Stephen Howard

The “New Agent Crisis” is a figment of our own imagination.  Or rather, it should be.  After reading an article by Barry Moltz, 7 THINGS MILLENNIALS VALUE MOST AT WORK, (https://www.americanexpress.com/us/small-business/openforum/articles/7-things-millennials-value-most-at-work/), our industry seems tailor made for the single largest generation in today’s workforce.  Moltz outlines seven characteristics of Millennials that affect job satisfaction. In Moltz’s words (parentheses mine):

1. An entrepreneurial spirit. They studied it in college and may have already started several small businesses on the side. (Seems a perfect fit.)

2. A small company with fewer employees. They’re not willing to be just a number in a large corporation. They don’t want their contribution and opinions to get lost in the larger crowd. (See item 1.  It doesn’t get any smaller than one employee.)

3. Frequent feedback from a boss. Gone are the days of the annual performance review. Gen Y grew up with “helicopter parents” who were always telling them how great they were. (Wife?  BGA? Company agency manager?)

4. A connected, social atmosphere. This is a connected group of employees and will socialize in the office and online. (Satisfied by another soapbox of mine—the necessity of belonging to your industry associations.)

5. A tech-friendly environment. They know how to use the most advanced technology tools and as a result are more connected to each other than any other generation. (Can you say, “Name-Your-Price Tool?”)

6. Work-from-home and flexible-hour options. Unlike in the 1980s, Gen Y doesn’t see the need to relocate to where their job is. As a result of the Internet, location is no longer associated with work. According to the recent PwC Next Gen: A Global Generational Study, 66 percent of Gen Y expects to be able to work flexible hours at home and in the office. (Independent agents are the epitome of “set your own schedule”-ers.)

7. A chance to give to the greater good. Employees are traditionally driven by pay and promotions. However, Gen Y is also passionate about ways they can contribute positively to their world. (I wish every Millennial could accompany a life insurance agent delivering a death claim to a grieving widow.  If that could happen, and the stated attitude is valid, we should have 50  million new agents in short order.)

Although the insurance industry has trailed many in various facets of tech adoption, our industry is on the upswing regarding tech adoption finally and social media marketing and mobile device tools are now commonplace.  Millennial’s would find fertile ground for influencing and innovating in this critical area.  The remaining points outlined above seem like a Password description of our industry.  So where’s the disconnect?

Is it that insurance, Art Jetter notwithstanding, isn’t sexy?  I didn’t see “Cultivate an Alluring Image” on the list. I’ve often postulated that televised attacks on “insurance” have been responsible for the gradual souring of public sentiment toward insurance companies in general, although largely unrelated to the life insurance side directly.  Our past President’s strident trumpetings of “We’re not going to let your insurance company discriminate…” when pushing for public acceptance of the ACA, and a host of P&C targeted ads from “best plaintiff’s law firms” vilifying simply “The Insurance Company” are bound to have a subtle corroding effect on word-associated entities. I cannot recall a single “Action Reporter On Your Side” visiting a grieving widow or a disheartened disabled breadwinner to chronicle the receipt of a check from an insurance company and the swell of relief it engendered.

But like most things that vex us, I suggest we take a long hard look in the mirror before we impotently lash out at our own determined set of menacing monoliths.  In the mirror do you see any semblance of the young person just starting out in the insurance business, yes wondering how he/she was going to attain and/or care for a family, but also determined to help other families protect themselves against the great financial burden attendant with unthinkable sorrow and misfortune?  How often, in those early days, did you ask a husband, “What would your wife do if you were hit by a bus tomorrow?” I bet the whippersnapper-you wasn’t asking the bulk of your early clients how much of their estates they wanted to pass tax-free to their heirs.

When most of you started, a $50,000 whole life sale was a big deal! A $500,000 term sale took a bit of finagling, both with the customer and the home office. Because the bulk of your prospective clientele—those in your centers of influence—resided with you in the middle market.  And the worst thing people said about the insurance industry was the smirking allusion that hell on earth was being caught in an elevator with an insurance salesman.  Why?  Because a good percentage of the people in the middle market had either direct or indirect knowledge of bad things happening to good people and how life insurance had mitigated their financial distress—or unfortunately had not—and trust of the insurer was never a consideration when either the positive or negative example moved them to seek protection for their families.  Plus, insurance salesmen were known for their bulldog tenacity pursuing a sale to Anyone! Anywhere!  But then again, we had only three TV channels and the news we got was a great deal more objective.  The sway-intending pieces were clearly marked as “Opinion” in the daily paper, and you usually got one of each slant in the same issue. Lawsuits were not the wingtip-delivered version of the lottery. Personal responsibility was not painted as the laughable forefather of plausible deniability, nor were the vicissitudes of fate compelling impetus for a financially motivated witch hunt.

