NAILBA Now: August 17, 2010
August 17, 2010 (All day)
Mooers Award: Call for Nominations – Deadline August 27!
Individuals in the brokerage community are invited to submit a nomination for the 2010 Douglas H. Mooers Award of Excellence. As you know, this award is the highest honor presented to an individual in the brokerage community, and recognizes individuals whose achievements demonstrate outstanding commitment to independent life brokerage and the insurance world. The awardee will be recognized at NAILBA 29 at the Douglas H. Mooers Award Dinner.
The deadline for receipt of nominations and supporting material is August 27. The complete Call for Nominations can be found here, and was sent in June to individuals in the brokerage community.
Questions? Contact the NAILBA offices at 703.383.3081.
NAILBA 29: Early Registration Deadline September 1!
The Early Registration deadline is September 1; after this date, Regular registration rates apply until October 15, when onsite rates take affect.
Registration for NAILBA 29, November 18-20 in Grapevine (Dallas), Texas is available online on the registration page of the NAILBA 29 web site, or you may fax or mail your completed registration form to NAILBA headquarters. Agency principals were e-mailed “discount codes” to facilitate complimentary registrations (one per member agency). If you did not receive your member discount code, please contact Meredith Maslich at mmaslich@nailba.org or 703-383-3074. IMPORTANT: Member discount codes will expire on October 1.
Full registration materials including an agenda, General Session details, workshops, an exhibitor/sponsor list, golf information, hotel information and more were mailed in July to NAILBA member agency principals and staff, exhibitors and sponsors. To view the registration materials online, click here.
Hotel reservations are filling quickly and may sell out – make your reservation now! The Gaylord Texan in Grapevine, TX is still accepting reservations for NAILBA 29 at the NAILBA Discounted Rates of $240/night S/D. To make your reservations online, use this link or CALL the hotel directly at 866-782-7897. Be sure to reference the NAILBA Annual Meeting and group code A-ILB10 to receive the discounted rate. Additional details regarding travel discounts through American Airlines, ground transportation arrangements and more can be found on the Hotel and Travel page of the NAILBA 29 Web site. The cutoff date to secure a room at the discounted rate is October 15, or when the NAILBA block is sold out, whichever comes first.
For more information about NAILBA 29, visit www.nailba.org/nailba29, or contact Michele Liston at 703-383-3069 or mliston@nailba.org.
BGA Contracts Manual
The typical NAILBA member enters into Broker General Agent (BGA) contracts with multiple carriers. The terms of these contracts differ significantly regarding the levels of liability imposed on the BGA. In the past few years, increased scrutiny in the financial services industry in general, as well as an increasing number of regulatory challenges has seen the standard language in the BGA/Carrier contract shift more of the responsibility on the BGA to be compliant, and be responsible for the compliance of their agents.
NAILBA, along with NAILBA legal counsel Steve Fellman, have worked to create a BGA Contracts Manual to bring this contractual language to light, and educate BGAs to make responsible choices when negotiating these contracts. This manual will describe some of these differences in order to assist the BGA in making an independent decision as to what level of risk is acceptable to his or her company.
The manual will be released in installments via NAILBA Now - a chapter every few weeks - for ease of reading and use. The entire 2010 BGA Contracts Manual will be available beginning in November at NAILBA 29!
To read the first chapter, click here. Questions about the BGA Contracts Manual may be directed to Michele Liston at mliston@nailba.org or 703.383.3069.
How New 1099 Requirements Could Impact Your Business
NAILBA member agency principals were recently provided with information on this important effort to repeal the 1099 requirements portion of the recently-passed healthcare reform legislation. To read the full Issue Briefing, click here.
Court of Appeals Confirms Insurance Agents Are Independent Contractors
By: Steven John Fellman
GKG Law, P.C.
