Insurers will be hunting for a new candidate to support now that Sen. Chris Dodd, D-Conn., who had big money backing from the insurance community, has dropped his pursuit of the Democratic presidential nomination, an industry representative said.

With Sen. Dodd out of the race, "there's no one else that stands out in the field [of primary candidates]," said Ken Crerar, president of the Council of Insurance Agents and Brokers. He speculated that industry donors would "move in new directions" and support different candidates based on their own assessments.

Mr. Crerar's comments followed the announcement last night by Mr. Dodd, who is chairman of the Senate Banking Committee, which has jurisdiction over most insurance legislation, that he was giving up the race after a poor showing in the Iowa caucuses.

"Tonight I am withdrawing from the presidential race," Sen. Dodd said in a post-caucus speech. "But let me assure you, we do not exit this race with our heads hanging--rather, we do so with our heads held high."

Sen. Dodd, who drew less than 1 percent of the vote, as of Oct. 31, 2007 had pulled in $713,012 in contributions from all insurance sectors. That total was more than any other candidate in either party, according to the Center for Responsive Politics, a Washington-based nonprofit, nonpartisan research group.

The figure was almost double what the industry gave to the Democratic caucus winner, Sen. Barack Obama, D-Ill. The Republican winner in Iowa, former Arkansas governor Mike Huckabee, in October had only received $23,550 from insurance industry donors.

Mr. Crerar said he was sad about the outcome. He noted that Sen. Dodd had made insurance issues a priority since first being elected in 1980, and added that the senator has been an "honest broker" for insurance issues with a deeper understanding of the industry than almost any other lawmaker.

"He understood" the Terrorism Risk insurance Act, Mr. Crerar said. "He understands surplus lines."

With Sen. Dodd out of the race, Mr. Crerar said industry donors will look elsewhere for a candidate, but the senator will remain a key player for the industry despite his failed run, which "just didn't happen...That's politics."

Chuck Chamness, president and chief executive officer of the National Association of Mutual Insurance Companies, praised Sen. Dodd for the way he ran his campaign.

"Similar to the way he runs the Senate Banking Committee, Sen. Dodd ran his presidential campaign with lots of energy, new ideas and strong leadership," Mr. Chamness said.

He said that "while his campaign for president has ended, we look forward to working with Chairman Dodd on issues that are important to the insurance industry and the customers we serve."

Special Reports /

With Dodd Out, Insurers Seek New Standard Bearer

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