Publication to the MeMbershiP

naiFa-GW newsMARCH 2010

National Association of Insurance and Financial Advisors - Greater Washington

NAIFA - Greater Washington

NAIFA - Greater Washington

NAIFA-Greater Washington News provides print, electronic and web exposure to our advertisers and sponsors.

For more information on advertising or sponsorship packages, please contact:

Ron Jerro at 703-734-2900 or ron.jerro@rejassoc.com or Margaret Simonds at 301-581-7280 or msimonds@finsvcs.com

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NAIFA – GreAter WAshINGtoN MIssIoN stAteMeNt

The mission of the Greater Washington Association of Insurance and Financial Advisors is to protect and enhance the livelihood of financial professionals and consumers through advocacy and

education on industry matters, while promoting the highest standards of ethical behavior.

It’s sMArt to beloNG!

NAIFA - Greater Washington

Message from The President ..................................................................2President’s Circle Members ...................................................................2Welcome New and Reinstated Members ...............................................3Platinum Sponsors .................................................................................3Members Benefit Spotlight ....................................................................4NAIFA Membership Application ....................................................... 5-620�0 Calendar of Events ........................................................................7GWFIFA Foundation Update .................................................................8GWFIFA Sustaining Dues Pledge Form ................................................9Legacy Award Luncheon & Guest Speaker ................................... �0-�2DC Premium Tax Update .....................................................................�2MDRT Minute ......................................................................................�3NAIFA Industry Awards .......................................................................�4New HIPAA / HITECH Compliance regulations ................................�5NAIFA Govt. Alert – Health Care ........................................................�6Govt. Watch – Obama Health Care Proposal .......................................�7Govt. Watch – Tax Reform Debate ......................................................�8NAIFA MD Expo .................................................................................�9IFAPAC Enrollment Form ...................................................................20Photo Gallery ................................................................................. 2�-24

PresIDeNtConnie Golleher

(301) 656-8689 x305connie@hollemanco.com

VICe PresIDeNtBrock Jolly, CFP, CLU, CLTC

(703) 394-7151bjolly@finsvcs.com

seCretArY / treAsUrerMatthew Grace(301) 907-9030

matthew.grace@ffgdc.com

IMMeDIAte PAst PresIDeNtAngela C. Howley

301-984-4000 x103ahowley@nbainc.com

NAtIoNAl CoMMItteePersoNRichard L. Stone, CLU, LUTCF,CBC

(301) 840-9669richard@lifetimebenefitsllc.com

DIreCtorsWilliam (Rock) Brockman, CLU, ChFC

(301) 948-5800brockmanwh@ecsinsure.com

Political Involvement/IFAPAC Co-Chair

Keith Eig(301) 656-0660 x306kmeig@gwellc.comPresident, GWFIFA

Dilip Jhaveri(301) 214-6600

dhaveri@ft.newyorklife.comMembership Chair

Galina Koval(703) 549-1300 x67666

galina.koval@hartfordlife.comProfessional Development Chair

Margaret Simonds(301) 581-7280

msimonds@finsvcs.comCommunications Chair

Sheila Thompson(703) 502-0650

benefitshoppe@msn.comMembership Recruitment Chair

Kenneth J. Van Valkenburgh, LUTCF, MBA(301) 941-9137

kvanvalkenburgh@finsvcs.comProgram Chair

Matthew C. Weider, CLU, ChFC(703) 818-2502weider@att.netDirector, APIC

Association Executive Dina LandP.O. Box 5153, Arlington, Virginia 22205703-532-8778Fax: 703-940-8393dina@naifa-gwdc.orgwww.naifa-gwdc.org

2009-2010 leadership team

NAIFA - Greater Washington Contents

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President’s MessageConnie Golleher, 2009-10 President, NAIFA-Greater Washington

February 2010

The year started with tragedy as an earthquake devastated Port-au-Prince, Haiti. I know many of you

have been volunteering time, money and resources in an effort to help. MDRT established a relief fund for the victims in Haiti with funds awarded to Heifer International and Mercy Ships, both of which are currently assisting Haiti with relief efforts. I have been reminded again about how quickly life can change and why I am in the insurance business. As insurance agents and financial advisors we have a responsibility to help folks plan for the unexpected – death, disability, long term care, and retirement. Take a minute today to reflect on why you entered the business and what keeps you working for others.

I mentioned in our last newsletter that IFAPAC contributions nationally were low, and that we would be reaching out to members to ask them to begin contributing or to increase the amounts they currently contribute. If you haven’t heard from us – stay tuned, we’re working to reach everyone. If you currently don’t contribute please consider starting. All it takes is $8.50 per month. Not a lot considering that the funds are used to protect our livelihood! Joe Davis, Rock Brockman and Jim Deligianis have done great work for raising funds and awareness, please tell them “thank you” the next time you see them!!

Legislation looms over us with the threat of taxation of insurance products and health care reform that could change the way we do business. Please read and take the time to send an email or call your legislators when you receive the GOV Alerts from NAIFA. If we all respond to the “call” we CAN make a difference. In September I wrote “I want this year to be a year that we come together as an association, with renewed commitment, to make a difference in protecting and serving our industry.” What are you doing for your industry?

Our YAT (Young Advisors Meetings) events continue to grow, our luncheons continue to offer opportunities to network and learn from others in our industry, and our CE sessions continue to provide valuable continuing education credits. We are working on a Leadership Program that will begin in the coming months that will provide tools required to get started to anyone interested in getting involved in Association Committee or Board work – stay tuned!!!

Thank you for your time in reading this note, and for getting involved with your association.

