WASHINGTON–Advocates of optional federal chartering for insurersare looking for a new champion in the Senate after a primesupporter was given a new committee assignment, insurance industrysources said today.
|Yesterday it was announced by the Senate Republican leadershipthat Sen. John Sununu, R-N.H., was being switched from the BankingCommittee to the Finance Committee, which typically does not handleinsurance matters.
|Sen. Sununu along with Sen. Tim Johnson, D-S.D., is a primaryco-sponsor of S. 40, “The National Insurance Act of 2007,” thatwould provide for an OFC system. The bill was introduced last May.In his new assignment Sen. Sununu would not have the ability topush his legislation.
|The change in committee assignments was occasioned by thedeparture from the Senate late last year of Finance Committeemember Sen. Trent Lott, R-Miss.
|Leaders of the OFC Coalition were not available for comment, butthe Coalition is expected to discuss the issue at a long-scheduledmeeting Monday afternoon, according to knowledgeable insuranceindustry representatives who asked for anonymity because they werenot authorized to speak on the issue.
|According to industry officials, the decision of the SenateRepublican leadership was unexpected, and a downer for OFCsupporters since both Sen. Chris Dodd, D-Conn., chairman of theSenate Banking Committee, and Rep. Barney Frank, D-Mass., chairmanof the House Financial Services Committee, both said this week thatthey plan to hold hearings to examine the OFC issue before theymove any legislation.
|Replacing Sen. Sununu on the Banking Committee will be Sen. BobCorker, R-Tenn.
|Several sources said the switch for Sen. Sununu to the FinanceCommittee increases his ability to raise funds for what is expectedto be a difficult reelection campaign. He is facing a strongchallenge from former New Hampshire Gov. Jeanne Shaheen, whom henarrowly defeated for the seat six years ago.
|Gov. Shaheen's campaign war chest has equaled that of Sen.Sununu, which is said to be a concern for Republican Senatecampaign officials.
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