NU Online News Service, Dec. 28, 12:25 p.m.EST

WASHINGTON–Insurance industry officials say they areencouraged by the announcement of the leadership of the SenateBanking Committee that work is progressing on bipartisan financialservices reform legislation, and the committee hopes to "resolvethe remaining issues before we reconvene in January."

Sen. Chris Dodd, D-Conn., chairman of the committee, and Sen.Richard Shelby, R-Ala., ranking member, issued the statement onChristmas Eve, as the Senate completed its vote on healthcare andleft for the holidays.

In their statement, the senators said that, "For the last fewweeks we, and other members of the Banking Committee, have beenengaged in serious negotiations, with the goal of producing a billthat strengthens our regulatory structure and makes our economymore secure."

They added that the talks have been productive with members"demonstrating a desire to get this done and get this doneright."

The bi-partisan group shares many of the same goals, thesenators said, among which are:

o Eliminating institutions that are 'Too Big to Fail.'"

o Protecting American taxpayers "from future bailouts byenhancing our resolution regime."

o Strengthening consumer protections.

o Streamlining and modernizing the financial regulatorystructure "while preserving the dual-banking system."

o Keeping the Federal Reserve's focus on its coreresponsibility–conducting monetary policy.

o Modernize regulation and oversight of the derivativesmarket.

Blaine Rethmeier, a spokesman for the American InsuranceAssociation, interpreted the announcement as good news, adding thatit appears both sides are serious about financial regulatoryreform.

"It sounds like their bipartisan approach has been productiveand we share their view that our regulatory structure needs to bemodernized and streamlined while making our economy more secure,"he said.

He went on to say that the association would continue to stressthat any reforms need to take into account the level of risk theindustry poses to the broader financial system and measures alreadyin place to regulate the business and resolve insolventinsurers.

Joel Wood, senior vice president of government relations for theCouncil of Insurance Agents & Brokers, said the association"looks forward" to the coming Senate debate on regulatoryreform.

The Senate Banking Committee leadership's statement leaves him"no idea how the showdown over the Consumer Financial ProtectAgency and systemic risk will ultimately play out, and I'm gratefulthat for the most part, our brokerage members have been able tosteer clear of those issues."

Mr. Wood added that, "We'll keep our head down, encourage Sen.Dodd and Sen. Shelby to be aggressive on insurance reform, and doour best to make sure that the surplus lines provisions are finallyenacted into law."

The National Association of Professional Surplus Lines Officesagreed the statement is a positive step for its top legislationpriority, surplus lines reform.

NAPSLO Executive Director Richard Bouhan said that financialservices reform will be the next challenge for Congress after itcompletes health care reform. He said he expects the Senate toapprove the surplus lines language already approved by the House ofRepresentatives, adding "that the opportunity to get surplus linesreform language signed into law is finally here."

Charles Symington, senior vice president of government affairsfor the Independent Insurance Agents & Brokers of America, saidit is "of paramount importance" that the Senate recognize that theinsurance market has been well-regulated at the state level, addingthat the association is "working diligently" to avoid "needless,additional oversight."