Happy New Year!Connie Golleher

Thank You to Our President’s Circle MembersThe Hartford

John HancockMetLife

PrudentialSunLife

NAIFA - Greater Washington

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lori Arceo ................................................................................ New York lifelisa barnes ...................................................lisa barns Insurance AgencyAngelique best .......................................................................best Financialbarbara Dietze ........................................................................ New York lifeben Jolly.........................................................signature Financial servicesrobert stravinski ............................................... sheehan Insurance Groupbo sun ..................................................................................... New York lifeWilliam Donselle Warner ........ Midland National life Insurance Company

Encourage your peers to join The NAIFA-Greater Washington D.C.Mail the application below to: NAIFA-GWDC, P.O. Box 5153, Arlington, VA 22205. Any Questions? Call (202) 463-6100

It’s Smart to Belong!

Welcome New and Reinstated Membersas of January 21, 2010

Thank you to our Platinum Sponsors

Brokerage Services International, Inc.

The Washington Group of MassMutual

Thank you to our Platinum Sponsors!

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Member BenefitAs a NAIFA Member, you are eligible for discounts on products and services that can enhance your business success and increase your bottom line, including E&O insurance, credit card services, customized websites, and office product savings. By participating in one or more of the Preferred Provider programs listed on the next page, NAIFA members can often more than recoup their membership investment. When contacting the NAIFA Preferred Providers for more information, please don’t forget to mention you are a NAIFA Member.If you have any questions about NAIFA’s Member Benefits, or need additional information, contact NAIFA’s Professional Development Department at 877-TO-NAIFA (866-2432) or by email at memberbenefits@naifa.org or visit the NAIFA Member Benefits section of the NAIFA website at www.naifa.org/benefits/.

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MeMbership ApplicAtionNatioNal associatioN of iNsuraNce aNd fiNaNcial advisors

A bPersoNal iNformatioN, Please PriNt or tyPe

membershiP tyPe: active associate student transfer only

local Naifa association (if known) association Number city, state

*year of initial license *date of birth

Prefix first, middle, last Name suffix

designations title

Primary company firm/agency Name (if applicable)

busiNess iNformatioN:Please send all mail to my home address business address

street address 1 business Phone

street address 2 business fax

city, state, Zip toll-free Number

business email address Primary? yes No Web address

home iNformatioN:

street address 1 home Phone

street address 2 home fax

city, state, Zip home email address Primary? yes No

other:Producer type:

1. Which of the following best describes the primary focus of your practice? (please choose one)

life insurance and annuitieshealth insurance and employee benefitsmultilinefinancial advising and investments

2. years in the business____________________________

3. association memberships and other affiliationsamerican institute of certified Public accountants (aicPa)association for advanced life underwriting (aalu)financial Planning association (fPa)Gama internationalmillion dollar roundtable (mdrt)society of financial services Professionals (sfsP)other ______________________________________________________

4. Products recommended to clients(choose as many as apply)

referred by (Please PriNt)(must be an active Naifamember)

Name

city

state

3WAys to Join nAiFA

1.FAX application with credit card info to877/508-9842.

2.ON LINE at www.naifa.org

3.MAIL with payment to: Naifa membershiplockbox, P.o. box 758658, baltimore, md 21275

falls church, virGiNia 22042-1205 i maiN: 877/to-Naifa i fax: 877/508-9842 i WWW.Naifa.orG

NoN-deductibility of lobbyiNG exPeNses disclosure statemeNtWhile association dues payments may be deductible by members as an ordinary and necessary business expense, dues are not deductible as charitable contributions for federal income tax purposes. to determine the total non-deductible portion of your dues, add the Naifa National lobbying expense ($56.00) to your state association’s lobbying expense (see table below).

LobbyingEXPEnSES AMSR* Lobbying

EXPEnSES AMSR* LobbyingEXPEnSES AMSR* Lobbying

EXPEnSES AMSR*

alabama $24.30 $ 5.00 illinois $ 8.40 $ 2.00 montana $10.90 $ 0.00 Puerto rico $ 0.00 $ 0.00alaska 4.00 0.00 indiana 27.60 0.00 Nebraska 13.30 0.00 rhode island 4.17 0.00arizona 2.30 0.00 iowa 26.90 .50 Nevada 19.80 0.00 south carolina 9.00 3.00arkansas 2.54 0.00 Kansas 24.00 0.00 New hampshire 82.80 0.00 south dakota 16.60 0.00california 26.20 5.00 Kentucky 2.25 0.00 New Jersey 13.65 0.00 tennessee 15.30 2.00colorado 0.00 0.00 louisiana 0.00 0.00 New mexico 25.40 2.00 texas 55.00 0.00connecticut 23.30 0.00 maine 72.40 0.00 New york 34.00 2.00 utah 11.90 0.00delaware 25.00 0.00 maryland 29.00 0.00 North carolina 17.90 0.00 vermont 0.00 0.00district of columbia 0.00 0.00 massachusetts 33.30 0.00 North dakota 8.70 2.00 virginia 12.00 1.00florida 25.80 0.00 michigan 15.00 0.00 ohio 22.10 0.00 Washington 45.00 0.00Georgia 8.30 0.00 minnesota 26.40 0.00 oklahoma 27.20 2.00 West virginia 28.00 0.00Guam 49.60 0.00 mississippi 13.00 1.75 oregon 30.50 10.00 Wisconsin 20.00 0.00hawaii 20.70 0.00 missouri 0.00 3.00 Pennsylvania 13.50 0.00 Wyoming 11.20 0.00idaho 9.30 0.00

(effective september 1, 2009-august 31, 2010)

detach before returNiNG

APPLICANT INFORMATION APPLICANT PROFILE

NATIONAL ASSOCIATION OF INSURANCE AND FINANCIAL ADVISORS

independent (sell for multiple companies)captive (sell for one company only)semi-captivemultiline

General agent/managercareer agenthome servicebank agentbroker

Please do Not send me promotional faxesPlease do Not share my contact information with Naifa member benefit affinity providers*Please register me for the young advisors team (yat) to receive special communications — for members 40 years and younger or in their first five years in the business

other _______________________________________________

term lifeuniversal lifeWhole lifevariable life

fixed annuities variable annuities

individual health insuranceGroup health insurance

long-term care insurance disability income insurance

5. your Positionowner/Partneragency manager/General agentemployee/agentindependent contractorbroker dealerother ______________________________________________________

other _______________________________________________________

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I Believe It To Be My Responsibility

To hold my profession in high esteem and strive to enhance its prestige.

