Dear IMSA Friends:

It’s time for our May Update and best practice.  This month we’ve given you some snippets of poems we enjoy.  We hope you will too.  Please read on! 

Some suggestions for successful living – non-IMSA close.

Media materials on IMSA.

Marketwire Reports IMSA Take on GAO  Report

On May 5, Marketwire reported that IMSA announced that the  recently released (GAO) Report to Congress on "Insurance Reciprocity and Uniformity"  “advances efforts to create market conduct and consumer protection standards across the country that are more consistent and predictable.”

IMSA CEO Brian Atchinson said that "This report identifies both the improvements that have been made in recent years and the remaining challenges, such as uneven consumer protection and market regulation among the states." He went on to say, “This information helps to promote understanding and ongoing dialogue between key stakeholders, which is critical to a healthy, competitive marketplace where consumers can make well-informed choices."

You can get  more information and a full copy of the report, visit www.IMSAethics.org. 

IMSA cited as authority in Wall Street Journal

On May 26, Arden Dale wrote a story in the Wall Street Journal entitled Keep Tabs on Insurance That Covers Estate Tax.  We were pleased to see that the WSJ went to IMSA for some input:

Donald Walters, general counsel for the Insurance Marketplace Standards Association, said IMSA has heard anecdotally of "growing concern" about troubled policies. The group is a nonprofit that develops best practices for the insurance industry.

You can read the article at http://online.wsj.com/article/SB124328892384452197.html

 also ran a story the week of May 25^th focusing mainly on IMSA company membership.  This is a short excerpt from the fuller story to appear in the July edition of Best’s Review, where some material from us on benefits of IMSA membership will also be included.

The article closes with this analysis from Brian Atchinson:  

The estimation was it would take two to three years to implement our new business plan that leverages the value of IMSA certification and our role as the industry’s  voluntary self-regulatory organization in developing national standards and benchmarking. If it weren't for the downturn in the economy we'd be going strong.                    

 AICP meeting in Norwood, MA.  New England chapter.

This was the first time we have sponsored the New England Chapter of the AICP (Association of Insurance Compliance Professionals).  We had a great time attending its E-Day signature event on Friday, May 15, 2009 at Four Points by Sheraton Norwood Hotel & Conference Center in Norwood, MA. 

This kind of regional event is small enough so that you get to meet lots of great people, company folks and regulators.  There were over 120 company people there and four regulators, from New Hampshire, New Jersey, Rhode Island and Vermont.  I had a chance to talk one-on-one with each regulator after the question and answer sessions, which were very engaging.  Look up your local chapter of the AICP and consider joining. It’s a great forum for networking and for learning how others are dealing with the same issues you face.  You’ll also get to know your local state regulators a little bit better, never a bad thing. 

From an IMSA standpoint, I talked to a lot of people about joining or re-joining and gave out some good materials, from IMSA and from our company as well.  You can get a copy of our article, 90 Days to IMSA Membership, updated from its original appearance in the National Underwriter, by emailing us at kkalis.kkalis.com and asking for it.  We also distributed some of IMSA Consumer Guides to Annuities and other IMSA materials.  One of these, provided by IMSA and dated April 26, 2009 is “What Key Constituents Are Saying About IMSA.”  Please read some of the excerpts below.

Yes!  |Some great quotes from IMSA stakeholders.

 What Key Constituents Are Saying About IMSA

Through our IMSA membership, we reinforce our industry credentials as an ethical service provider, an essential distinction in the competitive customer market.

Robert C. Salipante, President,
Sun Life Financial International

The IMSA seal is a guidepost of excellence and integrity, and MassMutual is proud to comply with IMSA’s standards.  MassMutual firmly believes that the marketplace rewards honesty, high ethical standards, and doing what is right for the customer, and we are proud to apply these principles to every aspect of our business.

Stuart H. Reese, Chairman and CEO, MassMutual

The ethical business practices promoted by IMSA have never been more important than they are in today’s market climate.

 IMSA not only sets the standards for ethical business practices, but also helps insurance companies to reach those standards through compliance solutions, infrastructure tools and industry collaboration with regulators and distributors.  All of this ultimately protects the consumer.    Kevin R. Slawin, President of Distribution Allstate Life Insurance Company

IMSA is doing great things for the consumer and the industry.  IMSA is raising the standard for all its qualified companies – and that will strengthen the industry as a whole.
Timothy Kneeland, President, AEGON Companies & 2007 IMSA Chairman

An agent’s ability to sell appropriate insurance products to seniors begins with the practices of the company that agent represents.  AARP applauds IMSA’S efforts to empower those companies with an ethical approach.

Kevin Donnellan, Executive Vice President and Chief Communications Officer, AARP               

IMSA’s work in promoting ethical market practices by life insurance companies is good for consumers and for the industry.  I have been proud to be a director.                              
Dr. Terri Vaughan, CEO, NAIC & Former IMSA Board member

The Division has determined that it will allocate more market examination resources to monitor and examine life insurance companies that are not members of IMSA.    Susan Voss, Commissioner, Iowa Insurance Division

News from IMSA Today          May 18, 2009

Supervision & Monitoring Standards – NAIC Market Regulation Handbook? 