But I digress.  My point is, if we reach more of the rank-and-file middle market consumers with compassionate concern and counsel about the benefits of our products and their unparalleled ability to mitigate misfortune—and further then help the bereaved to best position death benefit assets—wouldn’t we at least be able to gradually enter into the consciousness of the general public a reinforced differentiator regarding life insurance and the benefits it guarantees?  LIMRA indicates that the middle market is distinctly underserved and that the major factor behind record lows in individual policy ownership lies in that underserved market.  If ours is truly a benevolent business, we should be able to attract these like-minded Millennials. But the best way to impress upon them our sincerity and integrity might just be to lead by example—and dedicate time to help those most in need and yet individually…initially…financially least profitable. [SPH]

Before I begin, I must offer an apology and my heartfelt thanks to friend Bill Izor, Pan-American Life Insurance Group, for providing photos for the recent NBA and Insurance Designers meeting coverage.  I thoughtlessly left out much deserved thanks and photo credit in those coverages.  Thank you Bill!! [SPH]

I believe in charitable giving.  In this issue alone there is a news release from Allianz outlining $260,000 in grants to support financial literacy programs teaching money management, providing asset-building initiatives, and offering financial resources.  Over the last seven years, the Allianz Life grant program has distributed more than $1.8 million to such organizations.  Also in this issue is an article by friend Brad Gordon on Simple Charitable Life Insurance—transferring otherwise taxable assets into a much larger tax-free pot of money with a specific task of improving humanity in a manner the designate desires and instructs.  In the past I’ve featured special articles relaying the charitable giving efforts of several carriers and include free advertising for two charities in which I have a personal interest.  I include the wonderful Brokers’ Service Marketing Group’s golf tournament in every November issue because they should be an example to us all.  BSMG uses their primary annual producer event to raise money for local charities—$44,000 last year and well over $1 million over the past 16 years. Bravo!  My mission in providing these articles is to offer a few arrows for producers to use to shoot down the media-enhanced misconception that the insurance industry as a whole is just a money gobbling heartless behemoth.

As most of us I’m sure do, I donate money to causes that move me—in my case pet and wild animal rescue organizations, recovery and veterans causes, and the NAILBA Charitable Foundation which has granted millions to charities working with disadvantaged children. And, I confess, I feel like a douche when I pass a red kettle without stuffing a few bucks in.  Though I’m not a hoarder per se, (although one might argue if you saw the one criminally disorganized room in our house—okay, two), I certainly have countless items that could, and periodically do, go to charitable organizations for resale to benefit organizations serving the less fortunate—and I get receipts for my taxes.  Therein lies the perhaps assailable paradox.  Am I “profiting” by giving unwanted or unneeded items away?  What about the (blessed) rationalization that an item will immediately help someone in need—versus the idea that I plan on losing the 20 pounds needed for it to fit again, or will certainly find a good use for it in the future, or it has some nebulous emotional strings attached…  The donation nudge has proved invaluable in keeping my house from bursting at the seams.  And donating adds a spark to so many more days than just April 15th.

So let’s put to rest the snipe that the more fortunate—individuals and institutions—”only” donate for a tax write off.  The elephant (and donkey) in the room is that you have a choice—donate to the charitable organizations to which you feel so moved, or let the government “donate” for you.  I choose to donate to organizations that have a bit less overhead than the Federal Government.  They force enough donations on my behalf already.

So what about time?  Actions speak louder than words—unless perhaps you’re one of the dozens of people I fleece for the Charitable Foundation at the annual NAILBA meeting.  We don’t write off the time we donate to our causes, personally or professionally.  And now the clumsy segue:  September is Life Insurance Awareness Month and our industry is falling behind in getting people much needed protection.  The fact that our industry faces a nearly 60 year low in the percentage of people owning individual life insurance says to me that many of those in greatest need are those being underserved.  What a great way to use your God-given gifts to benefit those less fortunate.  We all know that commissions on $100,000 and $250,000 term face amounts are break even at best. Doesn’t change the fact that they can be a true godsend to the vast majority of families facing the tragedy of losing a breadwinner.  Shouldn’t we work harder on that?  If there were 1000 more lower middle class widows tearfully thankful for those death benefit checks. Or 10,000.  Or 1 million.  Or 10 million.  Would that change the perception of our industry in the demographic most vulnerable to be influenced by our naysayers?  The Life Happens folks can help you (www.lifehappens.org).

I’ve never sold an insurance policy, but I’ve been present when bigger checks were delivered to a widow already financially fortunate. I’ve also been present when two smaller checks were delivered to a grieving widow much less fortunate and at wit’s end about how to make ends meet.  I don’t know how many more widow’s checks it will take to change public perception of our industry.  But I bet it only took one to change you.  God bless you.[SPH]

Brokerage Marketing Opportunities should bring to mind myriad possibilities, some of which are explored here either in Focus, General Interest or Monthly Commentary.  Life insurance for foreign nationals, niche marketing of products domestic carriers often don’t provide, encouragement for long term care protection needs, benefits and same-sex couples, Fiduciary Rule opportunities, life insurance for HIV patients, disability income and more.  The Market Update explores the worksite, both voluntary benefits and our 2017 Analysis Of Worksite LTC Insurance thanks to the great folks at Milliman, Inc. and the diligence of Claude Thau.

