The insured accumulation and guaranteed payout product industry was filled with more turmoil in 2009 than we’ve seen in our lifetimes.  Manufacturers experienced asset write downs and agents and IMOs scrambled to carriers with capacity.  Insurance rates crushed CDs early in the year and then snapped back to normal by mid-year as longer bond spreads collapsed.  Financial services came in for a blistering critique and review in the wake of unmet promises and the overselling of risk and lending.  Overall, the fixed life and annuity industry remained strong despite economic and regulatory uncertainties.  NAFA Premier Partners met these challenges and thrived, selling security and income to an ever increasing number of Americans.

NAFA Gets Active
NAFA’s original founding premise came to a head in 2009 as the SEC continued its poorly founded excursion into the insurance industry regulation with Rule 151A.  Working closely with trade partners and associations to oppose the Rule, NAFA contraced a lobbying firm to aid us in passing H.R. 2733 and S. 1389 -- ‘‘Indexed Annuities and  Insurance Products Classification Act of 2009’’ -- legislation to repeal Rule 151A.   The Act will specify more clearly in the 1933 Securities Act that all non-separate account products meeting state non-forfeiture laws for insurance are exempted from securities regulation under the Act.   Additionally, NAFA partnered with the Coalition for Indexed Products to engage its members and others in the industry in a robust and effective grassroots campaign.  As of this writing, we have over sixty sponsors in the House and a dozen key leaders in the Senate.  NAFA’s Government Relations Committee has worked hard to coordinate the efforts of the various trade, lobbying, and grassroots activities to promote our interests and ensure passage of this critical legislation.  2010 will be focused on attaching the “Stop 151A” bill to appropriate financial legislation and securing passage.  We are not solely focused on defeating securities regulation.  NAFA’s goals have always included education and promoting a safe,  protected purchasing environment for knowledge-empowered consumers.  To that end,  NAFA contributed to every step of the NAIC’s effort to expand the Annuity Suitability and Disclosure Models for all fixed annuities.

NAFA Educates and Informs
2010 will be spent educating and training annuity producers and industry staff on these new Suitability and Disclosure requirements.   IMAC, the Insurance Marketers Advisory Committee, will help NAFA identify critical education opportunities as well as help develop and promote the standards of product knowledge newly addressed in the Model.  NAFA will publish its Principle Papers for Suitability, Advertising, and  Education this January, and NAFA’s Education Committee will be responsible for developing content and venues to help producers and marketing sales personnel understand the principles and apply them in their businesses. 

The NAFA Board of Directors has authorized consulting expenditures for ongoing Public Relations and Communications and will direct activities that promote the benefits and advantages of fixed annuities to the public.  NAFA will be expanding its Public Relations Committee to guide and oversee these activities.

NAFA Grows
Thanks to the generosity and dedication of its members, including many new ones, NAFA membership receipts grew by 38% in 2009 and is targeted to grow another 15% in 2010.  NAFA Premier Partners now represent over 85,000 producers and approximately 86% of fixed annuities sold through the independent insurance channel.   Please read through the next pages of our 2009 Annual Report and send us comments or suggestions.  Thank you for your continued support of the only trade association dedicated exclusively to the unique and valuable retirement products called fixed annuities.    Our success depends on you!