Approximately 1,000 Big “I” independent agents, brokers and industry leaders from all 50 states and several foreign countries gathered in Washington, D.C. last week for an incredibly successful 2015 Big “I” Legislative Conference.
On Thursday, April 23, Big “I” members visited more than 400 congressional offices meet with members of the U.S. Senate and House of Representatives and their staff on critical issues that directly impact the independent agency system.
In addition to thanking Congress for passing the National Association of Registered Agents and Brokers Reform Act (NARAB II) in January as part of the terrorism insurance extension, agents used these meetings to address numerous issues including insurance regulation, health insurance, crop insurance, risk retention act expansion, the Department of Labor Fiduciary Standard, flood insurance and tax reform.
Agents urged their representatives to support S. 798 and H.R. 1478, the “Policyholder Protection Act” introduced by Sens. David Vitter (R-Louisiana) and Jon Tester (D-Montana) in the Senate and Reps. Bill Posey (R-Florida) and Brad Sherman (D-California) in the House. This bipartisan legislation clarifies some ambiguities within Dodd-Frank to ensure that state regulators retain the authority to protect insurer assets designated for insurance consumers and not use them to “bail out” non-insurance related failures within a diversified financial services company. Agents also reminded elected officials that the Big “I” strongly opposes any form of day-to-day federal insurance regulation.
Additionally, Big “I” agents asked their legislators in both chambers to support a repeal or delay of the excise tax, also known as the "Cadillac" tax, in the Affordable Care Act. In 2018, health plans exceeding $10,200 a year in value for individuals or $27,500 a year for families will be subject to this 40% tax. This tax will impact more and more individuals over time, because Congress tied the threshold to a slow measure of inflation that will not keep up with the rising cost of health care. The threshold will increase by the Consumer Price Index (CPI) plus 1 for the first two years, 2018 and 2019, and CPI thereafter.
Over time, this tax will potentially cause an increase in health insurance costs for both employers and employees while also causing a significant decrease in the quality of health insurance coverage for many employees as employers are forced to reduce benefits to avoid the tax increase. In the House, Big “I” members asked for support of H.R. 879, the “Ax the Tax on Middle Class Americans Health Plans Act of 2015,” by Rep. Frank Guinta (R-New Hampshire), which would fully repeal this tax.
Big “I” agents also voiced their opposition to the proposed expansion of Risk Retention Groups into the commercial property market; a draft proposal by the Department of Labor that would expand and redefine the role of a fiduciary for agents offering retirement products under ERISA; and any amendments aimed at reopening the Farm Bill to cut the crop program.
Additionally, agents reminded policymakers of the critical role agents play in the NFIP and highlighted the fact that many agencies are organized as pass-through entities paying income taxes at an individual rate, reminding Congress that any efforts at broad tax reform should include individual rates in addition to corporate rate reform.
In addition to lobbying Congress on these issues, many Big “I” members also attended an InsurPac large donor reception in the association’s Capitol Hill office and a fundraiser for Sen. Tim Scott (R-South Carolina), a former insurance agent.
It was a very busy week for the association, with numerous events featuring Congressional or political speakers. On Tuesday, the Big “I” named U.S. Sen. Mike Crapo (R-Idaho) the Gerald Solomon-IIABA Legislator of the Year for 2014. On Wednesday, Rep. Kyrsten Sinema (D-Arizona) addressed the Annual Young Agents & InsurPac State Chairpersons Legislative Luncheon. House Majority Whip Steve Scalise (R-Louisiana) and Sen. Heidi Heitkamp (D-North Dakota) both addressed the association’s membership Thursday morning at the Legislative Breakfast before the Congressional meetings.
Sen. Mike Rounds (R-South Dakota), a Big “I” member who was elected with strong support from the Big “I,” was the keynoted speaker at the Large Agent/Broker and CEO dinner Thursday evening. The week concluded Friday afternoon with a special appearance and remarks by Ohio Gov. John Kasich (R).
The Big “I” boasts one of the most-respected and effective government affairs teams in the nation’s capital, but the best lobbyists are the agents who live, work, vote and are active in each state and congressional district. One agent’s meeting with their elected representative can make the difference in how that member of Congress votes on a bill that could greatly impact all agents across the country.
The process doesn’t end when agents go back home—it continues with the Big “I” government affairs team in Washington and through ongoing grassroots efforts in the states. Interested in getting involved? Call 202-863-7000.
Margarita Tapia is Big “I” director of public affairs.
