JAMES EDWARDS

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

Insurance Regulatory Reform - NAIFA supports principles underlying state regulation of insurance but supports the principles contained in the "State Modernization and Regulatory Transparency (SMART) Act that focuses on specific areas in which the state regulatory system is failing or deficient. S.2509 - The National Insurance Act would create an optional federal charter (OFC) for insurance companies and agents. HR 107, S219, Life Insurance Employee Notification act which would require disclosure of employee-owned life insurance coverage of an employee. NAIFA supports. HR 2251 - NAIFA supports the COLI Best Practices Act, the House counterpart to S.219. House Resolution 912 & Senate Resolution 448 - Resolutions supporting "Life Insurance Awareness Month". NAIFA supports these resolutions. H.R. 1081, S. 618 - Insurance Industry Competition Act of 2007 will amend the McCarran-Ferguson Act to grant the FTC and DOJ authority to enforce federal antitrust laws against the state regulated insurance industry. NAIFA opposes this bill as it will create a non complicated, less efficient insurance regulatory regime.

* President Bush's Tax Advisory Panel reported its recomendations on November 2, 2005. NAIFA opposes ideas that encourage short term savings and spending such as the Lifetime Savings Accounts pushed by President Bush and Save for Retirement Accounts suggested by the Tax Advisory Panel. bills which would repeal estate tax on family farms and businesses. NAIFA & AALU support estate tax reform which removes the estate tax burden for 99% of Americans. HR 2 - Fair Minimum Wage Act of 2007. Senate version of HR 2 caps the am ount of annual income deferrrable to the lesser of $1,000,000 per year on the average of the last 5 years salary. NAIFA opposes enactment of a cap on deferred compensation. Charitable Owned Life Insurance - President Bush proposed applying a 25% excise tax on death benefits of life insurance used in complicated life insurance and annuity transactions involving charitable and educationsl institutions. NAIFA supports in principal. On Nov. 28, 2005 the Senate passed legislation (part of an omnibus tax bill) that would impose a 100% excise tax on the premiums and other sums invested in these arrangements. NAIFA supports in principal but will work on details. HR 1161, 62, 63 & S 545, 6, 7 - new tax-advantaged savings plans in President Bush's proposed 2005 budget. NAIFA concerned about impact on life insurance and annuity sales. HR 25, HR 411- Legislation to make the estate tax repeal enacted in 2001 permanent. S 34 and S 135 are "reform" 4 8

These Resolutions would designate September as Life Insurance Awareness Month. NAIFA supported these resolutions for 2006 and will do the same for 2007. HR 2622 - Fact Act signed into law December 4, 2003. NAIFA worked to include literacy provisions in the bill and will continue to work to secure funding for insurance and other financial literacy programs. S. Res 448, HR 912.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

HR 819 & S 381-would grant a federal tax exclusion up to $20,000 per year in lifetime payments from non-qualified annuities - NAIFA supports. HR 3912 - Flexible Retirement Security for Life Act would grant the same exclusion as HR 819 but phase in the dollar amount starting at $1,000 in 2006 and increasing to $20,000 by 2015. HR 2951 & S 1359 - NAIFA supports tax incentives for both qualified and non-qualified annuities. HR 2830 & S 1783-The Pension Protection Act-NAIFA supports legislation allowing advisors who represent companies administering 401(k) type plans to give investment advice to employees participating in those plans.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

HR 819 & S 381-would grant a federal tax exclusion up to $20,000 per year in lifetime payments from non-qualified annuities - NAIFA supports. HR 3912 - Flexible Retirement Security for Life Act would grant the same exclusion as HR 819 but phase in the dollar amount starting at $1,000 in 2006 and increasing to $20,000 by 2015. HR 2951 & S 1359 - NAIFA supports tax incentives for both qualified and non-qualified annuities. HR 2830 & S 1783-The Pension Protection Act-NAIFA supports legislation allowing advisors who represent companies administering 401(k) type plans to give investment advice to employees participating in those plans.

