The Independent Insurance Agents and Brokers of America said apush to have Congress pass insurance regulatory reform at thefederal level is among its top legislative objectives thisyear.

The group listed passage of the federal SMART Act for regulatoryreform on its agenda for action at the national and statelevel.

IIABA said it hopes to follow up on legislative successes itmanaged last year.

According to Robert A. Rusbuldt, chief executive officer of theAlexandria, Va.-based association, the group managed “a great 2005″legislative effort.

“This year, we hope and expect to build on that momentum andachieve a number of new milestones in Congress and in the statelegislatures across America,” he said in a statement.

The legislative agenda for this year includes:

o Continued strong support for the State Modernization andRegulatory Transparency (SMART) Act: IIABA said it hopes to see ameasure introduced and moved through the House Financial ServicesCommittee this year that includes the provisions in the panel'sdiscussion draft, which would reform the current state-basedregulatory system without creating a federal regulator or“optional” federal charter.

o Producer Licensing: The association wants all jurisdictions toissue and renew producer licenses on a reciprocal basis and tobring about increased uniformity in key areas. Many states enactedreciprocity and other reforms in the early part of the decade, butthe reform effort has waned, IIABA said, and little additionalprogress has been made since then.

o Tax Reform: IIABA said it continues to support changes in thetax code to allow a quicker depreciation schedule for intangibleassets when they are acquired in the purchase of smallbusinesses.

It supports legislation to allow purchasers of eligible smallbusinesses to write off as much as $5 million of purchasedintangibles over a five-year period, with ratable depreciation over10 years. It also supports President Bush's call to make theindividual tax rate reductions permanent.

o Legal Reform: Independent agents and brokers will continuetheir push for reforms of the current litigation system treatmentof claims related to asbestos exposure and medical malpracticecases.

o Natural Disaster Legislation: The active hurricane season of2005 reiterated the need for comprehensive natural-disasterlegislation in Congress, IIABA said.

The group noted there are currently four bills on the subjectintroduced in Congress and approaches that include the creation ofa federal reinsurance program or allowing insurance companies toset aside tax-free reserves for certain catastrophic risks.

This is also an important issue at the state level, as manystates will continue to consider catastrophe-related issues.

o Flood Insurance Reform: IIABA said it supports H.R. 4320, theNational Flood Insurance Program Commitment to Policyholders andReform Act of 2005.

The group said the bill contains a number of the 22 reformssuggested in a comprehensive flood modernization agenda released bythe association in November.

o Health Care Reform: IIABA said it will continue to seekincreased access to health insurance to help the uninsured obtainthe coverage they need.

o Data Security: Independent agents and brokers said they willcontinue to push for legislation to address this issue while makingsure any national standard is not burdensome. Enforcement of thestandard should be done through state insurance regulators, IIABAsaid.