The Pace of Change - Nailba

The Pace of Change - Nailba




industry insights


The Pace

of Change

What BGAs Can

Do to Thrive

in Tomorrow’s



Building the Agent of the Future

Key Trends in Wholesale Brokerage

The Shifting Landscape of Risk Management

Ron Ridlehuber on the Future of BGAs

Look Inside for Information on FOCUS 2007

We’ve Taken a Fresh Look at Life —

Why Don’t You?

At Genworth Financial, we’re always looking for ways to take a fresh look at life.

That’s why we’re committed to bringing you innovative products, marketing tools

and sales ideas to help you grow your business. And we’re equally passionate about

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We’re committed to delivering faster, simpler service. Leverage our streamlined

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Take a fresh look at Genworth — send us your next case today.


©2006 Genworth Financial, Inc. All rights reserved. Products underwritten by Genworth Life and Annuity Insurance Company and

Genworth Life Insurance Company, Lynchburg, VA; Genworth Life Insurance Company of New York, New York, NY. Insurance & Investment products

available from the Genworth Financial family of companies including mutual funds and variable insurance products distributed by Capital Brokerage

Corporation (dba Genworth Financial Brokerage Corporation in Indiana). Member NASD/SIPC. Genworth Life Insurance Company of New York

is licensed in New York. Genworth Life and Annuity Insurance Company and Genworth Life Insurance Company are licensed in all states except


1TA1524 1106

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With our experience in financial protection, AXA Equitable

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distributed by AXA Distributors, LLC, located at 1290 Avenue of the Americas, New York, NY 10104, (212) 554-1234. *By revenue. Insurance: Life, Health (Stock) Fortune 2006 Global

500, Fortune Magazine, July 24, 2006. AD-06065 (8/06)

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To learn more, call our National Sales Support Team at 1-866-ING-SELL (1-866-464-7355), OPTION 6.



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ING ROP Term consists of a base term policy, policy form 1309 11/06, and a Return of Premium Rider, form #R1347 11/06. The base policy cannot be issued without the Return of Premium Rider. Form numbers and availability vary

by state. ING ROP Term is issued by ReliaStar Life Insurance Company, a member of the ING family of companies. Guarantees are based on the financial strength and claims-paying ability of ReliaStar Life Insurance Company, which

is solely responsible for obligations under its own policies. ©2007 ING North America Insurance Corporation. cn57192022008

For agent information only. Not for public distribution.


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Our Agent Recruiting Call Center Platform has been so successful in

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marketing an Equity Indexed Annuity, all you will see are agents who

sell Equity Indexed Annuities. The same holds true for Life Insurance,

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Now, you can turn back

the hands of time.

Prudential’s “age last birthday” formula

saves your clients money. 75% of the top 16

carriers in UL sales use “age nearest birthday” to

determine life premiums for your clients. Not us.

We use “age last birthday,” which can make a big

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Annual Premium

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Annual client savings $514

These rates are for non-smokers in our Preferred Best underwriting category. Companies used in this comparison

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competitiveness of their products, 2006.


For more information,

contact the brokerage

general agency in your area,

call 1-800-292-0054, or visit

©2/2007. Prudential Financial. PruLife Universal Protector ® is issued by Pruco Life Insurance Company in all states except New York where it is issued by Pruco Life Insurance

Company of New Jersey. Both are Prudential Financial Companies located in Newark, NJ. Issuance of a policy is subject to our underwriting and eligibility requirements,

which may result in different premiums. Pruco Life may have the right to contest the policy for misrepresentation or to apply a suicide clause.

For the education of producers/brokers. Not for use with the public. IFS-A118673 Ed. 2/2007




22 Building the Agent of the Future

How to identify, recruit and retain agents who can open doors.


30 Key Trends in Wholesale Brokerage

Perspectives asks several key stakeholders in our industry to assess current trends and evaluate how

wholesale brokers are positioned to handle them.


38 The Shifting Landscape of Risk Management

Technological change, new markets, a new emphasis on the consumer—all are changing the face of risk

management. Finding a channel through this river isn’t easy, but intrepid travelers can find their way.



Special Thanks to Our

May/June Issue Team

Myra Palmer, The Palmer Agency

Jonathan Reynolds, EMSI

Bill Schnackenberg, Portamedic



44 Outdoor Cooking

and Dining

Home is always the best place

to be. Here we show you how

to make the most of your

backyard—for family, friends

and associates. Presenting

great new cooking gear,

accessories and more to make

your summer nights, your

weekends, and your outdoor

dinner parties memorable

and relaxing. This is what

summer’s for.


9 Chairman’s Corner


Refocusing FOCUS.

10 Executive Report


In transition.

16 The View

Ron Ridlehuber on what it takes

to be a winner in the marketplace

of today and tomorrow.

51 Location, Location, Location?


Principles of trade show booth


52 NAILBA University


Empower your people via

NAILBA’s educational arm.

54 Agency Opportunities


Critical illness insurance.

59 Business Intelligence



NAILBA Best Practices List

now available.

62 Legislative Update


Change can be good…

47 FOCUS 2007

Completely redesigned and

improved for 2007, FOCUS is

truly a meeting you should not

miss! Two educational tracks,

a great exhibit hall and the

networking opportunities you’ve

come to rely on—this year’s

FOCUS promises to be better

than ever. See you in Scottsdale

on June 7-8.

66 Index of Advertisers 7



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Standard & Poor’s, and Standard & Poor’s makes no representation regarding the advisability of purchasing this product. 1 The policy owner does not purchase interests or otherwise

directly participate in any stock market index, mutual fund, stock or other investment in securities. 2 Guarantees are subject to the claims-paying abilities of American General Life

Insurance Company. 3 Ratings current as of 8/23/06. Standard & Poor’s rating contains a negative outlook. For detailed info about our ratings, visit 4 Based on

current federal income tax laws.

chairman’s corner

Refocusing FOCUS

When was the last time you attended

NAILBA’s FOCUS meeting?



SUCCESSFUL people never stop learning,

and NAILBA always strives to provide you with learning

opportunities in a variety of formats and settings.

Perhaps our most visible learning opportunities come

through our meeting program, which includes FOCUS

and our annual meeting.

When was the last time you attended NAILBA’s FOCUS

meeting? It might have been 10 years ago or it might

have been last year, but FOCUS has changed since then.

In today’s wholesale brokerage industry, education is

the cornerstone of growth. So perhaps it’s time for you

to refocus on FOCUS—as we have here at NAILBA, restructuring

and realigning the meeting to match what

we’re learning about your shifting priorities.

Since 1984, the mission of FOCUS has been to help

NAILBA member agencies run their businesses more effectively

and efficiently. And while that mission has not

changed, the challenges and issues that confront you

and your agency every day certainly have.

With that in mind, last summer, several of today’s

leading insurance minds met. The objective? To refocus

FOCUS. The group was composed of agency, carrier

and vendor representatives, independent consultants,

and meeting planners, all seeking a clearer understanding

of the needs and values of NAILBA’s members. After

thoroughly examining the issues and trends facing

our industry, the group discussed a variety of strategic

changes for FOCUS.

The group’s first conclusion was that FOCUS needed

to parallel the natural evolution of the industry by creating

learning experiences both for agency principals

and staff. To that end, two distinct tracks of FOCUS

training were developed. Now, both groups can get the

information they need to grow business effectively and

efficiently—in an environment that’s maximally conducive

to effective and efficient teamwork.

The FOCUS track for agency principals will include

sessions on topics such as underwriting and case management

best practices and balancing underwriting

and reinsurance. The staff track will include sessions

NAILBA will continue

to identify and respond

to the changing

priorities, challenges,

and educational needs

of the people who make

it all happen.

on topics such as interpreting and summarizing medical

records and making communication more effective.

Having two training tracks at FOCUS will enable

agency principals to concentrate on overall agency efficiency.

Meanwhile, key agency personnel will be able

to contribute to the bottom line by concentrating on

improving the way cases move through their agencies.

But the changes didn’t stop there. In addition to

developing a two-track structure for FOCUS, the group

decided to condense FOCUS into a shorter time period.

That means less time out of the office for you and your

staff. But don’t worry! The educational experiences for

which FOCUS has long been known will still be available—and

then some. And, just as important, we still

plan to feature a packed Exhibit Hall and plenty of networking

opportunities—two items that you regularly

tell us are among the most important benefits of your

NAILBA membership.

As brokerage continues to grow its share of the

insurance distribution industry, NAILBA will continue

to identify and respond to the changing priorities,

challenges, and educational needs of the people

who make it all happen. We truly hope you benefit

from—and enjoy—your experience at this year’s

FOCUS. When you get back home, we’ll ask you to let

us know what you think. 9

executive report

Perspectives is published for the

National Association of Independent Life

Brokerage Agencies

12150 Monument Dr., Ste. 125

Fairfax, VA 22033

(703) 383-3081


John W. Felton, IV


Doug Mishkin

Chief of Staff/Chair-Elect

Gary S. Dworkin, CLU, RHU


Mark D. Rosen, CLU


Matthew J. McAvoy, CLU, ChFC

Immediate Past Chairman

Christi M. Daughenbaugh

Thomas A. Kirke, CLU

E. Parks LaMarche

James C. McGill, CLU, ChFC

J. Michael Thomas, CLU


Jack Chiasson, CMP

Director, Meetings and Conventions

Michelle W. Jones, CMP

Director, Member and Foundation Services

Jeff Kraber

Technology Advocate

Clare Nykolyszyn

Administrative Assistant

Amelia A. Ragan

Manager, Member Services

Janay Rickwalder

Director, Communications

Meg Rose, FLMI, ACS

Director, Education Services

John Woodstock

Sales Manager

5950 NW 1st Place

Gainesville, FL 32607

(800) 369-6220

Publisher Chris Hodges

Project Manager Tracy Tompkins

Marketing Associate Jessica Craik

Book Leader Rick Sauers

Advertising Sales

Shaun Greyling, Paul Walley,

Jamie Williams, Jason Zawada

Editor Michael Senecal

Design Cal Harding

Advertising Art Melanie Meilleur

© 2007 Naylor, LLC. All rights reserved. The

contents of this publication may not be reproduced

by any means, in whole or in part, without the prior

written consent of the publisher.

Cover artwork © Evans.

For information on advertising opportunities in

Perspectives, please call Rick Sauers at

(800) 369-6220. Please support our advertisers;

they made this publication possible.