* President Bush's Tax Advisory Panel reported its recomendations on November 2, 2005. NAIFA opposes ideas that encourage short term savings and spending such as the Lifetime Savings Accounts pushed by President Bush and Save for Retirement Accounts suggested by the Tax Advisory Panel. bills which would repeal estate tax on family farms and businesses. NAIFA & AALU support estate tax reform which removes the estate tax burden for 99% of Americans. HR 2 - Fair Minimum Wage Act of 2007. Senate version of HR 2 caps the am ount of annual income deferrrable to the lesser of $1,000,000 per year on the average of the last 5 years salary. NAIFA opposes enactment of a cap on deferred compensation. Charitable Owned Life Insurance - President Bush proposed applying a 25% excise tax on death benefits of life insurance used in complicated life insurance and annuity transactions involving charitable and educationsl institutions. NAIFA supports in principal. On Nov. 28, 2005 the Senate passed legislation (part of an omnibus tax bill) that would impose a 100% excise tax on the premiums and other sums invested in these arrangements. NAIFA supports in principal but will work on details. HR 1161, 62, 63 & S 545, 6, 7 - new tax-advantaged savings plans in President Bush's proposed 2005 budget. NAIFA concerned about impact on life insurance and annuity sales. HR 25, HR 411- Legislation to make the estate tax repeal enacted in 2001 permanent. S 34 and S 135 are "reform" 4 8

HR 458 & S 418 - clarifies the jurisdiction of state insurance regulators and the Dept. of Defense in regulating insurance agents who operate on-base. On September 29, 2006 President Bush signed the Military Personnel Financial Services Protection Act. NAIFA supports.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

HR 819 & S 381-would grant a federal tax exclusion up to $20,000 per year in lifetime payments from non-qualified annuities - NAIFA supports. HR 3912 - Flexible Retirement Security for Life Act would grant the same exclusion as HR 819 but phase in the dollar amount starting at $1,000 in 2006 and increasing to $20,000 by 2015. HR 2951 & S 1359 - NAIFA supports tax incentives for both qualified and non-qualified annuities. HR 2830 & S 1783-The Pension Protection Act-NAIFA supports legislation allowing advisors who represent companies administering 401(k) type plans to give investment advice to employees participating in those plans.

These Resolutions would designate September as Life Insurance Awareness Month. NAIFA supported these resolutions for 2006 and will do the same for 2007. HR 2622 - Fact Act signed into law December 4, 2003. NAIFA worked to include literacy provisions in the bill and will continue to work to secure funding for insurance and other financial literacy programs. S. Res 448, HR 912.

* President Bush's Tax Advisory Panel reported its recomendations on November 2, 2005. NAIFA opposes ideas that encourage short term savings and spending such as the Lifetime Savings Accounts pushed by President Bush and Save for Retirement Accounts suggested by the Tax Advisory Panel. bills which would repeal estate tax on family farms and businesses. NAIFA & AALU support estate tax reform which removes the estate tax burden for 99% of Americans. HR 2 - Fair Minimum Wage Act of 2007. Senate version of HR 2 caps the am ount of annual income deferrrable to the lesser of $1,000,000 per year on the average of the last 5 years salary. NAIFA opposes enactment of a cap on deferred compensation. Charitable Owned Life Insurance - President Bush proposed applying a 25% excise tax on death benefits of life insurance used in complicated life insurance and annuity transactions involving charitable and educationsl institutions. NAIFA supports in principal. On Nov. 28, 2005 the Senate passed legislation (part of an omnibus tax bill) that would impose a 100% excise tax on the premiums and other sums invested in these arrangements. NAIFA supports in principal but will work on details. HR 1161, 62, 63 & S 545, 6, 7 - new tax-advantaged savings plans in President Bush's proposed 2005 budget. NAIFA concerned about impact on life insurance and annuity sales. HR 25, HR 411- Legislation to make the estate tax repeal enacted in 2001 permanent. S 34 and S 135 are "reform" 4 8