To fulfill the needs of my clients to the best of my ability.

To maintain my clients’ confidences.

To render exemplary service to my clients and their beneficiaries.

To adhere to professional standards of conduct in helping my clients to protect insurable obligations and attain their financial security objectives.

To present accurately and honestly all facts essential to my clients’ decisions.

To perfect my skills and increase my knowledge through continuing education.

To conduct my business in such a way that my example might help raise the pro-fessional standards of those in my profession.

To keep informed with respect to applicable laws and regulations and to ob-serve them in the practice of my profession.

To cooperate with others whose services are constructively related to meeting the needs of my clients.

Preamble: those engaged in offering insurance and other related financial services occupy the unique position of liaison between the purchasers and the suppliers

of insurance and closely related financial products. inherent in this role is the combination of professional duty to the client and to the company as well. ethical bal-

ance is required to avoid any conflict between these two obligations. therefore,

i agree to abide by the association bylaws and Naifa’s code of ethics (see below) and certify that:

a. i have not been accused in writing nor been found in violation of the code of ethics of any professional organization of which i am a member. a state or federal licensing or regulatory body has not censured, fined or reprimanded me, or revoked or suspended my investment advisor, securities, or insurance license(s). i am not a defendant in a criminal action. if a criminal judgment has been entered against me in the past, it has been disclosed to Naifa and its predecessors.

b. i agree that neither the association nor its individual members, officers, directors, agents or employees shall be liable to me, individually or jointly, if this application for membership is rejected or for the consequences of any disciplinary action which may be sought or taken against me under the local association’s bylaws or amendments thereto or any disciplinary or penal action which may be sought or taken against me under the laws of this or any other state or jurisdiction, or for any statement which the Local association or any of said individuals may issue relative to any such action; provided, for its or their gross negligence or willful misconduct.

c. i understand and agree that my application for membership will be declined if it does not obtain a majority vote of the board of Directors, or in the opinion of the board of Directors, i am or will be unable or unwilling to conform to any of the foregoing requirements.

or (check if any statements apply):

i have been accused in writing or been found in violation of the rules or code of ethics of a professional organization of which i am a member. a state or federal licensing or regulatory body has censured, fined or reprimanded me, or revoked or suspended my investment advisor, securities or insurance license(s).i am a defendant in a pending criminal action or a criminal judgment has been imposed against me that has not been disclosed to Naifa or its predecessors. i will attach complete details with this application. i understand that a finding of such violation may create a presumption that i have violated Naifa’s code of ethics.

signature Date

DMEMBERSHIP AGREEMENT

NAIFA CODE OF ETHICS

CPAYMENT INFORMATION

Dues amouNts (for official use only) — Local and state dues amounts must be entered and added to the Naifa dues amount.

*Local *state Naifa *total

+ + $300.00 =

*reQuireD fieLDs

Notice: Naifa is required to inform you of the cost of your state and/or national magazine subscription, which is included in your membership dues. This amount is not deductible from your dues. the amount of your advisor today subscription is $10. the amount of your state subscription is listed in the table on the front of this application.

aNNuaL PaYmeNt oNLY (Please check one)check Visa mastercard american express

card Number expiration Date Name on card

signature Date

AUTHORIZATION AGREEMENT FOR MONTHLY DEBIT/CREDIT CARD PAY

i hereby authorize the National association of insurance and financial advisors, hereinafter called Naifa, to initiate debit/charges to my: (select one)

Visa mastercard (ameX or Discover not accepted at this time).checking acct. savings acct. at the depository financial institution named below

hereinafter called DePositorY, and to debit the same to such account. *Please include a voided check with your application.

bank Name/credit card Name

bank routing Number (aba #)/expiration Date

bank account Number/credit card Number

this authorization is to remain in full force and effect until Naifa has received written notification from me (the participant) of its termination. Written notification must be received by Naifa by the last business day of the month to avoid a draft/charge for the following month.

account holder’s Name

signature Date

Note: All written debit/charge authorizations must provide that the member mayrevoke the authorization only by notifying NAIFA in the manner specified in theauthorization.

Note to Members Paying by Bank Draft or Monthly Credit Card: Naifa will debit/charge your account on the 5th of every month. Debits/charges will begin the month following receipt of this application. You will be notified in advance of any adjustments in your monthly debit/charge, resulting from any dues adjustments. there is a $.50 per month transaction fee, which is added to the monthly debit/charge amount. if your membership is being reinstated after a lapse, the first debit/charge will reflect the amount due for the delinquent months. If the participant has insufficient funds in his/her account to cover the monthly draft, NAIFA will charge a $15.00 fee on the next monthly debit. if the insufficient fund status occurs for a second consecutive month or twice within six months, the participant will be removed from the program and all benefits will be terminated. the member will not be eligible to receive benefits again until his/her account is brought current. once you have enrolled in the bank draft/monthly credit card program, you are committed to pay full annual dues in 12 monthly payments. if you fail, for whatever reason, to complete your full membership dues obligation, you are still liable for the remaining unpaid balance.