Published April 2007/NIB-S0307/5775






change is not completely

predictable, it often happens

while we’re making other plans.

So it is with my temporarily joining the NAILBA staff

team. As Joe Normandy moves on to pursue new opportunities,

the rest of the staff team and I will do our best to

continue NAILBA’s momentum and use this opportunity to

shape an even stronger headquarters.

From my perspective, Joe Normandy has done an exceptional

job in bringing together a durable and professional

staff team capable of supporting NAILBA’s priorities well

into the future. I anticipate the transition to a new NAILBA

chief staff executive will proceed very smoothly. With your

help and understanding, I have no doubt NAILBA will continue

its success and growth.

As in all transitions or change scenarios, it is “after the

fact” that we can truly assess the worth and value of those

who contribute to each chapter of an organization’s history.

It is my believe that NAILBA’s most recent chapter will be

seen as a period of exceptional sustained growth and a firm

foundation for the even greater success yet to come.

I say this with confidence because I know Joe would agree

that NAILBA’s greatest asset always has been and always will

be the exceptional capabilities, caring, and creativity of its

member agencies.

NAILBA’s greatest asset

always has been and always will

be the exceptional capabilities,

caring, and creativity of its

member agencies.

10 perspectives MAY/JUNE 2007

See everything.

Introducing full disclosure, only from Rumson Capital.

Numbers can be revealing. That is why we are revealing every number of every transaction.

You’ll see the full amount of the highest bid, as well as our commission. After all, our relationship

should outlast any novelty, dime-store trend.


Goal Is



Agency Resources

• Comprehensive Agent E&O

Insurance Program

• Field Underwriting Guide

• Anti-Money Laundering


• NAILBA University

• Technology Standards


• FOCUS 2007

June 7-8

Scottsdale, AZ


November 15-17

Orlando, FL


• Legislative and Regulatory



For more information on how you can

take advantage of these membership

benefits, contact NAILBA today at (703)

383-3081 or visit

317311_fidelity.indd 12 perspectives 1 MAY/JUNE 2007

3/20/07 11:02:17 AM

LISA’s Annual Conferences bring

together prominent professionals and

leaders in the life insurance settlement

industry. Industry leaders make this

the premier event to discuss and

facilitate the latest legislative and

regulatory developments, emerging

research, opportunities, and hot topic

issues in the promising secondary

market. Life settlement companies,

brokers, providers, financing entities,

service providers, investors and many

others will attend. Life producers are

encouraged to attend. Networking

opportunities abound!

©2007 The Coventry Group. All rights reserved.

Not just brushing. Flossing.

The potential for the secondary market for

life insurance is huge. And as the market leader

and creator, we are pushing the industry’s

standards ever higher. By being the first to

actively support strict legislation that protects

consumer rights. By continuously raising

due diligence standards. And by creating new

tools – and new choices – to maximize the

value of life insurance. Because we want to see

every ounce of the market’s promise realized.

And then some. 877-836-8300

the view


or Thrive?

The future of BGAs who add value to brokerage is extremely bright.

have never been very successful at

I predicting the future. I predicted

that home computers and the internet

would be nothing more than

passing fancies. But what I do know

is the history of this great business

of marketing life insurance products.

It’s a business that I have been part

of for over 30 years. I know that

the need for our products and services

has never been greater and will

continue to grow in the foreseeable

future. History has also taught me

that the most effective way for our

clients to understand their needs

and to obtain products to solve their

financial challenges is through a financial

services professional. While

some life insurance purchases are

client-generated and completed over

Ronald H. Ridlehuber, CLU, FLMI, LLIF, served as president of North

American Company for Life and Health Insurance from 2003 through

2007. Prior to joining North American, Ron served as president of various

units of American General Life Companies, including Franklin Life,

American General Life and Accident, and American General Life.

Ron began his insurance career in 1975 in sales and marketing with

Southland Life Insurance Company in Dallas, and followed Southland

to Atlanta when ING purchased the firm in 1988. At Southland, Ron

served in several marketing-related positions, including Vice President

of Sales. In 1993, he joined Jefferson-Pilot Life Insurance Company in a

new role as senior vice president, independent marketing and was later

named chief marketing officer for JP.

Ron was born in the West Texas town of Snyder but spent most of

his youth in Tulsa, Okla. He attended Southern Methodist University

on a baseball scholarship and earned his BBA in 1975. He is also registered

with NASD and is a board member of the Illinois Life Insurance


Ron and his wife Cheryl live in Chicago.

the internet, the overwhelming majority

have been and will continue to

be sold, not bought, and the licensed

insurance agent will continue to be

the person that most American life

insurance consumers will choose to

deal with.

Trends in life insurance distribution

have shifted over the last 30

years, but not as much as some had

predicted. I can recall some prognosticators

in the early ‘80s stating that

by this time the majority of financial

services products would be sold

through banks or at worksites. While

banks have been extremely successful

in marketing fixed annuities, they

haven’t had much success selling permanent

life insurance. And the story

with mass-marketed, voluntary worksite

products is similar. Those generally

have been limited to supplemental

health products and smaller face

life products. So what conclusions

can we draw from these facts regarding

the future of BGAs?

I believe the best way to predict

and prepare for the future is to look

at past successes and failures. So

let’s look at what has and continues

to generate success stories. In

the early days of life insurance brokerage,

the sales were by and large

“excess” sales made by career agents

who could not place a particular case

with his or her primary company. Substandard

shops worked, many times,

with career agency companies who

would “allow” their agents to place

these types of cases through approved

brokerage agencies. This grew


Linking the

right company

with the right

sales situation

is something

the brokerage

agencies do

better than


16 perspectives MAY/JUNE 2007

Full Page

Page 17

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the view

The question is not so

much whether brokerage

agencies will be relevant

and survive in the future.

It is more about the degree

to which the good ones will

thrive in the future.

into brokerage agencies who branched

out into specialty products not offered

through traditional carriers, still using

the career agents as their source of production.

These early brokerage agencies

provided a service that the agent could

not get elsewhere, which is why so many

of them flourished.

Now fast forward to the present day.

Fewer agents are “captive” than in the

past, and more companies are providing

a wide variety of products for their

agents. It is no longer a common practice

for brokerage agencies to have exclusive

deals with career carriers, and,

with a few exceptions, career agents

can have contracts with other carriers

without the restrictions of the past.

As the saying goes, the more

things change, the more they stay the

same. In the early days of brokerage,

the agencies flourished because they

provided value in the sales process

through supplying a product or service.

Today, successful BGAs are doing the

same thing, but in a different manner.

They continue to add value to the independent

agent and broker. And, more

times than not, it is more than just by

providing general market life products.

This is partly due to the fact that general

market products have become almost

generic. The value that successful

BGAs are providing is as varied as the

needs of their customers (the brokers).

Agencies are now offering service and

support, sales packages, specialized incentives,

access to markets, affiliation

with other brokers and agents for idea

sharing, and, in some cases, new agent

training. I could give you examples of

top quality brokerage agencies who are

achieving strong double-digit growth

year after year by providing value to

brokers and agents in ways other than

through acting as a conduit for general

market products. I am tempted to list

such agencies, but I would invariably

leave some out, so I will resist the


But let me be more specific. The

agent’s most productive time is when

he or she is directly working on solving

18 perspectives MAY/JUNE 2007

How long has

it been since

you’ve heard

back from your




2006, Nationwide Financial Services, Inc. All rights reserved.

LAV-0102AO (06/05)

the view

a client’s financial challenge. This is

where the agent provides the most

value to the sales process. It is not in

running illustrations, tracking down

outstanding requirements, dealing

with home offices, or even searching

the market for the best product. This

continues to be the value many brokerage

agencies provide.

Other successful agencies have

found their unique ability is in developing

sales concepts and markets

for their agents. Examples of this

would be the college funding market,

specialized premium financing

plans (full recourse, not STOLI) for

wealthy clients, wealth transfer programs,

business insurance programs,

and specialty product outlets for

out-of-the-ordinary needs. In short,

they are either providing a value

they can’t get elsewhere or they

are creating an environment that is

best suited to the broker’s needs.

The value-added list also includes

searching carriers and products that

fit the specific needs of a particular

broker or sales situation. Top-quality

brokerage agencies know the

carriers, they know the executives

in the companies, they know the

chief underwriters and chief actuaries,

and they know the products and

services in the market. Linking the

right company with the right sales

situation is something the brokerage

agencies do better than anyone.

To me this brief analysis about

the future of life insurance brokerage

agencies says that the future is

extremely bright, especially for those

who realize that they will get exactly

the amount of business from their

brokers that they earn, no more or

no less. They will earn it by providing

a value equal to or greater than the

overrides they will be paid. It is my

belief that those agencies that rely

only on being a conduit between the

company and the broker for general

market products will find it very tough

to thrive in the future. But for those

who add value to their brokers, their

potential for growth is unlimited.

Fortunately for our industry and

for the American consumer, we have

many life insurance professionals who

are leading agencies and understand

this concept. Evidence of this is the

growing number of NAILBA members

who invest their time and money to

improve their value to the broker.

So the question is not so much

whether brokerage agencies will be

relevant and survive in the future. It

is more about the degree to which the

good ones will thrive in the future.

And it is my privilege to have been in

this great industry for over three decades

and to have observed your tremendous

success. But I truly believe

that the best is yet to be.

We listen. We deliver.


your way


As you prepare your clients for the

many “ifs” in life, we want to be

your partner of choice and help you

grow life insurance sales through

your organization the only way that

matters— your way.

For the if in life.

For Producer or Broker Use Only. Not for Public Distribution.

Life insurance products are issued by MetLife Investors Insurance Company, MetLife Investors Insurance Company of California, MetLife Investors USA Insurance Company (collectively and singly, MetLife Investors), MetLife Life and Annuity Company

of Connecticut, MetLife Insurance Company of Connecticut (MetLife) and in New York, only by First MetLife Investors Insurance Company (MetLife Investors) and MetLife Insurance Company of Connecticut (MetLife). Products are distributed by

MetLife Investors Distribution Company, 5 Park Plaza, Suite 1900, Irvine, CA. 92614 BDVL 3768 LCN: 4222 (exp. 12/07) 0610-2784 PEANUTS © UFS, Inc.