HR 819 & S 381-would grant a federal tax exclusion up to $20,000 per year in lifetime payments from non-qualified annuities - NAIFA supports. HR 3912 - Flexible Retirement Security for Life Act would grant the same exclusion as HR 819 but phase in the dollar amount starting at $1,000 in 2006 and increasing to $20,000 by 2015. HR 2951 & S 1359 - NAIFA supports tax incentives for both qualified and non-qualified annuities. HR 2830 & S 1783-The Pension Protection Act-NAIFA supports legislation allowing advisors who represent companies administering 401(k) type plans to give investment advice to employees participating in those plans.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

HR 819 & S 381-would grant a federal tax exclusion up to $20,000 per year in lifetime payments from non-qualified annuities - NAIFA supports. HR 3912 - Flexible Retirement Security for Life Act would grant the same exclusion as HR 819 but phase in the dollar amount starting at $1,000 in 2006 and increasing to $20,000 by 2015. HR 2951 & S 1359 - NAIFA supports tax incentives for both qualified and non-qualified annuities. HR 2830 & S 1783-The Pension Protection Act-NAIFA supports legislation allowing advisors who represent companies administering 401(k) type plans to give investment advice to employees participating in those plans.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

S.2059 would repeal Rule 12b-1 fees. NAIFA supports the continued payment of fees under SEC Rule 12 b-1 to broker-dealers and registered representatives as compensation for providing continuing service to their mutual fund-owning clients. NASD Notice to Members (NTM) 05-50 recommended that its member broker-dealers supervise Equity Indexed Annuities sales made by the b/d's reg. reps. in the same manner as if the EIA were securities. NAIFA believes NASD has overstepped its authority.

Insurance Regulatory Reform - NAIFA supports principles underlying state regulation of insurance but supports the principles contained in the "State Modernization and Regulatory Transparency (SMART) Act that focuses on specific areas in which the state regulatory system is failing or deficient. S.2509 - The National Insurance Act would create an optional federal charter (OFC) for insurance companies and agents. HR 107, S219, Life Insurance Employee Notification act which would require disclosure of employee-owned life insurance coverage of an employee. NAIFA supports. HR 2251 - NAIFA supports the COLI Best Practices Act, the House counterpart to S.219. House Resolution 912 & Senate Resolution 448 - Resolutions supporting "Life Insurance Awareness Month". NAIFA supports these resolutions. H.R. 1081, S. 618 - Insurance Industry Competition Act of 2007 will amend the McCarran-Ferguson Act to grant the FTC and DOJ authority to enforce federal antitrust laws against the state regulated insurance industry. NAIFA opposes this bill as it will create a non complicated, less efficient insurance regulatory regime.

Insurance Regulatory Reform - NAIFA supports principles underlying state regulation of insurance but supports the principles contained in the "State Modernization and Regulatory Transparency (SMART) Act that focuses on specific areas in which the state regulatory system is failing or deficient. S.2509 - The National Insurance Act would create an optional federal charter (OFC) for insurance companies and agents. HR 107, S219, Life Insurance Employee Notification act which would require disclosure of employee-owned life insurance coverage of an employee. NAIFA supports. HR 2251 - NAIFA supports the COLI Best Practices Act, the House counterpart to S.219. House Resolution 912 & Senate Resolution 448 - Resolutions supporting "Life Insurance Awareness Month". NAIFA supports these resolutions. H.R. 1081, S. 618 - Insurance Industry Competition Act of 2007 will amend the McCarran-Ferguson Act to grant the FTC and DOJ authority to enforce federal antitrust laws against the state regulated insurance industry. NAIFA opposes this bill as it will create a non complicated, less efficient insurance regulatory regime.

