NATIONAL ASSOCIATION OF INSURANCE & FINANCIAL ADVISORS

NAIFA NEBRASKA HEARTLAND

Advocate, Educate, Legislate & Motivate

The President’s Message

October 2013

Board of Directors

Dave Skutnik, President

Jeb Brant, Past President

Matt Green, President

Elect

Kristy Cavanaugh,

Secretary/Treasurer

Anita Speece, National

Committeewoman

Ty Benton

JJ Green

Michael Hutchinson

Tom Reisdorph

Patti Wissing

Dan Yost

Inside this issue:

Birthdays/Anniversaries

2

Calendar of Events 3

In the News 4

Photos from 9-13-2013

Meeting

5

Legislative Update 6

Legislative Update

Continued 7

Code of Ethics 8

Vision & Mission Statement 9

Membership 10

IFAPAC Contribution Form 11

Corporate Sponsors 12

Board of Directors 13

Dave Skutnik, President

Congratulations and thank you to all of the NAIFA members

from both Central and Heartland who braved the absolutely

perfect weather and commuted to Alda for our joint 2013-

2014 kick-off meeting. Those of you attending the morning

CE Session were treated to a real gem in John Gossin.

John was followed by an extremely enthusiastic and

enlightening conversation with Doane Basketball Coach Jim

Weeks. Member feedback reported an increased level of

professionalism and accountability as John and Jim both

walked us through real life examples and challenged each

member of the audience to reach further in life.

Hidden inside their conversations were money-making ideas

for those with the courage to act on their statements. More

money-making ideas are found in the NAIFA Virtual Library.

Talk about getting a great value for your annual dues!

The NAIFA Virtual Library is the single most comprehensive

online resource tool created to help you grow and succeed

in your business regardless of your practice specialty,

distribution channel or career level. As an added bonus,

locate “The Four Steps to a Super Attitude” in the Mental

Vitamins tab. The first member to respond back to me with

the author’s name and the four steps will receive a

complimentary registration at the October CE meeting.

See you there!

MILESTONES

HAPPY NOVEMBER BIRTHDAYS

HAPPY NOVEMBER ANNIVERSARIES

Page 2

Judy Barnes 11-01

Mary Santin 11-06

Steve Ryan 11-07

Diane Volden 11-08

Dennis McCarty 11-11

Anita Speece 11-11

Monte Hack 11-12

Loren Huber 11-20

Kacey Koch (Kent’s Wife) 11-26

Dick & Glenda Evers 11-17

Judy & Ed Barnes 11-25

HEARTLAND NAIFA 2013-2014 MEETING CALENDAR

10-16-13 Continuing Education at College Park

(4 hour Long Term Care Partnership Renewal by Marlene Lund

& Team. 2 hour Estate Planning by Kent Endacott.) Lunch will

be provided.

11-13-13 Wed Joint Meeting with Central in Alda

12-14-13 Movie at the Grand

1-17-14 General Membership Meeting at Lochland in Hastings

2-21-14 Joint Meeting with Central in Alda

3-18-14 Legislative Day in Lincoln

3-27/28-14 Joint NAIFA/NAHU Forum—Ramada Plaza (72nd & Center)

This is a change from the usual May date!! The forum steering

committee wanted to move the Forum from May to earlier in the

year and the Ramada had these dates available.

4-25-14 Annual Awards Luncheon at Riverside Country Club in

Grand Island

5-14-14 Continuing Education at College Park—This is a change from the

usual March date!! (3 hours Ethics, Nick DeSon from CalSurance

and 3 hours Charitable Giving from Jim Gustafson at the

Nebraska Community Foundation.)

We sincerely hope all of you will attend as

many meetings as possible. We will strive to

have the best meetings and speakers

possible.

Page 3

IN THE NEWS

Page 4

As appeared in the GI Independent on 9-8-2013

Green named Underwriter of the Year

J.J. Green, president of Primark Insurance Agency in Grand

Island, was named Underwriter of the Year for 2012-13 at the annual award

luncheon for the Lincoln Association of Health Underwriters (LAHU).

Green has served as a member of the LAHU board and

Nebraska Association of Health Underwriters board and has served his clients

for more than 35 years.

He has obtained his Chartered Life Underwriter and Chartered Financial

Consultant designations. He can be reached at 384-8700. JJ GREEN

STEVE HEATH

Welcome to our newest Heartland member, Steve Heath.

Steve is with New York Life in Grand Island and works in the same office

as Mike Hutchinson. Steve and his wife, Glenda Marie have 3 children. He

enjoys fishing, coaching, reading and spending time with his grandchildren.

Welcome to the Heartland Chapter Steve, we are happy to have you as a

member!!

As appeared in the GI Independent 9-8-2013

NAIFA Nebraska Heartland wins national award

The NAIFA Nebraska Heartland Association has received the 2012-13 Jack E. Bobo Award

of Excellence from the National Association of Insurance and Financial Advisors (NAIFA).

