The PRO Act would change the definition of “independent contractor” in federal labor law, potentially affecting the status of insurance and financial professionals and disrupting established and effective business models.
Basically, independent insurance advisors who are currently classified as an independent contractor of any insurance companies would be classified the same as a W2 employee.
If the PRO Act redefines the relationship between independent brokers/financial advisors/broker-dealers and insurance companies, it would take away from the current independence that ensures consumers have the greatest access to products and services offered by the insurance industry. It takes away from the fact that independent advisors could freely offer products from multiple insurance companies and do what is best for their clients, period.
So what are we doing with this issue and how can you help? As CEO of an independent firm, Peach Insurance Services and president-elect for NAIFA Northeast FL, this topic hits home. Together with my NAIFA and other industry friends, we are asking our senators for help. We are not against the bill but we would like a “carve-out for the insurance industry” so that we could remain independent.
If you are in independent financial or insurance advisor, you must help in making sure that we remain unbiased and independent advisors. Contact your senators and ask them to support a “carve-out of insurance professionals”.
Here is a portion of NAIFA’s government update on this issue: “A coalition of industry activists led by NAIFA and its partners worked for the inclusion of an insurance carve-out that would exempt insurance producers, independent broker-dealers (IBDs), and independent financial advisors (IFAs) from provisions of the act that could strip independent contractors in the insurance field of their current status and employment classification. The PRO Act redefines the relationship shared between these individuals and the insurance industry.”