* President Bush's Tax Advisory Panel reported its recomendations on November 2, 2005. NAIFA opposes ideas that encourage short term savings and spending such as the Lifetime Savings Accounts pushed by President Bush and Save for Retirement Accounts suggested by the Tax Advisory Panel. bills which would repeal estate tax on family farms and businesses. NAIFA & AALU support estate tax reform which removes the estate tax burden for 99% of Americans. HR 2 - Fair Minimum Wage Act of 2007. Senate version of HR 2 caps the am ount of annual income deferrrable to the lesser of $1,000,000 per year on the average of the last 5 years salary. NAIFA opposes enactment of a cap on deferred compensation. Charitable Owned Life Insurance - President Bush proposed applying a 25% excise tax on death benefits of life insurance used in complicated life insurance and annuity transactions involving charitable and educationsl institutions. NAIFA supports in principal. On Nov. 28, 2005 the Senate passed legislation (part of an omnibus tax bill) that would impose a 100% excise tax on the premiums and other sums invested in these arrangements. NAIFA supports in principal but will work on details. HR 1161, 62, 63 & S 545, 6, 7 - new tax-advantaged savings plans in President Bush's proposed 2005 budget. NAIFA concerned about impact on life insurance and annuity sales. HR 25, HR 411- Legislation to make the estate tax repeal enacted in 2001 permanent. S 34 and S 135 are "reform" 4 8

HR 819 & S 381-would grant a federal tax exclusion up to $20,000 per year in lifetime payments from non-qualified annuities - NAIFA supports. HR 3912 - Flexible Retirement Security for Life Act would grant the same exclusion as HR 819 but phase in the dollar amount starting at $1,000 in 2006 and increasing to $20,000 by 2015. HR 2951 & S 1359 - NAIFA supports tax incentives for both qualified and non-qualified annuities. HR 2830 & S 1783-The Pension Protection Act-NAIFA supports legislation allowing advisors who represent companies administering 401(k) type plans to give investment advice to employees participating in those plans.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

* President Bush's Tax Advisory Panel reported its recomendations on November 2, 2005. NAIFA opposes ideas that encourage short term savings and spending such as the Lifetime Savings Accounts pushed by President Bush and Save for Retirement Accounts suggested by the Tax Advisory Panel. bills which would repeal estate tax on family farms and businesses. NAIFA & AALU support estate tax reform which removes the estate tax burden for 99% of Americans. HR 2 - Fair Minimum Wage Act of 2007. Senate version of HR 2 caps the am ount of annual income deferrrable to the lesser of $1,000,000 per year on the average of the last 5 years salary. NAIFA opposes enactment of a cap on deferred compensation. Charitable Owned Life Insurance - President Bush proposed applying a 25% excise tax on death benefits of life insurance used in complicated life insurance and annuity transactions involving charitable and educationsl institutions. NAIFA supports in principal. On Nov. 28, 2005 the Senate passed legislation (part of an omnibus tax bill) that would impose a 100% excise tax on the premiums and other sums invested in these arrangements. NAIFA supports in principal but will work on details. HR 1161, 62, 63 & S 545, 6, 7 - new tax-advantaged savings plans in President Bush's proposed 2005 budget. NAIFA concerned about impact on life insurance and annuity sales. HR 25, HR 411- Legislation to make the estate tax repeal enacted in 2001 permanent. S 34 and S 135 are "reform" 4 8

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

Insurance Regulatory Reform - NAIFA supports principles underlying state regulation of insurance but supports the principles contained in the "State Modernization and Regulatory Transparency (SMART) Act that focuses on specific areas in which the state regulatory system is failing or deficient. S.2509 - The National Insurance Act would create an optional federal charter (OFC) for insurance companies and agents. HR 107, S219, Life Insurance Employee Notification act which would require disclosure of employee-owned life insurance coverage of an employee. NAIFA supports. HR 2251 - NAIFA supports the COLI Best Practices Act, the House counterpart to S.219. House Resolution 912 & Senate Resolution 448 - Resolutions supporting "Life Insurance Awareness Month". NAIFA supports these resolutions. H.R. 1081, S. 618 - Insurance Industry Competition Act of 2007 will amend the McCarran-Ferguson Act to grant the FTC and DOJ authority to enforce federal antitrust laws against the state regulated insurance industry. NAIFA opposes this bill as it will create a non complicated, less efficient insurance regulatory regime.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

These Resolutions would designate September as Life Insurance Awareness Month. NAIFA supported these resolutions for 2006 and will do the same for 2007. HR 2622 - Fact Act signed into law December 4, 2003. NAIFA worked to include literacy provisions in the bill and will continue to work to secure funding for insurance and other financial literacy programs. S. Res 448, HR 912.

