IMSA Update Archives

IMSA Certification Process Will NOT be Supported by CEFLI

In a March 15, 2011 conference call for Qualified Independent Assessors, CEFLI’s President and CEO Donald J. Walters informed us that CEFLI will not longer be supporting the certification process, although it retains the rights to the intellectual property such as the IMSA process and Handbook. This means that IMSA member companies are free to use the old

IMSA process for self-assessments, but CEFLI will not recognize any certifications. New companies joining CEFLI will not have the opportunity of going through the historic process. CEFLI will continue to maintain the IMSA standards (although that was not explained).

On the other hand, companies are free to engage QIA's on an independent basis to help them go through the assessment process and/or to have the QIA certify them outside the CEFLI aegis. This was my understanding during the 20 minute conference call, but afterwards Don called me to ask if I had any questions and he confirmed this understanding. This new stance also removes me and indeed all QIA's from being in competition with CEFLI should we put together an alternative certification process such as the Compliance Performance Arch or FedRed, which I have been championing. He did not have an answer to my question of "What if a company who is not an IMSA member wants to use the assessment process? Will there be a charge?" I think this is most unlikely, but I like to make sure I get all the nuances!

In short, there will be no formal role for the QIA's in CEFLI unless we decide to pay for one of the levels of membership which begin at $5,000 and go up from there. If we were to join at one of the higher levels (not the $5,000) we may be invited to speak at CEFLI events, and CEFLI will steer compliance work our way when opportunities arise that match our skill sets. Don did say that CEFLI will retain our credentials and be willing to serve as references for us should we so desire.

I plan to continue plugging an industry certification process and am generating some interest from other industry professionals who would like to see and industry standard that could serve as a diagnostic measuring stick for the industry. This is especially exciting to me to be able to focus on developing a tool that will provide the industry with a means of checking where they stand in regard to ethical standards by developing a widely accepted process based on industry standards and values that could lead to a meaningful certification process. I am already working with several people in the industry on this but see a real need to expand the work group to include people from companies who are interested in guiding the development process and working to come up with a rigorous and credible assessment and/or certification process. Please call me at 352-505-0705 to share your thoughts and ideas. --- Ken Kalis

Ken Kalis
Surely blessing I will bless thee, and multiplying I will multiply thee. Hebrews 6:14

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December 10, 2010 Update on IMSA/CEFLI Certification

In a phone conversation Thursday, December 8, 2010, Don Walters (currently Senior Vice President and General Counsel and Secretary for IMSA and spokesman for the new CEFLI organization) confirmed his earlier communication that CEFLI will continue to support the current IMSA standards and certification process.

In what was a quite frank discussion, we discussed the certification process in some detail. I asked if the new organization is truly committed to the process or if it was really a part of the IMSA baggage the new CEFLI organization wanted to leave behind. His answer was that the member companies definitely found value in the process and wanted it maintained. When I followed up this question with another, namely if the process will be updated and kept current, Don replied that he will be listening closely to the members' input and doing all he can to support their needs and recommendations.

When I told him that I was currently uncertain how to conduct conversations with companies up for recertification in 2011, he encouraged me to continue those conversations and encourage those companies who find the process of value to continue with it. While there are some proposed changes to the current business model regarding the Qualified Independent Assessors, these will not begin to be discussed by the new CEFLI Board of Directors until late February or March.

I am now continuing conversations with member companies whose recertification is scheduled for 2011. Please look for my fuller article "The Choice to Certify" in our December UPdate (set to be released on December 31, 2010). If you have any questions please call me at 352-505-0705.

Posted September 20, 2010

LIke many of you, I was surprised by the news that IMSA is planning sweeping organizational changes. I am not sure what all the ramifications will be, but I want to assure the clients of the Kenneth J Kalis Company and the readers of this web site that we are doing our best to carry on all current work and commitments, including assessments. We will, of course, follow this developing situation with interest and keep you posted on impacts that may be important to you. Our commitment to ethical market conduct and integrity in the life insurance industry continues to be strong, and we are here to support you in any way we can. If you have any questions, please give me a call at 352-505-0705. Below is a very well written blog piece from Cailie Currin, a colleague and QIA as well as an attorney and president of Curriin Compliance.

Will IMSA become LIFEC?

Posted on September 20, 2010 by Cailie Currin

As a Qualified Independent Assessor for IMSA, I was very interested in the article by Ron Panko in the September 2010 issue of Best's Review with the lead in: "Dwindling IMSA membership and an optional way to renew certification lessens demand for independent assessors."

Today I received a courtesy call from IMSA, which was much appreciated, in advance of a [press release] announcing the proposed development of a new association: The Life Insurers' Forum for Ethics and Compliance (LIFEC). According to the press release, quoting Don Walters: "Today, virtually all companies have significant compliance teams, and are meeting regulatory requirements, but there is still a need for leadership on the constantly evolving issues of ethics and compliance." The release seems to declare mission accomplished for IMSA and therefore the need for a new entity to go forward.

As a result, the IMSA Board of Directors has recommended establishing LIFEC. A vote of IMSA members will take place and the press release indicates the results will be announced at the annual meeting on October 19, 2010. The release concludes with the statement that: "IMSA will continue to add value for its members through webinars, Summit Meetings and other compliance solution activities in 2010.

It appears that being certified is no longer going to be a requirement for membership in IMSA and that membership is likely to be open to companies who elect to join. Certification is expected to remain an option and the standards will be maintained, according to the call I received, but certification will not be mandatory. The release indicates that LIFEC will be focused on meeting the needs of compliance professionals. It will be interesting to see if LIFEC can carve out a role for itself among the compliance organizations already in existence.

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FAQs (Continued)

How much does membership cost?

There is an annual membership fee based upon the size of the company and calculated in a way similar to that used for ACLI membership. The annual fee ranges from $5000 for a small company to $185,000 for the largest companies. There are also fees for the independent assessment which differ widely by provider and by company size, product line and number of distribution channels (career agents, Independent agents, direct marketing, third party distribution, etc.). In our experience, these fees range from $20,000 to $30,000+ per distribution channel but again depending on the size and complexity of the company.

How long does it take to become a member?

The time line will vary by company, but a good estimate is six months. If your company’s marketing and compliance policies and procedures are well-organized and up to date, that time could be considerably less. Request our article on “90 Days to IMSA Membership” to get an idea of the steps.

How long have you been doing this work?

We were active in the formation of IMSA and in the first group of Qualified Independent Assessors back in 1997. We have worked with more than 50 companies on IMSA issues.

Please send us any questions you may have to kkalis@aol.com and we’ll answer them here.

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KP4 IMSA

We are pleased to have developed a simple software tool for managing the IMSA process and packaged it as an easy to use CD called KP4IMSA. . . . continue