IIABA Unveils '04 Legislative Agenda
NU Online News Service, Jan. 13, 11:52 a.m. EST?An extension of the National Flood Insurance Program is among the legislative issues that the Independent Insurance Agents and Brokers of America will push for this year, the group said.[@@]
The Alexandria, Va.-based IIABA said its legislative agenda would also include modernizing insurance regulation, such as agent licensing reform; seeking tax and tort reform legislation on medical liability and class action; advocating passage of a flood insurance reform bill; and advocating for fair and reasonable regulations for faxing, calling and e-mailing consumers.
"With 2004 being an election year, we believe our elected officials will be paying close attention to the needs of Main Street America," Robert A. Rusbuldt, the association's chief executive officer, said in a statement.
Mr. Rusbuldt said the organization "will work to further the legislative agenda of insurance consumers and independent agents and brokers, as well as the entire insurance industry."
IIABA, he said, will continue its push for a five-year reauthorization of the National Flood Insurance Program, which has been passed by the House and awaits action in the Senate.
Maria L. Berthoud, senior vice president of federal government affairs for IIABA, said the association would work against a language revision affecting agents, which is advocated by the Federal Emergency Management Agency and would be disadvantageous to agents writing flood insurance.
Under the proposed change, the status of independent agents would be changed from agent to broker. Justin Roth, director of federal government affairs for IIABA, said this would unduly change the relationship of agents, placing an economic burden on agents who would have to secure a brokers license and absorb errors and omissions responsibility that is now a part of the carrier relationship.
IIABA has argued to FEMA that this would be an unfair and burdensome requirement for independent agents that is not placed on exclusive and captive agents.
Mr. Roth said, presently, FEMA has delayed any rule change.
On the issue of state licensing reform, IIABA said it opposes optional or mandatory federal regulation of insurance. It supports "a pragmatic, middle-ground approach."
IIABA said it looks to push tort reform legislation that would reduce frivolous lawsuits while preserving the rights to legal redress of those with legitimate grievances.
Regarding taxes, IIABA said it would seek to reduce the depreciation schedule on intangible assets from its current 15-year schedule.
Other issues on IIABA's legislative list include:
? Guaranteeing reasonable usage of insurance credit scoring, in balanced and consumer-friendly ways, as a means of risk-assessment.
? Addressing continued incremental health care reforms that will arise in Congress this year.
"IIABA will waste no time pressing ahead with its legislative agenda," Mr. Rusbuldt said. "We will reach out to congressional leaders and other important legislative leaders on Capitol Hill to advocate on behalf of independent agents and brokers on these critical consumer, insurance and business issues."
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