Despite the industry's relief at extension of the federalterrorism reinsurance backstop as expiration loomed, there is stillplenty of legislative work that needs to be done in the coming yearat both the federal and state levels to improve the efficiency ofinsurance transactions--although preoccupation with the Novemberelections may make progress difficult, producer representativeswarn.

After the frenzy of activity--especially in Congress--in 2007,culminating with the seven-year extension of the Terrorism RiskInsurance Act, "a little more calm would be welcomed in 2008,"according to Joel Wood, senior vice president of government affairsfor the Washington-based Council of Insurance Agents andBrokers.

Still, industry lobbyists cannot afford to rest on theirlaurels, as "we have a full plate in 2008--more than peoplerealize," noted Bob Rusbuldt, president and chief executive officerof the Independent Insurance Agents and Brokers of America inAlexandria, Va.

"Agents need to be aware of the issues [facing them in 2008],"according to Robert P. Page, president of the Alexandria-basedNational Association of Professional Insurance Agents.

All three producer association leaders agreed that passage of afederal bill to establish national standards for regulating surpluslines and reinsurance would be one of the major priorities in2008.

"The highest priority will be the surplus lines legislation,"said Mr. Wood.

Mr. Rusbuldt noted that the House has passed enablinglegislation twice, adding now it is the Senate's turn to get thework done and pass a bill.

"I'm optimistic, but not bullish" about the legislation'schances for passage, noted Mr. Wood. But he said there is a realopportunity to get action in 2008 because legislators and industryrepresentatives understand the importance for federal interventionon this issue.

However, not all in the industry see eye to eye on the need forbroader regulatory reforms--especially if it involves directfederal oversight.

Mr. Page--who is also president of Charles A. Page and SonsInsurance Agency Inc. in Houma, La.--said PIA would strenuouslyoppose any attempts to permit federal regulation of the insuranceindustry. "We truly believe that [regulation] should be at thestate level," he said. "The system is not broke."

Mr. Rusbuldt said an ongoing concern of many independent agentsinvolves the use, filing and availability of certificates ofinsurance--issues, he noted, generating more and more complaintsfrom members.

He cited misunderstandings by clients--especially in theconstruction industry--over how certificates are issued, processedand stored by companies.

"There are a number of issues and concerns that surroundcertificates of insurance, and [addressing them] involveslegislative leaders, regulators, agents, our consumers andinsurance companies," said Mr. Rusbuldt. "It's a big issue, onethat is of concern of many agents, and we're going to try toaddress that as well."

Another major problem for many agents is multi-state licensing."Modernization is needed," said Mr. Page, while emphasizing theanswer must come from the states.

Agents also need to keep their eye on tax legislation that couldaffect them as some tax changes that benefited S-Corporations(small or single-employee companies) are set to expire, which couldspell big tax hikes in the future, pointed out Mr. Rusbuldt.

While major changes will probably not pass in 2008, a partyswitch in the executive branch come November would make it morelikely that tax proposals put forward by Rep. Charles Rangel,D-N.Y., chair of the House Ways and Means Committee, become law, ifthere is both a Democratic Congress and White House in 2009.

Finally, dealing with national catastrophes and flood insurancewill be crucial issues in 2008, on the state and federal level.

As the National Flood Insurance Program is set to expire onSept. 30, 2008, the IIABA will be looking for reforms andadditional options for policyholders, such as business interruptioninsurance and an increase in content coverage and other coveragelimits.

However, the industry does not support the addition of windcoverage to the NFIP, as some in Congress have been seeking.

On broader disaster issues, PIA's Mr. Page noted more than adozen pieces of legislation offering some sort of catastropheinsurance solution. None of the bills are perfect, he said, but hebelieves the best solution will be found where the private sector,state and federal officials work together to plug gaps incoverage.

"This is no longer a Gulf of Mexico issue," he said, although hedoubts any national catastrophe plan will pass in 2008. He saidthat in the year ahead, agents should be meeting and working withfederal and state legislators to develop alternatives to fill anycoverage gaps.

Overall, "I think we have some good chances of getting thingsdone," said IIABA's Mr. Rusbuldt. But he added that passing thesurplus lines bill, licensing uniformity and catastrophelegislation will all be a challenge.

"Those are issues that are a little murkier because they don'thave hard and fast deadlines," unlike expiring programs such asflood insurance, said Mr. Rusbuldt. "Some must get done, and othersare in sort of a gray area."

If nothing else, according to CIAB's Mr. Wood, 2008 may turn outto be a time for everyone to take a break from some of the morevexing issues.

"The presidential election year will allow us to take a deepbreath," said Mr. Wood. "It is my hope and expectation that 2008will be a quieter year. Not much gets done in a presidentialelection year."