Detach before returNiNG

$550.00

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March 18thThe Legacy Award Luncheon

(combining the former Meyer/Brandrup and Wilner Awards)

Congressional Country ClubBethesda, MD

11:30 am – 2:00 pm

Guest Speaker: Tim Brant, ABC 7 / WJLA-TV

April 22ndAnnual Membership Meeting

Maggiano’s Little ItalyTyson’s Corner in McLean, VA

11:30 am – 2:00 pm

Guest Speaker: Diana Chambers, The Chambers Group, LLC

Topic: Family Wealth Mentoring

May 8thGWFIFA Family Self Sufficiency Picnic

Wheaton Regional ParkSilver Spring, MD

May 19th – 20thNAIFA MD State Expo

Turf ValleyEllicott City, MD

May 20thGWFIFA Tennis Tournament

Cardinal Hill Swim and Tennis Club12:30 pm – 4:00 pm

June 3rdMembership Luncheon &

Installation of OfficersCongressional Country Club

Bethesda, MD11:30 am – 2:00 pm

Guest Speaker: Gov. Frank Keating (Oklahoma 1995-2003)

June 29thNAIFA-GW Golf Tournament

Whiskey Creek Golf ClubIjamsville, MD

11:00 AM - Registration and Driving range opens

12:00 PM - Lunch

1:00 PM - Shotgun start

2010 CAlendAR of eventsNAIFA - Greater Washington

Tentative dates for 2010 Membership Events. Please mark your calendars. More details to following in upcoming editions of the GW-NAIFA Newsletter.

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February 2010

Your Foundation has been very busy lately. Planning for the First Annual Legacy Award (formerly the Wilner and Meyer/Brandrup Awards) has been underway. Bill Harraway is this year’s chair and along with his committee has worked hard to present an outstanding event. As you may know, Barbara Hildenbrand is retiring as executive director and Dina Land has taken that position. They are working closely together in order to provide a smooth transition, as well as an outstanding award luncheon.

This year’s luncheon will feature Tim Brant from channel 7 as the keynote speaker along with a “special presentation”. You will also see new inductees in the “Helping Hands Society honored with an original Philip Ratner statue. The snow will be gone by then and I hope to see each and every one of you at this special event.

All of the charities that we support will be there to receive their annual contribution. One group, Project Discovery will be featured and you will hear from one who has benefited from your Foundation.

You will be there to honor a well-deserving recipient at the inaugural luncheon. YOU DON’T WANT TO MISS THIS EVENT!

After the Legacy Luncheon, things quiet down a little. The next event will be the Montgomery County Family Self Sufficiency Program on May 8. Mike Burns chairs this event and I want to encourage you to help and/or attend. Later that month we will hold the tennis part of the Jay Bell Memorial tournament. Please contact Craig Beden if you would like to participate this year.

In the fall, we will have the golf part of the Jay Bell Tournament. This event will be held at beautiful Westfield Golf Club. Jeff Hamblen chairs this event, which acts as our major fundraiser. More on that later.

In closing, I want to thank all of you for your support and encourage you to get involved and be a part of your Foundation and all of the good that we do.

foundation UpdateKeith Eig • President, GWFIFA

Greater Washington Foundation of Insurance and Financial Advisors

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Dedicated to Community Service & Professional Development GWFIFA is a 50� (C) (3) and contributions are tax deductible under the guidelines of the IRS

��0� 30th Street, N.W., Suite 500, Washington, D.C. 20007

202-625-4309

SUSTAINING DUES MEMBER PLEDGE

INSURANCE & FINANCIAL ADVISORS MAKING AN IMPACT THROUGH OUR CHARITIES: For Love of Children, Family-Self Sufficiency of Montgomery County, GWFIFA Scholarship Program,

Mentors, Inc., Project Discovery of Fairfax County & Coalition to Salute America’s Heroes

In recognition of the value of GWFIFA and to be a part of contributing to the ongoing support of our charities, I WISH TO MAKE THE FOLLOWING PLEDGE:

Total Pledge: _________________ Balance to be paid over a period of: 3 Years ______ 4 Years ______ 5 Years ______Other ______Yrs. My Employer offers matching gifts ______ Payment Enclosed: ___________ Please make checks payable to: GWFIFA (send to address below) MC/VISA # _____________________________________Expiration Date: ________________________

__________________________________ _______________________________________ Name Signature

______________________________________________________________________________Street, City, State, Zip

__________________________________ _______________________________________ E-Mail Phone No. Please earmark my donation for _________________Memorial in honor of _________________________________________________

(Quentin Aanenson, Jay Bell, Vic Brandrup, Thelma Davenport, Robert Gatewood, Vernon Holleman, Jr., Neil Nekrich and Robert Rose)____Gen Admin Fund ___Charitable & Community Activities ____Scholarship Program

Contribution LevelsDonors $50-$99 Bronze $5,000-$9,999 Patrons $100-$499 Silver $10,000-$14,999 Grantor $500-$999 Gold $15,000-$29,999 - Helping Hands Society Life $1,000-$1,999 Platinum $30,000 & Up Founders $2,000-$4,999

The Greater Washington Foundation of Insurance & Financial Advisors

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You are cordially invited to attend the

First Annual Legacy Award Luncheon(combining the Wilner and Meyer/Brandrup Awards)

Sponsored byThe Greater Washington Foundation of Insurance & Financial Advisors

Thursday, March 18, 2010Congressional Country Club

8500 River RoadBethesda, MD 20817

Registration and Luncheon Seating 11:30 amProgram 12:00 - 2:00 pm

Guest SpeakerTim Brant, ABC 7/WJLA Television

No cost for members of NAIFA-Greater WashingtonGuests are welcome — $50 per person