HR 3997 & S 2169 - Financial Data Protection Act of 2006. NAIFA supports laws to prevent identity theft, but is concerned that Congress could go too far and pass laws that conflict with existing privacy laws such as GLBA & FCRA. Also, any new security law should preempt state law.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing states to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

HR 458 & S 418 - clarifies the jurisdiction of state insurance regulators and the Dept. of Defense in regulating insurance agents who operate on-base. On September 29, 2006 President Bush signed the Military Personnel Financial Services Protection Act. NAIFA supports.

HR 819 & S 381-would grant a federal tax exclusion up to $20,000 per year in lifetime payments from non-qualified annuities - NAIFA supports. HR 3912 - Flexible Retirement Security for Life Act would grant the same exclusion as HR 819 but phase in the dollar amount starting at $1,000 in 2006 and increasing to $20,000 by 2015. HR 2951 & S 1359 - NAIFA supports tax incentives for both qualified and non-qualified annuities. HR 2830 & S 1783-The Pension Protection Act-NAIFA supports legislation allowing advisors who represent companies administering 401(k) type plans to give investment advice to employees participating in those plans.

* President Bush's Tax Advisory Panel reported its recomendations on November 2, 2005. NAIFA opposes ideas that encourage short term savings and spending such as the Lifetime Savings Accounts pushed by President Bush and Save for Retirement Accounts suggested by the Tax Advisory Panel. bills which would repeal estate tax on family farms and businesses. NAIFA & AALU support estate tax reform which removes the estate tax burden for 99% of Americans. Charitable Owned Life Insurance - President Bush proposed applying a 25% excise tax on death benefits of life insurance used in complicated life insurance and annuity transactions involving charitable and educationsl institutions. NAIFA supports in principal. On Nov. 28, 2005 the Senate passed legislation (part of an omnibus tax bill) that would impose a 100% excise tax on the premiums and other sums invested in these arrangements. NAIFA supports in principal but will work on details. HR 1161, 62, 63 & S 545, 6, 7 - new tax-advantaged savings plans in President Bush's proposed 2005 budget. NAIFA concerned about impact on life insurance and annuity sales. HR 8, HR 183, HR 64, S 420 - Legislation to make the estate tax repeal enacted in 2001 permanent. S 34 and S 135 are "reform" 4 8

HR 819 & S 381-would grant a federal tax exclusion up to $20,000 per year in lifetime payments from non-qualified annuities - NAIFA supports. HR 3912 - Flexible Retirement Security for Life Act would grant the same exclusion as HR 819 but phase in the dollar amount starting at $1,000 in 2006 and increasing to $20,000 by 2015. HR 2951 & S 1359 - NAIFA supports tax incentives for both qualified and non-qualified annuities. HR 2830 & S 1783-The Pension Protection Act-NAIFA supports legislation allowing advisors who represent companies administering 401(k) type plans to give investment advice to employees participating in those plans.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing sttaes to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

HR 819 & S 381-would grant a federal tax exclusion up to $20,000 per year in lifetime payments from non-qualified annuities - NAIFA supports. HR 3912 - Flexible Retirement Security for Life Act would grant the same exclusion as HR 819 but phase in the dollar amount starting at $1,000 in 2006 and increasing to $20,000 by 2015. HR 2951 & S 1359 - NAIFA supports tax incentives for both qualified and non-qualified annuities. HR 2830 & S 1783-The Pension Protection Act-NAIFA supports legislation allowing advisors who represent companies administering 401(k) type plans to give investment advice to employees participating in those plans.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing sttaes to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

S.2059 would repeal Rule 12b-1 fees. NAIFA supports the continued payment of fees under SEC Rule 12 b-1 to broker-dealers and registered representatives as compensation for providing continuing service to their mutual fund-owning clients. NASD Notice to Members (NTM) 05-50 recommended that its member broker-dealers supervise Equity Indexed Annuities sales made by the b/d's reg. reps. in the same manner as if the EIA were securities. NAIFA believes NASD has overstepped its authority.

