Agents, Broker Trade Groups Support 'Road Map'
By Arthur D. Postal Washington Bureau Chief
NU Online News Service, Aug. 25, 3:52 p.m. EDT?Representatives of both major property-casualty agents' and brokers' groups are voicing support for the initial draft of the so-called "road map" or insurance industry regulatory modernization legislation released late last week by the House Financial Services Committee.[@@]
Charles Symington, senior vice president, federal government affairs, for the Independent Insurance Agents & Brokers of America and the Council of Insurance Agents and Brokers both voiced strong support in their first reaction to the draft released Friday to trade groups by Reps. Mike Oxley, R-Ohio, and Richard Baker, R-La., chairman of the House Financial Services Committee, and its main subcommittee, the Capital Markets panel, respectively.
In his comments, Mr. Symington said, "The IIABA strongly supports the staff discussion draft released by the Financial Services Committee. Of particular note, we are pleased with the significant agent licensing reform included in the draft. This includes a requirement that all states reach reciprocity within a two-year period and streamlined licensing standards and greater uniformity within a three-year period.
"Also important is the elimination of countersignature requirements that currently remain in only a couple of states," he said. "Any work product can always be improved, but we are very happy with this as the first step."
And, in a letter to Reps. Oxley and Baker, Ken Crerar, president, and Joel Wood, senior vice president, government affairs, "applauded" the draft legislation, a massive document of 17 titles.
"This proposed legislation is an appropriate and balanced response to the countless problems in state-to-state insurance regulation that have been identified over the course" of a number of hearings on insurance modernization issues over several years. "Upon its introduction, we look forward without hesitation to encouraging members of the committee and the House to approve this package of reforms."
They added, "We believe that insurance producers?and ultimately the consumers of insurance products?will significantly benefit from the enactment of this legislation."
They especially gave their "unqualified praise" for provisions of the bill dealing with agent and broker licensing by the various states.
"The draft recognizes that reciprocity?while in itself a major step forward?is not as critical over the longer term as uniformity," Mr. Crerar and Mr. Wood said. They also voiced support for language in the bill dealing with surplus lines. The surplus lines provisions "provide tools for states to overcome barriers and inconsistencies that inhibit the free flow of insurance commerce among the states."
Other provisions in the draft provide for a phase in of a deregulation process that would allow insurers to set rates without prior approval and sets up a non-regulatory advisory commission, to monitor the industry.
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