Though the modern day soap box certainly won’t support my weight and I lack even the most rudimentary semblance of rhythm making drum beats at best an annoyance to all within earshot (yes, I’m the concert guy who can’t stay on the clapping beat urged at least once nightly by most performers of my generation), I find no lack of causes, real and perhaps sometimes imagined, to blather about on this page.  The very real need for more disability income involvement on both the carrier and producer fronts.  The unstoppable maelstrom of impending long term care need and many producers’ seemingly pugilistic resistance to approach consumers about this need to persuade (beg, coerce, scare, shame, Vulcan mind-meld) them to develop a long term care plan despite the wealth of planning options for all stages of health and/or need immediacy.  The idiocy of imagining that political self interest can be wrapped in sugarcoated grandstanding and defy proven health insurance industry risk-spreading practices without an astronomical cost to taxpayers. And don’t get me started on government intrusion into the life and annuity markets to line the pockets of countless bureaucratic cronies and vultures…errr…selfless servants of downtrodden plaintiffs.

With the impending arrival of September’s Life Insurance Awareness Month (LIAM) it seems fitting to focus at least one of the larger fragments of my attention on life insurance and America’s uninsured and underinsured.  Credit goes to LIMRA for over 100 years of service to our industry, but specifically for their Facts About Life PDFs. LIMRA, in cooperation with Life Happens, offers Facts About Life annually to be used as a resource for LIAM.

In 2016 there were nearly 5 million more U.S. households that have life insurance coverage, compared with 2010 results, but 30 percent of households (37.5 million) remained uninsured. There were 3.1 million more households with individual life insurance than in 2010, but individual life insurance market penetration remained steady. Only 44 percent of U.S. households had individual life insurance, equal to the 50-year low set in 2010. Of those families who had no life insurance coverage, 73 percent recognized they needed life insurance and 62 percent said they would be in immediate financial trouble if a primary wage earner died.

Using their Life Insurance Needs Model, LIMRA estimates that 48 percent of households  have a life insurance coverage gap of $200,000 on average, which amounts to more than $12 trillion in total market need. Sixty million families. Overall, 70 percent of all households said they would have trouble covering everyday living expenses after several months if the primary wage earner died.

Eight in 10 households who believe they need more life insurance say they don’t buy because of other financial priorities. Or they can’t afford it. But prior research shows that, on average, people estimate life insurance to cost three times what it actually does. Six in 10 say they don’t know what to buy or how much they need. One of the biggest obstacles perceived is lack of information.  But here’s a truly crucial fact: More households who believe they need more life insurance say the reason they haven’t purchased is because they haven’t been approached by a financial professional.

Approximately 50 million households recognize they need more life insurance.  Almost half of U.S. households say they are likely to buy life insurance in the next 12 months. More than one-third of married couples with dependent children want to speak with a financial professional about their life insurance needs. Across all age groups and income levels, insured households said they want to review their life insurance coverage annually. And, the majority of households said they were more likely to buy when advised by a trusted financial professional.

So whaddawe do?  The ever increasing average age of the insurance agent indicates that “new” producers are not replacing retiring ones at the same (or a greater) rate, and yet the U.S. population continues to increase.  But it occurs to me the problem is more multifaceted than just salesforce numbers.  I seriously doubt that many producers refuse to help prospects who come to them for $100,000 or $250,000 face amount policies, even term insurance.  But my question to you is, how diligently do you actually seek out those prospects whose initial purchases are on the low end of the commission spectrum?  Let me be absolutely clear that I see no evil, or ethical conundrum, in helping high net worth families with financial plans.  I happen to believe that the majority of those helped in this manner significantly benefit society through diligent philanthropy as well as legacy bequests.

But what about the future widows who represent the significant decline in life insurance coverage adequacy for U.S. households—coverage to replace the lost paychecks of a primary breadwinner—which has dropped to an average of only three years worth of normal income, far lower than most industry recommendations.  Or those families with no life insurance at all.  Your unique skill sets and knowledge of the industry could have an astronomical impact on their lives.  And their gratitude, in time of greatest need, on yours.  Please use your creativity, the contacts in your client list, and the wealth of resources available at www.lifehappens.org to find ways and time to help more of them.[SPH]

Trapped in the summer DOLdrums and facing a blank page to be necessarily converted to black and white for a July Life Insurance issue, my mind skitters across the insurance landscape peering into various sinkholes legislators and their JD-sporting country club cronies would have us believe are well stocked, exquisitely equipped storm shelters for the benign protection of the overwhelming majority of American consumers—the intellectually unprotected masses.  If you can ignore the underlying assumption that insurance agents and brokers are predominantly morally reprehensible opportunists devoid of any compassion for their fellow man, you might take a minute to puff out your chest at the implied compliment that you are possessed of a so vastly superior intelligence.

