This month, approximately 1,000 Big “I” independent agents, brokers and industry leaders from all 50 states and several foreign countries converged in Washington, D.C. for the annual Big “I” Legislative Conference, in order to meet with members of the House and Senate and their staff on critical issues that directly impact the independent agency system. The event was covered extensively by Independent Agent magazine as well as other insurance industry trade press.

On Thursday, April 10, Big “I” members visited nearly 400 congressional offices in the annual pilgrimage to Capitol Hill to remind the nation’s decision-makers that independent agents are in every state and in every district serving small businesses and insurance consumers while creating jobs. During the meetings, the agents focused on the following issues:

Terrorism insurance: The current Terrorism Risk Insurance Act (TRIA), created in the aftermath of 9/11, expires at the end of the year. The Big “I” message on Capitol Hill was that, due to the threat of terrorism and the unique characteristics of this risk, the federal government must have a continued role in the market for terrorism insurance. Because of the forward-looking nature of insurance contracts, Big “I” agents asked Congress to move forward with an extension of the program in some form before the expiration date.

Agent licensing reform: Agents urged their federal representatives to support adding the "National Association of Registered Agents and Brokers Reform Act” (NARAB II) bill, which has already passed both chambers in separate vehicles, to the terrorism insurance extension that will be considered later this year. The bipartisan legislation was introduced by Sens. Jon Tester (D-Mont.), Big “I” Legislator of the Year, and Mike Johanns (R-Neb.) in the Senate, and Insurance Subcommittee Chairman Randy Neugebauer (R-Texas) and Rep. David Scott (D-Ga.) in the House.

Insurance regulation: After the financial crisis, the decision by federal policymakers to not restructure state insurance regulation in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank) reflected the consensus that the market turmoil experienced in specific financial services sectors did not extend into the insurance markets. The Federal Insurance Office (FIO), created by Dodd-Frank, was mandated to issue a report on insurance modernization. Issued almost two years after its due date, the report did not call for a full-blown federal regulator of insurance, but did suggest a hybrid approach to insurance regulation. It also endorsed NARAB II as the most efficient means of achieving licensing reciprocity. During their hill visits, Big “I” agents reminded legislators of the association’s commitment to ensuring that the FIO, an informational office with no regulatory authority, does not exceed its limited mandate in Dodd-Frank. Agents also reminded the elected officials that the Big “I” strongly opposes any form of day-to-day federal insurance regulation.

Tax reform: In the context of discussions regarding a comprehensive tax code overhaul, Big “I” agents urged members of Congress to address individual tax rates and corporate rates equally, since the majority of the association’s small business members are organized as pass-through entities and file as individuals. The Big “I” has serious concerns with the tax reform proposal recently released by House Ways & Means Chairman Dave Camp, which creates an uneven playing field with a tax bracket of 35% for many pass-throughs and a corporate rate of 25%.

In addition to lobbying Congress, dozens of Big “I” members also attended a large donor reception in the association’s Capitol Hill office and a fundraiser for Big “I” member Gov. Mike Rounds (R-S.D.), who is running for the U.S. Senate. All in all, it was a very busy week for the association, with numerous events featuring Congressional and political speakers including Rep. Steve Stivers (R-Ohio), House Majority Whip Kevin McCarthy (R-Calif.), DCCC Chairman Steve Israel (D.-N.Y.), Rep. Cathy McMorris Rodgers (R-Wash.), Paul Begala and Tucker Carlson.

The process doesn’t stop when agents go home after the annual trek to Capitol Hill, but continues with the Big “I” government affairs team in Washington and through ongoing grassroots efforts. Want to get involved? Contact the team at 202-863-7000.

Margarita Tapia is Big “I” director of public affairs.