Agent/Broker Groups Feud

Agent/Broker Groups Feud

By Steven Brostoff, Washington Editor

NU Online News Service, April 18, 12:22 p.m. EST, Washington?A dispute has erupted between two major insurance agent groups over who represents the concerns of large commercial brokerages.

The battle between the Council of Insurance Agents and Brokers in Washington, and the Independent Insurance Agents and Brokers of America in nearby Alexandria, Va., emerged after IIABA changed its name from the Independent Insurance Agents of America.

The dispute apparently stems from a statement in a news release issued by IIABA on its decision to add the term "brokers" to its title.

In the release, IIABA President Thomas Ahart noted that most of the largest agencies and brokerage firms in the country are members of IIABA.

"IIABA is the only national trade group that represents the legislative concerns of agents and brokers at both the federal level and on a permanent basis in state legislatures and insurance departments," he added.

John Van Osdall, chairman of CIAB, which has traditionally represented large commercial brokerages, responded by noting the "stark differences" that have defined CIAB and IIABA.

"For example, we strongly support broad deregulation of commercial lines, whereas individual IIAA affiliates have blocked commercial lines deregulation efforts in many states," Mr. Van Osdall said.

"On the agent/broker licensing issue, the Council has aggressively led reform efforts. But the promises of NARAB (the proposed National Association of Registered Agents and Brokers that was part of the Gramm-Leach-Bliley Act) have not been fully realized due to the efforts of several IIAA affiliates to reject full interstate agent/broker licensing reform," he said.

Mr. Van Osdall also noted that the Council supports an optional national charter for insurance companies, while IIABA does not.

Moreover, he said, the Council welcomes bank members and does not support the "continued, tired battle" against the Office of the Comptroller of the Currency and national banks.

He added that there are many issues of importance to commercial brokerages that IIABA has never addressed.

"There are a variety of international taxation and captive insurance company issues where IIAA's involvement would be new and welcome," he said.

Robert A. Rusbuldt, chief executive officer with IIABA, said that the association's president, Mr. Ahart, will be sending a letter to Mr. Van Osdall responding to all his comments, but the response will be private.

Mr. Rusbuldt said that if the Council has issues with who IIABA represents, these should be discussed in private.