Big “I” Makes Big Strides on Capitol Hill in 2008

The Big “I” celebrated several victories on Capitol Hill in 2008 and the stage is set for a busy 2009.Among the many accomplishments were the introduction and House passage of the National Association of Registered Agents and Brokers Reform Act of 2008 (NARAB II); a temporary extension of the National Flood Insurance Program (NFIP); passage of the Farm Bill; inclusion of federal natural catastrophe(NatCat) policy language in the Democrat and Republican official party platforms, and passage of NatCat legislation in the House and record-breaking participation in the Big “I” political action committee, InsurPac.

NARAB II: The bipartisan NARAB Reform Act, introduced earlier this year, moved at record speed through the committee process and was passed with overwhelming support in the House. This bill will provide for streamlined nonresident insurance agent and broker licensing while preserving the rights of states to supervise and discipline insurance agents and brokers. The Big “I” was instrumental in educating members of Congress and others in Washington about these necessary reforms and strongly supported the bill. It is optimistic that the bipartisan legislation will be reintroduced and passed in the 111th Congress. NARAB II will make independent agents more efficient by eliminating costly and redundant requirements for multi-state producer licenses so that can agents dedicate their time to their mission of serving consumers.

Natural Disaster Insurance: The Democrat and Republican national conventions in Denver and Minneapolis, respectively, each hailed a significant political accomplishment for the Big “I.” This summer both major political parties, for the first time in each of their histories, declared that they are going to make a federal natural catastrophe (NatCat) policy a priority and included language in their official party platform to seal this commitment. The Big “I” also reached a policy milestone when the House passed natural disaster insurance legislation. The Big “I” looks forward to working with the next administration and both sides of the aisle in Congress to devote time and resources to tackle this national problem.

The Big “I” has been at the forefront of the NatCat debate for more than 25 years and it has been calling on the insurance industry and government to recognize that it is essential that consumers have affordable natural disaster insurance coverage without being a drain on the American taxpayer. The Big “I” is determined to keep working to develop consensus among stakeholders and their competing plans so that a NatCat solution can finally be achieved.

Farm Bill: Another accomplishment for the Big “I”: a comprehensive Farm Bill was passed in 2008.Throughout the debate, the Big “I” expressed significant concerns about unprecedented cuts to the Federal Crop Insurance Program (FCIP) and fought to ensure that any cuts were reasonable so as to not negatively affect farmers and the agents who serve them. The bill also contained critical reforms to the FCIP that would benefit both America’s farmers and insurance agents by repealing Premium Reduction Plans (PRP) and tightening anti-rebating language. The Big “I” led the fight against these discriminatory practices and was pleased that Congress decided to vote in favor of these sound reforms.

InsurPac: At press time, InsurPac had collected roughly $800,000 en route to its $1 million goal. Every dollar contributed to the PAC is used to support candidates for federal office. InsurPac is non-partisan and contributes to Republicans and Democrats, in all areas of the political spectrum, who support the independent agency system.

In 2009, the Big “I” Capitol Hill team will continue its efforts in Congress on behalf of Big “I” members. The team will continue to work toward updating the National Flood Insurance Program (NFIP); to pass agent licensing reform and keep fighting against unnecessary and unfair federal regulation of the insurance industry; to work with both parties toward NatCat solutions and to ensure that independent insurance agents and brokers have a voice in Washington D.C. on issues that impact their businesses.

Margarita Tapia (margarita.tapia@iiaba.net) is Big “I” director of public affairs.



NFIP Beats the Buzzer

In the midst of dealing with the crisis on Wall Street, and in a rare Saturday session just days before the National Flood Insurance Program (NFIP) was going to expire, Congress listened to the pleas of homeowners and agents across the country and passed a temporary extension of the program. The NFIP will continue, without change, until March 6, 2009. Had the expiration come to fruition, the aftermath would have meant no more new or renewed flood insurance policies and millions of consumers would have been left unprotected. The temporary extension buys the next Congress time to reintroduce and work through the differences in the House and Senate versions of flood insurance reform legislation passed earlier in 2008.

—M.T.