WASHINGTON–Sen. Chris Dodd, D-Conn., chairman of the Senate Banking Committee, committed himself yesterday to "examining" legislation that would reform regulation of the surplus lines and reinsurance markets as a priority for his committee agenda in 2008.
In revealing his agenda for 2008 at a packed press briefing in the radio-TV gallery, he also committed the panel to looking at legislation creating an Optional Federal Charter for insurers as part of the congressional initiative to "reform and improve insurance regulation."
Other priorities will include enactment of legislation reauthorizing the National Flood Insurance Program (NFIP) as well as reforming the program. "I intend to do all I can to move this legislation to the president's desk before the end of the year," Sen. Dodd said.
He also vowed to hold oversight hearings on the difficulties people in some communities are having in finding affordable property insurance.
"We will continue to explore what market-based steps we might take to ensure that high insurance costs do not price citizens out of their homes and businesses," he said.
Sen. Dodd's comments on his insurance agenda for 2008 won plaudits from some industry officials.
"Chairman Dodd's statement was right on target," said Joel Wood,senior vice president, government affairs ofthe Council of Insurance Agents & Brokers.
He said the committee should make progress toward a full examination of the OFC, fix flood insurance and pass the surplus lines reform legislation.
"These are thoroughly achievable goals, and the right ones," Mr. Wood said.
He said passage of surplus lines legislation "is the top of our list, and we have a unique opportunity to align the stars and get a meaningful reform to the finish line in that area, when there is so much division within the industry on other regulatory reform proposals."
In his comments on the bill extending and reforming the NFIP, Sen. Dodd specifically mentioned that a hold has been placed on the Senate bill "by at least two senators."
Senators rarely mention such parliamentary action by fellow senators, and his comments appeared aimed at Louisiana's senators, Sen. Mary Landrieu, D, and David Vitter, R.
They have opposed the bill because some of its provisions would significantly raise the cost of flood insurance to Louisiana residents.
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