Flood Coverage Tops IIABA 2003 Lobby Agenda

NU Online News Service, Nov. 7, 1:29 p.m.EST?The Independent Insurance Agents & Brokers ofAmerica, based in Alexandria, Va., said today that reauthorizationof the National Flood Insurance Program is at the top of itsWashington lobbying agenda.

The group's comment came with release of its outline of 2003lobbying efforts as legislators prepare to meet for the opening ofthe 108^th Congressional session tomorrow.

Flood insurance was one of the issues which Congress failed todeal with when it adjourned in December, said IIABA. Currently, nonew policies can be written until Congress re-authorizes theprogram.

House Financial Services Committee Chairman Mike Oxley, R-Ohio,and Ranking Member Barney Frank, D-Mass., said they would jointlyoffer reauthorization legislation for the program.

Maria L. Berthoud, IIABA senior vice president of federalgovernment affairs, said the association has received assurancesfrom Congressional leaders that this would be one of the firstpieces of legislation Congress would pass.

On the issue of insurance regulatory reform, IIABA said itsupports reform of the current state regulatory system, but wouldoppose a federal chartering measure. The association said statesshould continue to regulate the market under a streamlined systemthat ensures uniformity through federal legislation.

IIABA said it would advocate uniformity and simplicity in stateprivacy laws and regulations. It said it believes that a consumer'sability to "opt out" is the central mechanism for protectingprivacy rights.

"Agents and brokers believe that privacy laws and subsequentregulations must be consumer friendly and easy to understand," saidRobert Rusbuldt, IIABA's chief executive officer. "The ?opt-in'option would prove onerous for business and ultimately prove to becounterproductive to consumers."

IIABA said that tort reform to change the laws governing civillitigation is expected to be a hot topic in the new Congress. Theassociation said it would focus on asbestos and medical malpracticelitigation reforms.

"Asbestos legislation is needed to ensure that those trulydeserving of financial assistance get it, while those not deservingdo not siphon scarce resources away from the deserving," noted Mr.Rusbuldt.

IIABA says it is urging lawmakers to reintroduce the ClassAction Fairness Act. This legislation would allow litigants to moveinterstate class action suits into federal courts that generallyare more protective of consumers' and defendants' rights.

Also on IIABA's legislative agenda for 2003:

? Seeking reintroduction of natural disaster legislation toestablish a federal reinsurance backstop for homeowners in certainareas and states.

? Supporting efforts to make permanent the tax cuts enacted lastyear.

? Working on an agent-specific tax issue to allow owners towrite off intangible assets on the sale of their agency over fiveyears instead of the current 15-year timetable.

? Addressing incremental health care reforms that will arise inCongress in the coming year.