January/February 2017




Aaron Forbes

President Elect:
Patrick J. Cannon

Vice President:
Jerod Cook

Jay Randall

Immediate Past President:
I. David Cohen, CLU, ChFC, LUTCF

National Committee-Person:
Duane Borcherding, CLU, ChFC

Executive Director

Renae Davies
P.O. Box 448
Lewis Center, Ohio 43035
Phone: 740.879.4456
Fax: 888.525.7645

Our Mission
The mission of the Columbus Chapter of the National Association of Insurance and Financial Advisors is to provide leadership in sustaining and improving the business environment for those engaged in life underwriting and to enhance further the professional skills of those providing life and health insurance and other closely related financial products and services which foster greater financial independence for the public.


Platinum Sponsors

Silver Sponsors


Bronze Sponsors


2017 Calendar of Events - NAIFA Columbus


Monday, March 13, 2017


6:00 p.m. – 8:00 p.m.
Cost: $50 minimum donation requested (must be paid by personal check by NAIFA-Columbus members only)
Guests are welcome to attend with NAIFA-Columbus members for the same $50 minimum donation.

Location: The Wine Bistro, 8231 N. High Street, Columbus OH 43235


Wednesday, March 15, 2017


8:00 a.m. – 9:15 a.m.
Cost: FREE for NAIFA-Columbus Members / $25 for Guests or Non-Members

CE SEMINAR (offering 2 hours of CE credit)

9:15 a.m. - 11:15 a.m.
Cost: FREE for NAIFA-Columbus Members / $35 for Guests or Non-Members

Location: J. Liu Restaurant, 6880 N. High Street, Worthington 43085


Wednesday, May 17, 2017

CE SEMINAR (offering 2 hours of CE credit)

9:15 a.m. - 11:15 a.m.
Cost: FREE for NAIFA-Columbus Members / $35 for Guests or Non-Members

23rd Annual I. David Cohen Lifetime Achievement Award Luncheon

11:30 a.m. – 1:00 p.m.
Cost: FREE for NAIFA-Columbus Members / $25 for Guests or Non-Members

Location: J. Liu Restaurant, 6880 N. High Street, Worthington 43085

BWC's New Method for Determining Successorship


presented by Sarah Sypniak

What is Successorship

“Successorship” or “successors in interest” are terms that describe the takeover of one employer’s business by another, generally resulting from a change in ownership due to a purchase, acquisition or merger. For workers’ compensation purposes, it requires the continuation or transfer of experience and liability from the predecessor (seller) to the successor (buyer). If BWC determines the relationship between the predecessor and successor is a continuation of the business or operations, BWC combines the predecessor policy into the successor policy.

The significance of determining successorship

Continuation of experience from the predecessor policy to the successor policy is an essential element in developing the appropriate premium rate for the successor policy. The prior experience of the predecessor is a valid indicator or predictor of the expected future performance of the successor. Although there may be a change in ownership, if the operation of the predecessor remains relatively the same with the same or similar degree of hazard, it is appropriate to transfer the experience to the new owner and successor policy.

BWC’s historical practice for determining successorship

Historically, BWC has used several factors when determining if a successorship exists for workers’ compensation purposes. Such factors include but are not limited to:

  • Retention of employees;
  • Same or similar pursuit of industry;
  • Same location of the predecessor;
  • Goodwill of the predecessor;
  • Retention of client or customer base and servicing of warranties.

All play a vital role in the determination process. However, some factors may weigh more heavily than others depending on the particular circumstances of the purchase. There are no set-in-stone criteria or checklists that BWC used in the determination process. This lack of a definitive, objective process had triggered complaints from BWC’s customers, interested parties and other stakeholders. Complaints largely concerned uncertainty, inconsistency and disputes regarding the appropriateness of the successorship determination and the ensuing transfer of experience and liability to the purchasing entity.

What is new?

Beginning Jan. 1, 2016, BWC implemented a new process, using the successor methodology developed by the National Council on Compensation Insurance (NCCI). The primary intent of the new method for determining successorship is to provide an unambiguous and predictable means for determining the continued use of experience and transfer of liability whenever an entity undergoes any type of ownership change. Stated simply, the NCCI approach is that in the case of purchases, acquisitions and mergers, experience will transfer from the predecessor policy into the successor policy the vast majority of the time, unless three specific conditions have been met. Those three conditions require: (1) a material change in ownership and the new owner must change the business so substantially that (2) the governing classification and (3) the process and hazard of the operation change.

BWC will also consider a fourth condition in determining whether an exception to the NCCI practice is considered. The additional condition concerns the time between the predecessor ceasing operations and the purchase effective date. When that time period is significant, BWC believes that past experience is not necessarily a useful indicator of future performance, even for businesses that would not otherwise be excepted from an experience transfer under the NCCI criteria. In summary, BWC will use four factors listed in the following four items to determine if a successorship does not exist. BWC may grant the exception if the conditions of paragraph 1 are met. The standard NCCI criteria for establishing an exception to successorship are listed in paragraphs 2 through 4.