20 322255_metlife.indd perspectives 1MAY/JUNE 2007

3/14/07 1:30:52 PM

Reach for great things SM

Symetra Express

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22 perspectives MAY/JUNE 2007


of the


How to Identify, Recruit

and Retain Agents Who Can

Open Doors

Brokerage wouldn’t

exist without the

producing agents

who locate customers

and make sales.


The consumer landscape is changing. More single moms than ever

are their families’ sole source of financial support. Nontraditional

and multicultural markets are growing. And there’s still a vast

untapped middle market. All of these markets need the basic financial

security our products offer, but brokerage needs to find

agents who can open the door to these new potential customers.

Starting Point

Who is the average brokerage life insurance agent? A 51-year old man who has been

in the business more than 10 years. He works alone, often at home, or in a small office

and relies on his computer, e-mail, cell phone and fax; he doesn’t use a PDA or

a Blackberry. He’s selling insurance to men in their 40s. This average agent writes

business with at least five carriers and through more than one brokerage. His relationship

with his primary broker is less than five years old and is driven by his broker’s

multi-carrier access and phone support. What would make him switch brokers? Higher

commissions or lead offers. 23


To build their future agent workforce,

brokers need to reach out to younger


Agent of the Future

Individuals who choose to become

life insurance agents have the satisfaction

of knowing that they’re

helping provide a valuable safety

net. Savvy agents also realize that

life insurance is often the first step

in an individual’s financial plan, and

they’ll periodically help clients review

their financial situation as

their lives and their needs change.

To build their future agent workforce,

brokers need to reach out to

younger professionals. The Web has

changed the way they work and

live. They’re accustomed to seeking

answers themselves on the net, so

they expect the information they

need to attract and service clients

should be at their fingertips. They’re

accustomed to niche products, so

they expect that financial products

and services should be tailored to

their clients’ needs, not vice versa.

They’re exposed to a flood of marketing

messages every day, so they’re

familiar with cutting through the

hype to find just the right product.

And these same attributes describe

agents’ clients.

To survive in today’s connected

world, agents of the future will need

to become consultants whose expertise

happens to be life insurance

and financial products. As “insurance

subject matter experts,” agents will

convert product features into benefits

their clients can understand. And they

will compare an array of products and

features to help clients make the best

choice for their needs.

Recruit More Agents or

Produce More Business?

Today, agents’ number one expectation

is that their broker should

provide access to the products their

clients need from carriers with good

ratings. But beyond the basics,

agents want their brokers to bring

real value to the sales process,

whether it’s special expertise or

lead generation.

For brokers the question is different:

“Do I want to focus on recruiting

more agents or on doing more

business with the ones I already

have?” The answer will dictate your


24 perspectives MAY/JUNE 2007




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business model. The first choice can

result in an agent force that writes

fewer cases per carrier and because

they’re not as familiar with a carrier’s

requirements and may need

more hands-on care to get a case

placed. By doing more business with

a smaller group of agents who produce

more cases per carrier, brokers

may be more productive because

their agents are more accustomed

to carrier needs.

MVP Financial Services, Inc., is

one brokerage that has chosen to

grow business organically. Located

in the Midwest, MVP touts its extensive

experience in tough case underwriting

with staff dedicated to

helping producers place cases easier

and faster. But what sets MVP apart

is relationships. They rely heavily

Agents also look to brokers to provide

product training and continuing education.

Working with a carrier to present a joint

seminar can be a win-win for both.

on word of mouth to attract new

agents, and they pride themselves

on cultivating positive and longlasting

agent relationships.

“We’re a relatively small shop,

but it’s important to us to be available

to our agents. In fact you can

get to an agency principal just

about any time you call,” according

to Dawn Nelson, CLU, ChFC, partner

at MVP. “That makes us different

in the BGA marketplace, and we’ve

found that it pays off. We get more

repeat business from our agents. We

retain more of our agents. And, in

turn, they refer other agents to us.

So it pays off two ways: we grow our

business and that helps us grow our

agent force.”

Retain Agents by

Helping Them Produce

With such effort needed to recruit

agents, you want to keep them so

26 perspectives MAY/JUNE 2007




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Order your next exam from us. Call 866-891-4926 to find your local office.


Finding agents and keeping them can be a

challenge. Done right, it’s an opportunity to

create both a strong business plan and lasting


they can continue to produce business.

Agents overwhelmingly indicate

that getting leads and referrals

is the most challenging part of their

job. With your greater computing

power you can help them manage

this process. You could program reminder

dates in your agents’ existing

client lists to remind them to

contact their clients near upcoming

life events or to schedule timely annual

policy reviews. MVP believes

its efforts here have helped retain


MVP also uses its management

skills to assist its agents. “Our goal

is to help our agents organize their

business so they can grow profitably,

faster,” said Sherri R. Hellenbrand,

marketing director. “We encourage

our agents to do an annual

policy review. We pull lists of clients

approaching their policy anniversary

and give them to their agents before

the anniversary date. Then we work

with the agents to identify opportunities

where they can cross-sell and

offer additional products to their

existing clients. And we tell our

agents they don’t have to sell something

at the policy review. Just having

a regular review gets customers

comfortable with discussing their

financial situation with their agent,

so that when the time is right, clients

will look first to their life insurance

agent for advice.”

Providing a consistent experience

for their agents is also important

to MVP, which they believe

helps them retain agents. “They

have enough to deal with, so they

don’t want any surprises from us. We

try to set expectations up front on

a case, so they’ll have a better idea

of what to expect. Then, they can be

prepared and they can prepare their

client,” said Dawn Nelson.

Agents also look to brokers to

provide product training and continuing

education. Working with a

carrier to present a joint seminar

can be a win-win for both. Brokers

can meet their agents in person,

which fosters their relationship

and increases the likelihood they’ll

retain those agents. Carriers can

provide continuing education and

may receive a time to present information

about themselves and their

product lines to agents who wish to

learn more.

In-person meetings are not the

only way brokers can provide education.

Increasingly, carriers provide

electronic training through prescheduled

Web presentations, some

of which are made accessible for

later viewing on the Web. Another

e-tool is Brainshark, a presentation

with voice-over that can be sent via

an e-mail link. Agents can access a

Brainshark training module 24/7, and

brokers can customize the presentation

with their own introduction.

Finding agents and keeping

them can be a challenge. Done

right, it’s an opportunity to create

both a strong business plan and

lasting relationships.

Debbie Zelkowitz brings more than

25 years of insurance marketing

experience to her communications

practice. As primary copywriter

for Genworth Financial’s Life

Insurance Business, Debbie leverages

her deep product knowledge and

process expertise to enhance product

marketing communications, field communications,

promotions and special

events like Life Insurance Awareness

Month. Debbie holds a bachelor’s degree

in writing from Penn State University

and is a Life Office Management

Association Fellow.

28 perspectives MAY/JUNE 2007





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Key Trends in Wholesale Brokerage

From increased emphasis

on technology and efficiency

to demographic

change, new competition

and market diversification,

the wholesale brokerage industry

faces a period of unprecedented challenge—

and also a period of unprecedented opportunity.

The BGAs who can absorb the changes

and innovations stand to move forward in

spectacular new directions.

Recently Perspectives asked several key

stakeholders in our industry about the trends

they saw occurring and how the wholesale

brokerage industry is positioned to handle

them. Together these opinions comprise a

snapshot of today’s insurance industry and a

forecast of tomorrow’s.

30 perspectives MAY/JUNE 2007

The BGAs who can absorb the changes

and innovations stand to move forward in

spectacular new directions.

For Tim Herr, Senior Vice President

at AXA Equitable Life Insurance,

change means increased emphasis on

service—gaining efficiencies in the

“shopping of informals,” in imaging

and in information gathering. Mark

Davis, President and CEO at Examination

Management Services, likewise

sees gaining efficiencies as a way of

leading the pace of change—in a process

he terms “speed of execution.”

George C. Van Dusen, III, President

at Diversified Brokerage Services,

sees electronic technology as a key

to reducing cycle time between application

and issuance.

James D. Atkins, Chief Actuary,

Life Insurance, at Genworth Financial,

argues that the insurance success

stories of the future will have

negotiated the challenges of changing

demographics within the industry

and among customers, increased

customer choice and accelerated

consolidation and standardization.

For Atkins as for Herr, Davis and

Van Dusen, BGAs that are capable

and flexible will emerge as the strongest

competitors in the transformed

insurance world of tomorrow. Now

read about it in their own words on

the following pages. 31


Service Means

Innovation, Technology

and Partnering

THE insurance industry has not traditionally been

known for service. However, with increased competition

on pricing and product development, industry

leaders will, more and more, distinguish themselves

through service. But service means more than a

smile and a thank-you. In the wholesale brokerage

industry, it means process innovation, technology

and partnering.

On the process side, how a broker handles preliminary

quotes—the “shopping of the informals”—will

be a key factor in determining if that broker succeeds.

Currently the shopping of informals can involve hundreds

of pages of medical records to many different

carriers. Gridlock is common. Brokers that develop innovative

ways to shop informals efficiently will gain

the business. Carriers will soon discover which brokers

are doing it right.

Having an imaged environment will also be key to

service. Today an entire segment of the term life business

is conducted electronically: the process, from

quote to application to underwriting, is done online.

Permanent life is next. Brokers who make the investment

in electronic imaging will improve service and

gain market share. But an imaged environment is expensive

and will pose significant challenges to those

who cannot make the investment.

When it comes to service, information is power.

Our industry is inefficient in the way it gathers information

to evaluate risk. Medical information, such as

attending physician statements, independent lab test

results, MVRs and paramed reports, comes from many

different sources. To complicate matters, each broker

and carrier deals with its own information vendors.

Carriers and brokers who synthesize disparate information

will thrive. This increasingly means partnering

with a vendor, broker or carrier that can access

and relay information electronically, in a common




Carriers and brokers

who synthesize disparate

information will thrive.

32 perspectives MAY/JUNE 2007

Yes, even executives need help.


growing problem with Social Security and

company-sponsored plans falling short of

retirement income needs. Fortunately, The

Principal® has many nonqualified solutions to

bridge this retirement gap. By combining

financial modeling, plan design and attentive

administrative services, we can help your

clients’ top execs reach the retirement they

deserve. And as the #1 deferred-compensation

plan record keeper,z

we can help take

you where you’re

going as well.