Reservations Required by March 5Please register online at naifa-gwdc.org

To reserve space for your guest, please contact Dina Land703-532-8778 or dina@naifa-gwdc.org

Make check payable to the GWFIFA and mail toP.O. Box 5153, Arlington, VA 22205

Helping Hands Statue by Philip Ratner for GWFIFA

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The Legacy Award was created in 2009 to combine the traditions and prestige of the 63-year Bernard L. Wilner and the 41-year Harry L. Myers -Victor E. Brandrup awards to recognize an individual, in a single annual presentation, for outstanding service and dedication to the National Association of Insurance and Financial Advisors-Greater Washington over an extended period of time, and in conformance with the highest standards of professional conduct and unselfish community service. The individual is further commended for adherence to the principles of trusteeship and stewardship on behalf of the insurance and financial services industry. The Legacy award will continue to honor the memories and achievements of the leaders whose names appear on the predecessor awards.

The Greater Washington Foundation of Insurance and Financial Advisors is the charitable arm of NAIFA-Greater Washington. It is an incorporated 501 (c) 3 charitable organization that is dedicated to having a positive impact on the lives of the citizens, especially children, of the Washington DC metropolitan area, through community service. The Foundation provides scholarships to students recommended by Mentors Inc., For the Love of Children and Friends of Project Discovery, and contributions to the Montgomery County Family Self-Sufficiency Program, and Coalition to Salute America’s Heroes.

The Helping Hands Statue is an original sculpture created for the Foundation by world-renowned artist Philip Ratner. It is a fitting symbol for the mission of the Foundation. A signed original statue is given in appreciation to each donor that becomes a member of the “Helping Hands Society” by reaching an aggregate contribution level of $15,000.

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Tim BrantGuest Speaker: GWFIFA 1st Annual Legacy Award

Tim Brant is home again at ABC 7 / WJLA-TV as Vice President of Sports. He is a one-time Sports Director for WJLA-TV, who went on to work for CBS and ABC networks covering college football, the NFL, the NBA, the Tour de France and two Olympics. Tim also spent more than a decade as host of the popular Morning Show on WMAL Radio.

Tim continues his work with ABC Sports and as the voice of ACC Basketball on the Raycom-Jefferson Pilot Television Network. His passion for sports analysis dates back to his years on the University of Maryland gridiron, where he was a star Terrapins lineman and defensive captain.

That dynamic has led to numerous professional awards. Tim was honored twice by the Touchdown Club of Washington, once as Top Analyst, then later Sportscaster of the Year. Tim was named Champion Sportscaster by the Black United Fund. He won the March of Dimes A.I.R. Award for achievement in radio, the University of Maryland Distinguished Alumnus Award, the award for Distinguished Professional Achievement by the Phillip Merrill College of Journalism and he was inducted into the St. John’s College High School Hall of Fame.

Tim is a graduate of the University of Maryland with a degree in Journalism. He lives in Rockville with his wife Janet and their four children.

dC PReMIUM tAX UPdAteThe District of Columbia Insurance Department’s 20�0 Premium Tax Update includes a reinterpretation of the DC Code to require DI and LTC carriers to pay 2% in premium taxes instead of 1.7%. More specifically, please see No. 1 of the Update entitled “Premium Tax Rates” which states, in part:

• 1.7% for all types of insurance, except Accident and Health (A&H). • 2% for all Accident and Health (A&H).

The 2008 Premium Tax Bulletin (dated December 2008) outlined, in part, the following tax rates:

• 1.7% for all types of insurance, except comprehensive and major medical Accident and Health. • 2% for comprehensive or major medical Accident and Health.

If you have any questions concerning insurance taxes, you are requested to direct them to the Insurance Tax Unit, telephone (202) 442-7772 or, (202) 727-8000. E-Mail: alvin.james@dc.gov

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Breathing New Life Into Businesses With Life InsuranceThe death benefits we sell are extremely important. However, we sometimes forget about the living benefits life insurance provides. They, too, are there for clients when needed. Two experiences stick out in my mind:

Whole life insuranceIn the early 1990s, a mentor from my early years retired and assigned his book of business to me. One of the clients was a successful business owner who had purchased a $1 million whole life policy in 1984.

I began building a relationship with Bob in 1994, calling on him to review his policy and provide him with my financial planning advice on a fee basis. We developed a great relationship; little business was sold, but I continued to call on him. In 1999, two positive things happened:

First, the company issuing Bob’s $1 million policy demutualized, resulting in 6,887 shares of company stock, a value of more than $90,000 to Bob, combined with a one-time extra dividend of about $20,000.

Second, I made my first sale while working with Bob and his attorney on estate planning. At that time, Bob purchased a $2.5 million second-to-die policy for estate liquidity purposes.

In 2001, Bob’s business was severely impacted by the economic downturn. I reminded him that he had more than $250,000 of cash value in the original life insurance policy. He asked, “How quickly can I get the money?” We got a check to him in a week, and the infusion of cash literally helped save his business.

Since then, Bob has purchased an additional $1.1 million in personal insurance and another $�.5 million second-to-die policy. Today, I am a key individual in his circle of advisors.

Key person insuranceIn 1994, I called on the owner of a trucking firm. Two years prior to my call, Jim had been diagnosed with a malignant brain tumor. While treatment was successful, he did not qualify for traditional life insurance.

The good news was that two of Jim’s sons — Pat and John — worked in the business as his successors. I introduced Jim to an estate planning attorney, and Jim purchased $1 million in key person insurance for both of his sons, and a $2.5 million second-to-die policy on him and his wife.

Sadly, Jim died in 2000 after his brain tumor reappeared. Fortunately, Jim’s estate planning had been completed, and Pat and John began purchasing the company from their mother via an installment sale that had been established as part of Jim’s plan.

