1. ACLI: Insurance Industry Update
Alane Dent Acting Senior Vice President, Federal Relations
April 24, Alliance’s Executive Summit
Last updated February 28, 2018

2. ACLI advocates in federal, state, and international forums for public policy that supports the life insurance industry marketplace and the 75 million American families who rely on life insurers’ products.
Member companies offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance.
Approximately 290 member companies in the U.S. and abroad represent more than 94 percent of industry assets and premiums.

3. Federal-State Convergence

4. Agenda Federal Tax Reform Fiduciary Rule/Best Interest Standard
ACLI’s Assessing Americans’ Financial & Retirement Security Report
2018 Federal Political Update
Effective Advocacy – On the Hill and Back Home

5. Federal Tax Reform 2017: H.R. 1 2018: Implementation
21% corporate tax rate
Life insurance specific provisions - $23 billion
2018: Implementation 
Accounting
Treasury guidance
Technical corrections

6. Tax Reform Capital Matters – NAIC RBC
Tax law has a significant impact on Risk Based Capital (RBC) requirements. Impact on RBC results from both the tax rate drop and the reduction in value of deferred tax assets (as well as the elimination of the net operating loss carryback).
The old 35% tax rate is tied to many aspects of the RBC ratio calculations. Therefore, changes are required by the NAIC to restate RBC requirements using a 21% enacted tax rate. ACLI has asked the NAIC to delay tax-reform- related RBC changes until 2019.

7. Fiduciary Rule/Best Interest Standard
Fifth Circuit Opinion
SEC, NAIC and DOL Coordination
NAIC Annuity Suitability Working Group
4 states with active legislation/rulemaking in 2018
2 states with active legislation/rulemaking: NV & NY
DE, MD
MA enforcement

9. Assessing Americans’ Financial & Retirement Security Report

10. Assessing Americans’ Financial & Retirement Security Report

11. Assessing Americans’ Financial & Retirement Security Report

12. Assessing Americans’ Financial & Retirement Security Report

13. Assessing Americans’ Financial & Retirement Security Report

14. Supplemental Insurance Products
Beginning in January 2018, ACLI began advocacy of the following product lines:
Accident
Critical Illness
Dental
Hospital Indemnity
Specified Disease
Stop-Loss
Vision

15. 2018 Politics Mid-Year Election in November Trump effect? House
Trump effect?
House
                Republican seats – 238 (45 seat majority with 4 vacancies)
                Democrat seats – 193 (Democrats will need to net 24 seats to flip control of the House)
Senate
Republican seat – 51 (will change to 50 when Sen. Cochran resigns effective April 1st, Sen. McCain’s health is also in question)
                Democrat seats – 49

16. Mid-Year Election in November
Trump Effect?
House: Current Ratio
39 Reps. and 18 Dems. are departing
Dems. will need net of 24 seats to win House
Senate: Current Ratio 51-49
Democrats need to defend 25 seats, 10 in states Trump won

17. Effective Issue Advocacy – On the Hill
Talking points should be succinct.
Carry supplemental materials in folders.
Be flexible.
Staff is just as important.

18. Effective Issue and Political Advocacy - Back Home
Know your Representative or Senator in every district/state where you have a facility.
Invite Members of Congress to your facilities.
Consider hosting a PAC event at headquarters.

19. Questions?

20. ACLI Contact
Alane Dent (202)