HR 3997 & S 2169 - Financial Data Protection Act of 2006. NAIFA supports laws to prevent identity theft, but is concerned that Congress could go too far and pass laws that conflict with existing privacy laws such as GLBA & FCRA. Also, any new security law should preempt state law.

Insurance Regulatory Reform - NAIFA supports principles underlying state regulation of insurance but supports the principles contained in the "State Modernization and Regulatory Transparency (SMART) Act that focuses on specific areas in which the state regulatory system is failing or deficient. S.2509 - The National Insurance Act would create an optional federal charter (OFC) for insurance companies and agents. HR 107, S219, Life Insurance Employee Notification act which would require disclosure of employee-owned life insurance coverage of an employee. NAIFA supports. HR 2251 - NAIFA supports the COLI Best Practices Act, the House counterpart to S.219. House Resolution 912 & Senate Resolution 448 - Resolutions supporting "Life Insurance Awareness Month". NAIFA supports these resolutions.

Insurance Regulatory Reform - NAIFA supports principles underlying state regulation of insurance but supports the principles contained in the "State Modernization and Regulatory Transparency (SMART) Act that focuses on specific areas in which the state regulatory system is failing or deficient. S.2509 - The National Insurance Act would create an optional federal charter (OFC) for insurance companies and agents. HR 107, S219, Life Insurance Employee Notification act which would require disclosure of employee-owned life insurance coverage of an employee. NAIFA supports. HR 2251 - NAIFA supports the COLI Best Practices Act, the House counterpart to S.219. House Resolution 912 & Senate Resolution 448 - Resolutions supporting "Life Insurance Awareness Month". NAIFA supports these resolutions.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing sttaes to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

* President Bush's Tax Advisory Panel reported its recomendations on November 2, 2005. NAIFA opposes ideas that encourage short term savings and spending such as the Lifetime Savings Accounts pushed by President Bush and Save for Retirement Accounts suggested by the Tax Advisory Panel. bills which would repeal estate tax on family farms and businesses. NAIFA & AALU support estate tax reform which removes the estate tax burden for 99% of Americans. Charitable Owned Life Insurance - President Bush proposed applying a 25% excise tax on death benefits of life insurance used in complicated life insurance and annuity transactions involving charitable and educationsl institutions. NAIFA supports in principal. On Nov. 28, 2005 the Senate passed legislation (part of an omnibus tax bill) that would impose a 100% excise tax on the premiums and other sums invested in these arrangements. NAIFA supports in principal but will work on details. HR 1161, 62, 63 & S 545, 6, 7 - new tax-advantaged savings plans in President Bush's proposed 2005 budget. NAIFA concerned about impact on life insurance and annuity sales. HR 8, HR 183, HR 64, S 420 - Legislation to make the estate tax repeal enacted in 2001 permanent. S 34 and S 135 are "reform" 4 8

HR 819 & S 381-would grant a federal tax exclusion up to $20,000 per year in lifetime payments from non-qualified annuities - NAIFA supports. HR 3912 - Flexible Retirement Security for Life Act would grant the same exclusion as HR 819 but phase in the dollar amount starting at $1,000 in 2006 and increasing to $20,000 by 2015. HR 2951 & S 1359 - NAIFA supports tax incentives for both qualified and non-qualified annuities. HR 2830 & S 1783-The Pension Protection Act-NAIFA supports legislation allowing advisors who represent companies administering 401(k) type plans to give investment advice to employees participating in those plans.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing sttaes to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing sttaes to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

HR 458 & S 418 - clarifies the jurisdiction of state insurance regulators and the Dept. of Defense in regulating insurance agents who operate on-base. HR 458 passed House. S. 418 passed the Senate and both bills will likely go to conference. NAIFA supports.