In 2001, Pat and John’s business was affected by the recession. I reminded them that $145,000 in cash was available in each of the key person policies their father purchased. They had their checks within two weeks, and the money helped stave off bankruptcy for a 40-year-old company with a staff of 75.

Working with these clients has emphasized that when it comes to life insurance, someone does not always have to die for careful planning to pay off.

Wayne D. Minich, CLU, ChFC, is a 34-year MDRT member with 12 Court of the Table and two Top of the Table qualifications. He has served on several MDRT committees and task forces and has spoken at two Annual Meetings.

Million Dollar Round Table Phone: 847.692.6378 | Fax: 847.5�8.8921 | Web site: www.mdrt.org

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nAIfA Industry AwardsThe NAIFA Industry Awards program recognizes life, health, multiline, home service and financial planning professionals who seek to maintain high standards in the insurance-based financial services industry.

By continuing to meet the standards set by the NAIFA Industry Awards for quality, dedication and sales achievement, you can attain personal satisfaction, as well as evidence of a job well done. NAIFA members who reach these levels of achievement win more than an award, they attain recognition that distinguishes them as an outstanding professional.

Congratulations NAIFA-Greater Washington Award Winners!National Multiline Sales Award - recognizes multiline agents for growth in life insurance sales. To be eligible, agents must have $20,000 of new paid life premium with a minimum of 15 new life applications or 40 new life applications, 250 new property and casualty policies issued, and cross sell 100 applications of an additional line for new and or existing clients (you may include the property and casualty policies mentioned above).

Dave Vidmar, LTUCF, State Farm ............................................................................ 5 years

National Quality Award - created in 1944, the NQA recognizes agents whose persistency records indicate competence and dedication to the insurance industry and their clients. Agents who win this award have tangible evidence signifying that the products they sell will meet the client’s needs.

Brock Jolly, CFP, CLTC, CLU, Capitol Financial Partners ...................................... 1 yearJames Parenteau, American United Life .................................................................... 2 yearsDaniel Carlson, Northwestern Mutual Financial Network ....................................... 2 yearsJames Adkins, Strategic Financial Advisors .............................................................. 10 yearsOrval Cullen, FIC, Thrivent ...................................................................................... 10 yearsHaig Kondayan, CFP, Northwestern Mutual Financial Network .............................. 13 yearsGenevra Guagliano, Northwestern Mutual Financial Network ................................. 14 yearsDavid Seager, CLU, ChFC, The Fairfax Group ........................................................ 23 yearsRobert Quinn, CLU, Northwestern Mutual Financial Network ................................ 24 yearsMark Hanson Siciliano, Northwestern Financial Network ........................................ 25 yearsHarry Thomas, Jr., CLU, ChFC, Northwestern Financial Network .......................... 25 years

National Sales Achievement Award - created in 1966, the NSAA recognizes local association members who write large numbers of life and health insurance policies, thereby demonstrating their abilities in client building and their success as an insurance agent.

James Adkins, Strategic Financial Advisors ............................................................. 9 yearsRobert Quinn, CLU, Northwestern Mutual Financial Network ................................ 25 yearsDavid Seager, CLU, ChFC, The Fairfax Group ........................................................ 2 yearsMark Hanson Siciliano, Northwestern Financial Network ....................................... 29 years

NAIFA - Greater Washington

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Three new HIPAA/HITECH Act rules went into effect this February:

Effective Wednesday, February 17, 2010, Business Associates of Covered Entities must comply with the HIPAA Security Rule. For the first time Business Associates will be regulated by the federal government. Section 13401 of Subtitle D (Privacy) of the HITECH Act (42 USC 17931) states that “[t]he additional requirements of this title that related to security and that are made applicable with respect to Covered Entities shall also be applicable to such a Business Associate and shall be incorporated into the business associate agreement between the business associate and the covered entity.” [Public Law 111-5, p.260] In addition, penalties that apply to Covered Entities also will apply to Business Associates for noncompliance with the provisions of the Security Rule.

Effective Thursday, February 18, 2010, a new restriction on disclosure of protected health information went into effect that impacts Covered Entity health care providers. According to Section 13405 of Subtitle D of the HITECH Act (42 USC 17935), a health care provider must honor a patient request to restrict disclosure of protected health information to a health plan for purposes other than carrying out treatment (namely, payment or health care operations) if the patient pays the health care provider out of pocket in full.

Finally, on Monday, February 22, 2010, enforcement of the Breach Notification Rule went into effect for “failure to provide the required notifications for breaches” of unsecured protected health information discovered on or after the February 22 date. [74 Federal Register 42757, August 24, 2009]. The Breach Notification Rule applies to Covered Entities and Business Associates, provides obligations for each regarding compilation and reporting of information pertaining to a breach by either party, and requires “incorporation [of those obligations] into the Business Associate Agreement between the Business Associate and the Covered Entity.” [42 USC 17934

new HIPAA/HIteCH Act Rules Require Compliance in february 2010

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Date: January 15, 2010 subject: staying Alive in health reform

As leadership in both the House and Senate work to finalize a health reform bill to bring to the House and Senate floors, it is important that the points set forth in the document linked here be made to all lawmakers by their constituents. That's you!

Background: The health reform bills being melded for final passage include a number of NAIFA-initiated improvements. We started back on April 15, 2009, when Nancy Ann DeParle from the White House Office on Health Reform stated: "A public plan is something that's sponsored by the government, and therefore has very low or almost nonexistent administrative costs, compared to others. It doesn't have the need to have brokers out selling; it wouldn't have the need to have a lot of costs and profits, the way private plans would. So it has that advantage." In addition to no role for the licensed professional agent, initial health reform efforts under consideration included a government-run plan; national exchange; taxes on life insurance and annuities; taxes on employer-provided health plans; taxes on FSAs, HSAs, HRAs; elimination of HSAs; new government-run LTC program; and repealing McCarran Ferguson.

