WASHINGTON--If Sen. Joe Biden, D- Delaware, is elected vicepresident, it would set off a domino effect making Sen. TimJohnson, D-S.D., chairman of the Senate Banking Committee nextyear, Senate Majority Leader Harry Reid, D-Nev., saidyesterday.

Such a change could help the cause of insurance industry sectorssupporting an optional federal charter for insurers because Sen.Johnson is a primary sponsor of Senate OFC legislation.

Sen. Johnson and Sen. John Sununu, R., N.H., are primarysponsors of S. 40, "The National Insurance Act of 2007," a billthat would give insurers the option of choosing between a statecharter and a federal charter.

Sen. Johnson is running for re-election despite suffering anear-fatal brain hemorrhage in December 2006, just after theDemocrats regained control of Congress. He did not return to theSenate for almost a year and still has difficulty speaking.

Steve Jarding, manager of Sen. Johnson's re-election campaign,today confirmed from South Dakota what Sen. Reid toldreporters.

"We have had a number of calls from reporters telling us whatSen. Reid said," Mr. Jarding said.

Under the scenario, the chairmanship of the Senate ForeignRelations Committee would open up because Sen. Biden, if electedvice president on a Barack Obama ticket, would leave his Senatepost, and Sen. Chris Dodd, D-Conn., the current banking chairman,has indicated for a number of years his interest in leaving thatslot to become chairman of the Foreign Relations Committee.

Mr. Jarding and several insurance as well as banking lobbyistsprivately confirmed that Sen. Dodd has long had an interest inheading the Foreign Relations Committee.

He has headed the Senate Banking Committee since Democratsregained control of Congress in January 2007. Sen. Dodd has voicedsupport for an OFC for life insurers, reiterating those comments asrecently as a July 29 hearing on insurance regulatory issues. Buthe has voiced some concerns about a similar option forproperty-casualty insurers.