PIA Agents Blanket Capitol Hill During Federal Legislative Summit

PIA Agents Blanket Capitol Hill During Federal Legislative Summit

PIA members spent February 27 and 28 participating in the 2008 PIA Federal Legislative Summit (FLS) in Washington, D.C. The summit began with a briefing for those arriving early, followed later in the day by a full legislative issues briefing.

NAIC President Sandy Praeger, who is also the Kansas Commissioner of Insurance, delivered the keynote address on February 27 at the PIA FLS, encouraging agents to take the message to Capitol Hill that an optional federal charter is the wrong way to go.

“We’re seeing now more than ever the importance for remaining state-focused,” said Praeger, as she discussed the American Insurance Association’s (AIA) criticism of her recent open letter opposing OFC. “To help you make sure that there’s a good market and a good environment for fair selling of products is something we really pride ourselves in. We see Wall Street pressure on companies to produce profits, to keep their ratings up, and sometimes we get a little concerned that those profit motives are causing our consumers to be harmed.”

Praeger said the NAIC’s mission can be summed up with three words: deter, detect and defend. “We’re there to deter bad things from happening, we’re there to detect when bad things happen in the marketplace, and we’re there to defend our consumers. You in the agent community are the front line. I know in Kansas I look to our agent community to understand what’s going on in the marketplace, and often times I hear first from the agents when something is happening that they know is inappropriate.”

Time to Block OFC Again

PIA National Executive Vice President & CEO Len Brevik provided an overview.

Brevik noted that agents again have as their top item at the 2008 PIA Federal Legislative Summit opposition to optional federal charters — for the third year in a row. He reminded participants that even though it was the third year of OFC opposition, delivering the message is still important because the threat of federal regulation remains real. But he also noted that agents have been winning the anti-OFC debate.

“It is no coincidence that the OFC has been stalled in Congress for the past three years,” said Brevik. “One of the big reasons it is stalled is due to the opposition of Main Street insurance agents — your opposition.”

“The Chairman of the House Financial Services Committee, Barney Frank, said that OFC will never pass in Congress as long as it is opposed by local insurance agents,” Brevik said. “That’s you. You have made the difference. For the past two years, you have blocked passage of the National Insurance Act — and tomorrow, your mission is to block it again!”

Brevik reminded the FLS participants whenever they speak to lawmakers, they are in the powerful position of being the lawmakers’ local constituents. “You represent the people in their districts who will decide whether or not to vote for them, based on whether or not they support PIA’s positions.” This is especially compelling in an election year, he added.

“PIA is adamantly opposed to all proposals for federal regulation of insurance,” said PIA National President Robert Page. “State oversight of our industry has worked well for over a century. As local Main Street insurance agents, our members oppose the creation of a big, new federal insurance bureaucracy that these proposals require. We believe the best regulation is that which is closest to the people.”

Todd Harper, Staff Director for the House Financial Services Committee, provided FLS participants with an overview of upcoming hearings regarding insurance topics, including an April hearing scheduled by Rep. Paul Kanjorski’s Capital Markets Subcommittee. That hearing will focus on options for insurance regulation including OFC, as well as the NAIC’s Interstate Compact.

Capitol Hill Meetings

On Thursday, February 28, FLS participants held a kickoff breakfast during which ABC-TV News correspondent and Good Morning America commentator Claire Shipman addressed the group. Then, PIA delegations spent the day visiting their Members of Congress.

“The FLS is an important way for PIA agents to meet with their representatives in Congress and make them aware of the issues that affect us as agents and that affect our clients,” said Johnny Lee, Chairman of the PIA National Federal Affairs Committee.

“There is no better way to get our message out than to meet ‘face to face’ with your congressman and discuss the issues. PIA National provides you with all of the information you need to discuss these issues with your representatives. It is a wonderful event to take part in and very worthwhile,” Lee said.

In addition to the Capitol Hill meetings, groups of PIA members held meetings with federal officials responsible for the National Flood Insurance Program (NFIP) and the federal crop insurance program.

At the USDA’s Risk Management Agency, PIA members met with RMA Administrator Eldon Gould and two other top staff members. And at FEMA, PIA members met with Ed Connor, Deputy Director of Insurance for FEMA's Mitigation Division.

“The meeting with RMA was interesting,” said Jeff Albritton, a member of PIA of Florida who specializes in crop insurance. “It is very helpful for RMA to hear feedback from those who operate where the rubber meets the road. I can see how it would become very easy to be disconnected from the agent perspective without meetings like this.”

“Since RMA usually will only deal directly with the carrier, it was nice to have our voice heard. I think it would be beneficial for PIA to find a few more crop insurance agents from the east coast to weigh in on the national picture. I really enjoyed my time in D.C. and look forward to being invited back in the future,” Albritton said.

Thanks to Our Sponsors

We would like to thank the sponsors of the 2008 PIA Federal Legislative Summit: Platinum Level sponsor The Partnership; Gold Level sponsors American Association of Managing General Agents (AAMGA), Harleysville Insurance and The Hartford; Silver Level sponsors Motorists Insurance Group and Travelers ; and our Bronze Level sponsors Bristol West Insurance Group and State Auto Insurance Companies.

Photos

The delegation from PIA of Florida poses with Sen. Bill Nelson (D), fifth from
left, after speaking with him about issues that are important to professional
insurance agents.

PIA members from Wisconsin speak with Rep. James Sensenbrenner, Jr. (R)
during the Thursday, February 28, 2008 PIA Federal Legislative Summit.

ABC-TV News correspondent and Good Morning
America commentator Claire Shipman addresses FLS
participants before they head off to the Capitol Hill.

Greg Luce and PIA National Director Elizabeth (Liz) Luce of Wyoming meet with
Sen. Michael Enzi (R) while his staff creates a list of action items in the
background.