Sharon A. Chace

Kudos to the National Association of Independent Life Brokerage Agencies for addressing the major priority facing BGAs/IMOs: how to offer the most value to their clients, the producers. To accomplish that objective, NAILBA’s professional development committee has launched the Agency Successor Study Group, an educational program for the next generation of leaders.

Nearly 40 percent of NAILBA member agencies have indicated that they will go through an ownership transition in the next one to five years. They also expressed concern about whether the incoming leaders will have the skills and knowledge they need to succeed.

The goal of the Agency Successor Study Group, which is part of NAILBA University, is to ensure that these new leaders are prepared by providing leadership, management and skill training. An added benefit for those who will be part of the group is that they will have the opportunity to build a network and support group with other new leaders.

In order to be accepted into this exciting new study group, participants must meet one or more of the following criteria: (1) In the first three years of serving as a BGA agency principal. (2) Designated as the successor to a NAILBA agency via verbal or written commitment and scheduled to take over that agency within the next five years. (3) At least 25 percent ownership in an agency and been given at least verbal commitment of succession by sitting principal. (4) Recommended by the agency principal with the understanding that succession will take place within five years, but with no written commitment currently existing.

An application must be completed and submitted no later than June 1, 2011 to Michele Liston at NAILBA. For more information, go to www.nailba.org.

The National Association of Health Underwriters (NAHU) has joined with the Foundation for Health Coverage Education (FHCE) in the Coverage for All campaign. This campaign assists uninsured Americans with identifying their public and private health coverage options.

The FHCE receives more than 100,000 consumer queries every month. After taking a five-question eligibility quiz, consumers are presented with a personalized list of public and private health coverage options. The partnership with NAHU allows those looking for assistance to have access to professionals who have the experience and training to help them find the best coverage options available.

By joining FHCE’s Volunteer Broker Network, NAHU members become part of the U.S. Uninsured Help Line and can assist consumers with questions about their private insurance options.

The Foundation for Health Coverage Education is a 501(c)3 non-profit organization with the mission to help simplify public and private health insurance eligibility information in order to help more people gain access to coverage.

For more information, go to FHCE’s website: www.coverageforall.org. The Uninsured Help Line number is 800-234-1317.

Until the road to effective health care reform is completely paved, this month’s issue provides some creative approaches for navigating in the health insurance market! [SAC]

Do you remember the days when MET products dominated the small group market? Trust products, TPAs and TPMs collaborated to fuel the tremendous growth of employer-sponsored group health plans during the last four decades of the twentieth century. Names like Plan Services, National Insurance Services, Coordinated Benefit Plans, Association Life, CBSA, ABI, American Trust Administrators, Allied Administrators, Pacific Life, Brokers Choice, BMA, BEST Life, and many others around the country interacted with health insurance brokers to proliferate employer-sponsored group benefit plans.

Well a reunion is being planned for those dealmakers of yesteryear for a reunion to celebrate good times and great (for the most part) memories. Las Vegas’ Paris Hotel and the adjacent Bally’s will be the headquarter hotels for the event on September 8 and 9. There are no registration or entry fees.

A website has been established—www.123signup.com/­insurancereunion—where you can find a description of the reunion events and register. You will also be able to access a list of those who have registered to attend.

Four of the industry’s leading long term care insurance companies have partnered with the American Association for Long-Term Care Insurance (AALTCI) to undertake a spring-time consumer awareness campaign.

The campaign involves placement of a special eight-page consumer guide bound into all May editions of Kiplinger’s Personal Finance magazine. “The guide will address questions most often asked by consumers considering how to help protect their family and finances against a long term care event,” explains Jesse Slome, AALTCI’s executive director. According to Kiplinger’s readership data, some 2.4 million consumers will see the ­industry-sponsored insert.

The four insurers participating in the May campaign are Genworth Financial, John Hancock, Mutual of Omaha and Prudential. “This is the association’s latest undertaking designed to educate millions of Americans about the need to develop a plan for long term care with their financial professional,” Slome adds. A prior consumer guide ran in the November 2010 issue of Kiplinger’s during Long Term Care Awareness Month.

Founded in 1998, the American Association for Long-Term Care Insurance is the national trade organization established to educate both consumers and financial professionals about the importance of long term care planning.

Ron Verzone, CFP, CIC, CLTC, president of United Underwriters, Inc., Exeter, NH, was named 2010 recipient of the Billy Vogel Award at The Marketing Alliance annual meeting in Tampa.

The Billy Vogel Award, which is TMA’s highest honor, is presented annually to individuals in the financial services industry who distinguish themselves through their business acumen, sense of innovation and, above all, integrity. The award is named for William E. Vogel, the late president of W.S. Vogel Agency, Inc. of Livingston, NJ, who exemplified those qualities.

Verzone, who recently stepped down as TMA chairman of the board, remains a current board member and is one of the three original founders. The Marketing Alliance is a provider of services and distributor of products to independent insurance agencies throughout the United States.

Tim Klusas, president of TMA, said, “Ron is a rare leader who thinks nothing of giving everything and everyone his all but doesn’t expect anything in return. His example is prominent in every part of TMA, where he challenges us to think creatively and consider ways to continuously improve our services to clients.”

Verzone is an internationally recognized speaker on insurance issues ranging from impaired risk and legislation to estate planning and long term care. He is a frequent guest columnist for well-known business and trade publications, and authored “Guide to Underwriting the Impaired Risk,” which has been distributed worldwide.

A former chairman of the National Association of Independent Life Brokerage Agencies, he is a member of that organization as well as the Association for Advanced Life Underwriting, national and local chapters of the Association of Life Underwriters, General Agents and Managers Association, Boston Estate Planning Council, and International and New Hampshire Associations of Financial Planners. [SAC]

Congratulations to our good friend, W. Harold Petersen, who recently celebrated his 83rd birthday. The photo was taken at the Petersen International Underwriters office, where he still works daily. The Petersen staff (which includes his three sons and several grandchildren) feted him by wearing his favorite red and providing an all-day pot luck feast.

Harold Petersen, who is considered an icon in the disability insurance market, began in the insurance business 63 years ago with Mutual of Omaha. He has gone on to build a successful and well-respected company focusing on the specialty markets of disability, AD&D, kidnap/ransom, and international major medical fields.

The 2011 Retirement Confidence Survey, recently released by the Employee Benefit Research Institute (EBRI), Washington, DC, and cosponsored by the Principal Financial Group, found more than one quarter of workers (27 percent)—the most ever in the two decades of the survey—now say they are “not at all confident” about having enough money to live comfortably in retirement.

The survey finds that many systemic conditions are forcing Americans to redefine retirement, such as high unemployment rates; government fiscal crises; rising health care costs; lower investment returns; a surging older population putting pressure on Social Security and Medicare; and longer life expectancies.

Roughly one third of both workers and retirees said they had to dip into their savings last year to pay for basic expenses. Significantly, those with retirement savings—such as a 401(k) or an individual retirement account (IRA)—were far less likely than those without these accounts to tap into their savings.

Well over one third (42 percent) say they determined their retirement savings need by guessing. More than one half of the workers say they have less than $25,000 in total savings and investments, excluding their homes. A significant number of workers (20 percent) say they  now intend to retire later (at an older age) than they had planned. Yet almost one half of the current retirees (45 percent) say they retired earlier than they planned, mainly because of a health problem or disability.

It’s critically important for you as a financial services professional to take steps to improve the chances your clients will have enough for retirement. By helping them create a plan, you can get them on a realistic path to a secure retirement.

Wait, there is some good news! According to studies of generation Y, conducted online by Harris Interactive for UNUM, the youngest generation in the work force has become more engaged in learning about the benefits that can protect them financially.

The studies, conducted in August 2008 and August 2010, found: The percentage of members of generation Y who said they are extremely/very familiar with life insurance jumped from 31 to 44 percent; those who said they are extremely/very familiar with retirement accounts grew from 31 to 43 percent; and those extremely/very familiar with disability insurance increased from 16 to 24 percent. Generation Y numbers about 75 million—nearly the size of the 80-million-strong baby boomer generation.

The workplace continues to be their most reliable source for benefits information, with 68 percent citing it as a top resource. Yet they are also more likely to seek out information about financial protection benefits online than they were just two years ago.

There are some interesting ideas about marketing retirement products in this issue. Plus the online edition will discuss employee benefit enrollments. To help you gear up for Disability Awareness Month, this month’s “Monthly Update” section is devoted to disability insurance. Most Americans place great value on their work life, and employee benefits is at the core of that. Use this issue to your advantage.

Donald L. Mowery, of Little Rock, AR, passed away on Sunday, March 6, 2011, at Baptist Medical Center in Little Rock. He was born on April 24, 1937, in Mechanicsburg, PA.

A Shippensburg State Teacher’s College graduate, Mowery and Jiggs Ramsey have been partners in The ASA Group, a marketing organization with the primary focus of benefitting the professional life insurance producer.

Mowery is survived by his wife and best friend, Elaine; daughter, Vickie Verbos; three stepchildren, Michael Baker, Dawn Wilson, and James Baker; grandson, Marcus Verbos, and granddaughter, Gloria Ray Baker; stepgrandson, Jeremiah Palmer; two great-grandchildren; siblings, Hal Mowery (wife, Phyllis), Richard Mowery (wife, Roberta), Lois Ann Layton (husband, Tom); several nieces and nephews; as well as his beloved buddy, “Jackson.”

Memorials may be made in his honor in lieu of flowers to the Ronald McDonald House of Arkansas, 1009 Wolfe Street, Little Rock, AR 72202 or to the Humane Society of Pulaski County, 14600 Colonel Glenn Road, Little Rock, AR 72210. [SAC]

The Council for Disability Awareness (CDA) recently released a consumer research study—The Disability Divide—which reveals a severe disconnect between what consumers believe about disability and income protection planning and the actual facts about the two issues. Armed with the following information from this survey, you should be able to make a very effective sales presentation on why your clients need disability insurance.

CDA conducted the online survey with a nationwide panel of wage-earning consumers. The questions were designed to understand workers’ perceptions about disability, identify actual behaviors related to these perceptions, determine the level of preparation workers have taken to protect themselves and their families from the risk of a disability, and learn to what extent workers are positioned to deal with an income loss caused by an illness or accident.

Nearly all respondents—90 percent—rated their ability to earn an income as more valuable than any other resource in maintaining financial security. However, only 37 percent of respondents said they had thought about taking steps to protect their income and only 22 percent said they don’t think about it because they have disability insurance. Surprisingly, 13 percent said they had enough savings to cover their bills.

Respondents significantly underestimated either their own or others’ chances of becoming disabled. More than half believe that only one in 100 or one in 50 working Americans are likely to become disabled during their working careers. Only 7 percent of the survey respondents came close to predicting their chances accurately.

Those who knew someone who had been disabled were much more likely to think there was a higher chance they’d become disabled. In fact, 27 percent of this group thought their own odds were at least 1 in 10.

The Social Security Administration estimates that 3 out of 10 Americans entering the workforce today will become disabled before they retire. This statistic is supported by CDA’s Personal Disability Quotient calculator as well as publicly available actuarial tables. Be sure to go to www.whatsmypdq.org for more information on CDA’s Personal Disability Quotient. At this website, you will find an excellent tool for you to use with your clients—it will certainly provide your clients with unbiased, eye-opening information.

When asked what income source they would likely use should they become disabled and unable to work, 40 percent said they would rely on employer-funded sick/vacation leave. Other perceived sources of income are shown in the following chart.

Where Would The Money Come From When Disabled?
    Disability Insurance               38%
    Spouse/Partner Income        36
    Debt (loans, credit cards)     34
    Friends or Family                   32
    Sale of Possessions             32
    Retirement Savings               31
    Government Programs         30
    Household Savings               24

More than two-thirds of respondents thought that a disability would put a person out of work for a year or more, and almost one-third said that person would never return to work.

According to the Social Security Administration, 70 percent of employees in the private sector are not covered by any type of private long term disability insurance.

In fact, even when offered as a voluntary benefit by their employers, almost 40 percent of workers don’t choose long term disability insurance. And barely 30 percent claim to understand it very well (CDA 2008 Worker Disability Planning and Preparedness Study).

Even the likelihood of receiving government benefits from the Social Security Disability Insurance (SSDI) program is dwindling. Although most private sector employees are covered by SSDI, benefits are limited. The average monthly SSDI benefit amount in 2009 was $1,064, with 56 percent of recipients receiving less than $1,000 per month. Qualifying for SSDI benefits is very difficult; 65 percent of initial benefit applications were denied in 2009, and the appeals process can last up to four years. SSDI approval rates have steadily declined in recent years. (Social Security Administration, Disabled Worker Beneficiary Statistics, www.socialsecurity.gov/OACT/STATS/dibStat.html). An excellent chart to back up this information with a client can be found at www.disabilitycanhappen.org/images/research/SSDI.jpg.

CDA’s report can be viewed in its entirety, as well as a wealth of other information, at www.disabilitycanhappen.org/research/­consumer. However, before you head to that website, be sure to read what the authors in this issue have to say! [SAC]

The LIFE Foundation is once again soliciting applications for its realLIFEstories Client Service Awards Program. “Consumers need to be constantly reminded to include insurance in their financial plans and our realLIFEstories program is one of the most effective ways that we accomplish this important objective,” said Marvin H. Feldman, LIFE Foundation president and chief executive officer.

To enter, any full-time licensed life and health insurance agent or broker in the United States can submit an application form accompanied by an essay describing how life, disability, long term care or health insurance helped a client at a time of great financial need. LIFE seeks stories involving individually owned insurance, as well as coverage obtained through the workplace.

Of the many stories that LIFE receives, four will be chosen by an independent judging panel to be featured in the fall of 2011 in special advertising sections in Parents and O magazines, LIFE’s new partners, reaching a combined audience of more than 30 million Americans. In addition, the agents whose stories are featured will each receive an all-expense-paid trip for two to Washington, DC, September 9-12, 2011, where they will be honored by their industry peers at the annual conference of the National Association of Insurance and Financial Advisors (NAIFA).

The application form is available at www.lifehappens.org/reallife. Agents can either complete the form and essay online, or download the application and mail or fax it to LIFE. The deadline for entries is Monday, February 28, 2011.

One final note, each month during the coming year, Broker World’s online edition will be featuring one of the many stories submitted for this competition.

The new year brought with it many changes in the U.S. Congressional population. With that flood of new faces comes much discussion about the lifespan of the health care legislation—something everyone has an opinion about.

Findings of a recent Zogby interactive poll are that “slightly more than 50 percent of likely voters favor repealing the health care reform bill passed in 2010, but by nearly identical percentages, they say the upcoming Republican plan to repeal is a political gimmick to satisfy opponents of the bill, and do not believe it will succeed.”

The poll, conducted from January 7-10, also finds that 59 percent of voters favor new House of Representatives’ rules implemented by the Republican majority that generally allow more amendments and debate, and that a plurality (47 percent) agree with the Republican majority decision not to allow amendments to the bill to repeal health care reform. Following are results of the poll.

Do you favor or oppose repealing the health care reform bill passed last year by Congress?

Responses       Favor    Oppose    Not Sure

All Voters           54%         43%           3%
Democrats        15            82              4
Republicans      94              4              2
Independents    54           42              4

Zogby International, a U.S. market research, opinion polling firm founded in 1984 by John Zogby, polls and consults for a wide spectrum of business, media, government and political groups, and conducts public opinion research in more than 70 countries.

Paul Kopelcheck passed away January 13 at his home in Hilton Head, SC, after a long battle with cancer. He was one of the early pioneers in brokerage. While he worked for many carriers—Reserve Life, Aetna, Colonial Penn, and Columbian Mutual, among others—his brokerage connection came through his work at Indiana Blue Cross, which became Accordia and ultimately, Ascensus.

Paul attended some of the very earliest NAILBA meetings as an industry marketer. In retirement he volunteered for SCORE (Service Corps of Retired Executives) and eventually became the national president and served on the board of directors. In 2010 he was awarded the Walter H. Channing Award of Excellence for his strategic leadership focus on fund raising and dedication to expanding SCORE’s services.

Paul is survived by his wife, Edie, and their son, David Kopelcheck, who is executive vice president of The Rucker Company, Dublin, OH.

Leslie “Les” Grubin was recognized posthumously with the 2010 Douglas Mooers Award for Excellence at the National Association of Independent Life Brokerage Agencies (NAILBA) annual meeting.

Grubin, who did not retire until 2008, when he was into his nineties, died in 2009. He is survived by two children, Lynn Grubin Walker and Todd Grubin, who accepted the award on his behalf.

Upon presenting the award, Gary Dworkin, NAILBA immediate past chair, said that Grubin embodied all of the qualities the award represents—commitment to furthering independent life brokerage as a distribution system and an exemplary record of community service. “Les had an unequalled passion for this industry. As a first-generation BGA, his 60-plus year career in the brokerage distribution channel was unmatched. As one of the first people to start an agency (in 1961), his leadership as a first-generation BGA charted a course that many BGAs have followed.”

Robert Katzen, past NAILBA chairman and longtime Grubin friend, said of Les, “Others may have had more success or more knowledge on a particular topic, but few individuals in our business had a more lasting or a more positive impact on so many of us.”

Also a long-time member of the Risk Appraisal Forum, an industry study group, Grubin served as a linchpin of the Forum—and is fondly remembered by the members of that group as part mentor, part father-figure, part cheerleader, part teacher, but mostly as a dear friend.

In addition, he was also very active in his community, including military service during World War II, resulting in recognition with a Bronze Star Medal; community service supporting Big Brothers; and work with the In and Out Program, which paired inmates at San Quentin prison with successful businessmen mentors to help ease their reentry into society.

Les’ daughter Lynn Grubin Walker remembers, “He was one of those remarkable people for whom everyone was wonderful until proven otherwise. His true talent lay in the relationships he built—both in and out of the business.”

Len Reynolds, long-time friend and business associate of Grubin’s, said, “Thanks to Les, scores of us have enjoyed incredible success and expanded opportunities for our families. Yet, the success Les most enjoyed was never measured in dollars. In fact, the evening of his retirement party he told me, ‘My fortune is in my family and friends.’ ” [SAC]

Leon Huffman, Huffman and Associates, Orlando, FL, was named the recipient of the 2010 NAILBA Chairman’s Award. The award, created in 2009, was developed to recognize the efforts of a NAILBA volunteer who has performed “over and above” normal expectations during a chairman’s term.

“As the political and economic environment has become more challenging, and scrutiny on the brokerage industry has been increased, NAILBA’s role has shifted,” said Mark Rosen, NAILBA’s 2010 chairman. “Since the beginning of these efforts, one name has been synonymous with NAILBA government affairs— Leon Huffman.

“Leon has been a tireless advocate for our industry. Working very closely with NAILBA’s lobbyist and staffers, Leon has been the driving force and freely given of his time and energy to ensure the continued viability of our industry.”

Huffman served as the 2010 co-chair of the Government Affairs committee and on the NAILBA PAC Board of Directors, and has been active in NAILBA for many years.

Rosen continued, “I assure you that our industry is in a better position today due in no small part to Leon’s efforts on behalf of NAILBA and our industry.”

Important Correction: The December article, “Broken Trust: Addressing An Ineffective ILIT,” by Glenn Plotkin, American General Life Companies, was inadvertently published sans some particularly key edits provided by the author. It does not provide a full discussion of issues associated with ILIT structures, changes to such structures, and various state and federal laws. Please consult your tax advisor for specific questions. Broker World strongly recommends that you read the author’s intended and more comprehensive version of the article online at www.brokerworldmag.com/articles/articles.php?articleid=2785

William J. (Bill) Barrett, W.J. Barrett Insurance Agency, San Clemente, CA, has been an active proponent of the disability insurance business. In fact, nearly all of the 41 years he has been in the insurance business he has specialized in DI.

Because of this dedication, Barrett was the 2010 recipient of the International DI Society’s W. Harold Petersen Lifetime Achievement Award, which is given to an individual who has made a special contribution to the disability insurance industry. The photo shows W. Harold Petersen, Petersen International Underwriters, Valencia, CA, presenting the award to Barrett at the 6th Annual Conference of the International DI Society.

Barrett, who entered the insurance industry in 1969, established a disability agency in 1973 for a prominent carrier. In 1975 he began specializing in the physician market, working with the Los Angeles County Medical Association. He went on to found W.J. Barrett Insurance Agency, which was a multiple carrier brokerage operation.

Active in the industry, Barrett was a founding member of The Plus Group, a national disability insurance marketing organization. He served four terms as president of that organization and is a consultant to the board of directors. He was also a founding member of the International DI Society and served as president and on the executive board for IDIS as well.

Barrett’s commitment to the DI industry continues far beyond his own business. He has consulted with many companies on product and distribution development, served on multiple advisory councils, taught classes, authored articles and spoken about the advantages of DI.

 This editor has known Bill Barrett since the late 1970s, when he represented a carrier where I was employed. He was well-respected by the staff at every level—when he talked we listened! Not just because he was a good producer, but because he was personable, knowledgeable, and enthusiastic about the business. Congratulations, Bill—the recognition is well-deserved!

While we’re on the topic of dedication, we can’t let an anniversary slip by without some type of recognition. With this issue, Robert Goldstone, MD, chief medical officer, Pacific Life, has written for Broker World for 20 calendar years.

A consummate professional, Dr. Bob (as he is known in the industry) always delivers precise up-to-the-minute descriptions of impaired risks and the subsequent underwriting considerations that many of you encounter in the sales process. And, in many cases, he has helped many of us to know what questions to ask our own physicians.

Broker World is honored to include his quality articles each month, and we hope to continue to many years to come. Thank you, Dr. Bob!

Speaking of anniversaries that end in zero, this editor would be remiss in not mentioning that Broker World is continuing to celebrate 30 years of serving the brokerage community. You might have surmised that from this month’s cover.

By the way, the ticker tape parade is for BROKERAGE and the success it has experienced during the last 30 years.

The decision to begin publishing Broker World was based on William S. Howard’s conviction that brokerage was “significant in the total insurance marketing equation and destined to increase dramatically in importance during the years to come.” He also believed that the brokerage business as it had grown and evolved needed a voice to enter the new decade.

Bill Howard’s exact words were: “We propose to provide a medium of communication, one that will speak with the authority and backing from a broad front of the brokerage business, yet with the credibility of independence.”

That hasn’t changed since 1980—the business and publishing has evolved, yet our focus is still brokerage and independence. That still is the most efficient approach to provide insurance marketers the information they need in order to provide clients with the insurance options needed for a secure future.

So please join with us in celebrating BROKERAGE! The future is wide open. [SAC]

Thirty years ago, Broker World’s second issue was being distributed, and the publisher’s column talked about attending the National Association of Life Underwriters meeting (now NAIFA). Here is what that convention looked like through the eyes of a tireless advocate of brokerage:

“There were no commercial exhibits this year and only a handful of brokerage companies were in evidence. Most brokerage marketers and general agents in attendance were there strictly (well, mostly) in the capacity of delegates from their state associations. [WSH]”

It’s hard to believe that a magazine with broker in its title was covering an association primarily made up of captive agents, but the brokerage community did not have a national forum for expressing their point of view in 1980. However, one year later (at the National Association of Life Underwriters meeting), a group of brokerage general agents did get together to discuss what might be done to strengthen the position of independent life brokerage general agencies.

The three members from SUB-Centers, Inc., three members from LIFE, Inc., and one other general agent, who made up the committee, came to the conclusion that by forming a national association, brokerage general agents would have strength in numbers as well as a central forum for expressing their point of view. By November 1982, NAILBA had been formed and was hosting its first convention in Chicago.

Today NAILBA is one of the most influential national associations in the life insurance industry, and we at Broker World are proud to say that our magazine has been distributed at every annual convention since the beginning—and plan on continuing that tradition for decades to come. From time to time during the coming year, we will be discussing the evolution of the brokerage business in this column—“As seen on the pages of Broker World.”

This month let’s look at the first study group that existed before NAILBA—SUB-Centers, Inc., which was founded in 1961 “to foster an interchange of ideas that might benefit each member and better serve the life insurance industry through the collective talents of all.”

Did you know that SUB is an acronym for Society of Underwriting Brokers? In the early years of brokerage, most general agencies survived by selling SUBstandard business.

There were many very astute businessmen in the group, with some very strong opinions, which made for some interesting meetings. Many of the first generation of members have passed away, are retired, or passed the agency ownership on to their children. (Go to this month’s Online edition of Broker World to see more about SUB-Centers.)

SUB-Centers, Inc., is still going strong today; in fact, Broker World just attended their fall meeting in New Orleans. One of the highlights of the meeting was a dinner in honor of founding member George Williams.

George A. Williams has led a fulfilling life! Growing up in Memphis, TN, he was a three-sport athlete in high school, involved in baseball, basketball and track. He went on to become a first lieutenant and a pilot in the U.S. Air Force, holding the highest physical athletic score among his peers.

George graduated from Southern Law College and continued on to Shelby County Bar Associates as a licensed attorney. He began his insurance career as a claims adjuster for American Fore Insurance Group (which became The Continental Insurance Group).

George entered the brokerage business when he joined Executive Underwriters and became partners with Jack Gillespie, a childhood friend. When Jack moved to Denver, George continued to lead the Memphis office. Executive Underwriters was sold to John Dewald, Agency Services, Inc., in 1987, and George continued as president for five more years before retiring.

George was a founding member and organizer of SUB-Centers, Inc., and has served as secretary and public relations officer since his retirement. He was also a founding board member of The Marketing Alliance.

A true southern gentleman, George Williams has always given 100 percent to his profession, his family, and his God. He has long been a member and a benefactor of the YMCA and has volunteered his time to various service organizations. He established the inaugural golf tournament for Ave Maria Home and Assisted Living Facility, Memphis, TN, which has become a vital annual fundraiser. George is still an avid golfer, runner and handball player, constantly showing up the 20-something hotshots.

Broker World salutes George Williams for his professionalism and dedication to the brokerage community. Without trailblazers like him, brokerage would not have survived.

Who among us doesn’t enjoy the guilty pleasure of reality television occasionally (and, in some cases, frequently)? Don’t be ashamed—admit it—while channel surfing, you’ve probably landed on a program or two and stayed to watch.

You know, the ones where the rich and famous stumble over their own feet while attempting ballroom dance routines, the globe trotting teams racing through foreign countries on a scavenger hunt, or the competition among dehydrated and starving contestants stranded in a far-away place. Almost every network or cable channel has something like this on their broadcasting schedule, and if you go to Wikipedia, you will find a list of hundreds of titles.

Well, AXA Equitable has tapped into this social media in a positive way by developing a series of videos entitled “Wall Street Hope Meets Boardwalk Reality.” Their goal is to broaden retirement conversations by creating a platform for consumers to listen and learn from each other about what it’s been like to plan for and live in retirement during the ups and downs of the market.

The first video, posted on AXA Equitable’s “The Source,” as well as YouTube, poses the question: Is Retirement a Shore Thing?

AXA Equitable’s “The Source” is a website intended to offer content related to financial protection and retirement. To see the video, go to http://thesource.axaequitable.com.

While we’re on the subject of reality, let’s look inside the pages of this month’s issue, which focuses on “Insuring Agency Health.” The reality of running a small or mid-sized insurance agency in today’s economy can sometimes be daunting. Survivors today are running an amazing race with big brother compliance taking a good share of their time and the government presenting obstacles that they must scale to avoid a wipeout. While independence has proven to be the most beneficial approach to marketing insurance, producers do sometimes feel like an ice road trucker on precarious ground.

In this issue we have touched on a few topics that should help keep an agency running smoothly, as well as product and marketing ideas you should consider.

Have you ever done a client survey? If not, you can find out how on page 18, plus an actual survey document is in the online version of Broker World. There are also some excellent pointers on building your business through public speaking, as well as how to find temporary employees and how to negotiate when a family business reaches gridlock.

Rounding out this issue are product ideas on LTC insurance, life insurance and disability insurance; health and employee benefit compliance; a panel of seasoned DI professionals and meeting coverage for NAHU’s annual convention and NBA’s spring meeting.

One final thought to leave you with. The Trends in Life Insurance Ownership study, conducted every six years by LIMRA, found that only 44 percent of U.S. households have individual life insurance. Today, 30 percent of households (35 million) have no life insurance coverage, compared to 22 percent of households in 2004.

Almost eight in 10 U.S. households currently do not have a personal life insurance agent or broker to turn to, and most of them say they never did.

How about that for a “reality byte” that you can use to your advantage! [SAC]

By now we’ve all heard about and had a few weeks to celebrate the repeal of 151A.

After a two-year battle with the Securities and Exchange Commission over the status of indexed annuities, the District of Columbia U.S. Court of Appeals vacated Rule 151A. Following that, Iowa Senator Tom Harkin added an amendment to the Dodd–Frank Wall Street Reform and Consumer Protection Act which would ensure state regulation of indexed annuities, and President Obama signed the Consumer Protection Act at the end of July.

While indexed annuities have secured a fixed insurance status, there are many issues a producer must consider. Suitability is more than just a buzzword—it is the standard on which all sales must be built.

The NAIC 2010 Suitability Model 275 is what producers must follow when selling indexed annuities and what carriers must use as a guide when monitoring annuity sales and education. All agents must take a certification course related to the fundamentals and material features of fixed annuities by January 1, 2011, as required by the Model.

Various groups within the industry are working on how to address this requirement and provide the product-specific training. NAFA (www.nafa.com) is a good starting point for more information about coursework.

Some of the best advice about this situation came from Sheryl Moore, AnnuitySpecs, when she said, “In the future, we need to ensure that the facts about insurance products are widely available, so that consumers can access unbiased information about the benefits of owning these products.

“We also need to hold our legislators close. Despite indexed annuities ensuring their fixed insurance status, there may be other issues in the future. We need to take what we have learned from the 151A battle and always be prepared, proactive, and ready to fight.”

This issue’s focus is on indexed and equity product practices and it is full of creative sales and marketing concepts. In addition, four annuity marketing organization leaders have presented some useful insights in the Annuity Round Table.

One last “FYI” about indexed annuities: LIMRA has just reported that year-to-date (through second quarter) estimated sales are $15.2 billion. The figures are based on data from 62 companies that represent 95 percent of total sales.

Don’t forget, September is Life Insur­ance Awareness Month. The LIFE Foundation will work hard throughout September to encourage all Americans to take stock of their life insurance needs. They have designed some creative ways to get Americans thinking about their need for coverage.

To find our more about what they have planned, go to http://lifehappens.org/liam/liam-plans. [SAC]