weekly Update April 17, 2015 (PDF)