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Frequently Asked Questions


What is NASFA?

How long has it existed?

What territory does it cover?

Does NASFA represent all agent contracts?

What is NASFA's philosophy?

Does NASFA help agents?

What is the NASFA Legal Fund?

How is legal counsel a NASFA member benefit?

hat other member benefits are there to joining NASFA?

What is associational standing?

Has NASFA ever sued State Farm?

Where does NASFA stand on "just cause" for termination?

What about the SECA Tax?

Has NASFA changed State Farm policy?




What is NASFA?

NASFA is the National Association of State Farm Agents. It is a nationwide professional association of State Farm independent contractor agents that endeavors to provide timely and insightful information to our membership; foster a spirit of camaraderie and professional fellowship; work tirelessly to maintain the Independent Contractor status and entrepreneurial opportunity of our member agents.

How long has it existed?

NASFA was incorporated in 1973.

What territory does it cover?

NASFA has members in all 50 states.

Does NASFA represent all agent contracts?

NASFA is proud to represent members holding every agent contract. Whether it is the LA540, AA660, AA3,4, AA97 or the AA05, from the 1950's through the second decade of the 21st century, NASFA strives to address member concerns about their contracts .

What is NASFA's philosophy?

Our mission is to evaluate and communicate information affecting NASFA members.

Our vision is to promote and support independent contract State Farm Agents.

In addition our philosophy is best summarized in our By-laws:

Does NASFA help agents?

Yes! Nasfa helps its members though member services, its legal counsel and legal fund.

What is the NASFA Legal Fund?

The NASFA Legal Fund is money set aside by NASFA to assist agents in their lawsuits against State Farm. When the NASFA Board determines that an agent's issue is of significance to all agency it has, when certain conditions are met, given $25,000 contributions to those lawsuits.

How is legal counsel a NASFA member benefit?

For the price of membership, you are entitled to consult with NASFA's legal counsel, Robert O'Connor without charge for consultation. There is no restriction on the number of phone calls nor the issues presented.

What other member benefits are there to joining NASFA?

What is associational standing?

Associational standing is the right of organizations such as NASFA to represent individuals without the necessity of bringing a lawsuit in the name of one individual. NASFA has won that right previously in the United States District Court for the District of Columbia. With that precedent and the geographic coverage of NASFA it will be able to represent its membership again in the future. No other association can claim that right. It is not derivative, no one else can use it because we were successful.

Has NASFA ever sued State Farm?

Yes. In the historic lawsuit of NASFA v. State Farm, decided in the District of Columbia, NASFA was, in part, successful in changing State Farm policy. In that case the Partner Agent Program was for all intents and purposes stopped. The Select Agent Program was changed as a consequence too.

Where does NASFA stand on "just cause" for termination?

NASFA has always supported just cause legislation and litigation. NASFA has tried for years at both national and various state levels to obtain just cause legislation to protect agents. The State Farm agent's agreements do not afford that protection. Given the tremendous investments agents make, it is only right to insist on termination for just cause. In addition, NASFA has supported agent litigation over the years contesting that issue.

What about the SECA Tax?

One of NASFA's proudest moments was the ability to support litigation and legislation which established the rule that SECA tax may not be charged on termination payments for retiring agents. For agents who receive those benefits, this has amounted to an approximate $15,000.00 per year benefit. NASFA further supported the codification of that litigation in the Internal Revenue Code.

Has NASFA changed State Farm policy?

Yes. When the AA97 contract was first announced, NASFA took the time, money and effort to successfully make the contract optional. With a strong advertising campaign and a hard look at the relevant facts, State Farm determined that it could not insist upon the implementation of that agreement unilaterally and instead offered it as an option. NASFA then further offered each agent an analysis as to how that change would affect them.