So what’s the big deal?  The DOL Fiduciary Rule as it applies to life insurance affects the sale of certain products to retirement plans, and the use of qualified plan dollars or IRA distributions to fund life insurance purchases. So either take the completely unambiguous, starkly black and white, (and fairly, reliably and reasonably adjudicated in case of conflict) steps necessary to be compliant, or simply avoid sales that might involve qualified plan or IRA dollars. Simple.  If your practice thrives on these dollars, just sell something else to someone else.  Forget about those you help daily, the government has decided to remove that weighty obligation from you—enjoy your freedom!

Sarcasm aside, my fear is exactly that.  Some sources place the average age of the insurance agent in 2015 at 59.  One study placed almost 20 percent of agency principals at 66 or older.  At what point does one decide that, by the grace of God, a nice living has been made and a comfortable retirement funded by decades of ethical, dutiful service to families young and old, those of modest means and those more fortunate, and that continuing to serve in the face of yet another bureaucratic roadblock just isn’t worth the headache?

Further, my personal opinion is that if you don’t see the Fiduciary Rule as the camel’s nose under the tent, then you are DOLusional.  Annuities are already in the crosshairs and the SEC is considering proposing their own set of fiduciary rules to impose further muddying the water. The SEC is in favor of non-governmental third party examinations of advisors. FINRA would be an example of such a third party—those great folks who’ve repeatedly turned a blind eye to folks who’ve Madoff with billions of investor dollars.  Placing the complaint adjudication of the DOL Rule (and it’s incestuous successors) in the hands of a flawed tort system has the potential to turn virtually any permanent life insurance or annuity sale into a Powerball win for a “best plaintiff’s law firm.”

Investment in non-guaranteed products such as securities, mutual funds and many variable products has inherent risk.  Those who haven’t the capacity to understand that should have their checkbooks confiscated.  That the court system has established a precedent of vaguely plausible deniability in regard to personal responsibility is a plague on our industry as well as many others. Perhaps we should blame it on Starbucks—until the invention of the Frappuccino, all fresh coffee was universally assumed to be HOT.

But don’t waste your prayers on Congress forcing the court system to materially distance itself from the lottery through tort reform any time soon. In the 115th Congress, 167 members of the House and 55 Senators hold law degrees. (In contrast, 21 state their occupation as insurance agents or executives—four senators and 17 representatives. I’m astounded that it was that many quite frankly.)

But we share the blame for the public and legislative view that insurance companies are institutions hoarding an endless supply of cash ripe for judicially approved grand larceny.  Consumer advertising focused on wealth management and implying lofty financial security shifts perception away from companies that keep widows and children out of shelters, keep alive dreams of further education and allow caring compassionate people to leave behind a legacy for the benefit of their less fortunate fellows. The industry is much more than a deep water harbor for the ultra-wealthy to park yachts bequeathed to their shallow offspring. But we as an industry, both in advertising and in “boots on the ground,” need to reach out to many more of those whose premiums don’t buy Lamborghinis.  We need to redouble our efforts to produce and hand deliver checks that keep widows in their homes and children on a path to higher education.[SPH]

The June issue has historically offered a perspective and focus on health insurance, and related ancillary products, for several reasons, not least among them the annual meeting of the National Association of Health Underwriters. Broker World has supported the efforts of NAHU and their intrepid membership for the majority of our existence and will continue to do so.  Many of my earliest and best friendships were forged on the health insurance side of the business and furthered by involvement with the Brokers Health Insurance Network, Inc. (BHINI) and the National Association of Insurance Marketers (NAIM).  But today there aren’t nearly enough health insurance companies able to advertise nationally (or willing to write) to allow a Health Insurance issue.

I remember the prosperity of the MET days and have watched as, little by little, these friends either evolved or got out of the business.  I remember with glee the triumph of our industry over Hillarycare (and I’m still tickled she failed), ignorant in that moment of the eventual malignancy of state by state legislation that would eviscerate health insurers’ ability to offer affordable nationwide coverage or even its semblance, fuel industry-wide rate increases and erode, state by state, consumers’ confidence in and general acceptance of the health insurance industry.  It took twenty years, but eventually spawned Obamacare. 

And now the health insurance landscape is once again less certain—due to the malicious legislative efforts of the conservative majority to rob the past POTUS of his legacy of having masterminded the most undeniably brilliant and glorious act of compassionate achievement in the history of our great nation and, in the process, sadistically deprive hundreds of millions of Americans of their God-given right to easily affordable healthcare at the expense of the robber barons of the health insurance industry.