1. The time (days/months) between the predecessors ceasing all operations and ceasing as an active entity, and the effective date of the purchase. The predecessor must prove closure date.

a. If the period is greater than six months, a successorship does not exist. BWC will not transfer experience or liability from the predecessor to the successor policy.

b. If the period is less than six months, BWC considers the relationship between the seller and buyer a successorship unless the buyer satisfies the conditions in item 2 through 4.

c. If there is a family relationship or other connection between the predecessor and successor, BWC may apply coverage initiation regardless of the timeframe between closing of the business and the date of the sale.

2. Is there a material change in ownership? To meet the material change in ownership requirement, there must be an outright sale (no association between seller and buyer).

a. In the case of a continuation in ownership, such as a change in partnership, the owner’s interest must have been less than 1/3 ownership before the change or less than 1/2 ownership after the change to meet this requirement.

b. If there is a family relationship or other connection between the predecessor and successor, BWC does not consider the sale of the entity to be a material change in ownership.

3. Is there a change in governing classification? To meet the change in governing classification, there must be a change in operations significant enough to require a reclassification of the governing class code.

4. Is there a change in process and hazard? To meet the change in process and hazard requirement, there must be a total change in operations or industrial pursuit – or a totally new way of performing the work, providing the service, handling the material, etc. – that dramatically changes the degree of hazard under the successor policy. This may require an evaluation by BWC’s underwriting department, a site visit by BWC’s audit department or a consultation with BWC’s Division of Safety & Hygiene.

a. It is possible to meet the “change in governing classification” requirement and not meet the change in process and hazard. This could occur if BWC applies a new manual classification to the predecessor’s operations due to changes implemented by the successor (see No. 3 above). However, if the successor uses the same processes, machinery, equipment, tools, etc., then basically the same degree of hazard exists.

b. The successor must provide documentation to support a substantial modification in process and hazard.

How will this apply to bankruptcy and receivership?


1. When an employer enters into bankruptcy to reorganize and continues to
cooperate, BWC will issue a new policy with the status debtor in possession (DIP).

a. The experience from the original policy will transfer to the DIP policy to develop their rate. However, the liabilities will remain with the original policy.

b. If the employer emerges from the bankruptcy and continues in business, BWC will update the policy to remove the DIP status; the employer retains the experience.

2. When an employer enters into bankruptcy and sells the business, there is no transfer of experience or liabilities to the buyer.


When a receiver is responsible to liquidate the assets of the entity, court appointed or not, BWC considers this a third-party intermediary; no liabilities or experience transfers to the succeeding employer, unless that employer is the same as, a family member of or is connected to the owner whose assets were liquidated by receiver.

Implementation date

BWC’s underwriting department will use this new method for determining successorship for all purchases, mergers and acquisitions it reviews on or after Jan. 1, 2016.

Notification to the employer

Upon notification or discovery of a potential successorship, BWC’s policy underwriting unit will research the relationship and all factors associated with the potential successorship. Once the unit makes the decision to process the combining of policies (successorship) or consider it not to be a successor relationship, BWC will send a letter to the buyer.

Obtaining employer and policy information on a potential seller

The NCCI criteria make it clear there is a strong possibility that the experience and liability of the predecessor will transfer to the successor when a purchase, acquisition or merger occurs. To facilitate a buyer’s awareness, BWC developed the Request for Business Transfer Information (AC-4) to allow potential buyers to obtain employer-related data associated with the seller’s policy. The potential seller must sign the AC-4, granting BWC the right to release employer-related policy data to the potential buyer. BWC strongly encourages any entity that is considering the purchase of another entity to use this form to help discover any issues with the seller’s policy prior to purchase.




 PAC/PIC Event



by Dan Brookman, PAC/PIC Committee

You're invited...

NAIFA-Columbus IFAPAC Fundraiser

Monday, March 13, 2017

6:00 p.m. to 8:00 p.m.
The Wine Bistro
8231 N. High Street, Columbus OH 43235

Network with NAIFA members, Statehouse Leadership, State Representatives and State Senators while enjoying cocktails and hors d’oeuvres in a casual atmosphere. Congressman Pat Tiberi and State Senator Bob Hackett are expected to attend.

Complimentary hors d’oeuvres will be served with a cash bar.

A $50 donation is the suggested minimum to be given as a donation to IFAPAC however any amount will be accepted.
Please bring a check, made payable to NAIFA IFAPAC, with you to this event.

If you are unable to attend, please still consider supporting the IFAPAC as it continues to support you and your business!
Mail a check, made payable to NAIFA IFAPAC, to NAIFA-Columbus, P.O. Box 448, Lewis Center Ohio 43035, by March 10, 2017.

IFAPAC donations can only be made from NAIFA members and must be made payable with personal checks only. NAIFA members can also sign a directive that allows your donation to go to NAIFA-Ohio instead of NAIFA National. This directive must be done online at

RSVP by Wednesday, March 8, 2017
Email Executive Director Renae Davies at exec@naifa-columbus.org
or call the NAIFA-Columbus office at (740) 879-4456

NAIFA National News

To read articles below, logo into NAIFA National and go to News and Publications Login

115th Congress Hits Ground Running

The115th Congress convened on January 3, and immediately began work on implementing a conservative legislative agenda. GOP lawmakers are hopeful that with the all-Republican majority of the federal government they can enact most if not all of their priorities. Democrats vow to resist as much as possible.