Collaborative discussions continue with representatives of the eight state insurance departments that participated in IMSA's Supervision and Monitoring initiative to evaluate and promote consensus strategies regarding how states can use the findings of IMSA's Annuity Suitability Supervision and Monitoring Report to foster suitable annuity sales.  

A conference call was held on Friday, May 15 with the Chair of the NAIC Market Conduct Examination Standards Working Group and representatives of several states who participated in IMSA's Supervision and Monitoring initiative to discuss the possibility of including key findings of the IMSA report in the NAIC's Market Regulation Handbook. The discussion fostered a willingness to consider introducing these concepts into the Market Regulation Handbook through the activities of the NAIC Market Conduct Examination Standards Working Group.  We will continue to update you as these needed solutions evolve. 

Compliance Best Practices Webinar – Just Two Weeks Away! 

IMSA's Best Practices Workshop Webinar will be held on Thursday, June 4 at 2:00 p.m., EDT (please note the change from the originally scheduled 9:00 a.m. start time). There is no fee to participate, so please save the date and plan to join us for what should be a very interesting and informative discussion. 

Agenda topics include annuity suitability issues and IMSA's attestation approach to requalification. The IMSA Compliance Committee will meet via conference call on Tuesday, May 19 at 10:00 a.m., EDT to discuss, among other issues, final planning for the webinar. A more specific agenda will be released later this week. 

 Assessment Handbook & Manual Updates

 The IMSA Standards Development Committee has formed two subgroups to explore modifications to IMSA's Assessment Handbook and Independent Assessment Manual. The first subgroup is examining modifications to the commentary accompanying IMSA's supervision standards, while the second subgroup is developing a new introductory section to IMSA's Assessment Handbook. This revised introduction would guide a reader seeking IMSA qualification for the first time to specific sections of the Handbook, and the reader seeking to renew IMSA qualification to other pertinent areas.  

The Committee is also considering a range of possible updates to the Independent Assessment Manual to reflect recent modifications to the IMSA qualification process. Companies are reminded to continue to reference the 2009 version of the Handbook for guidance with respect to their IMSA qualification standards. IMSA will notify all qualified companies about any additional modifications to the Assessment Handbook and/or Independent Assessment Manual.                                     

 New Annuity Consumer Resource – Get Your Slice of the PR Pie 

IMSA provides its qualified companies with resources to aid them in promoting the commitment they have made to sustaining high ethical standards, despite a difficult economy. To that end, Communications and PR Directors should watch their mail this week for materials designed to help your company leverage IMSA’s latest consumer resource – the Annuities Consumer Guide. The packet includes: 

Full color PDFs of the Annuities Consumer Guide in both English and Spanish for posting to your web site, as well as plain text versions. 

A thumbnail graphic of the Guide cover for promotion on your web site. 

A copy of the press release being distributed to national media on June 1, 2009 that will announce the Guide and its availability on the web sites of IMSA-qualified companies. 

IMSA extends its thanks to all IMSA Communications Committee members, and to IMSA Board of Directors members Kevin Donnellan of AARP and Dr. Brenda Cude of the University of Georgia, for their contributions to this important consumer guide.

Additional resources (such as sample web page content and press release suggestions) to help you promote your ethical differentiation in the marketplace are available at www.IMSAethics.org in the Members section via the Communications Tool Kit.  Please contact Jennifer Kalita at (240) 744-3021 or JenniferKalita@IMSAethics.org.   

ACLI Welcomes IMSA Compliance & Regulatory Views 

IMSA CEO Brian Atchinson was recently invited to present Business as UNusual: Navigating Regulatory & Compliance Issues in a New Economic Climate at the ACLI Forum 500 CEO Leadership Retreat on Thursday, May 14, 2009 in Arlington, Virginia. The Q & A session that followed was lively with discussion about regulatory reform, STOLI, and annuities. IMSA thanks ACLI Forum 500 Chair and Baltimore Life CEO John Pearson for the invitation.                                             

IMSA Today          May 1, 2009  

New Online Resources 

Visit www.IMSAethics.org for new resources: 

Insurance Compliance Insight has given IMSA permission to reprint its recent resource article, which includes a list of insurance blogs and helpful web sites. 

See the A.M. Best video and read the article online when IMSA President & CEO Brian Atchinson was interviewed in the A.M. Best studios to discuss current industry challenges. While the content is normally only available to A.M. Best subscribers, IMSA has received permission to share it with our members.  

While the new Annuities Guide has been available online in both English and Spanish since March, text versions have been added at the suggestion of the IMSA Communications Working Group for consumers who don’t wish to download or print off graphics. 

What makes boomers and seniors buy? For answers, see IMSA’s featured  article on Page 1 of the final issue of Retirement Income Reporter. 

