Last week, Big “I” members from all 50 states headed to Washington, D.C. for the biggest, most effective industry gathering: the annual Big “I” Legislative Conference.

On Thursday, Big “I” agents and brokers met with almost every U.S. Senate and House of Representatives office to discuss the association’s top legislative concerns:

NFIP. The Big “I” supports reforming the NFIP and slowly increasing private market involvement as a complement to the program. In addition to advocating for a 10-year reauthorization of a reformed NFIP before its expiration on Sept. 30, agents also expressed support for S. 563, the “Flood Market Parity Act” by Sens. Dean Heller (R-Nevada) and Jon Tester (D-Montana), and the House companion bill, H.R. 1422 by Reps. Dennis Ross (R-Florida) and Kathy Castor (D-Florida).

The Big “I” also opposes reducing the commissions that compensate agents who sell NFIP policies, as well as cuts to the reimbursement rate for WYO insurers.

Health care. More than seven years after the Affordable Care Act (ACA) became law, many of its provisions continue to have damaging effects. Big “I” agents advocated for a full repeal of the “Cadillac” tax and urged support for S. 58 and H.R. 173, the “Middle Class Health Benefits Tax Repeal Act” by Sens. Dean Heller (R-Nevada) and Martin Heinrich (D-New Mexico), and Reps. Mike Kelly (R-Pennsylvania) and Joe Courtney (D-Connecticut). This harmful tax will not only impact many Big “I” small business members and their clients starting in 2020, but will impact more individuals over time because the tax threshold is tied to a very slow measure of inflation. This snowball effect will do irreparable damage to the employee benefits marketplace.

The Big “I” also opposes efforts to cap the tax exclusion for employer-sponsored health insurance, and will continue to advocate for the important role agents and brokers play in selling and servicing health insurance.

Tax reform. Big “I” agents continued to support simplifying the tax code and lowering tax rates for small businesses. During the fly-in, agents urged Congress to address small business and individual rates along with corporate rates in tax reform efforts. The majority of independent agencies are small business pass-through entities that file at individual rates. Reforming corporate rates alone would contribute to an uneven playing field for Main Street businesses.

The Big “I” also supports the current tax treatment of life insurance products and would oppose changes that make it more difficult for American families to protect their financial futures.

Insurance regulatory reform. The Big “I” is concerned about federal encroachment on the state regulatory system. Agents supported significantly restricting or eliminating the Federal Insurance Office (FIO), which was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act and has proven over the years to have questionable value for the insurance market and consumers.

Agents also discussed a House bill, H.R. 10, the “CHOICE Act” by Rep. Jeb Hensarling (R-Texas), that intends to limit the duties of FIO. The association is concerned that the bill’s proposed restructuring of FIO into a new Independent Insurance Advocate could result in unintended consequences for state-based insurance regulation. 

Federal Crop Insurance Program (FCIP). Agents are the sole sales force of the FCIP, and the Big “I” strongly supports this safety net for America’s agriculture communities. Big “I” agents expressed their opposition to any attempts to cut or cap premium incentives which American farmers and ranchers use to purchase adequate crop insurance coverage. Reducing participation from any group of farmers will change the premiums for all farmers because it will change the risk pool and increase costs.

Also during last week’s conference, the association presented its agent government affairs awards, hosted the InsurPac large donor reception and bestowed its top honor upon a member of Congress. For his unwavering commitment to Big “I” legislative priorities—including efforts to reauthorize the NFIP, reform the tax code, repeal and replace the ACA, and address numerous insurance regulatory issues—Sen. Dean Heller (R-Nevada) is the 2016 Gerald Solomon-Big “I” Legislator of the Year.

The week’s events also included addresses by Sens. Cory Gardner (R-Colorado) and Joe Manchin (D-West Virginia), Reps. Joe Kennedy III (D-Massachusetts) and Greg Walden (R-Oregon), and an insurance carrier CEO panel that delivered insight on several top issues from the market perspective.

The next Big “I” Legislative Conference is scheduled for April 18-20, 2018. 

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