Ain’t the mainstream media great?  Even my local Fox affiliate, in coverage of town hall meetings with any conservative legislator, airs, predominantly, the angry voices of the uninformed and portrays them as prescient crusaders for the overwhelming majority of actual and potential (and imaginary) health care consumers.  Seldom, though I strain my ears, have I heard the faintest whispers of surprisingly high double- or even triple-digit rate increases within exchanges—almost like that sound you thought you heard but couldn’t quite be sure…  Nowhere (outside of industry outlets) has the suggestion of unfulfilled government commitments to insurers been examined or reported. News of insurers exiting exchanges is subtly shaded to imply a lack of concern for consumers as much as, if not more than, any failing of the system.  Any rational explanation of the necessary principles involved in effectively spreading risk, if even aired, seem to be smirkingly dismissed as the nonsensical prattling of a child’s made up language until the ultimate blasphemy is uttered—profit!—and then righteous indignation reigns. National deficit concerns are at worst temporary annoyances until adjustments can be made to justifiably make some or all one percenters foot the bill.

I remember the one shining moment of my direct encounter with the Occupy movement—that of a pair of colorfully coiffed teenty-somethings exiting an Escalade and armpitting their protest signs to text their downtrodden comrades from their iPhones.  But I digress.

I commend those legislators fiscally aware enough to recognize the need to replace Obamacare and stalwart enough to trudge that media-demonized path. There are easily defensible compassionate reasons to retain the rationally humane parts of the current legislation including, specifically, the prohibition of denying, discriminating against or charging higher rates to any individual on the basis of preexisting conditions.  But it’s ridiculously obtuse for legislators, and to an equal extent the media if not the general public, to enthusiastically embrace crowdfunding/GoFundMe pages as Nobel-worthy epiphanies and deliberately avoid any meaningful examination of managing risk and actuarial science.

And nowhere in any discussion is allowed the politically incorrect concern for ethical insurance professionals whose livelihoods have been disrupted, though they span all ethnic groups and number in the hundreds of thousands.  I applaud each of you who continues to help your clients navigate the labyrinth of the geometrically oxymoronic Affordable Care Act (for a fraction of reasonable compensation) and who continue to provide value through ancillary products and cross-marketing of disability income, long term care protection and other insurance products both in and not-yet-in the crosshairs of those intent on bloatedly mandating further “consumer protection.”

As an American, an employer still somehow offering private insurance to his employees (thank you UnitedHealthcare), a healthcare consumer, an enthusiastic believer in the societal blessing our industry offers to consumers, and a proud political conservative—dammit, Republican!—I pray that Repeal and Replace considers actuarial science and responsible risk-spreading principles as something more than our industry’s selfish disambiguation.[SPH]

As the result of an exhausting and extensive personal inventory (and intense clandestine investigation of my wife) I must here publicly confess that both Hope and I have a bit of a selfish streak when it comes to people we love.  The evidence is clear beyond a reasonable doubt: At a time when we should be encouraging and excited for a very dear friend as he embarks on a new chapter in his life, both she and I are mired in self pity over the fact that our path will most likely cross his much less frequently.

Jack Chiasson, CEO of the National Association of Independent Life Brokerage Agencies (NAILBA), recently announced his retirement from the organization, effective May 31—an action that represents a poignant loss for the brokerage industry’s most influential association and a source of selfish sadness for those who know him well and will miss his bright smile and witty repartee at the NAILBA annual meetings and any number of future industry events.

Jack joined NAILBA in 2004 as the director of meetings and conventions and has served as the chief staff officer since 2007, first as executive director and since 2012 as NAILBA’s CEO.  He has also served as the CEO of the NAILBA Charitable Foundation.  Prior to NAILBA Jack served in leadership positions at the United Way of America, the National Association of Broadcasters, the Association Management Group, and the Public Risk Management Association.

In a letter to the NAILBA Board of Directors, Jack noted that, “NAILBA has never been ‘just a job’ for me,” and concluded, “My work here has been the highlight of my career. I have enjoyed working with an outstanding staff and amazing volunteer leaders to move the organization forward.”

Ray Phillips, CLU, LTCP, a past NAILBA chairman and president of The Brokers Source, Ltd., Pittsburgh, PA, offers this: “The longer I was active on the NAILBA board, the smarter Jack got.   While we disagreed on many subjects, we were never disagreeable.  I knew that Jack always had a “NAILBA-first” focus.  He gave me many new insights and appreciations.  I have a great deal of respect for Jack and what he did for the association and for me.”

I’ve had the distinct pleasure of working with Jack on one committee or another for most of the 13 years he has been with NAILBA, and I fear that his knowledge of, and passion for, the organization and its bylaws, mission, responsibilities, opportunities and relationships will prove a great challenge to replace.  Countless times in meetings or on conference calls I’ve witnessed Jack’s professionalism, insight and keen sense of order refocus the group as it strayed off target.  Many and frequent were his selfless contributions and significant accomplishments for the greater good of NAILBA and the NAILBA Charitable Foundation.

