Flood Coverage Tops IIABA 2003 Lobby Agenda

NU Online News Service, Nov. 7, 1:29 p.m. EST?The Independent Insurance Agents & Brokers of America, based in Alexandria, Va., said today that reauthorization of the National Flood Insurance Program is at the top of its Washington lobbying agenda.

The group's comment came with release of its outline of 2003 lobbying efforts as legislators prepare to meet for the opening of the 108^th Congressional session tomorrow.

Flood insurance was one of the issues which Congress failed to deal with when it adjourned in December, said IIABA. Currently, no new policies can be written until Congress re-authorizes the program.

House Financial Services Committee Chairman Mike Oxley, R-Ohio, and Ranking Member Barney Frank, D-Mass., said they would jointly offer reauthorization legislation for the program.

Maria L. Berthoud, IIABA senior vice president of federal government affairs, said the association has received assurances from Congressional leaders that this would be one of the first pieces of legislation Congress would pass.

On the issue of insurance regulatory reform, IIABA said it supports reform of the current state regulatory system, but would oppose a federal chartering measure. The association said states should continue to regulate the market under a streamlined system that ensures uniformity through federal legislation.

IIABA said it would advocate uniformity and simplicity in state privacy laws and regulations. It said it believes that a consumer's ability to "opt out" is the central mechanism for protecting privacy rights.

"Agents and brokers believe that privacy laws and subsequent regulations must be consumer friendly and easy to understand," said Robert Rusbuldt, IIABA's chief executive officer. "The ?opt-in' option would prove onerous for business and ultimately prove to be counterproductive to consumers."

IIABA said that tort reform to change the laws governing civil litigation is expected to be a hot topic in the new Congress. The association said it would focus on asbestos and medical malpractice litigation reforms.

"Asbestos legislation is needed to ensure that those truly deserving of financial assistance get it, while those not deserving do not siphon scarce resources away from the deserving," noted Mr. Rusbuldt.

IIABA says it is urging lawmakers to reintroduce the Class Action Fairness Act. This legislation would allow litigants to move interstate class action suits into federal courts that generally are more protective of consumers' and defendants' rights.

Also on IIABA's legislative agenda for 2003:

? Seeking reintroduction of natural disaster legislation to establish a federal reinsurance backstop for homeowners in certain areas and states.

? Supporting efforts to make permanent the tax cuts enacted last year.

? Working on an agent-specific tax issue to allow owners to write off intangible assets on the sale of their agency over five years instead of the current 15-year timetable.

? Addressing incremental health care reforms that will arise in Congress in the coming year.

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Flood Coverage Tops IIABA 2003 Lobby Agenda

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