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Dash of Pepper and a Pinch of Salt

November 9, 2011
Lots of items in the news and on the periphery that affect fraternals. Here are updates on a few of the most important items…
  • NAIC adopts revisions to Life RBC Model – After a year of debate, the National Association of Insurance Commissioners has adopted revisions to its long-standing Life RBC Model Act that would make fraternal life insurers subject to the same RBC standards that commercial insurers must meet.  The Alliance supported this initiative because it provides consumers, and the agents who market member societies’ products, the security that fraternals must meet the same regulatory scrutiny as our commercial competitors.  It is now up to individual states to adopt the model.  Several states have already enacted laws that require fraternals to meet RBC requirements, and others have bills in the hopper for 2012.  All fraternals must electronically report their RBC to the NAIC through one of the organization’s three “approved vendors” as part of their 2011 Annual Report.  The Alliance is working to ensure that the RBC formula used by all of the vendors incorporates the unique provisions that take into account societies’ tax-exempt status.  More detailed information on the electronic filing requirement will be sent to members over the next several weeks.  Stay tuned for updates or contact the Alliance if you have any questions or concerns about this new requirement.
  • Growth in fraternals’ admitted assets attracts trade press attention – A big boost in fraternals admitted assets has caught the attention of BestWeek. This reporter has been covering fraternals more closely since the Alliance adopted its new brand and this very positive story mirrors other news coverage in the mainstream media about the defection of millions of consumers from commercial banks to credit unions in recent weeks.  One more sign that the fraternal Renaissance is upon us…
  • Alliance featured in Heartland Institute Podcast – The Heartland Institute, a center-right think tank with Midwestern roots, also featured the Alliance in one of its recent podcasts.  Check it out by clicking on THIS LINK
  • Just in case you missed it – Don’t know if you read the September issue of Life Insurance Selling, but you really should.  It contains a wealth of stories about the past, present, and future of life insurance in the U.S. – a future that could be very bright for fraternals.  And, yes, it also contains an article penned by the Alliance.  Telling our story is a GOOD thing!
How are you spreading the good word about who we are and what we do? Share your successful strategies here…