In addition to his work at NAILBA, Jack is a passionate advocate for animal rescue. He volunteered for years at a non-profit, no-kill animal shelter in Northern Virginia and is currently “dad” to his fifth rescue dog.  Yet another reason to love the man.

Although the NAILBA office is in Fairfax, VA, and not in the “heart” of our nation’s capital, I must be candid:  I detest Washington DC.  Whenever I think of it I am reminded of the Alec Guinness quote from Star Wars about Mos Eisley spaceport: “You will never find a more wretched hive of scum and villainy.”  But even though Jack may be Obi-Wan, and although the wonderful staff he gathered is like a band of Jedi knights in their own right, I’m about as close to Luke Skywalker (or Han Solo) as chicken salad is to chicken…seed. (Hope, on the other hand, has many Leia-like qualities—courage, determination and optimism to name just a few.)  While I can’t see my untreated political cynicism allowing us to trek to the DC area voluntarily, if anything could draw us there it would be the prospect of another delightful visit and meal with our dear friend Jack Chiasson.  Jack, Hope and I wish you our heartfelt best in your life after NAILBA but we miss you already.  May the Force be with you! [SPH]

It is with delighted enthusiasm that I here congratulate Cindy Gentry, president of BBA Life Brokerage, named the 2017 recipient of the Billy Vogel Award by The Marketing Alliance at a ceremony during their recent spring meeting.

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

Cindy began her insurance career in 1980 as a service rep in the group health business.  She moved to Texas in 1982 and landed a position with a small health brokerage, later moving on to personal production, then joining BBA Life Brokerage, an independent life and annuity brokerage agency. Now owner and president, she has been in marketing and management with BBA Life Brokerage since 1987.

Cindy has been an active member of the Corpus Christi Association of Insurance and Financial Advisors since 1989, serving on the board, executive committee and ultimately as president 1996.  A member of the Society of Financial Services Professionals,  she was named Agent of the Year in 1997.  Cindy has served as education chair of the National Association of Independent Life Brokerage Agencies (NAILBA) and served on the board, the executive committee, and as NAILBA’s chairman in 2004.  In 2007, she was presented with the inaugural NAILBA Education Excellence Award.  Cindy held the position of chair of Life Happens in 2014, the nonprofit organization formerly known as The LIFE Foundation.

In addition to her membership in TMA and NAILBA, Cindy is a member of SAGE, a study group that collaborates on some of the unique issues facing women business owners and BGAs.

Congratulations Cindy, and thank you for your service to the industry, to your agents and their clients, and for your friendship.[SPH]

As they say, even a blind squirrel finds an acorn once in awhile…  I am gratefully indebted to and happy to (belatedly) announce that Charlie Gipple, Partners Advantage Insurance Services, has joined the ranks of Broker World’s monthly commentary contributors.

Prior to Partners Advantage, Charlie was the national director of indexed products at Genworth. In this role, Charlie directed the sale of indexed annuity and life products and was integral to their development, public awareness and marketing. Prior to Genworth, Charlie was a vice president at ING for 11 years, leading a number of diverse product lines and distribution channels.

Currently the senior vice president of sales and marketing at Partners Advantage, Charlie manages all sales, marketing, recruiting, agent training and sales support activities across the company. He is also the co-founder of The PILLAR System, a trademarked cutting edge practice management and client seminar system for use by financial professionals.  He has extensive experience in client sales, account management and product development, as well as the wholesaling of life insurance, annuity and mutual fund products. He has demonstrated his expertise working with MDRT-level agents, independent marketing organizations, brokerage general agencies, broker/dealers and banks.

Charlie is a specialist in indexed products, financial markets, financial legislation, behavioral finance and the positioning of insurance products. He is well-known in the industry as a keynote speaker on these topics, presenting to NAFA, NAIFA and MDRT Top of the Table meetings as well as media outlets like AM Best TV and thestreet.com.

He holds a Bachelor of Arts degree in Finance from the University of Northern Iowa, carries Series 7, 6, and 63 securities licenses, and is a CLU and ChFC.

Charlie’s first column appeared in last month’s issue of Broker World, an excellent, practical treatise on Powerpoint presentations that I urge you to check out if you missed it.  This month’s contribution on The Mind-Game Of Seminars is also a must read. Welcome aboard Charlie,  and thank you! [SPH]

In the summer of 1983 I had been politely encouraged by the University of Missouri to pursue my academic endeavors elsewhere, so I did what any entitled silver-spooner would do and provided my father the opportunity to subsidize my appetites with pre-tax dollars by attending his place of business in a somewhat official capacity.  At some point he decided to see if there was, perchance, some unseen value in this activity and presented me with a list of advertising sales leads which he had determined I could do little if any harm in pursuing.

