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Tell Congress the U.S. Department of Labor (DOL) proposed Fiduciary rulemaking will threaten the ability of many financial professionals to serve lower-and middle-income Main Street families. 

The Department of Labor has recently proposed a new worker classification rule in an attempt to address the growing gig economy in the United States.  As you know, changes to the current independent contractor structure can be detrimental to our industry, and in turn negatively impact your clients on Main Street.

Independent insurance producers, brokers, and financial advisors have a long history of being independent contractors and not employees for purposes of determining the applicability of federal and state wage and benefit provisions. The independent contractor/statutory employee model is the distribution model that most insurance companies and producers adhere to within the industry. This working model is essential to providing consumers with the greatest protection and access to insurance products.

Why is this important:

• Legislative or regulatory action that redefines the relationship shared between insurance producers, independent broker-dealers and independent financial advisors with the insurance industry would hurt everyone.
• Creating a new standard that does not ensure that legitimate independent contractors are protected from misclassification as employees limit the scope of insurance products consumers would have access to as well as the general distribution of insurance products and investment advice, thereby limiting consumers’ ability to protect themselves and their loved ones.
• Many insurance professionals have relationships with multiple insurance companies and financial institutions, which could make altering the existing economic realities test and reclassifying them as ‘employees’ problematic. The current independent-contractor relationship ensures consumers have the greatest access to products, services, and advice

Insurance producers and independent financial advisors are deeply rooted in our communities and are best positioned to understand the needs of consumers. To reclassify and force us into an employment relationship drastically limits not only our autonomy but the availability of products we can provide to clients.

Please join us to request the DOL modify its proposed rule to ensure that legitimate independent contractors are protected from misclassification as employees. “Take Action” by clicking the button below.

The “Medicare Program: Contract Year 2023 Policy and Technical Changes to the Medicare Advantage and Medicare Prescription Drug Benefit Programs,” also referred to as the Medicare Marketing Rule, was finalized in May of this year.

The final rule makes significant changes to existing marketing requirements for both Medicare Advantage and Part D plan-marketing requirements. The wording in this new rule will require you to record all enrollment conversations and leaves a significant number of beneficiaries at risk of not having the ability to obtain a licensed and Medicare-certified independent agent or broker to assist them.

• The final rule looks to account for unscrupulous marketing behaviors by requiring third-party marketing organizations (TPMOs) to record all enrollment conversations which is something that is already in place for TPMOs. The main concern we have is the shift to a broad definition of what a TPMO is and that in turn will have adverse consequences on all the entities that are currently acting responsibly. 
• This new requirement will add an additional burden to licensed and certified agents attempting to assist Medicare beneficiaries when choosing a suitable health and drug plan.
• The new regulations will discourage many licensed and certified agents and brokers from representing Medicare Advantage and Prescription Drug Plans, leaving thousands of Medicare beneficiaries without access to professional assistance in their enrollment. 
• Independent agents and brokers are often small businesses.  This new rule will put new financial burdens on businesses that will be required to set up HIPAA-compliant audio recording systems that can securely store these conversations. 
• Many Medicare beneficiaries are weary of having their private conversations recorded and stored on servers for up to 19 years.  These enrollment conversations can take hours if not days to complete, with numerous sensitive topics covered from health to financials. 

The final rule was released in May, less than five months prior to the upcoming AEP. The lack of guidance from the Department of HHS will leave thousands of Medicare beneficiaries without the help of licensed agents and brokers and may leave them in the hands of the bad actors that this rule seeks to regulate.

Sens. Kevin Cramer (R-ND) and Mark Warner (D-VA) introduced legislation to recognize remote and electronic notarizations between states and the Federal government. Senate Bill 1212 would establish minimum requirements for notarial officers to perform their duties in a remote location using Remote Online Notarizations (RONs).  

• Since COVID-19, consumers have adapted to innovative technologies. The current notarization laws require consumers to be physically present with notarial officers, which is impractical and unrealistic in the modern digital age. 
• S.B. 1212 would accommodate disabled Americans, the elderly, and military families serving overseas.  
• With the utilization of RONs, the real estate, legal, and financial services industries would benefit from the flexibility in scheduling it provides. 
• 43 states have enacted remote online notarization laws. 

The U.S. House of Representatives passed the SECURE Notarization Act of 2023 on February 27th. The bipartisan legislation would improve best practices between businesses and consumers.  

Please join us in urging the Senate to pass S.B. 1212. Click the “Take Action” button below and urge your Senator to vote yes on S.B. 1212. 

We are asking our Members of Congress to please join the Congressional Financial Literacy and Wealth Creation Caucus. 

As agents and advisors, we all understand that basic financial education is a cornerstone in the search for financial security. When people understand personal finances, Americans are enabled to make responsible financial decisions. The Caucus is committed to empowering Americans by giving them the tools to build wealth and achieve financial stability.

Please join fellow NAIFA members by encouraging your lawmaker to join the Congressional Financial Literacy and Wealth Creation Caucus today.

On September 21, 2021, Representatives Mike Thompson (D-CA) and Adrian Smith (R-NE) introduced H.R. 5318. This bipartisan bill will provide much-needed relief for employers seeking to comply with the reporting requirements under Section 6055 and 6056 for enforcement of the ACA’s individual and employer mandates. The legislation would:

• Establish a new voluntary reporting system for employers to report to the IRS information about their health plans. Exchanges will use the federal data hub to access this data for individual verification for tax credits. 
• Require that employers report to the IRS only those employees (and/or their dependents) who are not receiving healthcare from their employer, greatly simplifying the requirement that all employees be reported. 
• Specify that information that would be reported would include name and employer identification, who has been extended an offer of minimum essential coverage, whether coverage meets minimum value and the affordability safe harbor, and months that coverage is available without waiting periods.
• Allow employers to deliver reports to employees electronically without another consent form.
• Instruct the Government Accountability Office to conduct a study on the notifications, HHS appeals process and the prospective reporting system.
• Require HHS to review the most recent tax filing for individuals automatically reenrolled in exchange-based coverage and adjust their tax credits accordingly.

If you would like to send a message to your U.S. Representative, please “Take Action” at the button below and customize the template letter asking them to co-sponsor the legislation proposed by Representatives Thompson and Smith.