Tell Congress the U.S. Department of Labor (DOL) proposed Fiduciary rulemaking will threaten the ability of many financial professionals to serve lower-and middle-income Main Street families. 

The Department of Labor has recently proposed a new worker classification rule in an attempt to address the growing gig economy in the United States.  As you know, changes to the current independent contractor structure can be detrimental to our industry, and in turn negatively impact your clients on Main Street.

Independent insurance producers, brokers, and financial advisors have a long history of being independent contractors and not employees for purposes of determining the applicability of federal and state wage and benefit provisions. The independent contractor/statutory employee model is the distribution model that most insurance companies and producers adhere to within the industry. This working model is essential to providing consumers with the greatest protection and access to insurance products.

Why is this important:

• Legislative or regulatory action that redefines the relationship shared between insurance producers, independent broker-dealers and independent financial advisors with the insurance industry would hurt everyone.
• Creating a new standard that does not ensure that legitimate independent contractors are protected from misclassification as employees limit the scope of insurance products consumers would have access to as well as the general distribution of insurance products and investment advice, thereby limiting consumers’ ability to protect themselves and their loved ones.
• Many insurance professionals have relationships with multiple insurance companies and financial institutions, which could make altering the existing economic realities test and reclassifying them as ‘employees’ problematic. The current independent-contractor relationship ensures consumers have the greatest access to products, services, and advice

Insurance producers and independent financial advisors are deeply rooted in our communities and are best positioned to understand the needs of consumers. To reclassify and force us into an employment relationship drastically limits not only our autonomy but the availability of products we can provide to clients.

Please join us to request the DOL modify its proposed rule to ensure that legitimate independent contractors are protected from misclassification as employees. “Take Action” by clicking the button below.