WASHINGTON–Advocates of optional federal chartering for insurers are looking for a new champion in the Senate after a prime supporter was given a new committee assignment, insurance industry sources said today.

Yesterday it was announced by the Senate Republican leadership that Sen. John Sununu, R-N.H., was being switched from the Banking Committee to the Finance Committee, which typically does not handle insurance matters.

Sen. Sununu along with Sen. Tim Johnson, D-S.D., is a primary co-sponsor of S. 40, “The National Insurance Act of 2007,” that would provide for an OFC system. The bill was introduced last May. In his new assignment Sen. Sununu would not have the ability to push his legislation.

The change in committee assignments was occasioned by the departure from the Senate late last year of Finance Committee member Sen. Trent Lott, R-Miss.

Leaders of the OFC Coalition were not available for comment, but the Coalition is expected to discuss the issue at a long-scheduled meeting Monday afternoon, according to knowledgeable insurance industry representatives who asked for anonymity because they were not authorized to speak on the issue.

According to industry officials, the decision of the Senate Republican leadership was unexpected, and a downer for OFC supporters since both Sen. Chris Dodd, D-Conn., chairman of the Senate Banking Committee, and Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, both said this week that they plan to hold hearings to examine the OFC issue before they move any legislation.

Replacing Sen. Sununu on the Banking Committee will be Sen. Bob Corker, R-Tenn.

Several sources said the switch for Sen. Sununu to the Finance Committee increases his ability to raise funds for what is expected to be a difficult reelection campaign. He is facing a strong challenge from former New Hampshire Gov. Jeanne Shaheen, whom he narrowly defeated for the seat six years ago.

Gov. Shaheen's campaign war chest has equaled that of Sen. Sununu, which is said to be a concern for Republican Senate campaign officials.

Special Reports /

Senate Committee Shift Could Hamper OFC Effort

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