Advocacy in action blog

NAIFA State Advocacy Amidst COVID-19: A Glimpse into the Unknown

The trinity of Congressional COVID-19 relief packages acknowledge the importance of small businesses to our economy. The new laws contain numerous provisions to support employers and their workers including small business loans.

NAIFA CEO Kevin Mayeux, along with several industry colleagues, has sent a letter to every state insurance licensing authority requesting temporary licensing accommodations for producers who cannot complete regular licensing requirements because of the COVID-19 outbreak.

Measures on small business loans, payroll taxes, and retirement accounts to provide relief to financial professionals and their clients.

Congress has passed the CARES Act, a $2 trillion economic stimulus and relief package designed to bolster Americans and the U.S. economy currently racked by the COVID-19 outbreak. The bill now goes to the White House, where President Trump is expected to sign it.

“NAIFA has advocated for measures to help small business owners and American workers weather the devastating financial impact of the COVID-19 pandemic, and we are pleased to see many of the provisions we promoted included in the CARES Act,” said NAIFA CEO Kevin Mayeux. “Small business loans to cover short-term payroll and other expenses, which could be forgiven at a future date; payroll tax exemptions; and relief from retirement-account withdrawal requirements and early withdrawal penalties have been at the top of NAIFA’s advocacy agenda and will be crucial to many NAIFA members and their Main Street USA clients. We are very pleased to see these provisions included in the final bill.”

On March 24, the U.S. Department of Labor’s Wage and Hour Division (WHD) announced its first round of published guidance to provide information to employees and employers about how each will be able to take advantage of the protections and relief offered by the Families First Coronavirus Response Act (FFCRA) when it takes effect on April 1, 2020.

House Financial Services Committee Chairwoman Maxine Waters (D-CA) is considering potential legislation which would create a Pandemic Risk Insurance Program similar to that of the program created by the Terrorism Risk Insurance Act (TRIA). Chairwoman Waters’s proposal would be to create a temporary program that would provide a federal backstop for pandemic risk. This model would be very similar to the federal backstop that exists for terrorism risk through TRIA, but would deal with the Coronavirus pandemic instead.

As many industries transition to alternative working arrangements in response to the COVID-19 outbreak, certain sectors and functions essential to the nation’s public health, safety, and community well-being must continue to operate. The U.S. Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) recently released an advisory initial list of “Essential Critical Infrastructure Workers.”

Kevin Mayeux's statement to government officials that NAIFA stands with you. We are here to be a resource to you and help serve as a first line of support to consumers who are calling you with concerns during this challenging time. We are adding new resources every day to our recently launched consumer site at www.financialsecurity.org where credible information can be accessed along with a directory of our members that all ascribe to a Code of Ethics including the promise to put clients' best interests first.

The National Association of Insurance and Financial Advisors (NAIFA) has a long history of working with lawmakers on the state and federal levels. Recent outreach to Congressional offices, state insurance commissioners, and state legislators offering assistance to lawmakers with constituents’ financial concerns has resulted in sincere appreciation.

The COVID-19 outbreak is disrupting the lives of families and the operations of businesses across the country. The impact on the economy and financial implications for Americans will certainly be substantial. At times like this, NAIFA’s advocacy influence and role as the voice of insurance and financial professionals is more important than ever. We are working on behalf of our members, the entire agent-advisor community, and Main Street USA consumers to help Congress find ways to lessen the impact of the outbreak.