Phoenix–A planned effort and a twist of political fate are helping the nation's surplus lines carriers increase their clout in Washington, according to a briefing delivered at an industry conference here.

The bulked-up lobbying effort was discussed here at the National Association of Professional Surplus Lines Offices, Ltd. mid-winter meeting.

NAPSLO last November approved the creation of a political action committee (PAC), which now has $40,000 in its coffers before starting any real solicitation, Dick Bouhan, the group's executive director, told membership Friday.

The PAC is the “fuel that moves the NAPSLO lobbying effort,” he advised.

Maria Berthoud, NAPSLO chief lobbyist, detailed for the group how recent House action would help her operate with greater influence on their behalf because of her ties to Rep. John Boehner, R-Ohio.

Mr. Boehner in an upset on Feb. 2 was elected the new House majority leader, replacing indicted Rep. Tom Delay, R-Texas. Ms. Berthoud explained that she serves as chairperson of Mr. Boehner's Leadership PAC, which distributes funds to help Republicans in House races.

“NAPSLO has a new, significant ally in Mr. Boehner,” she told them, praising the congressman as “someone who understands our industry” and advising that “Mr. Boehner doesn't do anything insurance-related without talking to NAPSLO.”

Ms. Berthoud said that if historic trends for off-year elections hold true, Democrats have a good chance of winning control of the House.

If that happens, the likely chairman of the House Financial Services Committee, which handles insurance-related legislation, would be Rep Barney Frank, D-Mass., with whom, she assured, she has a good relationship.

If Republicans keep control Ms. Berthoud said she also is on good terms with both Rep. Richard Baker, R-La., and Rep. Spencer Bucusa, R-Ala., the two likeliest in the GOP ranks to head Financial Services.

Ms. Berthoud said during drafting of the latest version of the Terrorism Risk Insurance Act that NAPSLO was able to secure language in the House version related to surplus lines, which was eventually stripped from the House Senate Conference version.

The White House, she explained, had pushed for a measure with very simple language. Ms. Berthoud said even though the NAPSLO effort had failed the good news was that the debate on the measure had educated lawmakers about surplus lines.

NAPSLO is currently lobbying for passage of the House State Modernization and Regulatory Transparency (SMART) Act aimed at providing uniformity in state regulation, which Ms. Berthoud said is not drawing much support from the insurance community.

An ad hoc industries group “coalition that supports SMART is very small,” she advised, noting that a long list of big property-casualty trade groups has lined up behind the concept of optional federal chartering.

She said she was hopeful the National Association of Insurance Commissioners would drop its opposition to SMART when it sees that optional federal chartering is the alternative.

Ms. Berthoud estimates that the OFC bill will be put forward first and get a hearing in the Senate Banking Committee before the SMART legislation is heard by the Financial Services Committee, but neither will get further action before Congress adjourns to campaign.

NAPSLO supports SMART, which would allow surplus lines licensees to have one point of payment for premium taxes instead of the current arrangement that has them paying in multiple states where the coverage applies. It would also eliminate diligent search requirements for placement when a sophisticated buyer was involved.

Regarding OFC, however, Mr. Bouhan warned his membership, “In the long run optional federal chartering is not the friend of the surplus lines marketplace,” explaining that it could relax restrictions on admitted carriers, making them more competitive with surplus lines that operate without rate and form regulation.

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NAPSLO Shows Beefed Up Political Arm

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