New Group Seeks Support For Fed Charter

That has not happened, highlighting the need for a federal option, he said.

The Washington, D.C., group faces some significant hurdles, however. At the moment, optional federal chartering is running a distant second to the State Modernization and Regulatory Transparency, or SMART Act, being proposed by House Financial Services Committee chairman Michael Oxley, R-Ohio, and Rep. Richard Baker, R-La., who chairs a key Financial Services Subcommittee.

"It is an uphill battle," Mr. Poli observed. "They're looking for a very quick, neat and tidy answer," he added, noting that Congress is also interested in "pleasing a few people," specifically state insurance commissioners.

Recently, the group held a "very successful fly-in," where members came to Washington, D.C., to meet with 20 congressmen and senators who were, "very sympathetic to our cause," he said.

The group stands in opposition to the largest producer trade association, the Independent Insurance Agents & Brokers of America, which questioned the role of the Financial Services Roundtable. The Roundtable, based in Washington, D.C., is an industry group representing 100 major banking, insurance and investing corporations. It is providing seed money for the group, said Mr. Poli, but he hopes it will eventually have enough members to support itself.

"As the top trade association representing 300,000 independent insurance agents and brokers across the country, the Big I (IIABA) finds it interesting that the Financial Services Roundtable, which represents only the largest Financial Services companies, is behind this so-called Agents for Change that purports to represent small business owners in the insurance market," said Charles Symington, senior vice president of government affairs and federal relations for the IIABA. "As the largest insurance agents and brokers trade association, the 'Big I' opposes the optional federal charter, but supports the SMART Act."

The IIABA held its own congressional fly-in last month, bringing over 1,000 agents to the capital to lobby their congressmen in favor of the SMART act.

"Those on Capitol Hill know who represents insurance agents and brokers and we look forward to working with them as the chairman moves the SMART Act forward," Mr. Symington said.

Mr. Poli acknowledged that not all agents share his views. "We talked to some agents who feel the state insurance commissioners are doing a good job, and I believe they are doing a good job," he said, emphasizing the optional aspect of the proposed federal charter.

However, he said, the variances in licensing regulations can cause significant problems for agents. He argued that a federal charter is needed to help reduce the burden on agents who do business in multiple states.

At his own firm, Insurance Marketing Center, based in Rockville, Md., he said he has an employee whose sole duty is to ensure that all paperwork for licensing in different states is current.

Having a federal insurance regulator established under the optional federal charter legislation, Mr. Poli said, also would serve to help the insurance industry in times of crisis. The events of 9-11 "showed how in need the country was of a national insurance commissioner," as insurers initially tried to deal with questions of what coverages applied and how much should be paid. "There was no one to look to for answers," he said.

Looking forward, Mr. Poli said the group eventually could play a role in other issues facing insurance agents, but only after an optional federal charter has been implemented.

"Once we fight and win this battle, we can look at other things," he said.