Rep. Wilson Introduces NAIFA-backed Bill to Delay Fiduciary Rule Effective Date

Rep. Joe Wilson (R-SC) introduced a bill that would delay the new fiduciary rule for two years.

First ACA Replace Bill Introduced in the House

Republican Study Committee (RSC) Chairman Rep. Mark Walker (R-NC) introduced the first ACA replacement bill on January 4. The American Health Care Reform Act (AHCRA) also repeals the ACA.

Senate Starts ACA Repeal and Replace Effort

The Senate on January 4 started the process of repealing and replacing the Affordable Care Act (ACA). The Senate began debate on a fiscal year (FY) 2017 budget resolution (S, Con. Res. 13). The budget resolution instructs four Congressional committees to write ACA repeal legislation by January 27.

House Approves Two Regulatory Reform Bills

The House has passed and sent to the Senate two regulatory reform bills—the Midnight Rules Relief Act and the REINS Act.

DOL/HHS/Treasury Release New FAQs on Cures Act, ACA Implementation

The “tri-agency” regulatory team of HHS, DOL and Treasury issued new frequently asked questions (FAQs) on employer-provided health insurance issues. Included is guidance on the newly-enacted authority for small employers to offer penalty-free HRAs.

Justice Department Seeks Stay of Court Injunction Halting Overtime Rule

A Texas appellate court has granted a DOJ request for an expedited review of a Texas district court’s nationwide injunction that halted the DOL overtime rule. If the request for a stay of the injunction is granted and absent any intervening action by Congress, the overtime rule would go into effect.

Treasury, DOL and HHS Secretary Nominees Face Rocky January Confirmation Hearings

President-Elect Donald Trump has nominated Stephen Mnuchin as Secretary of the Treasury, Andrew Puzder as Secretary of Labor (DOL) and Rep. Tom Price (R-GA) as Secretary of Health and Human Services (HHS). All three men face opposition from Senate Democrats. However, most observers believe that the Senate will confirm all three nominees.

Trump Chooses Wall Street Lawyer Jay Clayton to Head the SEC

On January 4, the Trump transition team announced that the president-elect would nominate Wall Street lawyer Jay Clayton to head the SEC.

Estate Tax Repeal Raises Numerous Important Questions

A key tax reform priority for Congressional Republicans and President-Elect Trump is repeal of the estate tax. And Democrats have signaled they are willing to discuss it. But questions are emerging about what that means. For example, will there still be a step-up in basis for inherited assets, and will the gift tax also be repealed or changed?

DOL Proposes Fiduciary Rule Exemption for IMOs

DOL sent a proposed exemption to its new fiduciary rule that would grant financial institution status to IMOs. The exemption will allow IMOs to use the fiduciary rule’s BIC PTE to sell fixed indexed and variable annuities in the retirement space.

DOL Informally Oks Use of Annuities in QDIAs

In an information letter to TIAA, DOL said products and portfolios that include annuity features can, under specified circumstances, qualify as QDIAs.

Stay Informed in 2017

As the new Congress works to implement their legislative agenda be sure to take advantage of the numerous resources provided by NAIFA National to stay informed.

NAIFA’s Government Relations Department

Diane Boyle
Senior Vice President

Gary A. Sanders
Counsel and Vice President

Magenta Ishak
Vice President, Political Affairs

Judi Carsrud

Steve Kline

Michael Hedge

Stephanie N. Sheridan
Political Director, IFAPAC

Matthew Laptew
Program Manager

Maggie Buneo
Political Involvement Program Manager

Ben Parish

Kiandra Harris
Program Manager, IFAPAC

Christa Frye
Program Manager, IFAPAC

Donna Singleton
Executive Assistant

NAIFA Outside Counsel

Danea M. Kehoe
Raffaniello & Associates, LLC
Steptoe & Johnson, LLC

January Membership Meeting Highlights


On January 18th, NAIFA-Columbus held their Membership Breakfast Meeting at J. Liu Restaurant in Worthington. During this breakfast, David W. Harris, Vice President of Nationwide Retirement Institute discussed “Understanding the Impact of Filing for Social Security”.

President Aaron Forbes gave his President’s Message and PAC/PIC Chair Dan Brookman announced that an IFAPAC Reception will be held on Monday, March 13, 2017. Andre Bradley and Sarah Sypniak with CareWorks Comp provided a report on the NAIFA-Columbus’s Group Rating Program and National Committee person Duane Borcherding discussed the upcoming NAIFA National Congressional Conference which will be held in Washington DC on May 23 and 24, 2017.

A CE seminar was held immediately following the breakfast from 9:15 am to 12:15 pm. Rebecca DeHainaut with John Hancock Retirement Plan Services presented “Small Business Retirement Plans” which offered 10 hours of CE credit for those attendees who passed the test which followed the presentation.

CE Seminar Presenter Rebecca DeHainaut

President Aaron Forbes and Breakfast Speaker David Harris