Reflecting on 2006 Success

It’s hard to believe that another year has passed so quickly, but 2006 soon will make its exit, and we will move into a new year and new challenges with a new Congress. Let’s pause to take a look back at some of the accomplishments the Big “I” achieved in an interesting and exciting 2006 on Capitol Hill.

The Big “I” had another very productive year, highlighted in September when the association was called to testify three times before leading Congressional committees on three of the most important issues for independent agents and brokers.

Executive Committee Member J. David Daniel of Louisiana got things rolling when he told the House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises that “insuring against natural disasters is a national problem that requires a national solution.”

Big “I” President Alex Soto of Florida told a House Judiciary Committee subcommittee that H.R. 5637, the bipartisan Nonadmitted and Reinsurance Reform Act of 2006, was the right approach and a sound first step toward preserving and reforming state-based regulation with the use of federal tools.

And Sharon Emek, New York Big “I” chair of the board, made a strong case for extension of the federal terrorism risk insurance backstop by invoking her own personal experience.

“It is crucial that all businesses have access to affordable insurance to protect them from this risk, and I personally have seen what can happen if they do not,” Emek testified. “In fact, after 9/11, a number of my friends had to close their businesses because they did not have sufficient business interruption coverage. Imagine how many businesses would go out of business without any business interruption coverage at all. Without a federal role for terrorism insurance, business interruption insurance will be further strained.”

The Big “I” testified before Congressional committees on numerous topics of importance to the industry, giving independent agents and brokers a crucial voice at the table when important issues are being discussed and decided. No other insurance association in Washington gets the call to testify more than the Big “I.”

The relentless Big “I” effort to educate lawmakers continues to produce results. Shortly after Soto’s testimony, the House unanimously passed H.R. 5637. The House also passed an agriculture bill in May that included a prohibition of the so-called “Premium Reduction Plan,” for which the Big “I” lobbied hard. In August President Bush signed into law the Pension Protection Act of 2006, which included a number of important insurance and retirement provisions. In June, the House passed H.R. 4973, a comprehensive flood insurance reform bill that included a number of Big “I”-backed provisions, including: increasing the National Flood Insurance Program’s borrowing authority to $25 billion; increasing funding for flood map modernization; increasing the maximum coverage limits; optional business interruption coverage; additional living expenses coverage; optional replacement cost coverage for contents; optional finished basement coverage; and increasing the policy flex band from 10% to 15%.

These highlights are merely a sampling of our efforts and successes on your behalf in the final session of the 109th Congress. Rest assured that in the coming year, we will redouble our efforts on all these issues—look for the 2007 legislative agenda report in next month’s column.

Cliston Brown (cliston.brown@iiaba.net) is Big “I” director of public affairs/media relations.

Sometimes Victory is What Doesn’t Happen
The victories for the Big “I” in 2006 were all very important, but success on Capitol Hill is about more than what actually happens. Also of note, and crucial to independent agents and brokers, was what didn’t happen this year. True, optional federal charter (OFC) bills were introduced in the Senate and the House, but the Big “I” and several industry partners worked hard to keep either bill from going anywhere. By the time Congress recessed for the fall election campaign, there was no chance of passage in either chamber, and OFC advocates were fortunate even to get a bill introduced in the House.

This fight is far from over. With the seating of the 110th Congress in January, there is no question that OFC will rear its head once again. The Big “I” will continue to partner with industry allies to keep OFC legislation from gaining ground in Congress.