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The industry's leading voice on Capitol Hill and in state legislatures NAIFA - Membership National Association of Insurance and Financial Advisors National:

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Presentation on theme: "The industry's leading voice on Capitol Hill and in state legislatures NAIFA - Membership National Association of Insurance and Financial Advisors National:"— Presentation transcript:

1 The industry's leading voice on Capitol Hill and in state legislatures NAIFA - Membership National Association of Insurance and Financial Advisors National: State: Local:

2 2 Printouts and websites referenced during this presentation National: State: Local: Chilling Read – Tax Expenditure List – Slide 7 –http://www.naifa-nd.org/membership1/tax_expenditure.htmhttp://www.naifa-nd.org/membership1/tax_expenditure.htm Protecting Your Business – Slide 17 Past Bills monitored by NAIFA-ND Eagle Brochure – Slide 23 Applications for membership – Slide 28 NAIFA-Local - Brochure (Example)http://www.minot-advisors.com/maifa/maifa_brochure.doc Advocacy at Work - Brief What NAIFA Can Do For You - Brochure Membership List -

3 The industry's leading voice on Capitol Hill and in state legislatures3 Objective Whether it is protecting your industry from unfair taxation or shielding it from stifling regulation that could harm your clients, NAIFA is always working to create a business environment that works for you For more than 100 years, NAIFA has been working to protect its members and their clients whenever legislation and regulations are proposed that could negatively impact their business and the products owned by our clients.

4 The industry's leading voice on Capitol Hill and in state legislatures4 Objective We have members in every congressional and state legislative district in every state, and they can get in touch with key policymakers when we need to be heard. NAIFA also supports the National Association of Insurance Commisioners’ (NAIC) Interstate Compact—an initiative to reform state insurance regulation by improving speed-to-market for life, annuity, long-term care (LTCI) and disability income insurance products.

5 The industry's leading voice on Capitol Hill and in state legislatures5 Why should I join this association? How do you think the war in Iraq and Afghanistan, hurricane Katrina, floods, future disasters, potential terrorist attacks, $700 billion bank bailout and the monetary impact on our economy could force Congress to look to our industry for future tax revenue? Here are some questions to ponder… We, the Financial Industry, are 37% of all tax- advantage instruments in the U.S. according to the Tax Expenditure Book. Congress is looking hard NOW as they need to raise revenue and not raise taxes.

6 The industry's leading voice on Capitol Hill and in state legislatures6 We are under attack! What are some of the legislative battles that NAIFA has been in battle for the agent and the consumer?

7 The industry's leading voice on Capitol Hill and in state legislatures7 Current or past legislative issues that have or will affect the consumers and your business IRS 403(b) Regulations Exclusion of investment income on life insurance and annuity contracts Exclusion of benefits provided under cafeteria plans Exclusion of employer contributions for health care, health insurance premiums and long term care insurance premiums Exclusion of pension earnings and contributions made by employers Exclusion of employer contributions for health care, health insurance premiums and long term care insurance premiums Health Savings Accounts Deduction for health insurance premiums and long term care insurance premiums for self-employed persons SEC to Consider Repeal or Reform of 12b-1 Fees Stranger Originated Life Insurance

8 The industry's leading voice on Capitol Hill and in state legislatures8 A Chilling Read Here's a list of major tax expenditures that relate to the business activities of NAIFA members and the revenue loss associated with each over the period : (next page) A Chilling Read October 15, 2007 The Tax Expenditures List Every Sunday, the Washington Post publishes a book review section covering the latest novels and works of nonfiction. The Post has yet to feature a recently published tome authored by the staff of the Joint Committee on Taxation entitled Estimates of Federal Tax Expenditures for Fiscal Years But if it had, the book would have been listed under the heading "Scary Reading." The Joint Tax Committee publication is scary because it clearly lays out exactly where the money is that is not currently taxed—but could be if Congress and the President decided to change course. That's what a tax expenditure is—a revenue loss to the government because of some special provision in the tax law granted by Congress.

