Elected Federal Officials Claim They’re Aware of Agents’ Influence

At IIABA Conference, Agents Capture Attention of Lawmakers Frank, Baker, Allen and Bunning

From coast to coast, they came to Washington, D.C. last month for a chance to hear and be heard on a wide range of issues from flood insurance to taxes, with some good old-fashioned political rhetoric thrown in as well.

The 28th Annual Independent Insurance Agents and Brokers’ (IIABA) 2004 National Legislative Conference offered a little something for everyone in attendance. Along with several speeches on insurance regulation, attendees also had the opportunity to hear from Bush-Cheney 2004 Campaign Manager Ken Mehlman.

Among the speakers was Rep. Barney Frank (D-Mass.), ranking member of the House Financial Services Committee, who told the gathering of independent agents that they are one of the three biggest grassroots groups in the country.

Frank told the crowd that along with realtors and credit unions, independent agents have a major grassroots representation across the country.

“Every congressman has agents in their districts,” Frank commented. “Independent agents seek people out and are pleasantly aggressive.”

The congressman, who hails from the same state as prospective Democratic nominee John Kerry (D-Mass.), covered an array of topics, including flood insurance, federal and state division, and where public services are most needed.

On flood insurance, Frank said the industry would hopefully see a much-improved system soon. On the federal versus states’ issue, Frank noted that greater coordination would be in everyone’s best interest. Showing some of his dry sense of humor, Frank also poked a little fun at his home state, noting that “most people in this room would not list Massachusetts’ auto regulation as one of their 416 favorite things.”

One attendee asked Frank whom Kerry might choose as his second in command when Democrats prepare to gather this summer for their national convention. Noting there were several criteria, Frank said that finding someone capable of being president if necessary was key, along with someone who is strong on national security, and someone who could bring strength to the ticket in both the southern states and the Midwestern rust belt.

“When looking at polling data, the majority of people vote for president, not the vice president,” Frank said. “Other than maybe when Lyndon Johnson carried Texas for President Kennedy.”

Frank mentioned that John Edwards, Dick Gephardt, Wesley Clark, and Florida senators Bob Graham and Bill Nelson could be among the top choices.

Bush-Cheney view
Bush-Cheney campaign manager Mehlman, who doesn’t hide his passion for the job, told the insurance professionals that while he certainly hopes they back Bush this fall, it is important either way to take part in the political process. “It (participating) is a good thing no matter who you support,” Mehlman commented.

Mehlman talked about the election and the differing views being brought forth between the President and Sen. Kerry.

“There is a very big debate on the two issues that are of the most importance—peace and prosperity,” Mehlman noted. “The President believes that 9/11 is not unlike Dec. 7, 1941,” referring to the day the Japanese struck Pearl Harbor.

Mehlman said that many ask the question, “Why can’t we just contain the enemy?” He talked about the difference between the country’s actions during the Cold War and the arms race with the Soviet Union and today’s battle with terrorists.

On the economy, Mehlman noted that since thw country is living in a true global economy, the President wants the “best trained, best educated workforce in the world. He wants to streamline how the government trains workers.”

Mehlman asserted that if elected, Kerry would raise taxes on not only those individuals making above $200,000, but much of the middle class. “A lot of these people are in the room here,” Mehlman said, noting that many individuals should grab an umbrella because Kerry would soak them. Mehlman also said of interest to the insurance industry is that Kerry has voted in the Senate to oppose tort reform legislation.
Baker, Allen on regulation, Senate races

Before a packed attendance for a morning breakfast session, Congressman Richard Baker (R-La.) and Sen. George Allen (R-Va.) spoke on federal regulation and asbestos reform.

Baker, who has been at the forefront of insurance regulatory reform along with House Banking Committee Chairman Michael Oxley (R-Ohio), told the agents that there would be no federal regulator on K Street for insurance. He did, however, say that a balancing act is needed to provide the best opportunities for both agents and consumers.

“Something has to be done about having 56 different sets of regulatory institutions,” Baker said. “For example, one state requires a stapled copy approval. Then you have a cover sheet in pink versus other states that are exclusively white. South Carolina, in the meantime, prohibits the use of parenthesis,” noting all the different challenges insurance professionals face from state to state.

Noting nothing moves without insurance, Baker commented much to the delight of the crowd, “I buy my agent, I don’t buy the policy.”

Baker added that the proposal in front of the industry has to be a pretty good one because everyone finds something wrong. “Our effort is a critical balancing act driven by your customers,” he said. “We may not get things right, but it doesn’t mean we’re not attentive to your concerns.”

Baker was followed by Allen, who noted that there would be an asbestos reform vote that day in Washington, adding, “Far too much of the costs are not going to asbestos victims, but to legal fees.”

Allen was also hopeful that lawmakers would get back to class action reform, hopefully having a crack at it by the end of May.

Changing gears to address a number of Senate races nationwide, Allen stated that independent agents are “some of the best campaign folks out there. You are leaders in a variety of fields,” he added.

Senate seats are up for grabs in a number of states with several senators not seeking new terms, including senators in Colorado, Florida, Georgia, Illinois, Louisiana, North Carolina, Oklahoma and South Carolina.

Also speaking at the event was Sen. Jim Bunning (R-Ky.), who has been active on flood insurance issues. Bunning was presented the 2003 Gerald Solomon Legislator of the Year Award by the IIABA during the conference.

Topics Agencies Legislation Flood