On July 27, 2010, the 9th Circuit Court of Appeals issued a decision in the case of Patricia Murray v. Principal Financial Group, Inc., et. al.[1] confirming once and for all that insurance agents are independent contractors and are not employees of insurance companies. The Court recognized that Patricia Murray was a “career agent” for Principal Financial Group, Inc., Principal Life Insurance Company, and Princor Financial Services Corporation (“Principal”). Ms. Murray and other Principal career agents sell Principal products that include a wide range of financial products and services including annuities, disability income policies, 401K plans, and life insurance.
Ms. Murray sued Principal alleging sex discrimination in violation of Title VII. Ms. Murray would only be entitled to the protections of Title VII if she was an “employee” of Principal. Ms. Murray contended that she was an employee and Principal contended that Ms. Murray was an independent contractor.
The District Court held that Murray was not an employee but was an independent contractor and dismissed the case. The Court of Appeals noted that the District Court correctly found that Ms. Murray was not an employee. The 9th Circuit stated: “We, along with virtually every other Circuit to consider similar issues, have held that insurance agents are independent contractors and not employees for the purposes of various federal employment statutes, including the Employee Retirement Income Security Act (“ERISA”), the Age Discrimination and Employment Act (“ADEA”), and Title VII.” The 9th Circuit decision noted that this issue is governed by the decision by the United States Supreme Court in the case of Nationwide Mutual Insurance Co. v. Darden, 503 U.S. 318 (1992).
When determining whether an individual is an independent contractor or an employee for Title VII, ERISA, or ADEA purposes, a Court should evaluate “the hiring parties right to control the manner and means by which the product is accomplished.” Darden, 503 U.S. at 323. The factors relevant to this inquiry, as identified by the Supreme Court, are:
(1) the skill required;
(2) the source of the instrumentalities and the tools;
(3) the location of the work;
(4) the duration of the relationship between the parties;
(5) whether the hiring party has the right to assign additional projects to the hired party;
(6) the extent of the hired party’s discretion over when and how long to work;
(7) the method of payment;
(8) the hired party’s role in hiring and paying assistants;
(9) whether the work is part of the regular business of the hiring party;
(10) whether the hiring party is in business;
(11) the provision of employee benefits; and
(12) the tax treatment of the hired party.
In analyzing Ms, Murray’s situation, the 9th Circuit Court of Appeals found that Ms. Murray was free to operate her business as she saw fit without day-to-day intrusions. Ms. Murray decided when and where to work and maintained her own office where she paid rent. She scheduled her own time off, and was not entitled to vacation or sick days. Ms. Murray was paid on commission only, reported herself as self-employed to the IRS, and sold products other than those offered by Principal in limited circumstances.
Ms. Murray did receive some benefits from Principal and had a long term relationship with the company. She possessed an at-will contract. She was subject to minimum standards imposed by Principal.
After balancing out all of the facts, the Court found that clearly that Ms. Murray was an independent contractor.
This case is directly applicable to BGAs who deal with Producers. BGAs must examine the factors that the 9th Circuit relied on in holding that Ms. Murray was not an employee of Principal. In applying these same factors to the BGAs operations, the BGA will be able to ensure that Producers are independent contractors, and are not employees of the BGA.
[1] No. 09-16664, D.C. No. 2:08-cv-01094-SRB, 9th Cir., July 27, 2010.
For further information contact Steve Fellman. (Sfellman@gkglaw.com)
Legislative Update
The House and Senate are in recess and will reconvene the week of September 13.
For more information on NAILBA’s government affairs activities, contact Mark Valentini at 703.383.3073 or mvalentini@nailba.org.
NAILBA 29 Exhibitors and Sponsor Corner
Final Booth payments due by August 27! Please contact Sarah O’Hanley for a copy of your current booth invoice at sohanley@nailba.org or 703.383.3076.
Early Bird Registration ends September 1 for paid registrants. All complimentary codes to be used by exhibitors/sponsors must be used by October 7th with NO Exceptions!
Online Service Kit for NAILBA 29 Is Now Available
On Monday, August, an email was sent from our General Service Contractor – Hargrove, Inc. – with the link to the Web-accessible service kit. Look for the email from “Hargrove [hargroveinc@goloyal.com]”. Exhibitors will need to enter the Show Code 5018065 when prompted to view the manual.