Visit or call 800-654-4278, option 1, x41210

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and the Edge Design are registered service marks and the illustrated character and “We’ll Give You an Edge” are service marks of Principal Financial

Services, Inc. Insurance issued by Principal Life Insurance Company. Securities offered through Princor Financial Services Corporation, (800) 247-4123,

member SIPC and/or independent broker/dealers. Securities sold by a Princor Registered Representative are offered through Princor. ® Bank products

offered through Principal Bank, ® member FDIC, Equal Housing Lender. Principal Life, Princor, ® Principal Bank and Principal Financial Services, Inc., are

members of the Principal Financial Group, ® Des Moines, IA 50392. Insurance and annuities are not FDIC insured, not obligations or deposits of

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Technology Is Innovation

EFFICIENCY is doing better what is already being done.

The distribution of life insurance products continues to be slower, more difficult and more

costly than it needs to be. Applications take far too long to process, largely due to the lack of

effective communication between all of the parties needed to get the job done and redundancies

in the process.

In the new world, time, effort and expense can be significantly reduced. The correct spot

to begin communicating effectively and handling all of this information efficiently is at the

beginning of the application cycle, when the possibility exists to screen the applicant (and application),

and secure all the needed information, doing so before significant, needless expense

has been incurred. The latest electronic tools can add efficiencies to distribution without

increasing the cost of the process. With these new tool sets, cycle time, information gathering

and case management can be greatly improved and costs reduced without eroding compensation


Many of the recent changes that have been promoted as innovations have really been ineffective

automation of poor processes. The time for the archaic and arcane practices that currently

define insurance underwriting has passed. The companies that innovate and improve the

processes will be the ones that survive, and the rest will be absorbed by the winners.

The best way to predict the future is to create it.

Process and

Performance Efficiencies

SPEED of execution is a goal of every brokerage and a fundamental expectation of customers.

Brokerages must perform faster with less business to share and fewer resources at their d sposal.

The process, from sale to policy issue, is changing. Brokerages are outsourcing the entire underwriting

process to specialized vendors so they can focus on bringing in more business.

Vendors who achieve minor time savings by putting a band-aid on inefficient, segmented processes

are a thing of the past. Brokerages now seek vendors who are on the forefront of technology

and who understand their business and create end-to-end, electronic processes for handling all

their underwriting functions to achieve major efficiencies and significantly decrease cycle time.

New innovations such as teleinterviewing, underwriting APS summaries, “QuickQuote” services and

e-signature technology quickly gather underwriting requirements up front to get a policy issued

faster and keep brokers focused on the sale. Technology that electronically links systems between

vendor and brokerage make transactions instantaneous and paperless, increasing efficiencies even


Those vendors who offer process solutions instead of segmented services are also investing

more in training and technology, becoming experts in their particular area of specialization and offering

unparalleled levels of accuracy, reliability and speed. Those vendors add value to brokerages

by actively helping them bring in business and revolutionizing the underwriting process.

While the trend for brokerages may be an ever-increasing demand for faster, better service, they

are well-positioned to meet the challenge. Those who are willing to adapt to change and look for

unique solutions will flourish in the present and future marketplace.



34 perspectives MAY/JUNE 2007

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Big Trends Mean

Big Opportunities

THE life and health insurance industry faces the interaction

of three big trends: demographic change among our customers

and distributors, more and better information and options

empowering consumers, and economic forces that are changing

our customers’ needs and how distributors and manufacturers

serve them. Because of its inherent flexibility, wholesale

brokerage is capable of thriving amidst these dynamics to the

extent BGAs anticipate and respond to the changes.

Distribution Demographics

The population of active life insurance agents is aging rapidly.

Almost no new agents are entering the agent pool, and

the average age of agents is over 50. Barring a change, within

a single generation, insurance distribution will look radically

different than it does today. Wholesale brokerage depends on

a population of agent/brokers as customers. In just one generation

the population of active agents/brokers could crash.

To thrive in the next generation BGAs will have to find new

ways to reach consumers. To the extent BGAs don’t create

that avenue, insurance companies will be forced to add new


Consumer Demographics and New Options

America’s people are also aging, and their needs are changing.

People need help realizing their retirement hopes and dreams.

Those whose defined benefit pensions have been replaced with

defined contribution plans face an uncertain retirement. For

many it’s not too late to build a better plan. Their plan should

include some form of guaranteed lifetime income and immediate

annuities are a great way to provide just that. Many boomers

are caring for elderly parents or know someone who is.

They recognize the need to provide for their own long-termcare

needs. Long-term-care insurance is a viable option. It not

only provides money to support them in assisted living or a

nursing home facility, it also offers advice and assistance to

keep clients in their homes and self-sufficient as long as possible.

The uncertainly of estate taxes and the desire to leave

a legacy to family or charities maintains permanent insurance

as a solution.

America’s multicultural demographic is growing at a rapid

pace. These emerging markets need the full spectrum of insurance

products and services. The question is, how BGAs will

reach these customers. Innovative methods combined with

new or rejuvenated distribution in these markets are needed. If

BGAs don’t reach the multicultural markets they, should expect

manufacturers to find other ways.



Change is constant.

Dramatic change within a

generation is certain.

The life settlement industry provides insurance policy owners with

new options. They will ensure that policies worth more than their

cash surrender value will stay in force until death. That eliminates

lapsers subsidizing persisting policy owners. Overall, policies will

provide more value to customers. It would be logical for the lowest

prices to rise as well. Wholesale brokerage should be able to continue

to sell the higher value policies and provide the right advice to customers

considering a life settlement.

Impact of Economic Forces

The economic forces that reshaped banking and the mortgage industry

will soon focus on insurance. This will manifest itself in accelerated

consolidation and standardization in contracts but better

profitability for surviving companies and lower costs for consumers.

Wholesale brokerage can easily adapt to manufacturer consolidation.

This might even provide a boost as former career agents no longer

feel loyal to the acquiring company and shift to brokerage.

Change is constant. Dramatic change within a generation is certain.

Brokerage GAs who want to survive and thrive have the flexibility

and capabilities to do so.

36 perspectives MAY/JUNE 2007





Yet with disparate systems and an ever evolving

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38 perspectives MAY/JUNE 2007

These days,

every insurance

company, no

matter what its

size, wants and

needs to reduce

the time from

client application

to coverage offer.







The current state of

risk management—

the process of

assessing applicants

for insurance


evolving and will

continue to do so.


Over the years, underwriters have employed a series of

new tools related to the assessment process. But the

basic function of life underwriting—stratifying an

applicant’s risk based on actuarial models—has always

been a constant, critical to a company’s success. And

although offers of deep discounts for nonsmokers, exams by mobile paramedical

units, and laboratory tests are now common practice, due to technological advances

and changes in the industry the utility of underwriting tools and how they’re accessed

has changed dramatically.

In fact, that’s the newest element to add to the mix: the industry itself is

in transition. With costs and competition rising, risk management and underwriting

departments must focus more than ever on overall productivity and expense

management, particularly as the insurance industry continues to consolidate and

separate into mega-companies and niche companies. These days, every insurance

company, no matter what its size, wants and needs to reduce the time from client

application to coverage offer, improve data gathering to better classify risks, and

make the “best and first” offer to discourage customers from shopping for the better

deal from another insurer, many of which are now Internet-based. 39


The home office

underwriter sometimes

isn’t actually in the home

office—he’s located

someplace else, possibly

his own home.

This comes at a time when

both carriers and their suppliers

must optimize processes, improve

productivity and reduce costs

throughout their operations. As a

result, several areas involved in risk

assessment are in transition, which

is having a huge effect on the industry.

These areas include laboratory

testing, the manner in which

attending physicians statements

(APS) are created and managed,

the proliferation of tele-underwriting

and the increased outsourcing

of targeted business functions.

Laboratory testing has been an

integral part of the risk evaluation

process for years. Few people

may recall when the “home office

specimen” was actually a specimen

collected by the agent and sent to

the home office. Today’s core laboratory

panels are very similar to the

panels used by underwriters in the

mid-1980s, when the use of blood

testing increased due to the AIDS

epidemic. These days, there are new

tests that can pinpoint specific disorders.

But in addition to new testing

methods, we’re also learning how

to better use existing tests to gain

more knowledge about diseases.

Testing for cardiovascular disease

(CVD) is a prime example. CVD

is still the leading contributor to

death in the United States. Despite

the availability of cholesterol, HDL,

LDL and other lipid measurements,

underwriting CVD in the well population

is still problematic. Although

there are promising new tests such

as NT-proBNP and hs-CRP that some

day may lead to better risk classification

for CVD, the tests are not yet

thoroughly embraced or widely used

by underwriters. At the same time,

there’s more and more evidence that

microalbumin, a simple urine test

that’s been around for decades, may

be a significant marker for CVD, especially

when used as a screening

40 perspectives MAY/JUNE 2007

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test as opposed to being historically

ordered only for cause.

Testing for diabetes is another

example. Today, the Hemoglobin A1c

test is increasingly being used as a

screen for diabetes, especially in

applicants age 40 and above, rather

than a reflex test ordered only when

there are elevated levels of glucose

or fructosamine, both of which are

possible indicators of diabetes. According

to the American Diabetes

Association, more than 9 percent of

the U.S. population is diabetic and

another 26 percent can be classified

as pre-diabetic, and diabetes is

growing nationwide. In fact, diabetes

is responsible for numerous early

deaths, although historically underdiagnosed

in the insurance population.

Improving the use of the A1c

test is helping enable underwriters

to better identify and classify the

diabetic population they previously

may have missed.

The APS is also being scrutinized,

despite the fact that it provides unquestionable

and valuable medical

information about applicants. It has

always been criticized for taking too

long to obtain and being too expensive.

As a result, some underwriters

are experimenting with prescription

history profiles as an alternative to

the traditional APS. Prescription

profiles can be obtained electronically

in a matter of minutes and

provide an abundance of valuable

information that’s useful in the underwriting

process and also helpful

in evaluating early claims.

Prescription profiles provide an

applicant’s prescription history as

well as the dose, prescribing physician

and compliance information.

For instance, an applicant may claim

to be taking a prescription for high

blood pressure, but the prescription

profile may show that the applicant

filled the prescription sporadically

over the history of the report. This

compliance history can be as important

as knowing what was prescribed.

