NAIFA-NYS – A Strong, Effective Voice in Albany
Every man owes a part of his time and money to the business or industry in which he is engaged. No man has a moral right to withhold his support from an organization that is striving to improve conditions within his sphere. – Theodore Roosevelt
Not long after TR spoke those words, a group of life insurance agents founded just such an organization—now known as the National Association of Insurance and Financial Advisors─New York State (NAIFA-NYS).
Professional associations have been around doing good work for their members for a long time. Cooperative efforts among tradesmen and merchants were common in colonial America, and after the nation gained its independence, groups were formed to promote favorable business conditions in the face of rapid industrialization
Why associations? Quite simply, they put the power of a group together in solving common problems and achieving common goals.
Begun informally at the start of the century in response to the urgent need for a strong, effective voice in the halls of public policy, NAIFA-NYS continues in its role as an educator, motivator and, most importantly, advocate for its members and their profession.
In 1905, public outrage over well-publicized abuses by a few life insurance companies gave rise to the formation by the NYS Legislature of a “Select Committee” to investigate the life insurance business.
Known as the Armstrong Committee, the panel issued a report proposing pervasive legislation, severely curtailing field compensation and expense.
At that time in the state, there were four local associations of what was then the National Association of Life Underwriters: New York City, Buffalo, Rochester, and Syracuse. Responding to the threat of the proposed legislation, these associations organized a “grass roots” legislative contact campaign and successfully mounted a mass demonstration and appearance of agents in Albany in March 1906.
The reputation of the industry had been so blackened by the scandals and resulting press coverage that the life underwriters appearing in Albany constituted the only credible body to speak in opposition to laws that would have eradicated the agency system. Their testimony was effective, as legislation was enacted correcting abuses, while preserving the agency system and other valuable aspects of New York’s life insurance business.
The informal organization of the local associations continued as a legislative watchdog until 1919, when six locals gathered in Utica to formally organize the New York State Association of Life Underwriters (NYSALU).
In 2006 the association changed its name to the New York State Association of Insurance and Financial Advisors (NYSAIFA), to better reflect what our members do—advise consumers about their insurance and financial needs. In 2006, we became NAIFA-New York State as part of our national association’s rebranding effort.
Today, NAIFA-NYS is the only organization exclusively representing and speaking for life insurance agents and financial advisors in the state—encouraging a strong marketplace, enhanced business and professional skills, and ethical conduct.
This year, our Legislative and Regulatory Committee, which confers once a month with our government relations staff, approved the drafting of three NAIFA-NYS bills, already introduced, to establish an alternative to a New York State-sponsored retirement security program, grant CE credits for NAIFA-NYS and other professional association members, and reform the anti-rebating law.
We are supporting bills regarding the Interstate Insurance Product Regulation Compact, long-term care insurance tax credits, and the definition of small businesses for the purpose of exemption from harmful state mandates.
We also are opposing a bill that would set up a costly and ultimately consumer-unfriendly state-run pension program, and a bill that would mandate a CFP designation for anyone giving financial counsel and advice to seniors.
In addition to promoting our program in Albany, we have resumed our annual Legislative Breakfasts that bring together local association members and their state legislators. On May 17th, our grassroots involvement will continue, when we hold our Day on the Hill in downtown Albany, in conjunction with the NAIFA-NYS Annual Conference.
While NAIFA-NYS has a frank and legitimate interest in protecting and strengthening its members’ profession, history reminds us that what is not good for the life insurance public cannot possibly be good for the agent. As we face the future, that strong, effective voice first heard in Albany in 1906 is needed more than ever.
