CONTINUING EDUCATION (CE) CREDITS – SUPPORT
S3960-A (Seward, Robach), A7012-B (Hunter, Cook, Dickens, Hyndman, Errigo)
Bill Purpose & NAIFA-NYS Position: NAIFA-NYS TOP PRIORITY BILL. Requires the Superintendent of Financial Services to grant six continuing education credits for all active members of a statewide professional insurance producer association. The bill defines a “statewide professional insurance producer association” and lists the requirements that the licensed producer and professional insurance association must meet for the insurance to be considered “active” for the continuing education credits.
The bill outlines the information that must be provided by both the licensed insurance producer and statewide professional insurance producer association to the Superintendent in order to obtain such continuing education credits.
New York’s insurance producer associations promote professionalism, best practices, ethical compliance, continuing education training and networking opportunities to their members. In addition, membership in these associations provide younger members an opportunity to be mentored by more established insurance producers thereby enhancing their business prospects. Thus, it is in the best interest of the State of New York to encourage insurance producers to join such associations and participate in that association’s meetings, conferences and educational seminars.
Status: S3960 – introduced and referred to Senate Insurance Committee January 31, 2017. Passed Senate and referred to Assembly Insurance Committee June 21. A7012 – introduced March 29, 2017 and referred to Assembly Insurance Committee. Passed overwhelmingly in Senate on March 27, 2018. Amended in Assembly Insurance Committee to further define standards for a “state professional insurance producer association” and an “active” member and overwhelmingly passed Senate as S3960-A on June 7, 2018 and unanimously passed Assembly on June 12, 2018. * Headed to Governor’s desk. *
REBATING LAW REFORM – SUPPORT
Bill Purpose & NAIFA-NYS Position: Imposes a standard for services offered by life insurance companies and producers, which requires that to show a violation of the anti-rebating statute, the Superintendent of the Department of Financial Services must show that the offered service was the sole reason for the sale of the policy and that such sale would not have taken place without the offered service. This standard will restore the statute’s original intent to prevent insurance sales made solely to obtain a service, while allowing the providing to insureds of valuable services that happen to come along with the purchase of the insurance policy. A need has arisen to create a clear standard with which all parties may use to ensure compliance with the law and also which allows insurers and producers to convey value to insureds along with the insurance policy, while returning to the original intent and purpose of the anti-rebating statutes.
Status: Senate Insurance Committee
NYS RETIREMENT SECURITY PROGRAM FEASIBILITY STUDY – SUPPORT
Bill Purpose & NAIFA-NYS Position: Bill Creates a state government task force to determine whether a need exists for a New York State sponsored retirement security program or whether current private-sector resources along with Federal and State laws and incentives are sufficient to provide private-sector workers with ability to establish adequate individual retirement programs designed to provide the requisite retirement security.
Status: Senate Civil Service & Pensions Committee
(See also STATE RUN SECURE CHOICE SAVINGS PROGRAM bills – A4982 Rodriguez /S4344 Savino & A9505 / S7505 Part X (Governor’s Budget Bill) below
OTHER BILLS WE SUPPORT
LTCI Personal Income Tax Credit – SUPPORT
S2559 (Golden) A4994 (Schimminger)
Bill Purpose and NAIFA-NYS Position: We SUPPORT this bill, which provides relief from increased premium costs of Long Term Care Insurance by using the age of the insured as a basis for a tax credit, so that policyholders will be able to afford and retain this important coverage. Those who purchased policies when they were in their younger years would receive a larger credit, so that after years of paying premiums, they won’t be forced to relinquish their policies due to rising premium costs.
Status: S2559 – passed June 20. Referred to Assembly Insurance June 20. Assembly Companion A4994 – Introduced and referred to Assembly Ways & Means February 6.
EMPLOYER EXEMPTION FROM DISABILITY BENEFITS – SUPPORT
Bill Purpose and NAIFA-NYS Position: We SUPPORT this bill, which defines “small business employers” in the workman’s compensation law as having 25 or less employees. Small businesses are more vulnerable and disproportionately impacted by economic changes. This is why half of all small businesses (identified as those with 25 employees or less) do not survive beyond two years. It is for this reason that small businesses are often exempted from initiatives that would have less of an impact on larger businesses. Small businesses are important to the state economy and, therefore, should receive the exemption, which both the federal government and other states have prudently included.
Status: Senate Labor Committee
INTERSTATE INSURANCE PRODUCT COMPACT – SUPPORT
Bill Purpose and NAIFA-NYS Position: We SUPPORT this bill, which establishes New York State’s eligibility to become a member of the Interstate Insurance Product Regulation Compact (IIPRC), intended to improve product approval conditions by establishing a single point-of-filing for life insurance policy forms. Products approved by the Compact Commission may be sold in every member state.
Status: Passed Senate May 24. Delivered to Assembly and referred to Insurance Committee May 24.
BILLS WE OPPOSE
STATE RUN SECURE CHOICE SAVINGS PROGRAM – OPPOSE
A4982B (Rodriguez) S4344B (Savino)
Bill Purpose and NAIFA-NYS Position: We OPPOSE A4982-B/S4344-B, which sets up a state-run pension program that competes with private-market plans. We understand the importance of retirement security and acknowledge that many Americans are not saving enough for retirement. However, this legislation is not the answer. There is already a strong, vibrant private-sector retirement plan market that offers diverse, affordable options including 401(k) and 403(b) plans as well as both traditional and Roth IRAs to individuals and employers. New York should study whether a need exists for a state-sponsored retirement security program or whether current private-sector resources, along with federal and state laws and incentives, are sufficient to provide private-sector workers with ability to establish adequate individual retirement programs designed to provide the requisite retirement security.
Status: A4982A Reported to Assembly Rules. S4344-B Senate Civil Service and Pensions
STATE RUN SECURE CHOICE SAVINGS PROGRAM – OPPOSE
A9505/S7505 Part X (Budget Bill)
Bill Purpose and NAIFA-NYS Position: We OPPOSE this legislation which establishes the New York State Secure Choice Savings Program for private-sector employees to be administered by the deferred compensation board. We understand the importance of retirement security, but we believe a state-run pension plan should be viewed as a last resort only after all private sector options have been exhausted. The Governor should be looking at the retirement financing industry in the state, including life insurance and financial products, and offering ways to encourage purchasing of these products—many manufactured right here in New York—as the way to secure financial futures for New Yorkers
Status: A9505 referred to Assembly Ways & Means. S7505 referred to Senate Finance.
REQUIREMENT FOR ADVISING SENIORS – OPPOSE
Bill Purpose and NAIFA-NYS Position: We OPPOSE this legislation, which would require financial planners working with the elderly to hold the professional designation of Certified Financial Planners. Should this bill become law, no other quality educational credentials, and more importantly, no other competent practitioners (who simply don’t have the requisite singular designation) would be acceptable in New York State to provide guidance, assistance, advice and product to many seniors.
Status: Assembly Banks
MANDATING DISCLOSURE BY NON-FIDUCIARIES – OPPOSE
Bill Purpose and NAIFA-NYS Position: We OPPOSE this bill which requires a broker who is not subject to a fiduciary duty, to tell current and prospective clients, both orally and in writing, that: “I am not a fiduciary. Therefore, I am not required to act in your best interests, and am allowed to recommend investments that may earn higher fees for me or my firm, even if those investments may not have the best combination of fees, risks, and expected returns for you.”
Status: Reported from Judiciary to Codes
For further information, please contact:
Mark Yavornitzki, NAIFA-NYS Legislative Director
518.915.1661 Ext. 103 * Mobile: 518.281.4972* E-Mail: email@example.com