NU Online News Service, March 4, 11:16 a.m. EST

WASHINGTON–Financial reform legislation is necessary, but must be accomplished without unintended consequences for business an Iowa congressman told a conference here.

Rep. Bruce Braley, D-Iowa, made his remarks yesterday in addressing the Independent Insurance Agents & Brokers of America's Legislative Conference & Convention.

He told agents that he supports efforts to end "irresponsible and predatory business practices, improve consumer protection, and hold Wall Street accountable for risky actions that hurt middle class families."

But, he said, he recognizes that sweeping federal legislation can sometimes have unintended consequences for individuals. This is why he said he sought clarification over the definition of "insurer" to prevent the proposed new Federal Insurance Office's data collection from adversely affecting insurance agents and brokers.

He added that he supports language stating that the FIO or the Treasury Department would not have regulatory or supervisory authority over the business of insurance.

Another issue of concern to independent agents is the sunset of the current estate tax rates and exemptions. He said next year, as the current laws sunset, the rate will rise to 55 percent and have a $1 million exemption.

The congressman said he and others in Congress have worked on a bill to provide relief to families, farmers and small businesses from those increases.

However, a bill that would adjust the exemption for inflation has not passed Congress, and the need for reform from the increases in 2011 has not gone away, he said.

"I understand the importance of not letting it return to levels that are impractical based on current and future economic circumstances; that would place an undue burden on small business owners and that is why we need legislation signed into law this year that will take care of this problem; provide certainty for estate planning purposes and let people know that we are going to continue to deal with this moving forward," said Mr. Braley.

Touching on the subject of Crop Insurance, coming from Iowa, and having been an independent agent himself at one time, he said he understands the importance of a viable crop insurance program for farmers and the agents who sell the coverage.

He said proposed $4 billion cuts over five years to the crop insurance program companies is unacceptable. The renegotiated agreement would include cuts affecting agent's commissions and would lead to $6.9 billion in cuts over the next 10 years.

"I feel that these cuts are excessive and could seriously damage the federal crop insurance program," said Mr. Braley.

Iowa has suffered over the past few years from extreme weather events, only further illustrating the need for a viable program, not only in his state but throughout the country, the Congressman commented.

"There are currently over 18,000 agents across the country that insure America's farmers and ranchers and we owe it to them to give them more guidance and better results than they currently are getting," he said.

He added that he would continue to work with Secretary of Agriculture Tom Vilsack to make changes that he feels make sense and he will be reaching out to the IIABA membership for help.

Mr. Braley remarked that the IIABA's members visit to the Capital is important because it puts "a human face" on the complex legislative issues that Congress faces.

"We need to remember that what happens in Washington D.C. and Congress is important and just because people disagree with us doesn't mean they're evil, they're bad or ill intentioned," Rep. Braley observed. "It just means we have a lot of work to do to bridge that gap."

Special Reports /

Rep. Braley Says Financial Reform Must Not Hurt Insurance

Related Stories

Recommended For You