I believe sincerely that through some act of divine providence one of the names on that list was Sam Lane, Fairlane Financial Corporation, Ft. Lauderdale, FL.  More than 30 years ago, Sam Lane became the first person to whom I sold an ad—and an every-issue schedule on the inside front cover—and my father decided maybe I should give this whole magazine thing a shot.  

From that day forward, Fairlane Financial is the only company that has advertised in every issue of Broker World.

Sam Lane was born on November 16, 1922, in the nondescript backwoods town of Felsenthal, AR.  In 1941 he enlisted in the United States Marine Corp. He was stationed in Guadalcanal in the South Pacific and brought the first radar to that area. He made Master Sergeant rank in just three years.

Following the conclusion of the war, Sam started one of the first television/electronics businesses in Chicago. IL.  In 1953 he relocated to South Florida to retire (at 34), but ended up developing amusement parks.         

In 1955 Sam started Fairlane Financial Corporation as an investment company.  In 1960 he entered the insurance business as sales consultant.  In 1971 he became part owner and sales director for National Trust Life.  In 1973 he became partner in Funding, Inc., a mutual fund/life insurance conglomerate.

In 1976 Sam developed the first National Marketing Organization (NMO) for Capitol Life Insurance Company, Colorado’s oldest and largest stock life carrier at the time.  In 1980 he took that marketing concept to other carriers and began developing annuity products for independent life carriers, recruiting 20,000 agents and giving birth to Fairlane Financial as it exists today.

In 1990 Sam turned the daily operation of Fairlane over to his son Ronald J. Lane and grandson Ronald D. Lane.  From 2000 –2015 Sam remained CEO/Chairman of Fairlane Financial and was pleased to celebrate the company’s 60th Anniversary in 2015, their Diamond Jubilee. He continued to consult with staff and was always first in the office—he usually had the entire Wall Street Journal read by 9:00 A.M.  

As Sam was building the national wholesale distribution of annuities back in the 70’s and early 80’s, deferred annuities became the new, en vogue products and Fairlane was at the forefront of the product distribution. Sam’s vision and drive were integral to the future of product creation and independent agent recruitment.  He spoke, wrote and advertised the merits of fixed annuities, an insurance product that was simply a warehouse for money that guaranteed consumers’ tax-deferred returns.  Agents across the nation took notice.

When Sam dealt with insurance carriers and agents alike, a few things were abundantly clear:  Sam Lane had integrity, discipline, work ethic and empathy. His word was his bond.  For Sam a handshake and a man’s word were at the heart of the contract.  A devout Christian, Sam nurtured (and insisted upon) those same character-building imperatives in his children and grandchildren.

Sam passed away quietly at home on January 10, 2017.  His loving and devoted wife Lucille passed away three days later. They were married for 73 years. According to Sam’s daughter, Dianne Skafte, “If you were to write a love story, this is how you would want it to end.”

The insurance industry should be forever be grateful to Sam Lane, and those who followed his lead to carve out a “niche” for an obscure product like a deferred annuity and glamorized it to become a trillion dollar product that remains coveted by consumers today.  

Over 30 years the face-to-face meetings were regrettably fewer than they could or should have been, but each was infused with a sincere warmth in welcome, an honest caring about the success of the magazine and about the fullness (or sometimes empty spots) of my personal life, and was inevitably marked by words of wisdom and encouragement.  I left every meeting with a renewed sense of gratitude and responsibility for my circumstances—Sam believed the work of the magazine, and my role in it, were truly important to the industry.  For a great many of those 30 years, every month, I would talk to Sam, ostensibly about that month’s ad, and end up with a healthy dose of subtle mentoring, integrity CE, and bolstered purpose and enthusiasm.

Yes, Fairlane’s advertising has bought me a fair share of hot meals and season tickets.  But Sam Lane’s contributions to the life I’ve enjoyed for the past 33 years—the dear friends I’ve been blessed with in this great industry (three generations of Lanes prominently on that list), all the places in this great country I’ve seen, and the opportunity to be of service to an industry I truly hold dear—all these blessings trace back to that one day.  The day I first talked with Sam Lane.  I know in my heart with certainty that there are countless people who could tell a similar story about how Sam blessed their lives, and I hold myself humbled and honored to be just one of them.[SPH]

In Memoriam
The brokerage industry, and in particular the long term care insurance battlefield, has lost one of its most passionate, articulate and charismatic leaders.  L. Nicholas “Nick” Hogan, LTCP, LUTCF, age 66, passed away peacefully on December 29, 2016 after a short illness. 

Nick served our industry for 34 years.  After receiving his B.S. from Xavier University and his M.A. from The Ohio State University, he became a career agent and manager with Mass Mutual and later a regional VP for Meridian Insurance. In 1994 he founded Gahanna, OH-based Insurance Advisors to assist agents throughout the United States in growing their businesses.

