TAHU Update September 2005 Next Meeting Tuesday, October 11, 2005 Brier Creek Country Club Main Clubhouse 11:45 am, Luncheon Meeting Please RSVP before Friday, October 7, 2005 to David Smith, at david@beninslaw.com GUEST SPEAKER Ed Thomas, RHU Trends in Worksite Marketing Ed Thomas graduated from Guilford College in 1982 with a BA in Political Science and entered the insurance industry in 1981 as a Management Trainee with Pilot Life. He was then promoted to Regional Sales Manager in 1983 and opened the Disability Income/Mass Marketing office with Pilot Life in Charlotte, NC. Ed later joined Provident Life and Accident in 1995 as Southeast Regional Director for Voluntary Benefits and became SE/MidAtlantic Regional Practice Leader for UnumProvident in 2000. Ed Thomas, RHU is the Supplemental Benefits Regional Practice Leader for UnumProvident for the SE/MidAtlantic Region. SPONSORED BY President's Message: David Smith FROM THE TOP - News from your Association. With our first meeting recently behind us and an exciting schedule of meetings coming in the year ahead, I wanted to take a moment to first thank you for being a part of this Association. Health Underwriters is locally and nationally a strong, vibrant and growing association of agents and brokers. Why? Because your knowledge and commitment to the industry and your clients is tops - you want to know how to better serve your own clients' needs as well as reach out to those who might have something new or innovative to offer. Because you know that together, our industry can ensure that there is a fair regulatory environment locally and in Washington and to help educate lawmakers and our clients on the impact of key legislation that works its ways through Congress or the General Assembly. Because you understand that standing as one body of knowledgeable, dedicated individuals, our commitment to a free market approach to health, life, disability and other products will remain available for your clients and your future clients. I am excited about the new year and the promise of great things for our association. We remain one of the largest in the state and have laid out three goals for the new year: 10% net membership growth (which means about 30 new members); $5000 in contributions by TAHU members to either HUPAC or NCHUPAC; and the Pacesetter award for our chapter. Three simple goals that you can play an important part is reaching this year. How? Ask someone to come to a meeting and to join our association. We sell insurance. We need to make sure that our compatriots in this industry understand that membership in Health Underwriters is insurance for your livelihood and to protect access to this private marketplace. Here's a link to our Printable TAHU Application. While you're at it, make sure you take a moment to sign up for contributions to HUPAC and/or NCHUPAC. Here's a link to the HUPAC Form Finally, if there is anything you think we could be doing better, let me know. I want to make sure that this association is serving your needs because that's our job: supporting you, supporting your work with your clients and making sure that we serve our industry by getting the message to folks in Raleigh and Washington. Next month, I'll introduce you to your 2005-2006 Board. In the meantime, keep the good folks in the gulf coast region in your thoughts and prayers. And don't forget to wish our immediate past President, Barry Hill, a big congratulations on becoming a dad in early September. Welcome to the easy part Barry. David C. Smith BenInsLaw 2530 Meridian Parkway, Suite 200 Durham, NC 27713 919-806-4481 919-882-9745 Fax President-Elect, Membership: Teresa Gutierrez Our new year is off to a big success with a large crowd at our September meeting. Our numbers included 8 first time guests. Unfortunately our membership is down from a high this spring of 194 to our current head count of 181. The official state membership count for NCAHU at national was 967 in April and as of July was 908. We are moving in the wrong direction. Why have we lost so many members? How do we all reverse this trend? We have as an association done very well at recruiting new members. It is in retaining our members that we have preformed poorly on a local, state and national level. Your leadership team has dedicated this year to reversing this trend. The membership committee will be calling all members that have lapsed in the last year to encourage them to re-join and more important find out why they did not renew. If we find a theme for non-renewal through our calls, we promise to do our best to correct the issue. I encourage feedback from all of our members as to how we can better serve your needs and make this a growing organization. I encouraged everyone to "Tell the Story" of why agents should belong to NAHU and get them to the meetings. We need to tell them our association promotes excellence through local continuing education and professional designations including: RHU, Registered Health Underwriter REBC, Registered Employee Benefits Specialist DITC, Disability Insurance