The award recognizes associations that excel in the areas of professional development,

advocacy, membership and governance.

“It’s an honor to be recognized by the national association for the work we’ve done to be

successful this year,” said Dave Skutnik, association president. “Our goal is to provide

insurance agents and financial advisors who are members with the tools they need to bet-

ter serve their clients.

“With a strong association, then the people of Grand Island, Hastings and the surrounding

communities benefit. Not only do our members follow a strict ethical code, but they have

access to resources that help them stay well informed in this competitive industry.”

Other officers of the Heartland association include Matt Green, Primark Insurance Agency,

vice president; Kristy Cavanaugh, American Family, secretary/treasurer; and Anita

Speece, Benefits Counseling, national committeewoman.

PHOTOS FROM 9-13-13 JOINT MEETING

Page 5

3 hours of Ethic CE’s with presenter John Gossin

Heartland Member, Dan Yost discusses IFAPAC with the crowd

Head Basketball Coach from Doane College, Jim Weeks gives a presentation on “How to become a difference maker, super achiever and a legacy leader”

Heartland & Central Members listen to Coach Weeks.

Coach Weeks draws the IFAPAC winner

Restoring Consumer Access to Health Insurance Agent Services

THE ISSUE:

The new medical loss ratio (MLR) requirement from the Patient Protection and Affordable Care Act (ACA) mandates that,

as of January 1, 2011, health plans are required to spend a minimum of 80% of premiums on medical claims (85% in the

large group market) and rebate any excessive overhead to enrollees. As a result, most insurance companies have slashed

agent commissions, in many cases by 50%. Eighty percent of NAIFA members surveyed have seen decreased commissions

since the MLR went into effect.

Health insurance agents and brokers provide consumers with a variety of valuable services – from claims assistance to

small business HR functions – but they cannot afford to continue without adequate compensation.

BACKGROUND: Licensed independent insurance producers (agents and brokers) help consumers – both individuals

and employers – obtain and get the most out of their health care policies in many ways:

Agents help their clients navigate the complicated health insurance landscape, including the new employer and indi-vidual requirements the ACA imposes.

Agents work with clients to evaluate their need for health insurance protection. This may involve substantial research

and fact-finding about the client’s needs.

Agents educate by explaining the various health plans available and provide appropriate cost indexes.

Agents make specific recommendations that suit the client’s objectives and budget. Often a health insurance plan is

designed by the agent to fit a client’s particular needs.

Agents see to it that accurate and complete information is provided to the insurer to make sure that the client gets the

very best premium available.

Agents review coverage, suggesting changes and counseling clients on ways to reduce cost – an on-going process since

needs continuously change as a person’s family and employment situations change.

Agents assist their clients in reviewing the need for legal and tax compliance, recommending other professional assis-

tance when necessary.

Agents assist with claims, answer questions and serve as ombudsmen in helping their clients deal with insurance

companies. Agents often spend an enormous amount of time helping clients assemble the proper documentation

needed to file or follow up on a claim. This is especially true with seniors who receive Medicare benefits.

Agents help business owners communicate their benefit packages to employees, and assist employees in understand-ing how the benefits coordinate with their personal financial plans and government benefits.

Continued on next page:

This service industry has been employing over 450,000 people, but according to the November, 2011NAIFA survey,

nearly a quarter of the agents (22.4 percent) have had to reduce customer service because of the lost compensation.

Another 29 percent say they will do so if their commissions remain depressed. One out of five of the brokers surveyed said

they have had to lay off employees or reduce the hours of customer-support staff.

NAIFA POSITION: Quick action is needed to preserve the valuable services and programs offered by licensed health insurance agents for the protection of consumers. NAIFA believes that independent agent and broker commissions should be excluded from the MLR calculation. This fix has several justifications: Independent agents further the purpose of keeping health care affordable by helping consumers shop for the most

suitable policy at the best price. The current MLR calculation is adversely impacting consumers’ access to professionally-licensed and trained insurance

agents and advisors, without an alternative means of ensuring that consumers receive personalized assistance.

Like taxes, which are currently excluded from the MLR compensation, commissions are forwarded to agents and

brokers and do not represent any part of the insurance company’s bottom line.

Insurance premiums have not been lowered as a result of the commission cuts, and insurance companies have told

regulators they will not raise premiums if the commissions are excluded from the MLR.

The Department of Health and Human Services (HHS) issued its final MLR rule and, despite a resolution in favor of

protecting agents by the National Association of Insurance Commissioners, failed to address the problems the MLR is

causing agents and their clients. Representatives Mike Rogers (R-MI) and John Barrow (D-GA) have joined with a

growing bipartisan group of nearly 70 cosponsors to offer H.R. 2328 to exclude the agents’ compensation from both sides

of the MLR equation. The Rogers-Barrow bill from last Congress passed through the House Energy and Commerce

Committee before the end of the Congress. The Senate’s reintroduced bill also protects consumers by preserving the role

of health insurance agents and brokers. Senators Mary Landrieu (D-LA), Johnny Isakson (RGA), Lisa Murkowski (R-AK),

and Mark Begich (D-AK) have introduced S. 650, which would remove most agent compensation from the MLR

calculation.