* President Bush's Tax Advisory Panel reported its recomendations on November 2, 2005. NAIFA opposes ideas that encourage short term savings and spending such as the Lifetime Savings Accounts pushed by President Bush and Save for Retirement Accounts suggested by the Tax Advisory Panel. bills which would repeal estate tax on family farms and businesses. NAIFA & AALU support estate tax reform which removes the estate tax burden for 99% of Americans. Charitable Owned Life Insurance - President Bush proposed applying a 25% excise tax on death benefits of life insurance used in complicated life insurance and annuity transactions involving charitable and educationsl institutions. NAIFA supports in principal. On Nov. 28, 2005 the Senate passed legislation (part of an omnibus tax bill) that would impose a 100% excise tax on the premiums and other sums invested in these arrangements. NAIFA supports in principal but will work on details. HR 1161, 62, 63 & S 545, 6, 7 - new tax-advantaged savings plans in President Bush's proposed 2005 budget. NAIFA concerned about impact on life insurance and annuity sales. HR 8, HR 183, HR 64, S 420 - Legislation to make the estate tax repeal enacted in 2001 permanent. S 34 and S 135 are "reform" 4 8

* President Bush's Tax Advisory Panel reported its recomendations on November 2, 2005. NAIFA opposes ideas that encourage short term savings and spending such as the Lifetime Savings Accounts pushed by President Bush and Save for Retirement Accounts suggested by the Tax Advisory Panel. bills which would repeal estate tax on family farms and businesses. NAIFA & AALU support estate tax reform which removes the estate tax burden for 99% of Americans. Charitable Owned Life Insurance - President Bush proposed applying a 25% excise tax on death benefits of life insurance used in complicated life insurance and annuity transactions involving charitable and educationsl institutions. NAIFA supports in principal. On Nov. 28, 2005 the Senate passed legislation (part of an omnibus tax bill) that would impose a 100% excise tax on the premiums and other sums invested in these arrangements. NAIFA supports in principal but will work on details. HR 1161, 62, 63 & S 545, 6, 7 - new tax-advantaged savings plans in President Bush's proposed 2005 budget. NAIFA concerned about impact on life insurance and annuity sales. HR 8, HR 183, HR 64, S 420 - Legislation to make the estate tax repeal enacted in 2001 permanent. S 34 and S 135 are "reform" 4 8

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing sttaes to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing sttaes to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.

These Resolutions would designate September as Life Insurance Awareness Month. NAIFA supported these resolutions for 2006. HR 2622 - Fact Act signed into law December 4, 2003. NAIFA worked to include literacy provisions in the bill and will continue to work to secure funding for insurance and other financial literacy programs. S. Res 448, HR 912.

These Resolutions would designate September as Life Insurance Awareness Month. NAIFA supported these resolutions for 2006. HR 2622 - Fact Act signed into law December 4, 2003. NAIFA worked to include literacy provisions in the bill and will continue to work to secure funding for insurance and other financial literacy programs. S. Res 448, HR 912.

NAIFA & AHIA is working with NAIC to strengthen the provisions in S.1995. HR 1150 & S 602 - NAIFA supports these additional incentives to purchase LTCI including an above-the-line deduction for individual purchae of LTCI in S.602. HR 118 - would provide generous tax credits to small businesses for providing health coverage to workers. NAIFA supports. Health Care Choice Act - would allow health insruance insurers to choose one state and use that state's rules in all other states where they operate. NAIFA studying proposal. S.288 - The State High Risk Pool Funding Extension Act - NAIFA supports. HR 176 & HR 1177 - would allow unused flexible spending arrangement funds to be carried over to the next year. NAIFA & AHIA favors this option. HR 27 - An "Above the line" deduction for "higher deductible" health plans coupled with HSA's. NAIFA supports. S.4 the Health American Act. NAIFA supports many provisions but concerned over the bills support for AHPs. HR 37, S. 978, Hr 1872, HR 2063, Hr 3873 creates Health Savings Accounts. NAIFA supports. HR 3511, S 1569. NAIFA supports allowing sttaes to establish LTC partnerships. HR 525 & S 406 - Association Health Plans. NAIFA opposes exempting AHP's from state benefit, regulatory oversight and solvency laws. S. 1995 allows AHP's to offer only issued plans that are subject to state solvency standards. Some regulatory oversight and an "average" of state mandated coverages.