New this year: the primary contact for each exhibitor will be able to log in to online ordering by using your email address and a password that you will set yourself. Alternatively, you can print off the individual PDF forms available at www.hargroveinc.com/servicekits and mail, fax or email with payment to Hargrove.
Please note: like last year, we will NOT be supplying a CD-ROM in an effort to control costs.
For additional assistance with the service kit, please call Hargrove’s NAILBA Exhibitor Help Line at (301) 731-2522. You may also reach Hargrove Exhibitor Services at (301) 306-4627 or exhibitorservices@hargroveinc.com,
Product Training University for NAILBA 29
Building on the success of the Product Training University at the NAILBA Agency Management Institute in May, this uniquely-formatted educational opportunity will be offered for the first time at an Annual Meeting, at NAILBA 29! Previous Product Training University sponsors were rewarded with new contracts and new clients – don’t miss this opportunity to interact with brokerage industry decision-makers!
Available ONLY to current NAILBA 29 exhibitors, these interactive, quickly-paced sessions are designed to facilitate maximum interaction and attendee choice. During each 30-minute window, three companies will be making brief presentations concurrently. This unique format will allow you to capture attendees in a small group setting to provide more in-depth, focused and specific information than in a busy exhibit hall.
BONUS: Submit your PTU contract before September 15 to be included in the NAILBA 29 on-site program AND the November/December issue of Perspectives.
See the Product Preview guide below for a great place to market your participation in the PTU.
Watch your email for additional details, or contact Susan Haning now to reserve your space!
Advertising Opportunities
Perspectives Print Advertising: Only one issue left for the remainder of 2010 – our November/December – Sales and Marketing – Bonus issue distributed during the NAILBA 29 annual meeting!
Ad sales close September 13, 2010: Ad Copy due September 27, 2010
Product Preview November/December issue of Perspectives
(Perfect place to let attendees know you’re also a Product Training University participant!)
Do you have a product promotion planned for NAILBA 29? Looking to showcase your booth or sponsorship? Then you need to reserve space now in the NAILBA 29 Product Preview. This is a special opportunity for exhibitors and sponsors who want added exposure at the largest life brokerage event in the industry. This special edition Product Preview will be mailed as an outsert with the November/December issue of Perspectives (designed to hit mailboxes one week prior to the annual meeting) to approximately 1,300 principals, CEOs, exhibitors and sponsors. As a bonus, it is also distributed at NAILBA 29 to every attendee!
Cost for 1/2 page ad: $1,000.00 (Must be a sponsor or exhibitor to be eligible to purchase space.)
Don’t miss out on branding your product or company to our Industry leaders whose agencies collectively represent over 250,000 independent agents in the field. Download the Media Kit, then complete and return the advertising contract to secure any of these print advertising opportunities!
"Free Advertising"
Would you like to see cost saving advertising opportunities or “FREE” ways to advertise your product? Opportunities are available to combine print and online ads for deeper discounts.
Exhibit Space Available
Exhibit Booths and sponsorship opportunities are still available for NAILBA 29. Currently, the NAILBA exhibit hall is 75% sold. Don’t wait until the last minute to decide you want an exhibit space - commit now! Click here for an updated floor plan.
Sponsorship Opportunities
NAILBA offers a range of outstanding sponsorship opportunities that will give you high‐impact name recognition and exposure to the highest profile audience in the independent brokerage community. Whether you select a food function, general session, breakout or promotional item, your sponsorship will create top of mind awareness with our member agencies and other potential clients. New this year: added banner and signage exposure to all hotel attendees in highly visible areas.
Some LARGE impact items still available are: Cyber Café and Email Stations.
Click here for a complete list of current available sponsorships and sponsorship benefits!
Contact Susan Haning at shaning@nailba.org or 703-383-3068 to learn more about exhibiting, sponsoring or advertising opportunities!
