2003 0515 – GOV (House) – Retirement Security: What Seniors Need to Know About Protecting Their Futures – Richard Baker (R-LA)

  • Paul Kanjorski (D-PA) – (p2) – Mr. Chairman, today we will explore the issues that individuals should consider as they plan for retirement.
    • Because investor protection and financial literacy are top priorities for my work on this panel, I am therefore very pleased that we are meeting to examine matters like annuities, life insurance and long term care insurance, among others.
  • NAIFA – David F. Woods, CEO, National Association of Insurance and Financial Advisors
    • (p9) – We have 800 local associations across the country representing 325,000 insurance agents, financial advisers and their staffs.
      • Our mission is to provide professional education and support to our members, to establish and to maintain ethical standards for them.
    • (p9) – Let me if I can just give you a very brief overview of the role that an agent-adviser plays.
    • (p9-10) – And then to do the research, to find the appropriate products that may address those needs, and to bring those needs to their attention; to help them evaluate them; to provide competitive analysis for them, so that they can make an informed and intelligent decision about the products that are important in their lives.
  • (p19-20)
    • Mr. KANJORSKI. You know, I am struck, one of our fine senators, I cannot recall his name right now, but he talked about compound interest and what a small portion of the American population understands the ramification of compound interest.
      • Maybe we ought to develop a Florida-type test that you have to take, and if you cannot pass the test of understanding compound interest, you are just disqualified from the field.
      • Would you recommend that we take that up with your governor and include that as part of that final test down there?
    • …
    • Mr. WOODS. Mr. Chairman, could I add something to that statement? You cannot legislate morality. That is a truism.
      • Education is the best defense against fraud and things like that.
        • That is the reason why the life insurance industry about 10 years ago created the Life and Health Insurance Foundation for Education to provide that kind of financial literacy….. [lifehappens.org]
      • It is a massive job.
        • We have not done this very well or at all forever, I suspect, and really the effort has begun in the last five or ten years.
        • We are very proud that the insurance industry has made this investment in this effort.
    • (p25) – Woods: The other thing is, and Congressman Lucas can attest to this, he pointed out his credentials in the insurance industry, the best teacher of all, the best educator of all is a knowledgeable and qualified life insurance agent.
      • Consumer study after consumer study indicates that that is where people get their information, and they want to get their information from them.