Training Counsel HITC, Health Insurance Training Counsel Your association provides interesting speakers at meetings and an opportunity to meet with other insurance professionals. You have opportunities as a member to attend the state symposium, national convention, state Day-on-the-Hill, and the national Capital Conference. You receive a great magazine full of relevant, timely articles. But most importantly, your association provides "Job Insurance". Members' participation and advocacy are the reasons we have become an influential voice on a local, state and national level. To borrow a line form Ryan McDermott, Region 7 membership chair "Our ability to provide is continually threatened and attacked by poor legislation, illegitimate insurance scams, under-educated agents, and maybe worst of all, our own apathy." It is only through membership in this organization that we have a voice in our survival as an industry. So we all need to polish up our 30 second elevator speech and recruit a new member for our association. Coming next month "Are you Triple Crown Material?" Teresa C. Gutierrez, LUTCF Integrated Benefit Solutions, Inc. PO Box 638 Cary, NC 27512 919-880-5151 919-882-9091 Fax Awards Chair: Rufus B. Langley In the past, TAHU has received awards for Pacesetter and has had several Distinguished Service Award recipients. We plan to apply for the prestigious awards for 2005-2006 year. Much depends on you, the member, to participate in areas of service such as: public service, legislation-Cap Conference and Day on the Hill, state and national symposiums, attendance, CE and those areas that make us a superior chapter. Please get involved and contribute to our success. Rufus B. Langley, CLU, RHU, ChFC Awards Chairman, Donna Cashwell Committee Member Forrester & Associates Insurance Agency, Inc. 1210 Cole Mill Road P.O. Box 2997 Durham, NC 27715-2997 919-313-6713 919-383-0086 Fax Community Service Fran Richardson The Community Services Committee is looking forward to a new year serving TAHU. With that in mind, we have met informally to get some ideas as to where our contributions would be most effective and appreciated bearing in mind that we are serving the Triangle area. Because we are entering that time of the year when all professional organizations are trying to help their respective communities, we would like to get some input from the Members to see which local non-profits appeal to them. The needs are always great, and as a group, we could make a substantial contribution if we work together. So, please be prepared to answer a survey at the next meeting so we can have some ideas from the participating members of TAHU. Based on the results, we will raise donations, cash or goods for the organization the Members wish to support. Fran Richardson Northwestern Group 4020 Westchase Blvd., Suite 275 Raleigh, NC 27607 Mailing address: P.O. Box 30995 Raleigh, NC 27622 919-755-3210 919-326-9868 Fax Law and Legislation: Antonio Gutierrez The North Carolina General Assembly ended its 2005 long session on September 2nd 2005. Our industry continues to attract unwanted attention from NC legislatures with the cost of insurance remaining a major issue. Here are a few highlights from our state lobbyist and legislative expert Robert C. Paschal. S.B. 626 (= H.B. 727) - HIPPA Compliance and Fairness. This bill was ratified on July 20, 2005 and brings North Carolina law into compliance with federal health insurance portability and accountability statutes to provide special enrollment periods without penalties for persons enrolled under a group plan whose coverage is terminated when an insurer discontinues writing a certain type of group health insurance coverage throughout the entire small or large group market. Bill passed. H.B. 655 - Better Insurance/Annuity Disclosure. This bill also filed on behalf of the Department of Insurance, was ratified on July 21, 2005 and signed into law by Governor Easley on August 1, 2005. It would amend the current disclosure requirements for solicitation of life insurance products and annuities. It regulates the life insurance solicitation of policies with small face amounts, which are defined as policies of $15,000.00 or less. Annuity solicitation is also regulated. Also note that employer-owned life insurance disclosure was addressed in this bill and employees could be insured by their employers only if the employee receives written notification from the insurer of the existence of the coverage or that coverage will be purchased. Notice shall be provided to the employee in connection with application for coverage or within 30 days after the effective date of the coverage and shall include a statement that the employer may maintain the life insurance coverage on the employee after the employee is terminated. This legislation becomes effective on January 1, 2006 and applies to policies issued or renewed after that date. Bill passed. S.B. 534 - High Risk Insurance Pool. Senator Phil Berger (R-Eden), the Senate minority leader, introduced this legislation to authorize the