So, although prescription

profiles are not universally endorsed

by the industry—and their effect

on reducing the use of APS is yet to

been seen—they no doubt will play

an ever-increasing role in the underwriting


Another recent change in underwriting

is that the home office

underwriter sometimes isn’t actually

in the home office—he’s located

someplace else, possibly his own

home. There are two trends that are

enabling remote underwriting. First,

technology and paperless systems

allow access to underwriting files

from any place with a computer.

Second, there is a consolidation underway

in the industry that is literally

stranding many underwriters in

metropolitan areas where few other

underwriting career opportunities

are available to them.

Remote underwriting, the exception

just a few years ago, is

now commonplace and is likely to

increase, largely because trained

underwriters are scarce. The common

practice of large insurers offering

in-house underwriter training

programs has greatly diminished.

Actually, many wonder where the

next generation of life underwriters

is going to come from, particularly

because the profession demands a

unique set of job skills that is not

learned in any classroom, but ideally

must be developed in an apprenticelike

environment. With fewer insurers

investing in training, more remote

underwriters are being hired.

Completely outsourced underwriting

is also on the upswing,

particularly as more companies realize

that the underwriting function,

once a fundamental part of every

new business operation, can be outsourced

to trained underwriting organizations

around the country.

Tele-underwriting is perhaps one

of the fastest growing new models

used to collect medical information

and histories on insurance applicants.

It removes the burden of this

requirement from the field producer

and also facilitates this process for

the sales of Internet based policies.

While some insurers have developed

the expertise in house, many use

Obviously, consumerism,

technology and the consolidating

insurance industry is changing the

landscape of risk assessment.

large centralized call centers. In

tele-underwriting, trained professionals

use carefully predetermined

scripts with detailed questions directed

at specific medical impairments.

Insurers who use tele-underwriting

learned that the medical

information gathered is often superior

in quality and content to that

gathered by conventional means.

To further enhance the tele-underwriting

process and speed the

risk assessment processes, some insurers

are experimenting with electronic

signatures from applicants

rather than the traditional method

of obtaining a wet signature on the

completed tele-underwriting document.

Using this technology, the

completed interview with electronic

signature can be in the underwriter’s

system within minutes of completion

rather than days.

Obviously, consumerism, technology

and the consolidating insurance

industry is changing the landscape

of risk assessment. Insurers and underwriters

have a choice: they can

ignore the changes and be swept

away, or they can embrace the opportunities

to improve business processes

and customer service, turning

a time of disruption into a time

of opportunity.

Mark Patterson is president of

Heritage Labs, a division of Hooper

Holmes, Inc.

42 perspectives MAY/JUNE 2007

American National’s new Affinity 7 Participating Whole Life products

can help your clients & their families build a secure financial future.

3 Different Markets ... 3 Different Plans

• Affinity 7 NQ Participating Whole Life for individuals

in non-qualified markets seeking personal protection

and cash accumulation.

• Affinity 7 Q Participating Whole Life for individuals

in the qualified plan markets such as 412(i), 457 plans

in state and local governments and non-profit 501(c)


• Affinity 7 457 Participating Whole Life for individuals

participating in 457 plans in school districts.

New flexible PUA (Paid-Up Additions rider)

Four face amount bands, including $1 Million+

Six underwriting categories ($100,00+)

Up to seven available riders (depending on plan)

Innovative products, concepts and services making it easy for you to do business!

Contact your marketing company or our Field Support Center at

1-888-501-4043, Option 1

David Behrens George Crume Dave Hull Stu Mikkelsen Scott Safranek Brad Schommer David Schutz Scott Taylor

Executive Vice President Vice President National National National National National National

Independent Marketing Brokerage Sales Manager Sales Manager Sales Manager Sales Manager Sales Manager Sales Manager

American National Insurance Company

One Moody Plaza, Galveston, Texas 77550-7999

American National Insurance Company

Yours for Life!

Independent Marketing Group (IMG) is a division of American National Insurance Company

IMG3509 Policy Forms: PWL-CSO, PWLU-CSO. For Agent Use Only; Not For Use With Consumers 02/07







THE “OUTDOOR ROOM”—characterized by design and landscape experts as a defined

outside area with a cooking, eating, and sitting/entertaining place—is more important to American

homeowners than ever.

More and more Americans consider the design of their outdoor room as just as important as

the rooms inside their homes. Among those who own a gas grill priced over $1,000, many say

their outdoor room design is more important than their interior rooms, and others say it’s equally

important. People are more willing than ever to spend money to create an outdoor space that family,

friends, and associates can enjoy as much as or more than any indoor space. What it all boils down

to is that we cherish the time we spend outdoors at home—and more and more we’re willing to go to

considerable lengths to ensure that our outdoor time is quality time in every way, shape and form.

What You Need

A barbecue grill and outdoor dining components top the list of items you need for your outdoor

room. You’ll also want to consider your lighting system, especially if you want to entertain in the


Lots of high-end outdoor spaces have dedicated entertainment systems; it’s a great way to

augment the experience of outdoor entertaining and bring a bit more of the indoors out with you.

Is it surprising that a growing number of high-end outdoor spaces have televisions? Think of the


Another way to add value to your outdoor space is to install a fireplace. Especially if you’re

entertaining at night or if you live anywhere above the Mason-Dixon line, a fireplace adds a kind of

warmth that you could never get from huddling around the grill!

Why Outdoors?

Nowadays people want more design and style in their lives, and a great way to obtain it is to blur

the boundaries between inside and outside. Outdoor rooms are also becoming more significant

because we’re are spending more time at home. And if you do “live outside,” you’ll likely to be there

frequently. Living outdoors is a great way to add quality to your life and a great way to help family,

friends and associates relax and “get away from it all” even while they’re at home!

44 perspectives MAY/JUNE 2007

Crown Verity ( offers a large selection of

commercial stainless steel outdoor portable cooking equipment and

accessories. The company’s product line includes portable, mobile,

built-in, and towable gas grills, portable hand sinks, patio heaters,

and a variety of other products and accessories. Here you see the new

Island, a five-burner, 36” built-in grill with a roll-dome cover, crafted

entirely of 18-gauge commercial 304 stainless steel. Under the counter

is a 3.5-foot front-breathing U-line refrigerator. The decks are rock-solid

3/4” polished Quebec granite. The wood is 3/4” solid plantation-grown

IPE Brazilian walnut—so dense it’s naturally resistant to warping, rot,

termites, insects and weather.


For more than three decades, Lynx Professional Grills ( has

been a model of engineering excellence, servicing the most discerning clients

in the hospitality industry, including resorts, restaurants and theme parks with

stainless steel products specifically engineered to withstand the intense demands

of commercial use. Lynx’s complete line of outdoor kitchen products combines

advanced proprietary technologies and refined features that you can use to

design your own outdoor cooking center at home.

Top: A view of the Lynx 42” Professional Grill with access doors, double

burner, storage drawers, warming drawer and beverage area featuring outdoor

refrigerator, ice machine and Cocktail Pro.

Bottom: The Lynx 30” Freestanding Grill with side burners and freestanding

Cocktail Pro.

Bose Corporation ( is

one of the largest and best-known audio

technology developers and product

manufacturers in the United States and

throughout the world, known for home

entertainment systems and speakers, the

Wave® products, premium automotive

music systems, noise reducing headsets for

consumers and pilots and sound for public

spaces and musicians. The Bose Free Space®

51 environmental speaker is designed

specifically for installation in- or on-ground,

providing homeowners with exceptional

sound quality, durability and almost

unlimited placement flexibility. 45

member of the

FOCUS 2007



through improved case

management and underwriting.

As NAILBA’s 2007 Meetings Chair, it is my

great pleasure to invite you to join us to

celebrate NAILBA’s FOCUS!

This year’s FOCUS, to be held on June

7-8 at the Westin Kierland Resort in

Scottsdale, Ariz., has been reformatted to provide you with two

separate tracks of education for two distinct levels of training!

The first track is designed for agency principals, and sessions

will include:

• Best Practices: Underwriting and Case Management Development

(75 minutes)

• Balancing Underwriting and Reinsurance (75 minutes)

The second track targets agency staff, and sessions will include:

• Interpreting and Summarizing Medical Records (75 minutes)

• Effective Communications (75 minutes)

A joint session will be also presented. And that’s in addition to

the exciting exhibit hall and networking opportunities you have

come to expect from FOCUS.

And the best part is that NAILBA member agency principals and

staff are able to receive this information for FREE! Because time is

also money, the educational component of FOCUS has been condensed

into a shorter time period, to enable agency staff to receive

valuable information and training yet still minimize their time out

of the office.

We hope you’ll agree that this year’s FOCUS meeting promises to

be better than ever. As always, thank you for your support.



About the Hotel

Nestled in historic Scottsdale, Arizona, The Westin Kierland Resort &

Spa reflects the cultural wealth of its surroundings. The theme “Treasuring

the Essence of Arizona” is evident throughout the resort, with

exceptional regional cuisine, art, and music. This beautiful resort is

just a short walk from the Kierland shopping center, 38 acres of upscale

shops, boutiques, and restaurants.

Cuisine takes center

stage at The Westin

Kierland Resort & Spa.

The AAA Four Diamond

desert retreat provides

eight unique dining experiences

for guests to

delight in. As one of the

finest resorts in Scottsdale,

you’ll discover some

of the best fine dining in

the desert. Westin Kierland’s highly talented chefs’ culinary creativity

and vision create mouth-watering meals meant to be savored with

family and friends.

Please remember that NAILBA does not make hotel reservations for

you. Registering for FOCUS does not reserve you a hotel room—you

must do this separately. To make a room reservation, please call the

hotel at (480) 624-1000.

Ground Transportation

and Parking

“Your Ride” provides airport shuttle service to and from The Westin

Kierland. The cost is $50 each way (up to four people). Your driver

will meet you curbside by the blue diamonds outside of all terminals

at Sky Harbor Airport, or they can

meet you at baggage claim for an

additional $20 each way. (Prices are

subject to change without notice.)

Taxi service is also available outside

of all terminals.

Overnight valet parking fee is

$21. Self-parking is complimentary.

Gary Dworkin, CLU, RHU

2007 NAILBA Meetings Chair 47

FOCUS Agenda

Thursday, June 7

1:00 – 2:15 pm Opening General Session

Welcome to Scottsdale and FOCUS 2007


Gary Dworkin, CLU, RHU

2007 NAILBA Meetings Chair

DAI/LifeMark, Rochester, N.H.

