The new president of the National Association of ProfessionalInsurance Agents said attempts to put regulation of the insuranceindustry into the hands of the federal government is an effort bysome to create an uneven playing field for independent agents.

"Over the past decade, professional insurance agents have faceda series of challenges," said Kenneth R. Auerbach, thenewly-installed president of the Alexandria, Va.-based PIA said ina statement. "We have seen attempts to take away our commissions,our contingencies, our market share and our clients.

"When I arrived here at PIA National, I, like many of you, wasinvigorated by a new problem we were facing--the offensive effortto steal our commissions and our contingencies. Now I find myselfimpassioned by a new struggle--the attempted federal takeover ofinsurance."

"I know a little something about takeovers," Mr. Auerbach, aninsurance agency owner who is also an attorney, continued. "I usedto serve on a legal team defending against hostile corporatetakeovers.

"As in the corporate takeover arena, the supporters of a federalinsurance scheme attempt to seduce the stakeholders, including youand me, including our clients, with the hollow promises of a betterregime--better perhaps for multinational carriers and largebrokerage houses. But not for PIA members, who are Main Streetagents."

Mr. Auerbach said an optional federal charter, which would notbe optional in practice, is being pushed by a handful of largebanks, securities firms and a few carriers who want to expand theirmarket share by creating a parallel federal regulatory system togain an unfair advantage over their competitors--particularlyregional and mutual insurance carriers, many of whom arerepresented by PIA members.

"PIA's message is positive," he said. "PIA believes the statesystem of insurance regulation works well. Yes, it needsimprovements. Yes, it needs more modernization. But we shouldn'ttoss out a system that works so well for consumers and has providedsoundness and stability for our industry during our nation'scurrent economic crisis."

Mr. Auerbach, who will serve a one year term, previously servedas PIA's point person on agent commission disclosure issues. Aschairman of the PIA National Business Issues Committee, he was aleader in the association's effort to challenge attempts bythen-New York State Attorney General Eliot Spitzer to bancontingent commissions.