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Independent Insurance Agents 3/14/89 [OA 8747]
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Independent Insurance Agents 3/14/89 [OA 8747]
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Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Mark Davis Subject Files
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Originally Processed With FOIA(s):
FOIA Number:
S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Speechwriting, White House Office of
Series:
Davis, Mark, Files
Subseries:
Subject File, 1989-1991
OA/ID Number:
13871
Folder ID Number:
13871-014
Folder Title:
Independent Insurance Agents, 3/14/89
Stack:
Row:
Section:
Shelf:
Position:
G
19
2
6
4
/ DAY Bonner 3/7/89 /
(1)
- Lincoln: 2ND INANGURAL, MARCH 165 -
"TO CARE FORHIM WHO shall borne thE
BATTLE AND for his WIDOW, AND hisorphan."
(2)
LIFE MAG?
<(3)
Bonita, MAUREEN + MichAel?
(15)
BUCK PRIVATE?
DoFInterion
NETHERIAWDS CARilloN (CARCLON)
(6)
ARLINSTON cem. / CARRILLIN ? DOARMY
545-6700:
6694-07412
L+ Col MERISON MARINES buey MARines / etc. but
MDOPWASH
475-0843
ARmy DOES MANAGE OR ADMINISTER
(7)
Iwo JIMA bronze?
It is beonze - Dept. of Interior- -
(8)
JEFF DADIS bronze? DOME of MARBLE-
Tom JEFFERSM [426-6822]
yes
March 2, 1989
DRB
THE WHITE HOUSE
WASHINGTON
MEMORANDUM
TO:
DAVID DEMAREST
FROM:
JOSEPH W. HAGIN
SUBJECT:
APPROVED PRESIDENTIAL ACTIVITY
Address Annual National Legislative
EVENT:
Conference for Independent Insurance
Agents of America, Inc.
DATE:
March 14, 1989
TIME:
10:15 - 10:45 am
DURATION:
30 minutes
LOCATION:
Capital Hilton Hotel
ATTIRE:
Business Suit
REMARKS REQUIRED:
Yes
MEDIA COVERAGE:
Open
FIRST LADY
No
PARTICIPATION:
ADDITIONAL
INFORMATION:
CONTACT:
TELEPHONE: OFFICE
HOME
NOTE: PROJECT OFFICER, SEE ATTACHED CHECKLIST
Ed Rogers
Marlin Fitzwater
David Bates
James Cicconi
David Demarest
David Valdez
Fred McClure
Jean Lamb
USSS - PPD
Susan Porter Rose
Steve Studdert
Operations - Executive Residence
Patty Presock
John Keller
WHCA Audio/Visual
Speechwriting Office
Tim McBride
WHCA Operations
Laurie Firestone
J. Bonnie Newman
Robert Guttman
Tony Lopez
3ach
if
LRSM
INDEPENDENT
INSURANCE AGENTS
OF
whats
P.O. Box 606, Concord, N.H. 03302 - Tel. (603) 224-3965
FAX (603) 224-0550
WATS 1-800-852-3373
February 2, 1989
EXECUTIVE VICE PRESIDENT
Anthony J. Juliano, CPCU
The Honorable John Sununu
DIRECTOR OF MEMBERSHIP SERVICES
Chief of Staff
Stanley B Burbank
The White House
1600 Pennsylvania Avenue, NW
Washington, DC 20500
ASSOCIATION OFFICERS
1988-1989
Dear John:
PRESIDENT
Henry A. Bechard, Jr., CIC
On behalf of the Independent Insurance Agents of New
Nashua
Hampshire and our national association, the Independent
PRESIDENT-FLECT
Insurance Agents of America, I would like to request
Donald T. Bragg. CIC
Lancaster
your assistance in scheduling President Bush to speak
before our Annual National Legislative Conference in
VICE PRESIDENT
Charles F. Worcester
Washington, DC on March 14 and 15.
Milford
STATE NATIONAL
As you can see from the attached letter of invitation to
DIRECTOR
the President, we are the largest insurance association
Peter 1. McArdle, CIC, ARM
Nashua
in the country and one of the largest small business
EXECUTIVE COMMITTEE
associations. Attending our conference at the Capitol
Hilton Hotel, only a few blocks from the White House,
1989
Allan R. Arkwell
will be approximately 800 small business people from all
Dover
50 states, including a large contingent from New
Hampshire.
Peter P. Fresco
Conway
In the past, President Reagan, President Ford and other
Philip M. Reed, AAI
Manchester
Republican luminaries have addressed our group, and we
1990
would be honored to have President Bush discuss any
Rosemarie Glidden, CPCU
salient issues or topics at our conference.
