NAIFA is collecting our list of state advocacy accomplishments so far in 2021. If your Chapter has had a legislative win or held a successful advocacy event and it is not included below, please let us know by May 21!

BEST INTEREST

• NAIFA continues to work with coalition members to enact the best interest standard of care language at the state level. At this point, 10 states have adopted the language, and we expect to add a few more in the next month or two.
• Alabama, Kentucky and Nevada are the three states to propose drafts that omit the best interest language. NAIFA has been leading efforts to revert the direction those states are heading in (and recently found out those efforts were successful in Alabama!).
• New York Supreme Court, Appellate Division, ruled that state insurance Regulation 187 is unconstitutional. The ruling cited a similar lawsuit filed by the NAIFA Chapter after Reg 187 was adopted. 

STATE-RUN RETIREMENT

• More than 30 bills have been introduced this past legislative session. NAIFA members have been front and center on the issue – testifying, contacting their officials and submitting letters to oppose these bills that would establish state-run retirement plans for private-sector workers and require certain employers to auto-enroll their employees in these plans.

PAID FAMILY MEDICAL LEAVE

• There are 45 pending bills in various states to create some version of state-run paid family leave programs. The issue continues to be a priority for our members. We have identified some terrific NAIFA members who specialize in disability products who continue to be excellent advocates for the issue.

WASHINGTON SAVES

• NAIFA-WA helped lead the adoption of crucial amendments to the Washington Long-Term Care Trust Act. The Trust was recently created to provide up to $36,500 in lifetime benefits for eligible beneficiaries to apply to the cost of their long-term care. The LTSS Trust Program is funded through a 0.58 percent premium assessment on an employee's wages. The original intent of the bill was to allow employees to opt-out as they acquire long term care service products. The opt-out was originally supposed to be used at any time, however, a limitation was established in 2020. The recently passed, NAIFA-supported amendments extends the date a person must purchase long-term care insurance to opt out of the program to November 1, 2021 (some breathing room). The second adopted amendment requires the long-term services and supports (LTSS) Trust Commission to work with insurers to develop long-term care insurance products that supplement the LTSS Trust program's benefit.

OTHER AREAS:

• In Maine, NAIFA members have been fighting for 30 years to get the state’s two percent NQ annuity premium tax repealed, and efforts are finally paying off. LS 1062 is finally moving through the committee process!
• Montana recently adopted its law to end its practice of unisex rating for all insurance. NAIFA members helped draft the bill, worked with the commissioner and testified in person.
• NAIFA-IN worked really hard on a bill to replace the Indiana Long-Term Care Insurance Program with a Deficit Reduction Act Partnership. While the RWJ Partnership served a meaningful purpose in incentivizing consumers to take personal responsibility for long-term care risks, it suffers from inflexible policy and special filing requirements, as well as burdensome inflation-protection requirements, that have resulted in many insurers dropping out of the program. The bill has passed.
• After several years of discussion and meetings with the insurance commissioner and lawmakers, NAIFA-Iowa secured a win recently when the Senior Financial Fraud Prevention bill passed both legislative chambers. We expect the governor’s signature soon.
• In Louisiana, a recent bill to redefine independent contractors snuck up on us. The bill itself wasn’t a direct threat to our members. The sponsor immediately said he had no intention of producers being lumped into the new definition. However, we (ACLI and NAIFA) saw this is a good chance to pursue general exemption language that would apply to absolutely anyone or anything licensed by the LDI, and any BD or IA registered with the SEC or FINRA or licensed by the State of Louisiana. (We used the CA AB 5 language.) Thanks to the quick work of our lobbyist, the amendments were adopted on the Senate floor on May 3.

STATE ADVOCACY ON A ROLL!

• Quick to adapt to the COVID-advocacy environment, NAIFA Chapter’s Virtual Legislative Action Days are on a roll. So far, CA, IA, FL, ME, ND, TX, SC, AR, PA and WI have held their events. These events have been well-attended, and speakers have almost always included state legislators and the insurance commissioner.
• While we have lobbyists on the ground, we instruct our lobbyists to utilize our members’ voices whenever possible. We have been very successful this past year getting our members to be the spokespeople on issues. This past legislative season, at least a dozen NAIFA members have testified on five different topics during in-person and virtual legislative hearings.
• Earlier this year, we also had a NAIFA member provide very compelling testimony during an NAIC hearing on diversity and inclusion.
• Additionally, the success in Alabama on best interest was largely due to a Zoom meeting held between Insurance Department staff and a handful of NAIFA members who specialize in annuity sales.