The Senate bill clarifies that bonuses paid by insurance companies to agents are included in overhead expenses, and does

not exclude commissions from the MLR for large group plans. The Senate bill addresses basic commission payments in

the individual and small group markets, targeting the problem where it is most severe. Congress needs to act quickly to

pass legislation to preserve consumer access to the valuable services of independent health insurance agents and brokers.

ABOUT NAIFA: Founded in1890 as The National Association of Life Underwriters (NALU), NAIFA is one of the nation’s oldest and largest financial services organizations representing the interests of insurance professionals from every Congressional district in the United States. NAIFA members assist consumers by focusing their practices on one or more of the following: life insurance and annuities, health insurance and employee benefits, multiline, and financial advising and investments. NAIFA’s mission is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of its members.

CODE OF ETHICS

Page 8

PREAMBLE: Helping my clients protect their assets and establish financial security, independence and eco-nomic freedom for themselves and those they care about is a noble endeavor and deserves my promise to support high standards of integrity, trust and profes-sionalism throughout my career as an insurance and financial professional. With these principles as a foun-dation, I freely accept the following obligations:

To help maintain my clients’ confidences and pro-tect their right to privacy. To work diligently to satisfy the needs of my clients. To present, accurately and honestly, all facts essen-tial to my clients’ financial decisions. To render timely and proper service to my clients and ultimately their beneficiaries. To continually enhance professionalism by develop-ing my skills and increasing my knowledge through ed-ucation. To obey the letter and spirit of all laws and regula-tions which govern my profession. To conduct all business dealings in a manner which would reflect favorably on NAIFA and my profession. To cooperate with others whose services best pro-mote the interests of my clients. To protect the financial interests of my clients, their financial products and my profession, through political advocacy.

The Vision and Mission of NAIFA

Page 9

Vision Statement:

The National Association of Insurance and

Financial Advisors protects and promotes the criti-

cal role of insurance in a sound financial plan and

the essential role provided by our professional

agents and advisors.

Mission Statement:

The mission of the National Association of

Insurance and Financial Advisors is to advocate for

a positive legislative and regulatory environment,

enhance business and professional skills, and

promote the ethical conduct of our members.

HEARTLAND NAIFA MEMBERS

Page 10

Todd Anania, Kevin Armstrong, Ginger Arvizo, Judy Barnes,

Ty Benton, Duane Biede, Paul Bowman, Jeb Brant,

Brad Carlson, Barry Carlson, Nate Casey, Kristy Cavanaugh,

Vincent Christensen, Jamie Cole, Fran Crowe,

Clancy Cunningham, Kent Daws, Martin Demuth, Dick Evers,

Mike Fergen, Matt Geiser, Sean Gellatly, J.J. Green, Matt Green,

Monte Hack, Amanda Hanquist, Dean Hawthorne, John Haynes,

Steve Heath, Ann Heinen, Paul Hoos, Loren Huber, Rodney Hunt,

Michael Hutchinson, Jeremy Jensen, Kris Jerke, Holly Johnson,

Steve Johnson, Rocky Kershaw, Kent Koch, Cheryl Kosmicki,

Jerry Kuhlmann, Tony Larsen, Cory Lenners, Erin Marick,

Dennis McCarty, Joshua Meier, Julie Meier, James Meyer,

Lee Mohr, Thomas Mortimer, Scott Norlen, Tim O’Connor,

Steve Pawley, John Posey, Terry Regan, Tom Reisdorph,

Randy Rhodes, Joni Rodabaugh, Stacey Rust, Steve Ryan,

Bill Sabatka, Greg Sanchez, Mary Santin, Kay Sawyer,

Kyle Sawyers, Larry Schanaman, Laura Schneider,

Adam Schwoerer, Ronald Shullaw, Allen Sjuts, Dave Skutnik,

Jon Smith, Don South, Anita Speece, Randy Spiehs,

Ken Steinbeck, Tom Strand, Jeffrey Swanson, Mike Theis,

Jeff Vinson, Diane Volden, Crystal Wall, Sydney Widga,

Patti Wissing, Denise Wray, Dan Yost, Denise Zabka.

IFAPAC contributor names are in blue

88

MEMBERS

STRONG

THANK YOU TO OUR CORPORATE SPONSORS

Click on the logo to access the sponsor’s web page

Page 12

Brokerage Services Inc. Transamerica

YOUR 2013-2014 BOARD OF DIRECTORS

Page 13

Anita Speece, National Ty Benton, Board Director JJ Green, Board Director Michael Hutchinson,

Committeewoman Board Director

Tom Reisdorph, Board Patti Wissing, Board Director Dan Yost, Board Director Diane Volden, Executive

Director Director

Dave Skutnik, President Jeb Brant, Past President Matt Green, President Elect Kristy Cavanaugh, Secretary/

Treasurer