IIABA Legislative Conference Allows Agents, Brokers Chance to Lobby

From coast to coast, they came to Washington, D.C., last month for a chance to have their voices heard on a wide range of issues from workers’ compensation to taxes on their businesses.

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, who addressed the crowd at the Capital Hilton.

Mehlman told the insurance professionals that while he certainly hopes they back the president this fall, it is important either way to take part in the political process. “[Participating] is a good thing no matter who you support,” Mehlman said.

Mehlman talked about the election and the differing views being brought forth between the president and Sen. John Kerry (D-Mass.).

“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 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 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 that one position that should be of great interest to the insurance industry is that Kerry has voted in the Senate to oppose tort reform legislation.
Baker, Allen address regulation

On day two, with a packed attendance for the Thursday morning breakfast session, independent agents heard from a pair of speakers—Rep. Richard Baker (R-La.) and Sen. George Allen (R-Va.).

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 for insurance on K Street. 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 parentheses,” 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 on Capitol Hill, 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.

Mass. Rep. gets ‘Frank’ on issues
On the conference’s final day, attendees heard from 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 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 of Massachusetts, noting that “most people in this room would not list Massachusetts’ auto regulation as one of their 416 favorite things.”

IIABA reports successful conference
IIABA’s Charles Symington, senior vice president of federal government affairs, told Insurance Journal that the association was pleased with the turnout and felt that issues were addressed to the satisfaction of attending agents and brokers.

“We had approximately 900 agents come in from all over the country to come together to discuss issues that are important to the membership and also conduct Hill visits with members of Congress with both House members and the U.S. Senate,” Symington said. “Those visits were highly successful. They discussed issues of importance to the membership such as insurance regulatory reform, crop insurance, flood insurance, tort reform, extension of the terrorism risk insurance act amongst others. All reports back were very favorable. The members are keeping an eye on the issues important to the agents.”

With the 2004 conference in the books, Symington noted that work is already ongoing for next year’s event.

“These things are pretty similar from year to year,” he commented. We’ll make some minor logistical improvements as needed. All and all it has been working well and I don’t think we’ll have any major changes from this year to next.”

Topics Agencies Legislation Training Development