The National Association of Insurance and Financial Advisors California (NAIFA-California) is the largest political action organization working on behalf of agents, financial advisors and the clients we represent. The grassroots efforts of our members and our professional lobbying efforts, led by Shari McHugh of McHugh, Koepke and Associates, have helped NAIFA-California accomplish several notable successes providing tangible benefits that have real, positive impacts on our members and all agents in California.
WINS
SB 927: DEFEATED- LIFE INSURANCE- This proposed Senate bill was vigorously opposed by NAIFA-CA and a primary focus of our 2022 state lobbying efforts. This proposed legislation would have imposed a broadly written “Best Interest” standard to index universal life and ultimately all cash value life insurance sales. This bill falsely implied that commission-based sales agents were unable to provide unbiased planning advice and sought to upend a nearly centuries old agent distribution model. This bill also promoted a misleading commission disclosure immaterial to effective insurance planning. NAIFA-CA, with leading efforts from Government Relations Chair, Michael Mares, and members in NAIFA-Los Angeles leveraged their longstanding grassroots relationships to effectively stop this piece of legislation.
AB 1400: DEFEATED- SINGLE PAYER HEALTHCARE- California Guaranteed Health Care for All or CalCare. The passage of AB 1400 would have resulted in the elimination of existing health insurance and new tax hikes on Californians, which would threaten the health and financial security of California’s working families and the financial well-being of health insurance professionals. NAIFA-California agrees with the intention of accessible and affordable healthcare, however, CalCare was not the way to do it. We will continue to work with the legislature to provide input on workable healthcare solutions for the benefit of our members and all Californians.
AB 2604: MOVING- LONG TERM CARE INSURANCE- This NAIFA sponsored bill, developed in large part by longtime NAIFA member, Louis Brownstone, CLTC would help make LTC policies sold through California Long Term Care Partnership more affordable and attainable. This legislation hopes to expand LTC policies that qualify for tax advantaged Partnership benefits by modifying onerous inflation escalators, which make many policies unaffordable. Dwindling sales have caused many carriers to leave the state. The passing of AB 2604 would hopefully encourage more product options in the state and enhance participation from the underinsured consumer market. NAIFA-CA hopes AB 2604 will make it to the Governor and be signed. If successful, NAIFA will continue try to seek additional LTC options for California agents and consumers.
FIGHTS
AB1400 2.0- SINGLE PAYER HEALTHCARE- In the next legislative session, we anticipate that this bill will come up again.
State Mandated Long Term Care Insurance- A long term care Task Force has been charged by the legislature to deliver a proposed bill by the end of 2022. This proposed bill may model the Washington State law for a State Sponsored Long Term Care benefit via payroll tax. NAIFA CA and our industry partners have contributed to this taskforce by encouraging the Insurance Commissioner to encourage more LTC companies and products to become available to serve the growing needs of Californians. With our members help, we will continue to be a leading voice on this important issue.