Greenland
Thomas 11. Keating
The Independent Insurance Agents of New Hampshire is
Rochester
proud to have you serving in one of the most prestigious
Donald V.C.. Nelson, CPC 11 (10
position in the nation, and we trust you will not
Laconia
hesitate to call us if we can be of assistance to you in
1991
the future.
E. Jon Barselle, (10
New London
Thank you for your consideration of this matter.
William 1. Harris, AAI CIU
Meredith
Sincerely,
David A. Westover, (K. AAI
Keene
IMMEDIATE PAST
Executive Jany Vice President
PRESIDENT
Joseph 1. Gorman, Ir. (10
Anthony J. Juliano, CPCU
Claremont
AJJ/gj
enc.
Independent
CC: David Carney, Deputy Director, Office of
Insurance
Political Affairs
Agent.
Henry A. Bechard, Jr., President, IIANH
Independent Insurance Agents of America
INCORPORATED
January 27, 1989
CAPITOL HILL OFFICE
SUITE 200
800 PENNSYLVANIA AVE., S.E.
WASHINGTON, D.C. 20003
The President
The White House
2C2/544-5833
FAX 202/544-8712
1600 Pennsylvania Avenue, NW
Washington, DC 20501
Dear Mr. President:
The Independent Insurance Agents of America, Inc. (IIAA), the
nation's largest insurance agent association representing more than
small business associations - will hold its Annual National
220,000 agents and their employees and one of the nation's largest
Legislative Conference on March 14 and 13 at the Capital Hilton Hotel
in Washington, DC. On behalf of our national membership, I would like
business people from all 50 states at our conference.
to extend to you an invitation to address approximately 300 small
In the past, President Reagan, President Ford, Bob Dole,
Jack Kemp, Alan Simpson, Guy Vander Jage and other distinguished
Republicans have addressed our group. We would be honored to have you
join us this year to talk about salient issues of the day.
The people attending the convention are typically the most
politically active and astute agents from all 50 of IIAA's state
activities, state and federal politics. and frequently serve as
associations. These agents are often involved in local and community
campaign and finance committee operatives for federal candidates. In
fact, many of them were active in your presidential campaign last
year. Our Independent Insurance Agents of America Political Action
country. Committee (InsurPac) is among the top ten business PACs in the
address a large crowd of small businessmen and women who are
Our conference would provide you with an excellent opportunity to
to the White House makes the speech site convenient.
predominately conservative Republicans. Moreover, the close proximity
your consideration of this matter.
I will be in touch with your office shornly, and I appreciate
Sincerely,
Robert A. Rusbuldt
Director of Federal Affairs
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
01. Notes
Handwritten notes, Re: Independent Insurance Agents
n.d.
[double-sided]. (2 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Speechwriting, White House Office of
Series:
Davis, Mark William
Subseries:
Subject File
Open on Expiration of PRA
(Document Follows)
WHORM Cat.:
By CAP (NLGB) on 4/5/05
File Location:
Independent Insurance Agents 3/14/89
Date Closed:
12/13/2004
OA/ID Number:
13871-014
FOIA/SYS Case #:
S
Appeal Case #:
Re-review Case #:
2005-0481-S
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
P.RM. Removed as a personal record misfile.
the white HOUSE
washington
Anthony Juliano
BOB
(bolt)
Rusbuldt walt Div.
Gov. affairs - 544-5833 -
LEGIS CONF. - MORE FROM
TEXAS - ALL STATES - MOST POLITICAL-
Ly ACTIVE + ASTUTE- RNC types -
LloyD BENTSON before on tay
iSSUES - TRENT Lott After.
- ALL OWN AGENCIES "MARK
DAVIS INSURANCE Avency"
- CAPITAL Gains Great
- MANDATED BENE- hate
McCarnen- - fungesson -
STAF 40 years ago financed
STATE REO. of insurance-
THE WHITE HOUSE
WASHINGTON
Has Also, Fed. Rs. hoard,
Coyres etc. devegulating
banking inDustry. REGULATIES,
about allowing banles to the
PRESIDENTIAL OR congession seel
road, fed is sons to follow,
insurance. OK, If this is
No banks must have proper
PRESIDENT'S
No PROBLEM w/ S+Ls proped
they have had insurance
for yours.
- TAXES
- READ my lips
- McC. - . -
ENTRE PRE NEURS
EDUCATION -OK -
BOB B.- - ASKs
BOB
DIRECTORFED.
500. A FFAIRS
Rus bulbt
(Rus - bolt)
would on Bush
company - research- -
9 JHS-04
Dear Tony
plus: cc: David Demarest
INDEPENDENT
INSURANCE AGENTS
hampshire OF new
P.O. Box 606, Concord. N.H. 03302 - