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Stephen Howard

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Broker Words—April 2023

“Well, I’ve been afraid of changin’ ‘Cause I built my life around you…”—Stevie Nicks

Hope and I joined my awesome sister-in-law and brother-in-law, Christy and Rick White, in Raleigh, NC, last October for what Chris described as a “bucket list” event—Stevie Nicks in concert. The venue was an amphitheater with maybe the best acoustics I’ve ever experienced, but traffic to, and parking for, the event was indescribably abysmal…it took more than two hours to travel the final two miles to the venue and to get to the nearest open parking spot more than a mile from the gate. We missed the opening act and about a third of Stevie’s performance. But we heard easily a dozen wonderful classic songs including my favorite (and Hope’s), Landslide.

Although an astoundingly talented singer and songwriter, I wouldn’t have put this concert on my “bucket list” simply because…I’d seen Fleetwood Mac a number of times times, the first in 1977 and the last in September 1987…when annuity rates were around 9.5 percent with seven percent commissions. The late 80s marked perhaps the heyday of the band, and the following years would see the all too common departures, reunions and reformations, and one could argue that they found it difficult to recapture the true magic they produced in years past. Annuities would continue to climb for the next decade or two and that’s with the word “indexed” pertaining most commonly to the organization of library books.

What I can tell you is that Stevie Nicks still looks amazing and can belt out her magical songs as wonderfully as ever. It was truly an amazing two-thirds of a concert and worth every penny and traffic exasperation. But our industry looks a heck of a lot different than it did in the 80s, 90s, 2000s, etc., which isn’t necessarily bad…or all bad…it just is. And the last 10 years have brought about more change than most of us could have ever imagined.

Let’s begin with the lack of purely brokerage companies. I miss First Colony, and Fidelity Bankers, and Life of Virginia, and a bunch of others. Mergers and acquisitions. Brokerage divisions within carriers are still vibrant and alive, but one wonders if all the advancements in automated underwriting isn’t a slippery slope sliding us away from the origins of the brokerage business—finding coverage for the less-than-preferred risk. I sure hope not, as I count a bunch of underwriters and medical directors as friends (especially Dr. Bob). Is our industry sneaking toward the Space Odyssey where Hal decides that the fit get coverage and the rest of us simply become Soylent Green? Wow. Quite a stretch from You Make Loving Fun…

From hundreds of companies offering DI there are now only a handful. Same with stand-alone LTCI. With the wonderful, in my mind, advent of asset-based long term care, one wonders if, without State or Federal government intervention, my buddy Hagelman isn’t shoveling against the brown tide. Back to annuities. The climbing interest rates (biting my conservative tongue) that make it haphazard if not ridiculous for me to entertain the thought of a new house, with a new mortgage, may reinvigorate the fixed, non-indexed, annuity market but for how long? Meanwhile, non-literary indexing seems to be working well. This and the previous are just two examples of our industry’s incredible ability to adapt to circumstances and still prosper. But where is “Middle America” ultimately to turn for life coverage on a budget when it is extremely challenging for agents to make a living on term commissions? Agent initiated term sales to families just starting out must by necessity be viewed by producers as either a long-tailed investment in a client relationship or simply as service work. Add to this the chronicled aging of the independent agent force, the dearth of new recruits, and the fact that more people in my outside circle of acquaintance have fallen prey to time-share salesmen than have actively initiated or even researched a life insurance purchase via the internet on their own.

Further on distribution, the National Association of Independent Life Brokerage Agencies (NAILBA), the bastion of brokerage for more than four decades, has merged with Finseca. Similarly, you used to couldn’t swing a dead possum without hitting a BGA marketing group, and now the merger of LifeMark Partners with BRAMCO, and more recently IDA, has formed one “super” marketing entity, with TMA still flourishing on the outside, but leaving some fewer others to find a decent niche and/or compete with varying degrees of success. And the mergers and acquisitions don’t end there—literally dozens of BGAs I’ve come to know over the years, and a remarkable number of my best friends in the industry, have been acquired by various incarnations of aggregators. I have no choice but to be optimistic for these friends, based in no small part on their unquestionable integrity, but taken as a whole I’m holding my breath regarding how this trend will affect the BGA system and the dedicated agents they serve.

Stevie Nicks is reported to have said that, “Landslide is about the fear of everything coming crashing down and not knowing how you’re going to hold things together in pursuit of a dream.”* If anything, 40 years in this business has taught me that the brokerage industry is nothing if not resilient, always finding a way to create new products to adapt to market conditions and provide the best possible solutions for you dedicated agents to meet changing consumer needs. We can take heart in that.

“But time makes you bolder, even children get older, and I’m getting older too. Oh, I’m getting older too.” [SPH]

*https://societyofrock.com stevie-nicks-describes-the-true-meaning-of-landslide/

Broker Words—February 2023

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Dammit this one really hurts. It is my sad duty to report the passing of great friend and industry shaper Michel Levy Boudreaux. Michel died unexpectedly at her home in Harahan, LA, on Thursday, January 19, 2023. She is survived by her beloved husband, business partner and devoted caregiver Kevin K. Boudreaux. The couple recently celebrated their 42nd anniversary.

Michel Levy Boudreaux

Born November 11, 1954, and raised in the New Orleans area, Michel was the daughter of renowned Louisiana insurance entrepreneur and BGA Mike Levy who preceded her in death in 1992. Mike entered the business in 1954 in personal production, became a Manhattan Life GA, then made the leap and opened Mike Levy Associates.

Michel worked for her father throughout high school and college and, upon graduating from the University of New Orleans with a degree in Business Administration in 1977, she joined the agency full time as brokerage manager and ultimately president. Mike Levy, along with five others, founded the marketing group National Brokerage Agencies (NBA). Again following her father’s footsteps, she served a term as president of that organization.

Michel also served on committees and positions on the board of the New Orleans Association of Life Underwriters and became president in 1997. She was later awarded their Distinguished Member award. Michel then stepped into many positions on the Louisiana Association of Life Underwriters including the 1999 convention chair. She served as a delegate for numerous state and national conventions. Michel worked, along with Kevin, providing excellent service to agents and clients nationally until her death.

Michel also had a passion for preserving personal and family memories through scrapbooking. She cultivated her creative energy as an active leader in Creative Memories (1999) and Photo Solutions (1999), hosting scrapbooking events for a large group of friends. Upon discovering FOREVER.com in 2015, she quickly became a FOREVER Qualified Ambassador, claiming, “My memories need a permanent home; they need FOREVER.com.” In a December, 2019, article in Broker World, Michel explained that “There is only one company that includes permanency in their financial plan: FOREVER. FOREVER’s promise is that you will pay once for FOREVER Storage® and own it for your lifetime +100 years, guaranteed.”

That really exemplifies Michel’s wealth of talent, compassion, service and creativity—to serve not only clients’ financial and health protection needs, but to think outside the box and add protection of treasured family memories to her service repertoire as well.

I’m honored to be able to claim close friendship with Michel and Kevin for more than 35 years. Hope and I frequently travel to NOLA and no trip was ever complete without at least one meal with them. And I would usually feel compelled to tip double as we tied up the table for hours while Kevin and Hope caught up and Michel and I inevitably got lost in wonderful conversations. Michel Levy Boudreaux had a beautiful caring heart and gave me true, loyal and priceless friendship which I will dearly miss.[SPH]

Broker Words—January 2023

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The Howards and McAvoys have been good friends for more than 40 years. In fact, that friendship stretches back even before Broker World, to back when my father was Tom Sawyering local and regional ad prospects for our original publication Mid America Insurance Magazine. So it gives me great pleasure to congratulate Matt McAvoy for being named the 37th recipient of The Douglas Mooers Award for Excellence.

The Mooers Award is the National Association of Independent Life Brokerage Agencies’ (NAILBA) most coveted and prestigious award. Named after NAILBA’s Founding Chairman, H. Douglas Mooers, the Mooers Award was established in May of 1986. This annual award honors excellence in brokerage and is bestowed upon the individual most committed to furthering brokerage and independent life brokerage as a distribution system. Nominees are dedicated insurance professionals with superior career accomplishments as well as outstanding records of service to the community. Mooers Award recipients are this country’s peer-recognized leaders of brokerage. NAILBA is the premiere insurance industry organization promoting financial security and consumer choice through the use of independent brokerage distribution.

Matt McAvoy graduated with a bachelor’s degree in economics from Benedictine College in 1981. While in college he became licensed to sell insurance, and joined his father’s company in 1981. Founded by Lou McAvoy in the 1960s, Louis J. McAvoy & Associates was one of the first companies to handle impaired risk business. The name was changed to Target Insurance Services when Matt joined the firm. The agency is a multi-carrier wholesaler specializing in life, disability, long term care, critical care and annuity solutions, and is dedicated to partnering with advisors, agents, and brokers by providing a strong team of experts in case design, licensing, case processing, underwriting and customer service. The firm sets itself apart by establishing and maintaining a culture of confidence and trust, with a strong focus on doing what’s right for producing agents and their clients.

A founding member of NAILBA and a current member agency of LIBRA Insurance Partners, Target Insurance Services, Inc., merged with Ash Brokerage Holdings, LLC, on Nov. 1, 2018, and Matt joined Ash’s executive leadership strategy team as well as serving as an RIA Consultant for Palladium Group by Ash Brokerage. He also runs Ash’s Overland Park, KS, office.

Matt is very active at both a local and national level with industry-related duties. He was chair of NAILBA from 2005 to 2006 and director of what is now Life Happens from January, 2012, to November, 2013. While NAILBA Chair he was instrumental in integrating the American Council of Life Insurance’s (ACLI) anti-money laundering testing as an accepted testing benchmark for life insurance agents under The Patriot Act. He has completed his Long Term Care Professional designation from The Health Insurance Association of America and holds active security registrations Series 6,7, 63, and 24.

Lou McAvoy was a pioneer in our industry and embodies all that was and in most cases still is great and noble in our business—as does Matt. Besides being a great friend and mentor to Bill Howard, many were the times Lou took a fledgeling me aside to gently hammer home the imperative need for, and that nobility of, the brokerage business. And over the years Matt has somehow both enthusiastically and patiently explained any number of industry-related issues to me as well. Again, with great pleasure, I say, “Congratulations Matt for a job well done, and for a friendship much appreciated!” [SPH]

Broker Words—December 2022

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As I’m “penning” this masterpiece I’m thankful for the National Association of Independent Life Brokerage Agencies (NAILBA), having just returned home from their annual conference. I must confess that I don’t spend much time in the meetings or general sessions despite the great work of organizers and sponsors bringing in ever more inspiring and informative speakers and having a knack for developing most-relevant topics for panel discussions.

I probably should, but I just can’t find the time…and for a very specific and special reason. I’ve truly been blessed with more great friends in my 38 years of service to this great industry, and approximately 35 NAILBA annual conventions, than I could easily count—and many of them gather at this great event. If you’re reading this you know who you are, because you bring an instant grin to my face when I see you. It’s a great time for me to catch up with these friends, and it seems like the main times that we don’t feel pulled a dozen different directions in a throng of attendees is when the meetings are in session. Those are the times we can really relax and chat for any decent period of time. Besides, I’ve got good friend Brittany Nielsen to rely on for better pictures of the sessions and speakers than I could ever take.

We say that this is a relationship business, and these friendships are by far the greatest gift I’ve been given in my life, with the important exceptions of my parents and my appropriately named wife Hope (I’m no longer Hopeless!). I’ve been making a concerted effort to tell folks how much their friendship means to me and I tried hard at this year’s NAILBA…particularly while I was picking their pockets for the NAILBA Charitable Foundation. And thus, the segue…

Hope and I, variously, have served on the board of this great foundation for eight of the past nine years, and I’m back on the board for another two years starting in 2023. The mission of the NAILBA Charitable Foundation is to encourage volunteerism among NAILBA members and provide grant funds to worthy charitable organizations that serve to enhance the quality of life for those less fortunate, with a special emphasis on children. Every charitable organization applying for grant funding must be sponsored by a NAILBA member agency, exhibitor, sponsor, or advertiser. Since 2002, the NAILBA Foundation has raised and contributed over $3.5 million to more than 245 deserving charities and community organizations nationwide. At the NAILBA annual convention, Foundation Board President Jim Sorebo announced that $180,000 in grants were awarded with 39 charities receiving at least a four figure contribution. This year’s Felton Grant, named after the founder of the NAILBA Charitable Foundation, Col. William J. Felton, and the Foundation’s largest grant each year, gave $20,000 to The Formation Project of North Charleston, SC, providing housing and shelter support for survivors of human trafficking.

At this year’s NAILBA conference contributions for the Charitable Foundation from carriers and marketing groups totalled $105,250, auctioneer extraordinaire Steve Katz raised more than $60,000 at the live auction, and Foundation members sold more than $25,000 in tickets for the Foundation raffle. The Artful Dodger would be proud of them! All this in addition to funds raised at Mutual of Omaha’s Casino Night after the awards dinner and many other contributions from NAILBA agencies, carriers, vendors and individual contributors throughout the year.

At NAILBA’s premier event, the Mooers Award dinner, a video is shown highlighting grant recipients and several times during the presentation I had to wipe my eyes seeing pictures of kids and families these funds will help.

I encourage you to help in the Foundation’s great work by making a contribution via their website www.nailbacharitablefoundation.org.

Well “Tis the Season” seems to be a catch-all for everything from endless carol loops running in all the stores, to long lines virtually everywhere, to that “Bold Adventurer” who cuts you off to make a three lane exit from the highway… But what it really “tis” is the season for giving. My wife and I are not the world’s most accomplished philanthropists, but we like to think we do a decent job. A local homeless shelter, a local food bank, The Humane Society of Greater Kansas City, a wonderful cat rescue named Kitty City here in Lenexa, and several others get donations throughout the year. And of course the Salvation Army and their intrepid bell ringers get a twenty most times I pass one, along with my thanks for the work they are doing. But the best feeling Hope and I get each year is at the local Walmart or Target, where we each pack a cart with Toys4Tots, wheel it to the checkout and then to the office where donations are stored. It’s amazingly fun to wander the toy aisles picking out the toys you know you would have enjoyed at different stages of your childhood. My cart always seems to have a preponderance of Hot Wheels and super hero action figures. Hope’s…not so much. As in most things, she’s better at this than I am.

I say this not for any type of acclaim—I think it lessens the act. And I’m certain that most if not all of you give generously to the charities that matter to you. But with the pandemic and painful inflation, charities of all types are experiencing harder times than usual. And it doesn’t take Nostradamus to figure out that even more families will be hurting this year than in the recent past. So I ask you to pick out some older coats and gloves, or buy new ones, and drop them off at the Salvation Army’s Project Warmth. Grab some canned goods and drop them in the bins available at every grocery store or send a check to your local food pantry. Drop a few bucks in the red kettle and thank the bell ringer. Donate pet food to your local animal shelter for their giving program. And maybe most heartwarming of all in my experience…swing a cart down the toy aisle. I can promise you you’ll be glad you did.

Broker Words—November 2022

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Heartfelt and well-earned congratulations to good friend Jason Lea and the staff of Brokers’ Service Marketing Group (BSMG)—celebrating 50 years of invaluable service to agents and the customers they serve. BSMG is a life insurance, annuity and long term care insurance brokerage general agency headquartered in Providence, RI. They assist producers in the upscale market by providing a range of marketable sales solutions including mutual funds and fixed and variable life contracts.

With a vision of building a world-class life insurance brokerage firm for advisors and institutions, Founder David B. Lea, Jr., launched BSMG in 1972 and delivered uncompromising support and service to top producers until his retirement in 2017. Under David’s leadership BSMG developed a national reputation for excellence and innovation and has become the largest New England-based agency of its kind. Sadly, David passed away in August 2019.

To this day, led by current CEO Jason E. Lea, the company maintains a long standing and well earned reputation for excellence in providing exceptional guidance to financial service professionals and financial institutions. Their team of top industry professionals strives to put clients in the best viable position every time to make agents’ business more profitable.

“We support advisors and financial institutions whose clients require asset and income protection as well as retirement solutions. Our expertise helps our customers deliver the best results to their clients every day,” relates Jason Lea. “Our Vision is to protect the future of families and businesses. Our innovation and passion empowers advisors and institutions across the country to achieve transformational results for their clients.”

One of the unique and most laudable aspects of the BSMG mission is striving to strengthen the communities in which they do business and help improve the quality of life for their neighbors. For many years Broker World has recognized BSMG for their premier producer engagement event, the BSMG Annual Charity Invitational at the Rhode Island Country Club, which has raised more than $1 million for local charities. In fact, it is no accident that we are running coverage of the 21st hosting of this event in this very issue, distributed at the NAILBA annual meeting (the industry’s premier BGA conference) hoping to encourage other BGAs to focus their agent gatherings on charitable causes. Some other BSMG community enrichment efforts include an annual toy and clothing drive for Children’s Friend, Rhode Island’s oldest child welfare organization, employees working with Habitat for Humanity Providence to build affordable houses for low-income families, and support of The Outreach Program, a nonprofit organization that focuses their attention on ending hunger. Early next year the staff members of BSMG will come together to package 58,000 meals for local Rhode Island charities.

“Our team members are our most valued resource,” Lea says, “BSMG goes the extra mile to foster a team-oriented, family-like atmosphere that enables our employees to thrive both inside and outside the workplace.” I’ve seen this firsthand on many occasions attending their wonderful golf tournament.

It has been a great gift to the Howards and Broker World to be associated with BSMG for more than 40 years and for a wonderful friendship shared with the Leas. David’s boisterous humor and rich laugh, his wife Pat’s fussing over every detail to make certain each event was as fantastic as possible, and, in particular for me, Jason’s sincere, appreciative and warm friendship has brightened many a BSMG, NAILBA, BRAMCO and now LIBRA meeting. Congratulations, and thank you, BSMG and the Leas, for 50 years of dedicated service to our industry and the countless lives your efforts have touched.

Broker Words—October 2022

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Heartfelt congratulations to some of the best friends Broker World and the Howards have ever had and could possibly ever have asked for—the Petersen family and Petersen International Underwriters. It is my distinct pleasure and honor to relay that Petersen International Underwriters is proud to announce the celebration of its 40th anniversary as a Coverholder at Lloyd’s of London.

More than 60 years ago founder W. Harold Petersen began a long journey of discovery into the world of disability insurance. Fueled by the personal experience of growing-up with a disabled father, Harold’s affinity to the DI market was instant when he became employed by Mutual of Omaha as a young man.

Harold spent years learning and teaching about disability insurance throughout the Midwest. Eventually, he and his family landed in California where he and his sons developed what is today Petersen International Underwriters.

Evolving from an independent retail brokerage into a full-service wholesale insurance business, the Petersens kept finding that many of the high-income-earning entertainers, attorneys and executives of California were unable to find sufficient levels of disability income insurance. They searched the U.S. and international insurance markets and eventually found the perfect solution at Lloyd’s of London, the centuries-old institution.

A formal introduction was made that blossomed into a successful partnership with the Lloyd’s insurance market that continues to flourish to this day. Four decades ago, Petersen International was granted the title of Coverholder, giving them the “power of the pen” to underwrite and bind insurance on behalf of the underwriting syndicates at Lloyd’s. Petersen International is the largest personal accident Coverholder at Lloyd’s in the United States.

To this day, Petersen International’s goals remain what they were those 60 years ago—to spread the word about the incredible importance of disability insurance so that every working American is financially protected in case of becoming sick or injured and unable to earn a living. Petersen International continues to adhere to Harold Petersen’s ideals by providing disability insurance to those who aren’t able to successfully attain sufficient DI coverage through the traditional U.S. market.

Petersen International looks forward to another 40 years as a member of Lloyd’s distinguished family. For more info about Petersen International Underwriters, visit www.piu.org.

It was my great pleasure to meet Harold and Jacquie Petersen more than 30 years ago at a National Association of Health Underwriters meeting. From the very beginning they were incredibly welcoming and appreciative of the magazine’s efforts and Harold was a great educator and mentor of mine in developing an understanding and appreciation of disability income insurance and its critical role in protecting the financial lives of families when a disability strikes. Today I’m proud to call Harold, Jacquie, Tom and yes, even Mark, Petersen as dear dear friends. Congratulations Petersens, and Petersen International Underwriters, on 60 plus years of great service to the industry and the customers it serves and for this special milestone of 40 years as a Lloyd’s Coverholder! [SPH]

Broker Words—September 2022

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My favorite Liam is probably Liam Devlin, Donald Sutherland’s character in the movie The Eagle Has Landed (and this and two other novels by author Jack Higgins). I still use one of my favorite quotes from time to time referring to the highly unlikely. Replying to a German officer who is explaining that Germany will shortly win World War II, Devlin offers, “Pigs may fly, General, but I doubt it!”

Assuming capital letters are a significant enough differentiator, my favorite LIAM is, not surprisingly, Life Insurance Awareness Month. LIAM is brought to you dutifully and passionately each year by Life Happens (lifehappens.org) in collaboration with, and with invaluable assistance from, LIMRA (limra.com). Throughout the year they provide a host of resources for agents to utilize with clients, prospects and in prospecting efforts, as well as consumer-facing campaigns to raise awareness among the public. Any statistics referenced in this offering are thanks to one, if not both, of these incredible insurance industry service organizations.

Leaving Murder Hornets and Monkeypox aside for this discussion, two-plus years into living with the specter of COVID-19 consumer awareness of the importance of life insurance is high, but that hasn’t seemed to statistically translate into a rush to buy overall. Only about half of Americans have any life insurance coverage, down from 63 percent just 10 years ago. This despite stats indicating that there are 106 million Americans—41 percent of the adult population—who acknowledge they are living with a life insurance coverage gap and thirty-seven percent of Americans who claim they plan to buy life insurance this year. Thirty-one percent said they are more likely to buy life insurance due to COVID-19.

We all recognize that there unfortunately are Americans who simply are not prospects for our products—we see some of them on the corners of busy intersections and in homeless camps throughout our country. Further, there are a significant number who have basic necessity needs so acute that there simply isn’t anything left for life insurance. Perhaps a few have a small burial policy stuffed in a drawer somewhere. What we should all feel more keenly is the moral obligation to help those families whose means do not currently prevent reducing or eliminating their coverage gap and educate them. Persuade them. Gently assault them with the real numbers necessary for their loved ones to continue to live life in at least some semblance of the manner they currently do should a breadwinner die unexpectedly.

There are more than 77 million middle-income Americans, defined as having a household income of $50,000-$99,900, making up around 31 percent of the total population. More than half (52 percent) of middle-income Americans report having life insurance. The statistics show that nearly forty percent of middle-income Americans believe they don’t have enough coverage, representing that more than 29 million middle-income Americans live with a coverage gap. But we should consider further two important factors: 35 percent of men and 22 percent of women believe the coverage they receive through the workplace is sufficient. Yet according to the U.S. Bureau of Labor Statistics the median life insurance coverage offered at the workplace is either a flat sum of $20,000 or one year’s salary. Further, about 30 percent of consumers view life insurance only for burial and final expenses—clearly resulting in not purchasing enough coverage to provide income replacement, not to mention enable wealth transfer, two key ways life insurance can benefit loved ones after a wage earner dies.

Forty-two percent of Americans say their household would face financial hardship within six months should a wage earner die unexpectedly. Twenty-five percent would struggle financially within a month. Among the reasons middle Americans cite as reasons for not seeking life insurance coverage (or more) are that health issues make it difficult, they don’t know what to buy or how much coverage they need, and that they can’t afford it (the perceived cost is too high). These are considerations or misperceptions that a life insurance agent is uniquely more capable than any other entity to correct and solve!

Meanwhile nearly half of uninsured Millennials (49 percent) say they haven’t purchased life insurance because no one has approached them. And 47 percent of consumers said they preferred to use a financial professional to purchase life insurance. It is incumbent upon our industry to do the utmost to prevent these unnecessarily vulnerable families from spiraling into the strata of those who truly can’t afford to purchase life insurance products. If nothing else, LIAM should remind life insurance agents that there are many un- or under-approached prospects whose lives you could immeasurably positively impact.

It’ll take a collective effort of a whole lot of brains less limited than mine to bring about real, widespread change in the number of un- or under-insured Americans with enough income to afford sufficient, or at least more, life insurance. It is my hope that this year my favorite all-caps LIAM can spur at least Broker World readers to consider tithing their time and expertise to reach out to folks who need, and can manage to afford, to close their life insurance coverage gap. And, when faced with reluctance or indecision, you could always pound the COVID drum like a swing state politician setting election parameters.[SPH]

Broker Words—August 2022

Sad news indeed for those of us who appreciate the brokerage business as it was in years past. An icon of those days, David Lenaberg, Ph.D., passed on April 20 in High Point, NC.

Prior to his insurance career Lenaberg earned a Ph.D. in mathematics from LSU and served as a professor there. A member of the Society of Actuaries, Lenaberg was the longtime chairman, president and CEO of Banner Life Insurance Co., president and CEO of William Penn Life Insurance Company of New York, Inc., and later president and CEO of Legal & General America. Upon retiring from LGA, he served on The Marketing Alliance board of directors.

“As a fellow TMA board member, I was blessed to be exposed often to Dave’s perspectives. He was a brilliant man, quick to share his positive comments whether business or personal. He could cut through the nonsense and get right to the most appropriate action. It was rewarding and fun to be in his presence,” remembers Art Jetter, adding, “Dave had a delightful sense of humor.”

Jack Dewald relates, “As TMA Board Chairman since 2010, I always appreciated his insight and direction for TMA. He offered a unique perspective that helped us (TMA) refine our distribution techniques, enabled us to be better negotiators and better providers on behalf of our distribution partners. At Banner/William Penn/LGA he was a master of low cost term insurance delivery—operated a very lean home office platform, highly proficient, high volume. Did one thing very well and stuck to his knitting.” Dewald also credits him with significant work for the NAILBA Charitable Foundation: “One of the early and “big time” sponsors of the NAILBA Foundation—he used outlandish gifts coupled to required matching contributions to maximize income to the foundation and bring attention to its mission.” Dewald continued, “In social/personal settings he was always gregarious and fun to be around…a true friend who I enjoyed spending time with.”

Longtime friend Ed Murray added, ”Dave was straight as the day is long. No hidden agenda, no double speak. You knew where he stood. He appeared to make quick impulsive decisions which, after time, you realized were well thought out and even more well reasoned. He was the consummate professional who did the right things for the right reasons and never equivocated or backpedaled. Dave was fun to be with and even more fun to joust with intellectually. Never part of the herd in his thinking. A constant learner with an inquisitive and eclectic mind. Never boring and always ready to throw “hand grenades” to get the debate energized. Dave was a loyal friend, a great mentor and a unique human being. A true gentleman who I will sorely miss.”

Although I was nowhere near as close to Dave as Art, Jack and Ed, I had plenty of exposure to his incredible acumen and insight. His contributions to our industry were many, undoubtedly most significant are the vast multitude of families helped in their times of direst need through his excellent leadership of some of the industry’s greatest brokerage companies. As seems to be the case with me and many Ph.D.s, a great deal of his industry brilliance went well over my head. But I also had numerous occasions to witness and enjoy his great wit and sense of humor and for that I am grateful. RIP Dave, and thank you.[SPH]

Broker Words—July 2022

There is a series of commercials on TV these days (from a cable service that I despise due to their termination/billing practices) where the spots show two unrelated programs that magically merge into a single action sequence as a result of the customer flipping rapidly back and forth between the two. Serena Williams…Wonder Woman…Serena…Wonder Woman…then cut to a mall scene where, in my view, the greatest women’s tennis player ever appears in a Wonder Woman costume and destroys malicious tennis ball shooting robots by returning serve. The appeal is heightened for me no doubt by the scene of the most-famous-for-whining men’s tennis player ever, John McEnroe, having one of the robots’ shots spill his drink on him. There’s also a Serena/Matrix one and a baseball/Ghostbusters spot.

Flo and her cohorts are mildly amusing in their “bundles” commercials, and I like the creativity of the Gecko ad developers, although I suspect that the appeal is subtly greatly enhanced by the bipedal lizard’s British accent. My four-decades-long patronage of my local State Farm guy would suggest, with apologies to Barbara Mandrell, I was bundling…when bundling wasn’t coooool.
I’m not sure, etymologically speaking, where bundling, multitasking, dual-purpose, combo, and other terms of their ilk are all linked, but I suspect my Spirograph would need to work overtime to produce an accurate Venn diagram. I do know that there are a plethora of word bundles that are oxymoronic: Postal service, government organization, temporary tax increase, jumbo shrimp and undeniably the most egregious—veggie burger. But that’s old news. And don’t even get me started on pineapple on a pizza…

Whether by fortuitous happenstance, or a blatantly obvious intent to manipulate, the July issue of Broker World has for 24 years been promoted as our Life Insurance issue and yet has dedicated a large percentage of the editorial copy to our annual Milliman Long Term Care Insurance Survey. Hmmmmm.

I proselytize frequently about what I believe are under-presented solutions designed to alleviate some of the stress and misery of potential insurance product consumers, long term care protection a frequent soapbox. That said, I don’t have my head in the sand about aspects of the stand-alone LTCI product that plague carriers, agents and existing policyholders alike. LTCI lapse ratios were tragically over-estimated initially and forced greatly unpalatable rate increases for consumers. While “use it or lose it” may resonate negatively for prospects, “pay for it for decades and then just abandon it’’ largely wasn’t a justifiable action for existing policy holders. Further rate increase scenarios, although much improved, are still a specter as accurately pricing for morbidity is an ever-moving target and increased longevity, while most times a boon to life insurers, has been a great challenge for LTCI insurers—COVID government nursing home malfeasance notwithstanding. Add to the pricing Catch-22 the often stricter underwriting and longer issue times, and the risk of a decline, and it’s defensible that agents might not want to endanger existing client goodwill, leaving that privilege to another agent. An unfortunate reality is that many consumers ultimately pull their heads out of the sand only to discover it’s already too late to obtain traditional LTCI coverage.

But the fact remains undeniably clear that the long term care exposure risk to American consumers as a whole is vast, and government program funded solutions are greatly unpalatable for all but the most desperate. And as Boomers inevitably age into the system, long term care staffing concerns and attendant cost of care projections are increasingly dire.

Inside, authors shed some light on solutions to the looming long term care crisis, but the whole point of this bundling, perhaps bungling, dissertation is that there are a great array of life insurance (and annuity) products now available with attendant long term care solutions. Linked-benefit, asset-based, hybrid, combo, or maybe “bundled”…our industry has come up with a plethora of palatable life/long term care solutions and many previously reluctant brokers are now able to set aside stand-alone LTCI concerns and actively engage their greatly valued clients in much needed long term care planning…in my unbiased opinion.[SPH]

Broker Words—June 2022

It is my distinct pleasure to recognize here one of our industry’s perhaps unsung heroes, and my longtime dear friend, Ed Murray—this year’s recipient of the Billy Vogel Award bestowed by The Marketing Alliance at their recent spring meeting. The Billy Vogel Award is given annually to an individual working in the brokerage industry who possesses impressive business acumen, a sense of innovation and, above all, integrity.

After graduating with a degree in finance, Ed served as a combat veteran in the 11th Armored Cavalry Regiment known as “The Blackhorse” as an Artillery Forward Observer in Vietnam. An Artillery FO patrolled with infantry units and called in grid coordinates and artillery fire when under attack. An Artillery FO had to be extremely accurate in determining their own location and the location of the enemy or else terrible things could happen.

The start of Ed’s insurance career came after a brief stint in real estate, when he began working at Chubb Insurance. It didn’t take long to realize carrier life may not be a good fit, so his inner entrepreneur kicked in and he set out on his own, then ultimately teamed with Gordon Zuckerman to form Murray & Zuckerman, Inc., and set up shop in Schenectady, NY. Their vision was to have a general agency that serviced all four corners…of New York State.

Ed has been deeply involved in the National Association of Independent Life Brokerage Agencies (NAILBA) serving as its chair and receiving the association’s highest honor, the Douglas Mooers Award for Excellence. Another former chair, Mooers Award recipient, and also longtime friend, Art Jetter, remembers, “Ed likes to give credit to others for NAILBA recovering from the financial issues in the late 90s, early 2000s. He doesn’t take any personal credit. However, when I was chair in 2000 and gave my swan song speech, I specifically recognized his incredible service as treasurer. I called him our ‘financial boy wonder.’ Without Ed understanding that the board had to stick to its guns on fiscal recovery, and rubbing our noses in it, there might not have been a recovery.”

Yet another former NAILBA chair, Mooers winner and good friend, Jack Dewald, adds, “I truly believe Ed has one of the best financial minds I’ve ever worked with. He understands practical application and simplifies complex issues. He runs circles around actuaries and carrier financial folks. Pretty much anything he has financial oversight of does well. He knows his strengths. He is a team player in every way, but his ‘old style’ would never allow him to succeed in a corporate world. He would last a minute max before pissing some hack off with his clarity and brevity.”

Introducing Ed as the Billy Vogel Award recipient, TMA President Tim Klusas said, “This year’s recipient is recognized for their business acumen, practical application, and ability to simplify complex issues. While I can’t possibly list all of this person’s contributions, it was this person’s resourcefulness, vision, innovative thinking, and above all integrity that got TMA off the ground in 1996. It was due to the persuasiveness that only a New York GA could provide.”

Ed’s daughter wanted to say this about his character, “You will never meet a man who more faithfully lives his values. He is a throwback to a more civil generation, and not just because he refuses to send or receive text messages (much to the chagrin of his daughters and grandchildren). He fulfills every obligation that he ever undertakes. He is self-made and self-reliant. His word is his bond, and everyone knows it. He is loyal. His dedication to the people in his life can be seen amongst family, childhood friends, and current colleagues. He has lived these values personally and throughout his career.”

I met Ed longer ago than I can remember, probably at a Sub Centers or NAILBA meeting, before he helped lay the groundwork for TMA. I found him to be welcoming, friendly, intensely loyal and a great fountain of knowledge about the brokerage business. Like many of us, Ed found it hard to deal with ignorance. At least in my case in the early years, the difference between Ed and many others was his unfailing willingness to work to chip away at my lack of knowledge and increase my understanding and appreciation of just how vital and honorable the brokerage business is.

Often the gruff humorist, in accepting the Billy Vogel Award his first exclamation was, “If I’d known I was going to receive this recognition I would have worn socks.” The brokerage industry is extremely fortunate to have Ed Murray as a champion, as am I to have him as a friend.[SPH]