9 The industry's leading voice on Capitol Hill and in state legislatures9 A Chilling Read – (continued) Revenue Function Cash Value of Life Insurance/Annuities Insurance Company Reserves Dividends/Long-Term Capital Gains Capital Gains at Death Cafeteria Plans Employer Provided Health/LTC Insurance Self Employed Health/LTC Insurance Health Savings Accounts Pension Contributions and Earnings—Employers IRAs Keogh Plans Employer Provided Life Insurance Employer Provided Accident/Disability Insurance $150.9 $10.7 $631.9 $279.9 $185.5 $628.5 $24.3 $4.6 $607.3 $94.1 $54.4 $13.3 $15.3 Revenue Lost (in Billions) $ 2.7 Trillion

10 The industry's leading voice on Capitol Hill and in state legislatures10 Hunting Season

11 The industry's leading voice on Capitol Hill and in state legislatures11 A Stroke of a Pen A simple stroke of the pen could eliminate anyone of the tax advantages that our clients have been enjoying for years.

12 The industry's leading voice on Capitol Hill and in state legislatures12 A Chilling Read – (continued) The take away from this Joint Tax work of nonfiction is that the products and services that NAIFA members use in their daily work with clients receive a lot of special treatment. As the late Sen. Everett Dirksen (R-IL) observed back in the 1960s: "A billion here, a billion there, after a while you got some real money." And it's all neatly laid out on the printed page. How is the book used? Say you're the federal government and you are running a budget deficit, but you want to stop running a deficit. You can cut spending or increase taxes—or some combination of the two. Or, say, you want to increase the funding for a program favored by the majority in Congress but don't want to increase the deficit. Again, you have the same choices. Making choices is never easy in Congress, but depending on the political environment, raising taxes on a particular group is usually easier than cutting overall federal spending. That's the robbing Peter to pay Paul principal. Just ask the tobacco industry. The bulk of the funds ($35 billion over five years) needed to pay for the congressional plan to beef up the State Children's Health Insurance Plan (S-CHIP) would come from an increase in tobacco taxes. Say what you will about tobacco, but the point is clear. If Congress wants to do something, and it needs money to do it, it knows just where to find it. It's all in the book.

13 The industry's leading voice on Capitol Hill and in state legislatures13 Pay-Go – What is it and how can it affect you and your clients? What does all this budget mumbo jumbo have to do with NAIFA members, you might ask? Let’s say that the Congress wants to repeal the Alternative Minimum Tax, which, indeed, leaders on both sides of the aisle have said is a priority for this Congress. Eliminating the AMT will lose about $50 billion a year in tax revenue. If the Pay-Go rule says Congress must raise $50 billion in new tax revenue to offset the $50 billion lost by repealing the AMT, where is Congress going to get it? (Continued) House restored what is known in the Congress as the “Pay As You Go” rule, or “Pay-Go, ” which had been allowed to expire in 2001 Pay-Go simply requires Congress to decrease spending in one area of the budget equal to the amount of desired increased spending in another area. Or, in the case of tax matters, Congress must increase taxes in one area if the Congress wishes to decrease taxes in another.

14 The industry's leading voice on Capitol Hill and in state legislatures14 Pay-Go – What is it and how can it affect you and your clients? (continued) Well, let’s see. Life insurance and annuity cash values get about $29 billion in favorable tax treatment per year. Employers get a tax break in the range over $100 billion a year for employee health insurance. Self-employed persons get the same break in the amount of approximately $5 billion per year. Employer group life and disability insurance is worth over $5 billion a year in tax breaks. And, employer and individual contributions to various retirement plans runs in excess of $150 billion of tax breaks a year. You don’t have to be Willie Sutton (a notorious bank robber) to know that to raise new tax money, the first place to go is where the money is—current tax deductions and exclusions. As a whole, the products and services insurance agents and financial advisors deal in make up in the range of 40 percent of all the income in the country that currently receives favorable tax treatment.

15 The industry's leading voice on Capitol Hill and in state legislatures15 Pay-Go – What is it and how can it affect you and your clients? (continued) After the House finished voting to restore the Pay-Go rules, Chairman Rangel acknowledged that pay-go would put him in a tough spot, but would be “good for the country.” He further indicated that he was scouring the tax code for tax breaks that benefit “special interests” and admonished the beneficiaries of those tax breaks that if they “don’t raise their hands, (the tax break) is out.” Chairman Rangel went on to say: “At this point, nobody... has convinced me that there should be exemptions from pay-go.” That’s about as clear a message as you are likely to ever hear from Congress. If insurance agents and financial advisors want to retain the favorable tax treatment currently granted to their products and services, they better to be prepared to “raise their hands!”