NAIFA's efforts to remain active participants in the legislative process have resulted in:

No tax on life and annuity products to pay for reformMeaningfull role for the agent in reformed systemAgent commission rates not controlled by hhs secretaryFsA Cap IndexedNo Government-run plan in senate billstate exchanges, not federal, in senatebillNo change in current Antitrust exemption in senate bill

While these accomplishments are significant, further improvements can be achieved. NAIFA believes remaining active gives us a better chance to shape the bill into the best legislation possible within the current political environment.

Email or Call your Representative and two Senators. Don't have time to make calls now? Program these numbers into your cell phone and call on the way to appointments.

Urge your friends and colleagues to do the same by using the Tell a Friend feature at the bottom of this GovAlert.

Engage the Media Members and their constituents pay close attention to their local media. Make the voice of agent heard by selecting the "Media Guide" tab located at the top of this GovAlert.

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Date: January 15, 2010 subject: staying Alive in health reform

As leadership in both the House and Senate work to finalize a health reform bill to bring to the House and Senate floors, it is important that the points set forth in the document linked here be made to all lawmakers by their constituents. That's you!

Background: The health reform bills being melded for final passage include a number of NAIFA-initiated improvements. We started back on April 15, 2009, when Nancy Ann DeParle from the White House Office on Health Reform stated: "A public plan is something that's sponsored by the government, and therefore has very low or almost nonexistent administrative costs, compared to others. It doesn't have the need to have brokers out selling; it wouldn't have the need to have a lot of costs and profits, the way private plans would. So it has that advantage." In addition to no role for the licensed professional agent, initial health reform efforts under consideration included a government-run plan; national exchange; taxes on life insurance and annuities; taxes on employer-provided health plans; taxes on FSAs, HSAs, HRAs; elimination of HSAs; new government-run LTC program; and repealing McCarran Ferguson.

NAIFA's efforts to remain active participants in the legislative process have resulted in:

No tax on life and annuity products to pay for reformMeaningfull role for the agent in reformed systemAgent commission rates not controlled by hhs secretaryFsA Cap IndexedNo Government-run plan in senate billstate exchanges, not federal, in senatebillNo change in current Antitrust exemption in senate bill

While these accomplishments are significant, further improvements can be achieved. NAIFA believes remaining active gives us a better chance to shape the bill into the best legislation possible within the current political environment.

Email or Call your Representative and two Senators. Don't have time to make calls now? Program these numbers into your cell phone and call on the way to appointments.

Urge your friends and colleagues to do the same by using the Tell a Friend feature at the bottom of this GovAlert.

Engage the Media Members and their constituents pay close attention to their local media. Make the voice of agent heard by selecting the "Media Guide" tab located at the top of this GovAlert.

obama Health Reform Proposal follows senate Bill, with ChangesDate: February 22, 2010

Action Taken: President Obama released a new health reform plan on February 22. Generally, it follows the Senate health reform bill (H.R.3590), but makes some important changes (some of which reflect House-Senate negotiations and House priorities). The plan will serve as the starting point for the summit the President has convened with 37 members of Congress (Democrats and Republicans, House and Senate) on February 25.

The plan, like its base (H.R.3590), includes an individual mandate (i.e., individuals will be required to buy health insurance); sets up state-based exchanges (starting in 2014) from which very small businesses and individuals can buy insurance; creates a package of insurance reforms (e.g., bans use of preexisting conditions, rescissions, use of health history, etc; prohibits annual and lifetime benefit limits; and bans discrimination in favor of highly compensated employees); and sets up “employer shared responsibility” that stops short of requiring employers to offer and pay for health insurance for their workers, but does require employers who don’t offer insurance (or affordable insurance) to pay an assessment when any of their workers use federal subsidies to buy health insurance on their own.

The new Obama plan does not include:

• Repeal of the health or medical malpractice insurance industry’s limited antitrust exemption • A public plan option. It also does not expand the limited interstate insurance buying provisions, or offer anything new in the tort reform area.

A summary of the new Obama plan can be found online here: http://www.naifa.org/advocacy/documents/KeyChangesContainedObamaHealthReformProposal.pdf

The entire ��-page proposal can be found online here:http://www.whitehouse.gov/sites/default/files/summary-presidents-proposal.pdf

NAIFA Position: NAIFA’s reform goals have been and continue to be ensuring affordable coverage for all Americans without resorting to new government programs. The President’s proposal, like the Senate-passed bill, has been significantly improved over original reform drafts. NAIFA remains concerned that current proposals will increase costs to families and businesses.

Next Steps: The President will convene a televised bipartisan health reform summit on February 25th aimed at reinvigorating the delayed process. Still under consideration is a strategy involving the Senate consideration of a reconciliation bill (requiring only 51 votes for approval) that would make agreed changes to the previously-approved Senate bill. Following the Senate approval of this reconciliation bill, the House would approve the original Senate bill and the subsequent reconciliation bill. The President would then sign the original Senate bill and the reconciliation bill.

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GOV WATCH, continued from page 18

It remains unclear if the President’s proposal released today, the televised summit on Thursday, and the complicated reconciliation process will change the current environment and garner enough votes to allow health legislation to move forward.

NAIFA will remain actively engaged and will attempt to further improve legislation to meet our reform goals, including efforts to ensure a government health plan is not included; to remove the government long-term care program; to establish adequate time for coordination with existing state programs and to further address affordability and sustainability of private insurance choices.

