IIABA Outlines Legislative Agenda for 2004

With the start of the New Year and the beginning of a new session of Congress only a few weeks away, the Independent Insurance Agents and Brokers of America (IIABA) is rolling out its legislative agenda for 2004.

Top issues for the Big “I” include modernizing insurance regulation, such as agent licensing reform; reforming the tax treatment of intangible assets; pushing tort reform legislation, such as medical liability reform and class action reform; advocating passage of a flood insurance reform bill; and advocating for fair and reasonable regulations on the “Do Not Call/Fax/Spam” laws.

“With 2004 being an election year, we believe our elected officials will be paying close attention to the needs of Main Street America,” IIABA CEO Robert A. Rusbuldt said. “We will work to further the legislative agenda of insurance consumers and independent agents and brokers, as well as the entire insurance industry.”

In 2004, IIABA will continue pushing for a five-year reauthorization of the National Flood Insurance Program (NFIP), which has been passed by the House and awaits action in the Senate. Reforms in this legislation target the worst repetitive flood-loss properties and increase funding for flood-mitigation steps.

“Reform and long-term reauthorization of the flood insurance program is absolutely vital,” IIABA Senior Vice President of Federal Government Affairs Maria L. Berthoud said. “Just as important is an effort by FEMA to shift more liability from ‘Write Your Own’ insurance companies to independent agents, and to change the status of flood agents from agents to brokers. IIABA will work against this ill-conceived and onerous proposed regulation.” In the area of state regulatory reform the Big “I” opposes optional or mandatory federal regulation of insurance. It favors a pragmatic middle ground approach that would keep regulation in the hands of the states while streamlining the system and fostering uniformity through federal standards.

Tort reform also remains a vital issue for IIABA, which will continue to push for legislation that reduces frivolous lawsuits while preserving the rights to legal redress of those with legitimate grievances. The Big “I” will advocate asbestos litigation reform, as well as medical and legal liability reforms.

Additionally, IIABA seeks reforms to address a discrepancy between marketplace realities and the tax code’s treatment of intangible assets. Current law requires these assets to be written off over 15 years, but business experience shows that intangible assets, such as customer lists, have a shelf life of approximately five years. With a quicker depreciation schedule, small businesses will have more cash to reinvest in their operations.

Other issues high on IIABA’s list include:

Streamlining agent licensing to mandate reciprocity in all 50 states and the District of Columbia.

Clarifying do-not-call, do-not-fax and anti-SPAM legislation, so that businesses and professional associations are not unfairly prevented from communicating with customers or members electing to receive these communications.

Maintaining adequate funding for the federal crop insurance program and ensuring that local, state-licensed insurance agents remain the primary sales force for crop insurance.

Guaranteeing reasonable usage of insurance credit scoring, in balanced and consumer-friendly ways, as a means of risk-assessment.

Topics Agencies Legislation Flood