2017 Legislative Positions
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Position #1: Advisor Liability

Because our agents have a dual responsibility to the insured and the insurer, NAIFA-Iowa supports the current state of legislation in Iowa, to wit: that agents owe reasonable care, diligence and judgment to their clients unless “the agent holds himself out as an insurance specialist, consultant or counselor and receives compensation for consultation and advice apart from premiums paid by the insured,” Sandbulte v. Farm Bureau, 343 N.W.2d 457 (1984), as codified in Iowa Code 522B.11(7)(a)-(e).

Position #2: Continuing Education

Whereas NAIFA demands the highest standards of professional ethics and integrity from its members, and provides information and education to its members about its ever-changing industry, NAIFA-Iowa supports legislation that would grant continuing education hours to its members who maintain an active membership.


Position #3: Iowans’ Right to Choice & Access for Retirement

NAIFA-Iowa embraces and supports products and choice of advisors to eligible educational employees regarding participation in tax sheltered annuities under section 403(b) of the Internal Revenue Service Tax Code that is currently administered by the Iowa Department of Administrative Services. NAIFA-Iowa supports the modification of the Iowa Code or Administrative Rules to reflect any administrative adaptations made in this area, thus assuring Iowa educational employees have suitable and reasonable choice among companies, plans and advisors.

NAIFA-Iowa opposes any legislation or regulation that would limit access by any Iowan to products and services that the Iowan may deem necessary to plan for and ensure the financial wellbeing of them and their families. Iowa’s state employees have limited choices regarding the investment of their section 457 retirement savings.

NAIFA-Iowa supports repeal of laws previously passed limiting the choices available to state employees or the modification of the law or administrative rules to provide more choices for Iowa’s state employees.

Position #4: Right to Quality Choices in Health Care

NAIFA-Iowa supports:

  • Section 1332 State Innovation Waiver option
  • Ensuring health care for all Iowans
  • Improving affordability and sustainability of insurance choices to all Iowans
  • That consumers have access to professional services provided by licensed and regulated insurance agents
  • Navigators referring consumers to certified agents (those who have completed appropriate CMS and Exchange training) to purchase health insurance on the Iowa/Federal exchange
  • Establishing an agent of record for those certified agents who work with consumers on the purchase of health insurance through the exchange
  • Establishing appropriate compensation for those certified agents selling on the exchange

 

Position #5: Senior Financial Protection

NAIFA-Iowa generally supports state legislation intended to protect seniors from financial fraud and exploitation, provided that it contains certain provisions: 

  • A voluntary reporting process where the advisor, upon suspecting attempted fraud on a client, would report the matter to the firm (i.e. broker dealer or insurer).  The firm could then alert the appropriate state authorities, and, at the firm’s discretion, delay a suspicious requested transaction. This process would allow the firm’s legal and compliance personnel to review the questionable transaction with greater scrutiny.      
  •  A legal “safe harbor” provision where advisors and their firms would be immune from liability for following the law’s provisions.  Advisors and their firms should be encouraged to report potentially fraudulent transactions to protect their senior clients’ assets.      
  • A provision that would permit the state insurance department to provide training resources to advisors on how to recognize signs of cognitive decline while clearly acknowledging that advisors are not medical professionals and will not be held responsible for determining a client’s cognitive condition.

 

National Association of Insurance and Financial Advisors-Iowa

600 State Street
Suite A
Cedar Falls, IA 50613