Governing Season Opens in D.C.

It’s a whole new ball game in Washington, D.C. Democrats, fresh off of their breakthrough election victory in November, have taken the keys to the Capitol from the Republicans who had held them for the previous 12 years. But as the saying goes, the more things change, the more they remain the same.

In January, the Big “I” opened 2007 by formally unveiling its legislative agenda. A quick look reveals some familiar topics and shows that the bipartisan Big “I” federal government affairs team has put forth an ambitious legislative agenda. Leading the list is a continued push for insurance regulatory reform while stopping any move toward federal regulation of insurance. This is a paramount issue for independent insurance agents and brokers, and the Big “I” team is courting allies in both parties, as well as working to convince undecided members that while targeted reform of state regulation is warranted, a new, cumbersome federal bureaucracy is unnecessary.

There are promising signs for agents, including positive initial receptions for agent licensing reform, the excess and surplus lines bill and other targeted, conceptual reforms. In addition, key leaders, such as new House Financial Services Committee Chairman Barney Frank (D-Mass.) have voiced doubts about federal regulation for the p-c industry. The Big “I” team will continue to stay vigilant in beating back a newfound interest in repealing the McCarran-Ferguson Act.

Also of tremendous importance in 2007 is the extension of a federal backstop for terrorism risk insurance. The Terrorism Risk Insurance Extension Act (TRIEA) is due to expire Dec. 31, and the Big “I” is lobbying fervently to get the ball rolling now, before it gets late in the game. Fortunately, the word on the Hill is that the new Democratic majority will look at this issue earlier rather than later.

The Big “I” also is pushing for comprehensive flood and natural disaster insurance reform. At press time, there were promising signs that the Democrats could move early on natural disaster legislation. Other crucial issues the Big “I” will continue to lobby actively on include crop insurance, intangible assets tax reform, Subchapter S tax issues, data security and health care reform.

The lobbying plate is overflowing, and there won’t be a dull moment as the Big “I” advances your agenda with a new Congress. Do your part by participating in the Big “I” grassroots program and letting your elected leaders know where you stand. Contact Liz Furey at 202-863-7000 for more information on how you can defend your business.

Additionally, if you are concerned about how you are regulated, your taxes, how you are licensed, your compensation, access to markets and the future of your business, you must attend the Big “I” Legislative Conference & Convention, taking place April 25–27 at the Marriott Wardman Park Hotel in Washington, D.C. For more information, go to www.independentagent.com.

And as always, keep InsurPac contributions coming. With your strong financial support, InsurPac has become a major player on Capitol Hill in a way that was unimaginable just a few years ago. It continues to be a difference-maker in close elections all over America. These results do not go unnoticed in the nation’s capital.

It will undoubtedly be an interesting two years. Rest assured that your Big “I” federal government affairs team will go to bat for your interests on both sides of the political aisle

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

OFC Threat Remains Major Concern

The new chairman of the House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, Congressman Paul Kanjorski (D-Pa.), is indicating that new optional federal charter (OFC) legislation is coming in the 110th Congress.

While details have not yet been revealed, some concepts have been floated and there are signs that Kanjorski is considering legislation that differs from the Sununu-Johnson or Royce bills introduced in 2006, and it could include significant consumer protection language. OFC also could be used as a potential vehicle to require “all-perils” policies of federally regulated insurers— including flood, earthquake and mold coverage.

The Big “I” will be monitoring this issue very closely as it develops in the coming months.