16 The industry's leading voice on Capitol Hill and in state legislatures16 This could be a real headline someday if we are not effective as an association COST OF WAR ON TERRORISM DOUBLES CONGRESS VOTES TO TAX LIFE INSURANCE PROCEEDS TO PAY FOR IT

17 The industry's leading voice on Capitol Hill and in state legislatures17 NAIFA’s political prowess exists largely because of two constants in its government-relations arsenal— APIC and IFAPAC. Power behind our Success –APIC Advisors Political Involvement Committee is a group of NAIFA members who have developed and maintain influential relationships with state and federal elected officials. –IFAPAC Insurance and Financial Advisors Political Action Committee A group of 15,000 NAIFA members who contribute nondues funds ranging up to $5,000 every year to a separate fund used to support the campaigns of candidates for federal and state legislative offices.

18 The industry's leading voice on Capitol Hill and in state legislatures18 Our Strengths … NAIFA – National, State, & Local National – Federal Legislative Issues NAIFA – National Federal Issues NAIFA-ND State Issues NAIFA-Locals Grassroots State – State Legislative Issues Local - Grassroots

19 The industry's leading voice on Capitol Hill and in state legislatures19 Legislation is monitored daily in Washington by NAIFA-National Membership kept alert via the following: (Click here to read “Protecting Your Business” article) (Click to review NAIFA monitoring venues) web accesss

20 The industry's leading voice on Capitol Hill and in state legislatures20 Federal Legislative Grid State & Federal

21 The industry's leading voice on Capitol Hill and in state legislatures21 No one else has the ability that NAIFA and its state associations have to do grassroots advocacy on a truly grass roots level. We have members in every congressional and state legislative district in every state, and they can get in touch with key policymakers when we need to be heard. NAIFA has clout… Do you think anyone else with this kind of clout is looking out for you and your livelihood?

22 The industry's leading voice on Capitol Hill and in state legislatures22 Key Benefits to membership in NAIFA NAIFA is your connection to …. Financial freedom for your clients and financial independence for yourself (One study shows that NAIFA members produced 62% more premium and wrote 40% individual policies than their non-member colleagues). Unparalleled legislative regulatory advocacy. NAIFA’s fundamental role and primary reason to exist is to be the advocate for the agent/advisor and the clients we serve. Advocacy is NAIFA’s core business. Strength in numbers – 60,000 members strong and growing Networking, sales ideas, and practice specialties. NAIFA delivers member benefits that give our members a competitive advantage in today’s insurance and financial services marketplace. Lifetime learning, education, and professional development. Every tool and resource for building a successful business and a healthy bottom- line is available through NAIFA

23 The industry's leading voice on Capitol Hill and in state legislatures23 Some of our Corporate Sponsors Aflac Allstate Insurance Company American Family AIG American General AVIVA Country Insurance & Financial Services Farmers Grange Life Insurance Company Guardian Kansas City Life MetLife Modern Woodmen of America Monumental Mutual of Omaha National Life New York Life Northwestern Mutual Northwestern Mutual Financial Network Invests in NAIFA Membership Growth OneAmerica Financial Partners, Inc.Northwestern Mutual Financial Network Invests in NAIFA Membership Growth OneAmerica Financial Partners, Inc. Penn Mutual Principal Southern Farm Bureau State Farm Transamerica UNIFI Companies Western & Southern Life Woodbury Financial

24 The industry's leading voice on Capitol Hill and in state legislatures24 NAIFA Local Activities… Monthly meetings with CE Credits – varies by local Meals (check with local to see if meal included in dues) Legislative Forum Annual Blitz (generally 5 to 10continuing education credits) Motivational speakers Annual State Convention Opportunity to get involved in the leadership of the local association or state Annual Golf Outings Access to our locals sales and marketing site

25 The industry's leading voice on Capitol Hill and in state legislatures25 It has been said that eagles don’t flock together… (Click here for copy of brochure) weblink

26 The industry's leading voice on Capitol Hill and in state legislatures26 Eagles flock together for their protection… Proving there is safety in numbers.

27 The industry's leading voice on Capitol Hill and in state legislatures27 We have all drank from the well…

28 The industry's leading voice on Capitol Hill and in state legislatures28 Call to Action We have all drank from the well How would your business be affected if Congress took away the tax benefits from the products you sell? For about a cup of coffee a day, you will have taken an important step to protect your clients and your business.

29 The industry's leading voice on Capitol Hill and in state legislatures29 Call to Action -- Theodore Roosevelt “Every man owes a part of his time and money to the business or industry in which he is engaged. No man has a moral right to withhold his support from an organization that is striving to improve conditions within his sphere."