Marshall Trimble

Arizona’s Official State Historian

Phoenix, AZ

NAILBA Mid-Year Updates


John W. Felton, IV

2007 NAILBA Chairman

Tennessee Brokerage Agency, Knoxville

LIFE Foundation Presentation


Jack Dewald, CLU, RHU

Director, LIFE Foundation

Agency Services, Inc., Memphis, Tenn.

What to Expect from FOCUS 2007

As you know, FOCUS has undergone a renovation for

2007. Hear from the facilitator who helped get FOCUS to

this point—the research, the process, and the thought

behind the resulting program. Jane McNair will also

describe the methods and tools you should use to help

meet your expectations for this new edition of FOCUS.


Jane McNair

Phoenix, Ariz.

1:00 – 5:00 pm Exhibitor Move-in

Must be COMPLETE by 5:00 pm.

2:30 – 3:45 pm Workshop: Maximizing BGA Productivity

For ALL attendees

Participants will get an up-close view of some important

capabilities that will enable productivity gains for their

BGA. Included will be APS Summaries, Imaging, Application

Upload, Intelligent Forms and more... This workshop

will identify the range of options, implementation issues,

costs and other important factors BGAs need to consider

before developing a Productivity Action Plan.


Charles Anderson

Prudential Select Brokerage

Plymouth, Minn.

Stephen Kennedy, CLU, ChFC, FLMI


Milwaukee, Wis.

Michael Sladek

Skywire Software

Frisco, Tex.

4:00 – 5:15 pm Workshops


Best Practices: Underwriting and

Case Management Development

This session will feature a discussion of the “ideal”

agency and the “ideal” carrier, but with a twist. Each

presenter will describe their opposite number’s ideal

characteristics—what a carrier looks for from a BGA and

what a BGA expects from a carrier.


Barbara Crowley

Brokers Clearing House

West Des Moines, Iowa

Brad Gabel, FALU, FLMI, CLU


Milwaukee, Wis.

Agency Staff:

Interpreting and Summarizing Medical Records

In this session, the presenters will discuss and analyze

how to read and summarize medical records. Learn what

to look for and how to present medical information.


Barbara Peterson


Simsbury, Conn.

Darlene Robertson

US Financial Life Insurance

Cincinnati, Ohio

48 perspectives MAY/JUNE 2007

Place Your Bets at NAILBA Charitable Foundation’s Casino Night

Thursday, June 7, 6:00 pm – 9:30 pm

Join your colleagues in the exhibit hall for this fun event. It’s your first big opportunity to assist the NAILBA

Charitable Foundation in its fundraising efforts for 2007, while saying hello to your friends for the first time at

FOCUS! Play games of chance, enjoy a beverage and some snacks, and challenge your friends to play along!

Friday, June 8

7:30 – 8:30 am Breakfast in the Exhibit Hall

8:45 – 10:00 am Workshops


Balancing Underwriting and Reinsurance

Presenters in this session will discuss underwriting

and risk assessment from both the home office and

reinsurance perspectives. They will guide you in a

discussion of what they want to “see” to efficiently

underwrite a life case.


Kimberly Zver

John Hancock Brokerage

Toronto, Ont.

Mark L. Koenig, FALU, FLMI

Generali USA Life Re

Kansas City, Mo.

Agency Staff:

Effective Business Relationships in a

Challenging World

Do you understand how important it is for ALL

components of a success model to carry their weight

and move together in the same direction? How does

anyone make order out of the chaos that is inherent

in your business? One company that has consistently

done so over the past 35 years is Southwest Airlines.

In this presentation, Dave Ridley outlines the approach

that Southwest took to tackle the myriad challenges

that business throws at you every day. The lessons that

Southwest learned are relevant to every business and

every businessperson.

Objectives of this presentation include:

The right people with the right attitude led the

right way can handle anything.

• Getting the right people is a matter of identifying

core values and being obsessive in hiring (and firing)

to those values.

The right attitude can be summed up succinctly:

follow the golden rule.

The right leaders put their people first.


Dave Ridley

Former Southwest Airlines Executive

Phoenix, Ariz.

10:00 am –

12:30 pm Exhibit Hall Open

11:30 am –

12:30 pm Lunch in the Exhibit Hall

12:30 – 5:00 pm Exhibitor Move-Out

12:45 – 2:15 pm General Session

The Power of Being a Change Agent

Now that you have experienced the NEW FOCUS, what

do you do with this information? How do you take this

back to work with you and have a positive effect on your

office? Jane McNair will guide you through a set of tools

and methods to help make your experience here valuable

to your co-workers and to your organizations as a whole.


Jane McNair

Phoenix, Ariz.

2:30 – 6:00 pm Options for Attendees

• Vendor and/or Carrier “User Group Meetings”

• Golf Outing (NOT an organized event; players on

their own) 49


Exhibitor and Sponsorship


FOCUS 2007 is shaping up to be the key networking and exhibiting

event of the Spring. Booth space and sponsorships are almost gone.

If you want to be part of this high level industry leading event, now

is the time to secure your participation. FOCUS 2007 features the

right environment for power networking done with the right people

in the right place at the right time. There are 6 1/2 hours dedicated

to showcasing your solutions to this highly influential audience and

numerous networking functions to meet face to face with clients and


FOCUS sponsorships are designed to provide companies with maximum

recognition and exposure to increase business and brand identity.

From premium promotional items to sponsorship of key FOCUS

events, we have something for you that will meet your marketing and

branding needs all within the high level meeting and networking environment

that is FOCUS 2007. Call John Woodstock today at (703)

383-3081 to discuss how you can leverage sponsorships to meet your

marketing needs at FOCUS. Custom programs are also available.

FOCUS Exhibitors

As of April 9, 2007. Companies in blue are NAILBA Platinum Partners.

AdvancedMeetings, Inc.


AIG American General

APS Workflow, Inc.

Asset Protectors & Advisors


Corporate Sport



Efficient Forms



E-Z Data, Inc.

Genworth Financial

Hooper Holmes/Portamedic

Independent Funding, LLC



Legal & General America/

Banner Life/William Penn

LIFE Foundation

Life Settlement Insights

Life Settlement Providers, LLC

Life Settlement Solutions, Inc.

Lincoln Benefit Life

Lynette Owens & Associates

MediConnect Global

Mutual of Omaha

National Association of Insurance

and Financial Advisors

National Life Group

North American Company for

Life and Health Insurance

PaperClip Software Inc.

Prudential Financial

Skywire Software


50 316492_National.indd perspectives MAY/JUNE 1 2007

2/14/07 5:02:06 PM




Position yourself for trade show success.


If you do the right things before and during the

show, you’ll maximize your investment at NAILBA.


true in real estate.

Is it true for your

exhibit booth? Yes and probably

not, depending upon the size of the


One strategy is to be inside the

triangle. If you look at a map of the

exhibit hall and draw a triangle with

the point down at the main entrance

to the hall, you want your booth to

be inside the triangle.

Another strategy is to have a

booth near food or even the restrooms.

The reality is if you’re not one of

the first 20 or 50 exhibitors to pick

a location, you are probably going

to have to do some extra things to

attract visitors to your booth.

For a large show with 500-plus

exhibitors (like the show I’m at

right now: World of Concrete in

Las Vegas, with 85,000 attendees

and 1,700 exhibitors), location is

important, especially if you have

a small booth. And at these large

shows, a small booth might be a

20 X 20 or smaller. A 10 X 10 or 10

X 20 booth can really be missed.

These companies must make an

extra effort to get noticed. They

need to make sure there is some

traffic to their booth. Some of

the things they can do are some

pre-show promotion, maybe an inbooth

contest, raffle off a Ferrari,

get Brad Pitt to sign autographs in

the booth, etc.

For smaller trade shows like

NAILBA where there are only 150

exhibit booths and none of them are

any bigger than a 10 X 30, location

is not all that important. I walked

up and down every aisle at last

year’s NAILBA and read the signs in

every booth and it still only took

me 15 or 20 minutes. I think that

means that your average visitor to

the exhibit hall will walk up and

down every aisle too.

And they’ll take their time.

Walking the exhibit floor is fun for

them, and they want to visit with

old friends and learn about new

products and services.

It is tough to be missed at a

show the size of NAILBA. This is

not to say that the booths in the

front and center of the hall won’t

be busier; they will be. But, if you

do the right things before and during

the show, you’ll maximize your

investment at NAILBA. Before the

show, do some pre-show promotion.

The most effective thing to do is to

extend personal invitations to the

people you really want to see. Make

phone calls to them, send them formal


During the show, your staff can

be proactive about greeting visitors

as they walk by. And at NAILBA,

which is not the case at most shows

I work at, exhibitors are encouraged

to work the hall outside their own

booth. So do that, have your people

walk the aisles and greet visitors.

And, if there are other exhibitors

that have services that are complimentary

to yours, offer to take your

visitors over to them when you’re

finished with them if they return

the favor. Escorting visitors to other

booths really does work. You’re handing

off an already qualified visitor.

Time and time again, NAILBA is

told that their trade shows are their

most valuable member benefits. Our

shows in 2007 will be no different. See

you in Scottsdale and Orlando.

Matt Hill has been speaking and training

since 1983. He has presented his

“Trade Show Skills Workshop” to over

35,000 people around the world.

Some of his current clients include

Microsoft, eBay, Toshiba Medical

Systems, Intel, MasterCard, Lexmark,

Hewlett-Packard, Genentech, UPS, and

the U.S. Department of Commerce.

He also speaks regularly for business

associations, marketing groups, and


He has published two books:

Trade Show Survival Guide and Do

It Right in Front of an Audience.

Prior to offering his own services,

Matt was a marketing executive at

Xerox Corporation for four years. His

career in sales spans over 20 years

and includes managing a $4-milliondollar,

250-person retail merchandise

operation. He holds a B.A. degree

in psychology from California State

University, Northridge. 51

NAILBA university


your human capital advantage.

The desire, and the ability, of an organization to continuously learn from any source, anywhere—and to rapidly convert this learning into action—is its

ultimate competitive advantage.” — Jack Welch, former CEO, General Electric



Current NAILBA

University Programs

• NAILBA University BGA Employee Training Series

Nine-course online series for all employees new to

insurance or needing refresher. $199/person.

• NAILBA University Agent Training Series

Eleven-course online series to use as quick

confidence builder for next-generation agents.


