Stage Set for Another Banner Year for Independent Agents

The Big “I” is very pleased that 2015 yielded a number of legislative successes.

Early in 2015, the association scored a tremendous double victory when Congress acted on both the National Association of Registered Agents & Brokers (NARAB II) and a long-term extension of the Terrorism Risk Insurance Program in one swoop.

Other wins throughout the year included enactment of the Protecting Affordable Coverage for Employees Act, which corrects a flaw in the Affordable Care Act (ACA) and maintains the small group market at 50 and under employees, and reverses $3 billion in cuts to the Federal Crop Insurance Program (FCIP).

Even with these numerous victories, 2016 is expected to be a very busy year.

One of the ACA’s biggest flaws is the excise tax or so-called “Cadillac” tax. This forthcoming tax will assess a 40 percent levy on health plans that exceed an established annual cost and is expected to negatively impact more and more consumers over time. With the Big “I’s” support, and more than 300 co-sponsors from both chambers and both sides of the aisle, several bills that would repeal this tax have been introduced and are gaining momentum. In a victory for the association, a two-year delay of the “Cadillac” tax was included in the year-end omnibus funding bill.

While this is a good first step, with at least four repeal bills still pending in Congress, the Big “I” continues pressing for full repeal.

The National Flood Insurance Program (NFIP) is scheduled to expire on Sept. 30, 2017, and the Big “I” will continue reminding Congress that independent insurance agents and brokers play a vital role in the sale and servicing of NFIP policies as reauthorization discussions begin.

The Big “I” also supports S. 1679 and H.R. 2901, the “Flood Market Parity and Modernization Act.” This legislation complements the NFIP and ensures that policyholders will not lose their grandfathered status if they chose to move between the NFIP and the private market for flood coverage.

The Big “I” continues working with state insurance regulators to fight H.R. 3974, the “Nonprofit Property Protection Act.” This legislation attempts to expand the Liability Risk Retention Act to allow Risk Retention Groups (RRGs) to write nearly any form of commercial insurance coverage while retaining a weaker and preferential system of regulatory oversight. There is no marketplace need for this legislation, and it has the potential to harm consumers.

Insurance agents and brokers are also concerned with a proposed rule by the U.S. Department of Labor (DOL) that would expand a fiduciary standard to broker-dealers. As written, the DOL proposal would generate undue compliance burdens and increased liability for many agents and brokers. The association is advocating for legislative or regulatory solutions to address flaws in the proposed rule and ensure that investors are not harmed by limited access to advice.

The U.S House of Representatives passed H.R. 1478, the “Policyholder Protection Act,” in November. This legislation protects policyholder assets and reaffirms the primacy of state oversight of the insurance market. The Big “I” has been actively advocating for this bill since it was first introduced in early 2015 and will continue urging the Senate to consider this bill quickly.

The Big “I” is excited to hit the ground running in 2016 and looks forward to announcing more victories on behalf of the almost quarter of a million agents and brokers across the country it represents in the coming months.