30 The industry's leading voice on Capitol Hill and in state legislatures30 Investment in NAIFA Minot Missouri Slope - Bismarck Roughrider - DickinsonLake Region - DL Central - Jamestown Fargo Moorhead North Valley - GF Click on your local for detailed information on dues

31 The industry's leading voice on Capitol Hill and in state legislatures31 Investment in NAIFA – Fargo Moorhead Dues Structure Dues if paid annually in lump sum = $ Due if paid via monthly draft = (includes $.50 monthly bank or credit card fee) Breakdown of dues: National: $ State: Local: Total: $ Three options to belong to NAIFA Lump sum annual Monthly Bank Draft Monthly Credit Card Which method of participation makes the most sense to you? Click here for printable application Click here for online application Payment Option Card

32 The industry's leading voice on Capitol Hill and in state legislatures32 Thank you for your consideration We look forward to your involvement in NAIFA

33 The industry's leading voice on Capitol Hill and in state legislatures33 Investment in NAIFA – North Valley Dues Structure Dues if paid annually in lump sum = $ Due if paid via monthly draft = (includes $.50 monthly bank or credit card fee) Breakdown of dues: National: $ State: Local: Total: $ Three options to belong to NAIFA Lump sum annual Monthly Bank Draft Monthly Credit Card Which method of participation makes the most sense to you? Click here for printable application Click here for online application Payment Option Card

34 The industry's leading voice on Capitol Hill and in state legislatures34 Thank you for your consideration We look forward to your involvement in NAIFA

35 The industry's leading voice on Capitol Hill and in state legislatures35 Investment in NAIFA – Missouri Slope Dues Structure Dues if paid annually in lump sum = $ Due if paid via monthly draft = (includes $.50 monthly bank or credit card fee) Breakdown of dues: National: $ State: Local: Total: $ Three options to belong to NAIFA Lump sum annual Monthly Bank Draft Monthly Credit Card Which method of participation makes the most sense to you? Click here for printable application Click here for online application Payment Option Card

36 The industry's leading voice on Capitol Hill and in state legislatures36 Thank you for your consideration We look forward to your involvement in NAIFA

37 The industry's leading voice on Capitol Hill and in state legislatures37 Investment in NAIFA – Central Dues Structure Dues if paid annually in lump sum = $ Due if paid via monthly draft = (includes $.50 monthly bank or credit card fee) Breakdown of dues: National: $ State: Local: Total: $ Three options to belong to NAIFA Lump sum annual Monthly Bank Draft Monthly Credit Card Which method of participation makes the most sense to you? Click here for printable application Click here for online application Payment Option Card

38 The industry's leading voice on Capitol Hill and in state legislatures38 Thank you for your consideration We look forward to your involvement in NAIFA

39 The industry's leading voice on Capitol Hill and in state legislatures39 Investment in NAIFA – Lake Region Dues Structure Dues if paid annually in lump sum = $ Due if paid via monthly draft = (includes $.50 monthly bank or credit card fee) Breakdown of dues: National: $ State: Local: Total: $ Three options to belong to NAIFA Lump sum annual Monthly Bank Draft Monthly Credit Card Which method of participation makes the most sense to you? Click here for printable application Click here for online application Payment Option Card

40 The industry's leading voice on Capitol Hill and in state legislatures40 Thank you for your consideration We look forward to your involvement in NAIFA

41 The industry's leading voice on Capitol Hill and in state legislatures41 Investment in NAIFA – Rough Rider Dues Structure Dues if paid annually in lump sum = $ Due if paid via monthly draft = (includes $.50 monthly bank or credit card fee) Breakdown of dues: National: $ State: Local: Total: $ Three options to belong to NAIFA Lump sum annual Monthly Bank Draft Monthly Credit Card Which method of participation makes the most sense to you? Click here for printable application Click here for online application Payment Option Card

42 The industry's leading voice on Capitol Hill and in state legislatures42 Thank you for your consideration We look forward to your involvement in NAIFA

43 The industry's leading voice on Capitol Hill and in state legislatures43 Investment in NAIFA - Minot Dues Structure - Minot Dues if paid annually in lump sum = $ Due if paid via monthly draft = (includes $.50 monthly bank or credit card fee) Breakdown of dues: National: $ State: Local: Total: $ Three options to belong to NAIFA Lump sum annual Monthly Bank Draft Monthly Credit Card Which method of participation makes the most sense to you? Click here for printable application Click here for online application Payment Option Card

44 The industry's leading voice on Capitol Hill and in state legislatures44 Thank you for your consideration We look forward to your involvement in NAIFA


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