• Free NAILBA/LIMRA Anti-Money Laundering


• Free WebCE Discount Program

• Free NAILBA Field Underwriting Guide

• Free Education Article Series

aptitude and expertise

of employees and


their role in profitability is often

referred to an organization’s “human

capital.” Human capital is a critical

part of a company’s “intellectual

capital.” Together these terms

describe the potential growth in

productivity from increased knowledge

and intellectual capacity and

the transfer of that knowledge into

action. As Jack Welch has noted,

that is where true corporate growth

and competitive advantage can


It’s easy to recognize the importance

of the concept of human capital

and the value of humn capital

on an agency team, but due to the

day-to-day pressures of doing business,

businesses still often neglect

employee development. We witness

this lack of investment in our

agencies on a daily basis. Errors

on forms, basic product knowledge

questions, and poor phone etiquette

all disappoint us and make

us keenly aware that our people are

still key to optimal profitability.

Empower Your People

It is with the importance of human

capital management in mind that

NAILBA created NAILBA University

and the NAILBA University

Committee. NAILBA University confirms

NAILBA’s strong commitment

to education in the brokerage community,

with a mission of providing

members and their producers leading-edge

tools and knowledge that

foster and accelerate business performance.

The offerings have been

carefully selected and customized

by volunteer members just like you,

members with a first-hand knowledge

of your business in mind.

Today’s NAILBA University

Committee is the largest in NAILBA

history—and we are making an

impact. In the last two years

alone, NAILBA University launched

and delivered six new educational


Future Benefits from

NAILBA University

With growing member participation,

even more educational benefits are

in the works. Here are just a few

of the exciting opportunities we’re

working on:

• Leadership, Management, and

Professionalism Series

Self-paced coursework in business

and management skills for agency


• Updated Brokerage Desk

Reference/Quick Start

Updated and higher tech version

of a popular previously released


• New Education Article Series

Offering best practices for agency

principals and expert articles for


• New NAILBA Education Award

(to be awarded at NAILBA 26)

Watch for brochure soon! You

could be our first winner or offer

a nominee!

• Enhancement of NAILBA’s Field

Underwriting Guide

Improved formatting and even

more effective uses of this popular


• Reviewing Content for LOMA

Online Courses

Reviewing content for appropriateness

for brokerage audience.

It truly is an exciting time for

NAILBA University, so don’t miss

out! Visit to get

more information. If you have questions,

contact Meg Rose, director of

education services, at (703) 652-

4829 or

Lauren M. Peterson, JD, brings

over 25 years of experience in the

insurance and financial services to

her role on the NAILBA University

Committee. Lauren has engaged

in private legal practice in executive

deferred compensation and

estate planning with emphasis on

charitable planning. She is also

the founder and executive director

for African Child Foundation USA,

a nonprofit serving the immediate

needs of orphans in Kenya


52 perspectives MAY/JUNE 2007




Transamerica companies are leading providers of insurance,

investment, and retirement strategies for today’s clients.

To find out how Transamerica can help you get what you

want, contact your General Agent or our Regional Marketing

Center today.

Western Region: 888-862-1936

Eastern Region: 888-558-8743

Transamerica Occidental Life Insurance Company • Transamerica Financial Life

Insurance Company • Transamerica Financial Advisors, Inc.

The Power of the Pyramid ®

Member of the AEGON® Group

For producer use only. Not for distribution to the public.

agency opportunities

Critical Illness


New impetus for a product whose time has come.



the bad news

HERE’S for BGAs on

critical illness insurance (CI) marketing

to date: the industry has

done a terrible job at positioning

this product and done an exceptional

job of creating complexities and

confusion. Here’s the good news:

the industry has done a terrible job

at positioning this product and done

an exceptional job of creating complexities

and confusion.

This means that there’s a tremendous

opportunity for creative distributors

to use CI as a significant

differentiator. We (in Canada and certainly

at our BGA) made many of the

mistakes we are now seeing in emerging

CI markets like the United States.

In the end, however, it’s possible that

your advisors will write more critical

illness than universal life cases.

CI represents a unique dual opportunity

in that a BGA can create

a new market for existing advisors

while attracting new advisors by

providing them with CI expertise. To

say the least, it’s challenging for a

BGA to add value by uncovering new

uses for term insurance or exposing

the value of term-life product x over

product y. CI is a different product.

The BGAs who will win the day

will be the ones who can answer the

following advisor questions: Why

this product now? How do I integrate

CI into my practice? How do I

compare CI products? and How does

CI underwriting differ from termlife

underwriting? Advisors will

place their business (and not just

their CI business) with the BGA that

can answer those questions.

But for a long while we had

nowhere to go but up. In Canada,

where I’m from, most of our early CI

meetings were far less than fruitful:

we’d view 20 slides on incidence

rates, followed by 10 slides on uncovered

health-care costs, followed

by 10 slides on how this CI product

covered more than that one.

Then we realized that the few advisors

who were actually moving CI

products were doing the opposite of

what the industry was telling them.

54 perspectives MAY/JUNE 2007

agency opportunities

CI represents a unique dual opportunity

in that a BGA can create a new market

for existing advisors while attracting new

advisors by providing them with CI expertise.

Clients weren’t saying, “Wow—

before you showed me your pages

of stats, I didn’t know that a lot of

people got cancer.” That’s common

sense. Long, long, long before CI arrived

on the scene, people were being

stricken with cancer, heart attacks,

and strokes. And when people

with major illnesses died quickly, we

already had that figured out, and we

had a great product called life insurance

to deal with it.

The successful advisors realized

that the incidence stats were irrelevant!

The industry was trying

to sell advisors on bad-news incidence

stats, but CI is about “good

news survival,” not “bad news


We also have achieved tremendous

favor with advisors by helping

them reposition the lump-sum cash

benefit. (I call this repositioning

“attachment” for reasons that will

soon be clear.) The industry had

trained advisors to tell clients that

CI products were “wonderful” because

they could “use the CI cash

for whatever they want.” That’s like

asking a client if he wants “cash for

cancer.” There is no amount of cash

that will make that answer yes. Nobody

wants cancer.

Clients respond far more affirmatively

if we help them “attach” the

lump sum to something meaningful

in their lives. If the advisor asks,

“If you were diagnosed with cancer

and going through treatment, would

you want your spouse to be able to

take a leave from work and from the

stress of the mortgage payment to

go away for a year?” the client can

say yes.

56 perspectives MAY/JUNE 2007

ainstreaming insurance

No one can mainstream annuities,

life insurance and retirement income

programs like DTCC’s Insurance Services.

And here’s why.

■ Our automated and standardized processing

solutions use open standards that facilitate

straight-through processing.

They’re built with customer and industry

involvement, so they meet real and

immediate needs.

If you want to grow your business and reduce your processing costs, call us at

1 800 422-0582. Or visit our Web site at to learn more about us.

DTCC’s Insurance Services. For annuity applications and

premiums, licensing and appointments, commissions,

positions and valuations, asset pricing and financial

activity reporting.

■ We bring together hundreds of carriers,

distributors, vendors and service providers

through a single network.

■ Our solutions are powered by DTCC’s

technology infrastructure – unparalleled

for safety and resilience.

Insurance Services are provided by National Securities Clearing Corporation,

a subsidiary of The Depository Trust & Clearing Corporation

The Logical Solutions Provider

agency opportunities

CI is about “good news survival,”

not “bad news incidence.”

Another way BGAs can add value

and thus entrench their relationships

with their advisors is by becoming

their one-stop access point

for comparative CI product and underwriting

information. We’ve spent

considerable time and effort informing

and arming our advisors on how

to position this unique CI risk, especially

in the area of family history.

A useful phrase for your advisors

would be, “if you qualify,” which

should be repeated many times during

any CI meeting.

Many advisors have struggled to

mesh CI with disability insurance. I

think it’s best to view CI and disability

as complementary protection

pieces in any strong financial

plan. They work together much like

the safety features on an automobile

(brakes, airbags, etc.). Think

of disability insurance being like

the brakes on your car (absolutely

necessary) and CI as like the airbags

(extra protection for the big


It’s worth the effort and investment

for BGAs to focus on CI because

CI is a product borne out of

a changing environment whose time

has clearly come. Embrace CI or be

wary of your competitors who do. In

the words of Jack Welch, “If the rate

of change outside your business exceeds

the rate of change within it,

your business will eventually cease

to exist.”

Keith Leech, CFP, CLU, ChFC, RHU,

is owner of Context Planning Ltd., a

Vancouver-based financial services firm

specializing in critical illness and longterm

care products. Keith formerly served

as vice president of one of Canada’s largest

Managing General Agencies, which

produced tremendous CI results through

innovative approaches to selling current

and potential advisors on how to position

it. Keith is one of the North America’s

leading experts on living benefits insurance

and is a frequent speaker and trainer

for clients, brokers, brokerage firms and

companies across North America. Contact

Keith at or

(604) 714-0007.

58 289250_StoneTower.indd perspectives MAY/JUNE 1 2007

9/11/06 8:00:44 PM

usiness intelligence

Best Practices

Make Perfect

NAILBA Best Practices List now available.

efficient agency is one

AN which consistently ranks

very high on production and customer

satisfaction. If you are like

most agency principals or key support

staff, you have wondered how

to make your agency more efficient.

One area in particular—identifying

which carrier provides which

products or services and which vendor

supports which technology—

can be a daunting task.

Your NAILBA Technology

Committee has worked hard to corral

the many products and services

offered by our exhibitors and has

placed all of that information in

one handy and useful document:

the NAILBA Best Practices List.

Future enhancements are already

being planned for this free List, to

make it easier to find the information

you need in the format you


If you attended NAILBA 25 last

November, you received a copy of

the NAILBA Best Practices List. The

List was prepared by the NAILBA

Implementation Subcommittee in

an effort to inform the NAILBA

member agencies about those products

and services that are available

to them. If you didn’t receive the

document, it can be located on the

NAILBA Web site at



The work we did to prepare the

List was meticulous. Planning sessions

were held frequently over

a 4 to 5 month period in 2006.

Every effort was made to ensure

that the document was informational

rather than marketing for

specific products and services. Of

the many committee members participating,

we had representation

from life insurance carriers, general

agencies, brokerage firms and

software/service vendors as well

as NAILBA staff.

The List consists of two sections.

The first details the support

offerings provided by specialized

software/service companies. The

second details the support services

provided by life insurance carriers

through their Web sites.