Nick received numerous sales and industry awards, was a member of the MDRT and was a Fellow in the Life Underwriting Training Council.  But he brought a seemingly boundless supply of knowledge and creativity to the sale of long term care insurance. He was nationally lauded for his expertise in LTCI. He was a Long Term Care Professional Certified Trainer, Co-founder of America’s Long Term Care Insurance Experts, LTCI instructor for The American College and a Certified LTCI Partnership Trainer.  He was also a driving force for LTCI in the Diversified Marketing Group (DMG) which he chaired for many years.

He authored “Top 10 Reasons to Own LTCI Even if you Never File a Claim” and was a technical advisor to Ronald Iverson for his publication “Long Term Care Insurance Handbook for Accountants and Attorneys.” He authored many articles for industry journals and was, thankfully, a frequent contributor to this publication.

Nick was a frequent speaker and panelist at such organizations as The Franklin University, America’s Association of Long Term Care Insurance, and the Intercompany Long Term Care Insurance conference.  I had the privilege of sharing many wonderful conversations with Nick at the ILTCI, where he imparted his wisdom, enthusiastically interspersed with an inexhaustible supply of (to be kind) mediocre jokes.

Nick is survived by his wife of 43 years, Karen, and their children, Ryan and Sr. Elizabeth, CFR (Cailin). Insurance Advisors will continue to be a force in the fight to help consumers mitigate one of their greatest financial risks, the need for long term care, under the competent and insightful leadership of Ryan Hogan.

A good measure of the passion for LTCI that I express periodically in this column, and at industry conferences and BGA gatherings, is fueled by the insight, knowledge, mentorship and genuine consumer concern enthusiastically gifted by the always extended hand of Nick Hogan.  He was one of those wonderful bright spots you could always count on to bring a welcome smile in the midst of the rigors of bustling conferences.  He will be greatly and widely missed.  Rest in peace my friend.[SPH]

I’m privileged to announce that the National Association of Independent Life Brokerage Agencies (NAILBA) presented Peter Holden, CEO of CPS Insurance Services, Newport Beach, CA, with the 2016 Douglas Mooers Award for Excellence, at a special awards dinner held November 18, 2016, as part of the association’s annual meeting, NAILBA 35. NAILBA’s most coveted and prestigious accolade, the Mooers Award honors distinction in brokerage and is bestowed upon the individual most committed to furthering independent life brokerage as a distribution system, and who demonstrates an exemplary record of community service.

Raised in Kenya and educated in Switzerland, Holden came to the U.S. in 1960, and has encouraged many others to become U.S. citizens since becoming one himself in 1963. He began his career in the insurance industry in 1964 as an agent for State Mutual.  He founded CPS Insurance Services in 1974 with partner John Fazio, and CPS Insurance Services grew to become one of the nation’s leading independent brokerage agencies, specializing in Life, Annuities, Disability Income, and Long Term Care products—a distinction that continues to grow under the very capable hands of Holden’s sons Andy and Greg.  Today CPS employs over 50 people and boasts 26 affiliate offices throughout the country.

In presenting the award David Long, NAILBA Immediate Past Chairman, noted that Holden is considered by many to have had a hand in building the independent brokerage distribution system that the vast majority of BGAs use today.

Holden served as NAILBA’s Chairman in 1994.  He has also served as the President of Orange County Life Underwriters, the president of the California Life Underwriters, as a regional membership chairman to the National Association of Life Underwriters and received the Distinguished Service Award from the National Association of Insurance and Financial Advisors/California (NAIFA) in 2005. He was a member of the Board of Directors for Life Happens back when it was the Life Foundation. He has contributed to several major insurance publications including Broker World, and serves on BGA advisory councils for numerous carriers.

He is passionate about giving back to his local community. Holden supports an extensive list of local foundations and businesses, including the Foundation for the Arts, which keeps art programs alive in the local schools and community. He has served in numerous leadership roles for Orange County’s St. Joseph’s Catholic Hospital, including the Presidential Partners Committee, the Finance Committee, Care For The Poor Committee, and the campaign steering committee for the new Cancer Center that took nine years to build. He currently serves on the Advisory Board. Further, he has personally endowed a special care room in the cancer ward, a conference room in the surgery unit of the new hospital, and the healing garden in the new Cancer Center. He supports the Public School Foundation, which raises money for extra school programs, the Philharmonic Society, which brings children from all over the country to the music center for special programs, and the Lake Arrowhead Community Hospital, which enables the small, community hospital to exist.

With the help of some CPS team members, Peter recently developed the CPS EPIC Foundation, which gives back to the community through various fundraising efforts. The most recent fundraiser raised over $1,200 for the Orange County Women’s Transitional Living Center.

 His family will tell you that his most significant commitment was always to them. He was a loving husband to his wife of 52 years, Gail, until her passing in 2013. Their two sons joined him as leaders in the brokerage community, and he is a doting grandfather to Emily, Max and Charlie.

Congratulations to Peter and the whole CPS family—recognition long overdue for a brokerage pioneer and a cornerstone of the industry we enjoy today.[SPH]