NAIFA Staff Contact: Diane Boyle, Vice President – Federal Government Relations.

tax Reform debate Kicks off With Bipartisan tax Reform PlanDate: February 24, 2010

Action Taken: On February 23, Senators Ron Wyden (D-OR), a member of the Finance Committee, and Judd Gregg (R-NH), ranking member of the Budget Committee, introduced S.3018, their new fundamental tax reform plan. A base-broadening, rate-lowering revenue neutral rewrite of the tax code, the Wyden-Gregg proposal is the opening shot across the bow for a tax reform debate that is likely to begin this year and last into the next Congress.

For NAIFA’s analysis of this legislation, go here:http://www.naifa.org/advocacy/documents/ExplanationoftheWydenGreggTaxPlan.pdf

For sponsor’s background on this legislation, go here:http://www.naifa.org/advocacy/documents/wydengregg_twopager.pdf

For sponsor’s explanation of the tax offsets contained in this bill, go here:http://www.naifa.org/advocacy/documents/offsets_handout.pdf

Next Steps: The Wyden-Gregg plan is likely to get serious study from Congressional tax writers, including those who will be serving on the newly-establish deficit reduction commission. However, ideas for a systemic overhaul of the tax code are likely to include more than only Wyden-Gregg. It is probable the debate will start seriously later this year, and will spill over into 2011 and beyond.

NAIFA Staff Contact: Michael Kerley, Senior Vice President – Federal Government Relations, and Dani Kehoe, NAIFA Outside Counsel

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The Seventh Annual

Maryland State Expo For Life, Health and Long Term Care Producers

Sponsored by NAIFA-Maryland And the Maryland Association of Health Underwriters

SAVE THE DATE!! May 19-20, 2010

Held at the Turf Valley Hotel and Conference Center in Ellicott City, MD

The Maryland Association of Health Underwriters (MAHU) and the National Association of Insurance and Financial Advisors (NAIFA - Maryland) announce a BIGGER and BETTER Maryland State Life and Health EXPO

for 2010! The two-day event will feature a golf tournament, cocktail reception, awards dinner and an education symposium where you will earn CE credits.

Featuring:May 19th – Golf tournament followed by a cocktail reception and industry awards dinner

May 20th – Exceptional speakers and an Educational symposium where you can earn CE credits in subjects that are of interest to the industry

For attendee questions please call: MAHU – Monica Moree (410) 453-0866 For sponsor/vendor questions please call: NAIFA-Maryland – Nanci Richards 877-304-9934

Mark your calendars and

watch your email for further

registration information!

Open to members and non-members

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Check All That Apply:

O I believe in what I do for a living and the products I sell.

O I would like the people who write our laws to understand the value I bring to my clients.

O My clients would be worse off if I were no longer able to properly serve them.

If You Checked Any of the Boxes Above . . . We Need One More Check!

We are IFAPAC – the Insurance and Financial Advisors Political Action Committee.

We support candidates on both the state and federal level who share our business philosophies.

We need your help to remain effective.

Yes! Please use my contribution to support candidates who understand my business.

Enclosed is my personal check for $ ___________ made payable to IFAPAC.

Name ____________________________________________ O Please send me information on

Member # ________________________________________ contributing to IFAPAC via the

Address __________________________________________ monthly bank draft plan.

City __________________State ______ Zip _____________

Annual Contribution Categories

Investor ($50 to $99) Please complete this form and mail to:

Century Club ($100 to $199) IFAPAC

Ambassador ($200 to $299) 2901 Telestar Court

Statesman ($300 to $499) Falls Church, VA 22042

Envoy ($500 to $999)

Diplomat ($1,000 to $2,499)

Emissary ($2,500 to $4,999)

Capitol ($5,000)

IFAPAC contributions are voluntary and are not deductible as charitable contributions for federal income tax

purposes. Corporate contributions to the political fund are prohibited. Contribution categories are merely suggested

amounts. A portion of your contribution is returned to your state IFAPAC.

the Photo Pages

Family self-sufficiency Graduation recognition Ceremony october 14, 2009 ~ City Council building, rockville, MD

Mike Burns, Scholie Guziak & Paul Friedman

NAIFA-GW “bears for bears” holiday Party December 3, 2009 ~ Woodmont Country Club, rockville, MD

Angela Howley, Mike Eskra, Margaret Simonds, Brock Jolly

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the Photo Pages

Family self-sufficiency Graduation recognition Ceremony october 14, 2009 ~ City Council building, rockville, MD

Mike Burns, Scholie Guziak & Paul Friedman

NAIFA-GW “bears for bears” holiday Party December 3, 2009 ~ Woodmont Country Club, rockville, MD

Angela Howley, Mike Eskra, Margaret Simonds, Brock Jolly

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Keith Eig, Paul Friedman, Chief Darien Manley, Connie Golleher, Sgt. Lauryn McNeill, Mike Burns

Delivery of holiday toys to D.C. Council Wards December 18, 2009

Ron Jerro, Paul Friedman, DC Council Member, Joe Davis, Keith Eig

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Keith Eig, Paul Friedman, Chief Darien Manley, Connie Golleher, Sgt. Lauryn McNeill, Mike Burns

Delivery of holiday toys to D.C. Council Wards December 18, 2009

Ron Jerro, Paul Friedman, DC Council Member, Joe Davis, Keith Eig

YAt Ugly sweater holiday Party December 10, 2009 ~ buffalo billiards, Dupont Circle, Washington, DC

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Membership Meeting January 28, 2010 ~ tower Club, tysons Corner, Vienna, VA

Betty Arbuckle, Brenda Outlaw, Connie Golleher, Joe Davis Richard Stone, Greg Jachelski, Scholie Guziak

Guest Speaker Christopher Hill

Peter Glassman, Kevin Conley, Jeff Hamblen Christopher Hill and Connie Golleher

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