The Service Providers section

contains a list of 15 common services

provided by specialized companies

that are highly needed to

efficiently support the life insurance

market. There is a definition

for each service as well as a statement

of benefits, a list of companies

providing the service, a highlevel

comment regarding cost, a

list of carriers that support each

service provider, and a comment

that provides further clarification

of the service.

The Carrier Service section contains

a list of 11 common services

the life insurance carriers provide

through their websites to support

the life insurance market. There is

a definition for each service as well

as a statement of benefits, a list of

carriers providing the service, and

a comment that provides further

clarification of the service.

The List can be used to identify

key services that are available,





usiness intelligence

The List will remain a living document. We

will continue to accept new information and

will make periodic new releases.

the benefits of those services as

described by industry insiders, and

member companies supporting each


Although we made a great effort

to identify all service providers and

supporting carriers, we acknowledge

that there may be some providers

who were not included and

others that may not be fully credited

for the scope of services the

provide. We also understand that

new products and services will be

created and changes to a service

provider’s product offerings will

occur. With that in mind, we have

agreed that the List will remain a

living document. We will continue

to accept new information and

will make periodic new releases.

If your company is not represented

or needs updates to services

or if you have comments or questions

on the List, please contact

NAILBA’s Technology Advocate Jeff

Kraber at Jeff

can also answer questions about

any of the other activities of the

Implementation Subcommittee.

We have several improvements

planned for the NAILBA Best

Practices List in 2007. A key change

will be a format redesign to make

the document more robust and easier

to navigate. This will include

improvements to access from the

NAILBA Web site. We are planning

to present the data at a higher level

and allow you to drill down to view

more detail. We also will be pursuing

more participation from NAILBA

members to ensure that all products

and services are represented.

During 2007 the Implementation

Subcommittee will also be working

on user guides for the standard

data feeds beginning with case status

and ultimately including commission

and appointment feeds.

Grant Andrew of Prudential

Financial and Robb Daugherty of

Oxbow Marketing Company are members

of the NAILBA Implementation


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60 316099_Ebix.indd perspectives 1 MAY/JUNE 2007

2/21/07 11:56:53 AM

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legislative update

Change Can Be Good

The recent shift in power may not be a bad thing.



in the business

sector are


nervous about the new Democratic

majorities in Congress. And it’s true

that the insurance industry clearly

faces new and important challenges

on Capitol Hill. But the recent shift

in power may not be a bad thing.

On the contrary, a transition to

Democratic leadership will make it

possible for new ideas to reach the

surface. NAILBA’s Washington staff

is working to ensure that we weigh

in on these new ideas—as well as

on the issues of longstanding importance

to our members. Organizations

that proactively plan for and harness

change will survive the peaks and

valleys of relationship-based politics

and achieve long-term success. As

the voice of wholesale brokerage in

Washington, NAILBA has taken a proactive

approach to embracing change

and seeking new opportunities.

Harnessing Change to Pursue

Opportunities for NAILBA

NAILBA and many of its life insurance

partners believe that the power

shift in Washington gives us a new

opportunity to promote the Optional

Federal Charter (OFC)—which

has been one of our top legislative

priorities. Thus far we have engaged

both the House and Senate authors

of this legislation, and language that

NAILBA has requested for wholesale

brokerage has been included in the

discussion drafts. All NAILBA members

should by now have received

the questionnaire we sent out in an

effort to educate ourselves on your

62 perspectives MAY/JUNE 2007

316494_Acord.indd 1 2/28/07 10:41:36 PM

She’s looking for

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access to cash and

once in a while,

a phone call.

Liberty Life’s Estate Maximizer II has a lot of what today’s seniors are looking for: safety

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Our chronic illness denition requires inability to perform just two of six ADLs.

So talk to your senior clients about Liberty Life’s Estate Maximizer II single payment whole

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College Tuition.


a life





up to

the task?

legislative update

We must work with our industry partners

to ensure that life insurance continues

to receive the tax advantages that enable

consumers to receive all of the benefits

and stability that life insurance provides.

needs and on ways to improve the legislation.

We urge you to respond to the questionnaire

if you haven’t yet.

What’s Happening on Capitol Hill

Building on an election theme of accountability

and cleaning up Congress, when the

new term began in January Democrats immediately

went to work, passing several of their

priority agenda items in the “first 100 hours”

and in the days leading up to the president’s

State of the Union address on January 23.

Democratic priorities included:

• Ethics and lobbying reform legislation

• Curbing deficit spending

• Implementing many of the recommendations

of the 9/11 Commission

• Raising the minimum wage from $5.15 to


• Efforts to allow the government to negotiate

with drug companies over prescription

drug costs and to permit importation of

prescription medicines

• Expansion of stem cell research, including

federally funded research

• Cutting interest rates on college loans by

50 percent

• Rolling back subsidies to oil and gas companies

• Pay as you go or “pay-go” budgeting rules,

which require offsets for any spending or

new tax cuts

While Democrats were largely successful

in passing legislation on these issues in the

House, the Senate as you might expect has

proven more challenging. Thus far nothing

has been signed into law.

to pass new minimum wage legislation. The

House was able to pass a clean minimum wage

bill that would increase the federal minimum

wage to $7.25 over two years. Under the bill,

an increase in the minimum wage from $5.15

per hour to $5.85 per hour would take effect

60 days after the bill became law, with additional

70 cent increases in the following

two years. In order to attract the Republication

support needed to secure the 60 votes

required for passage in the Senate, $8.6 million

in small business tax cuts were added to

the package.

But in a budgetary environment that includes

“pay-go,” these tax cuts must be

offset. Therefore, Senate Finance Chairman

Baucus included new taxes on deferred compensation

that would harm the life insurance

and financial planning industries. NAILBA has

been working with its industry partners to

have these provisions dropped from the legislation.

We’ve been successful on the House

side, but we will have to continue to battle

the Senate when Congress conferences the

bills from each chamber to produce a final

package and vote.

Next Steps

We’ve learned from the deferred compensation

debate that in an environment where revenue

bills must be completely offset, we must work

with our industry partners to ensure that life

insurance continues to receive the tax advantages

that enable consumers to receive all of

the benefits and stability that life insurance

provides. We’ll be doing just that as spring

turns into summer on Capitol Hill.

Deferred Compensation

Meanwhile, NAILBA and the life insurance industry

have been embroiled in a fight on deferred

compensation. One of the first orders

of business in both the House and Senate was

Alex DelPizzo is NAILBA’s Washington D.C.

representative. If you have questions on

any of the material here, do not hesitate

to contact Alex at or

(202) 589-0800.

64 perspectives MAY/JUNE 2007

321504_northamerican.indd 1 3/12/07 3:07:55 PM

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index of advertisers


Andrew Scott Decter

Andrew Scott Decter, 47, died on

March 7 after a five-year battle

with ALS, Lou Gehrig’s Disease. A

longtime resident of West Orange

and Livingston, New Jersey,

Andy was a 1980 graduate of

Livingston High School and a

graduate of George Washington

University in 1984. He and his

late father, Philip, owned the

Decter Insurance Group and

Private Brokerage of Livingston.

After being diagnosed with ALS

in 2001, Andy became involved

with the ALS Association of

Greater New York, turning a fatal

diagnosis into an activist role.

he and his parents created a

fundraising golf tournament at

the Green Brook Country Club.

From there, they, along with

family friends, helped establish

the South Florida Research

Foundation, which as of March 5

has held its fifth golf tournament

fundraiser, raising in excess of

$600,000 for Project ALS, whose

purpose is to fund research to

search for a cure for the disease.

Andy’s credo always was to

meet life’s challenges, whatever

they may be, head on with

courage and conviction. He was

a wonderful and loving father,

son, brother, friend, and businessperson.

Andy is survived

by his children, Jessica, Alex

and Amanda; his mother, Alice

Decter; his sister, Lori Yaspan;

his uncle, Stephen Decter; his

nephew, Corey Yaspan, and his

brother-in-law, Richard Yaspan.

Make contributions in Andy’s

memory to the ALS Association,

116 John St., Suite 1304, New

York, NY 10038.

A. Levan, Inc. Resort Choices 66

Acord 63

AIG/American General 8

The American College 61

American National Insurance Company (ANICO) 43

AXA/MONY Partners 3

Banner Life/William Penn/ Outside Back Cover

Legal & General America

Conseco Insurance 17

Coventry 14, 15

Depository Trust & Clearing Corporation 57

EbixLife, Inc. 60

Efficient Forms, LLC 63

ExamOne 37

Fidelity Life Association/Inter Alliance Corporation 12

Genworth Financial Inside Front Cover

Hooper Holmes, Inc. 25

Hooper Holmes, Inc./Heritage Labs 29

Hooper Holmes, Inc./Portamedic 27


Insurance IQ 5

Liberty Life 63

Life Settlement Solutions 55

LISA-Life Insurance Settlement Association 13

Maple Life Financial 41

Metlife Investors 20

Mutual of Omaha 35

National Insurance Producer Registry 50

National Life 46

Nationwide Financial 19

North American Company 64, 65

Oak Street Funding Outsert

Principal Financial Group 33

Prudential Financial 6

Rumson Capital LP 11

StoneTower Search 58

Symetra Financial 21

Transamerica Insurance & Investment Group 53

West Coast Life

Insurance Company Inside Back Cover

66 perspectives MAY/JUNE 2007

319517_ALevan.indd 1 2/13/07 10:54:22 AM


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At Legal & General America, our

commitment to low cost coverage is

one of the most important ways we

provide value to our customers. They

have a broad range of choices and we

intend on delivering superior service to

keep their business. Some significant

enhancements introduced in 2006 were:

An Interactive Voice Response system

accessed by 23,000 customers since

implementation in the fourth quarter

A new system with integrated

telephony to better monitor, report

and manage customer calls

An updated customer service

system that provides faster, more

accurate processing

An automated process to acquire new

addresses when postal mail is returned

as undeliverable; thereby protecting

customers from coverage lapses

Electronic notification to the selling

agency when a policy enters the

billing grace period; soliciting its help

to keep the coverage in force

To learn more about Legal & General

America’s low term rates or recently

updated underwriting guidelines,

contact your general agent or visit

our agency-applauded website at

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Garden City, NY. Banner Life is not licensed to do business in New York State and does not solicit business there. 07-012

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