Agents Needed on Capitol Hill

This year it’s more important than ever for each state to have a strong presence at the annual Big “I” Legislative Conference & Convention, April 29–May 1, in Washington, D.C.

President Barack Obama’s administration and Congress are planning an overhaul of financial services regulation that could drastically impact the independent agency system. The next few months are critical and the Big “I” needs everyone’s help in protecting the industry against harmful over-regulation.

On April 30, more than a thousand agents will visit Capitol Hill offices to lobby members of the House, Senate and their staffs. During this annual pilgrimage, Big “I” members will impress upon the nation’s decision makers that independent agents are in every state and district, and that they participate in the legislative process. Many congressional offices look forward to these visits and the updates they receive from agent and broker from their home districts.

The Big “I” legislative conference is the best-attended, most effective event of its kind. Discussions this year will focus on several important matters including: the state of the economy, economic challenges facing insurance agents and the industry, the TARP program, insurance regulatory reform and health insurance reform.

At the top of the agenda is the looming debate regarding federal insurance regulation, including the threat of an optional federal charter (OFC). As the Obama administration and Congress consider restructuring the financial services regulatory system, the Big “I” continues to guard against efforts that could hurt independent insurance agents and brokers. The Big “I” also continues to advocate for sound legislation that would benefit agents and consumers, such as agent licensing reform. One agent’s meeting with their congressional representative could make a difference in how that member votes on a bill that helps or hurts thousands of agents across the country.

With more than 300,000 members and an experienced, bipartisan government affairs team on Capitol Hill, the Big “I” is well-positioned to advocate for independent agents, but it takes your participation too. This year, the goal is for Big “I” agents to meet with all 535 members of Congress. With so many important issues on the table, now more than ever, it is important for agents from every state and congressional district to attend.

Big “I” members are the backbone of the independent agency system and on April 30 they will plead their case in the halls of Congress.

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



Targeted Reform Needed, Not Federal Regulation

Federal regulation: Potential insurer access to federal government money and the rescue of AIG continue to put the spotlight on insurance regulation. Although numerous analysts have said the insurance industry as a whole is stable and could actually be used as an example for other financial services areas, the insurance sector could still be included in efforts to overhaul regulation of the entire financial services industry. As Congress and the Obama Administration consider restructuring the financial services regulatory system, the Big “I” continues to guard against legislation that could harm the independent agency system. The Big “I” will continue to fight against efforts to regulate insurance at the federal level, including measures to establish an optional federal charter (OFC). The Big “I” will highlight the fact that a deregulatory proposal such as OFC would disrupt a healthy insurance market.

Targeted regulatory reform: The Big “I” supports targeted regulatory reform, including NARAB II. The objective of this bill is to implement a more streamlined and less burdensome nonresident insurance agent and broker licensing system while preserving the rights of states to supervise and discipline producers. This sound legislation will make independent agents more efficient by eliminating costly and redundant paperwork for multi-state agent licenses, and allow agents to dedicate their time to serving consumers. Led by a dedicated team of lobbyists on Capitol Hill and powered by an army of agents who met with their congressional representatives in 2007 and2008, the Big “I” has been instrumental in educating members of Congress and others in Washington about the need for targeted reform. The House passed NARABII overwhelmingly in 2008 and the Big “I” is optimistic that the bipartisan bill will move forward in the 111th Congress.

-M.T.