Upcoming Meetings 

Some upcoming industry events in which you may be interested include: 

June 3                       IMSA Standards Advisory Committee Meeting 

June 4                       IMSA Compliance Best Practices Webinar 

June 5                       IMSA Communications Working Group Conference Call  

June 7-11                  MDRT Annual Meeting - Indianapolis, IN 

June 8                       Producer Advisory Committee Meeting – Indianapolis, IN 

July 22-24                 ACLI Compliance & Legal Sections Mtg – Boston, MA 

Excelsior on its way!  Excelsior Awards at
ACLI Compliance Meeting in Boston
 
April 29, 2009 

Just a reminder to take advantage of the Early Bird Registration and save on your meeting Registration fee!  

Given the current state of the economy and the financial markets, we invite all compliance and legal delegates to be amongst his/her peers for a very informative and compressive look at the latest news within the Insurance Industry. The Compliance and Legal Sections Annual Meeting in Boston July 22-24^th is loaded with knowledgeable speakers and experts who are tackling difficult issues in these wavering times. This meeting provides exciting educational opportunities and networking events.  Official programming begins on Wednesday, July 22^nd at 1:00 pm. This program is CLE eligible, and accreditation is valid in most jurisdictions requiring mandatory continuing legal education and includes 2 hours of Ethics. CLE forms will be available onsite. 

Program Highlights
The 2009 program contains shared views about compliance and legal operations and feature lectures such as:  

·        Regulatory Overhaul Following Financial Turmoil in a New Administration
·        Responding to the Demands of Evolving Suitability Standards
·        AML Examinations: How to Prepare and What to Expect?
·        Framework for Strategic Legal Advocacy and Industry Resources: Tips and Tricks for Understanding What’s Required

Please see the ACLI website for the latest program and further details.  

Exhibitor Marketplace

The Exhibit Marketplace will be held on Thursday, July 23^rd.  The Exhibit Hall will be open from 2:45 – 3:15 pm and 5:00 – 7:00 pm. This offers attendees a first-hand opportunity to view products and special services that are available to enhance legal and compliance shops.  Exhibit and Sponsor information is located on our website. See the ACLI website for further information. 

Registration

Online meeting and hotel registration is open! There are only two months left to register now for the early – bird deadline:  June 29^th; Hotel Deadline:  June 22^nd or once the block is filled.  Details and deadlines can be found on the ACLI website.  

We look forward to seeing you at the Compliance and Legal Sections Annual Meeting in Boston!  

For answers to additional questions, please contact Conference Development at 202-624-2404. 

Excelsior

Fourth Quarter, 2008 Volume IX, Issue 2
Ethical Market Conduct Issues for Presidents and Senior Executives

We’re back!  Look for our summer issue in June.  We have the latest in the changes made to the IMSA process for 2010.  We will give you a step by step summary so that you can start getting ready to renew your IMSA qualification.  Don’t miss this issue.  If you are not already on our distribution, please send your name and address to kkalis@kkalis.com, and we’ll make sure you get this and every future issue. 

We are also planning to present our Excelsior Awards to 8 companies at the ACLI Compliance and Legal Section meeting in Boston.  These are presented in recognition of the best practices we found supporting the IMSA standards during our independent assessments.  Come by our booth to say hello.  We look forward to seeing you then.

Webinar and best practice for May.

 “The future ain't what it used to be.”  ~ Yogi Berra

IMSA Compliance Best Practices Workshop Webinar

Business as UNusual: Navigating Annuity Suitability in a Changing Economic Climate 

Join compliance professionals from other IMSA-qualified companies for the upcoming IMSA Compliance Best Practices Workshop Webinar on Thursday, June 4 at 2:00 p.m. EDT (please note the change from the originally scheduled 9:00 a.m. start time). There is no fee to take part in the 90-minute webinar, but participation is limited to IMSA-qualified companies only. 

Items on the Agenda include: 

Presentations by three companies (Aviva USA, American General Life Insurance & Sammons Financial Group) about their individual company approaches to suitability policies and procedures.  

Insights on the annuity suitability practices of broker-dealers.  

The roundtable discussions you’ve come to expect at our Compliance Best Practices Workshop live events and compliance officer exchange of innovative techniques. 

To confirm your participation, please RSVP to MargieLopez@IMSAethics.org by May 30, 2009. A subsequent email will then be sent to all confirmed attendees with the webinar access information. We look forward to your participation.  

Best Practice of the Month – May 2009 

One of the hot topics in the world of compliance right now is annuity suitability, particularly in the area of supervision.  IMSA has a work group looking at the issue right now, and we will all benefit from their work.  One of the ways that companies have addressed this issue is via a thoughtful selling agreement with Independent Agents that outlines the company’s positions and clearly delineates responsibilities.  Take a look at your agreements.  Are you getting the most leverage you can? 

■      Independent Agent agreement design.

        ■        Impact: Immediate identification of IMSA standards.
        ■        Impact: Legal leverage for management decisions.
        ■        Impact: Clarity on supervisory responsibilities.

 Want to learn more?   

IMSA?
..................Ken Kalis!
352-505-0705 www.kkalis.com

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Thank you all for your continuing interest in IMSA, ethical market conduct and the Kenneth J.Kalis Company.
www.kkalis.com

Hope to see some of you soon.  Have a great summer! Cordially,