creation of a high risk pool for health insurance. This bill was referred to Senate Commerce, but was never considered by that Committee. Bill did not pass. S.B. 739 - Health Insurance Market/Small Businesses. Senator Tony Rand (D-Fayetteville), Senator Majority Leader, introduced this legislation, which addressed association health plans. This topic has been of continuing interest to Senator Rand for several sessions, and it is backed by the N.C. Association of Home Builders and the N.C. Association of Retail Merchants. This legislation would have permitted AHPs where (1) the association had been in existence for at least 25 years, (2) had a determination letter from the IRS that it was exempt from taxation and (3) maintained reserves at an FDIC insured institution of at least $1 million. The curious thing about this AHP legislation is that it would likely have applied only to the Homebuilders. This bill never emerged from Senate Commerce. Bill did not pass. H.B. 84 and H.B. 118 - LTC Tax Credit. These bills, introduced by Rep. Edd Nye (D-Elizabethtown), would have reenacted North Carolina's tax credit for premiums paid for long term care insurance. H.B. 180 - High Risk Health Insurance Study. Rep. Mitchell Setzer (R-Catawba) introduced this bill to authorize a study of the implementation of a high risk pool for health insurance in North Carolina. It was referred to House Rules but never reached the floor of the House. Bill did not pass. H.B. 413/H.B. 1269 - Studies Act of 2005. Neither of these bills were enacted, but they reflect legislators' strong desire to follow through on matters of interest. Draft studies bills included studies of assistance to small business with their health insurance (S.B. 478), high risk pools, tax credit (H.B. 20), pharmacy benefits managers regulation (H.B. 1374), mental health parity (H.B. 893), and Healthy North Carolina (S.B. 255). Note that the Legislative Research Commission may study these and other issues if legislators ask it to do so, and I will keep you advised as to all study activity. Bill did not pass. H.B. 657 - Producer Compensation Transparency and Broker Duty. This bill was of importance to the Department of Insurance and ultimately passed the House. It was referred to Senate Commerce, but was never considered. It would have required insurance brokers to disclose compensation arrangements to customers, and the House version would have imposed a fiduciary duty on brokers with respect to their customers. This was a serious point of contention within the agent community, and the Department never pushed the bill in Senate Commerce. Bill did not pass. For complete details, read Robert C. Paschal's report "2005 NC General Assembly Closing Report.pdf" TAHU Members Attend a Salute to Jim Long Members of TAHU attended a salute to Insurance Commissioner Jim Long at the Sheraton Imperial in RTP on Wednesday September 21st. In attendance (left to right) were Beth Donner, Jim Henson, Antonio Gutierrez, David Smith, Teresa Gutierrez LUTCF, Rufus B. Langley CLU, RHU, ChFC. Also shown is Charles Holder CLU, RHU, LUTCF-Education Chair for Sandhills. TAHU Members Attend NC Healthcare Leadership Council TAHU members Tony and Teri Gutierrez attended the NC Healthcare Leadership Council meeting at Congressman David Price's office last August. The council is a coalition of chief executives from all disciplines within the health care system, is the exclusive forum for leaders of the nation's health care system to jointly develop policies, plans, and programs to achieve their vision of a 21st century health care system. Tony & Teri represented the interest of our industry. Antonio Gutierrez Integrated Benefit Solutions, Inc., Cary PO Box 638 Cary, NC 27512 919-345-7957 919-882-9091 Fax Website: Antonio Gutierrez TAHU Website has New Look Our website has a new look. Take a look around and see all the new changes. Learn about upcoming meetings. See new directions to Brier Creek Country Club. Visit the leadership page to see our new 2005-2005 leadership team. Also visit the members' page and check your business contact information. If you need to update your information, please email me and the membership chair so we can update both the TAHU and NAHU sites. Antonio Gutierrez Integrated Benefit Solutions, Inc., Cary PO Box 638 Cary, NC 27512 919-345-7957 919-882-9091 Fax Special Announcements: Please remember that the cost of lunch for TAHU members is $12. There will be a $3 charge for lost or misplaced name badges. Please remember to turn in your badge at the conclusion of each meeting. As the success of the Triangle Association of Health Underwriters largely depends upon the benevolence of corporate contributors, we are proud to honor the following organizations for their continued support of our many programs and activities: Diamond Sponsors 2005-2006 Please extend your appreciation to the Triangle members representing these organizations and remember their generosity when placing coverages. Triangle Association of Health Underwriters P.O. Box 19177 Raleigh, NC 27619-9177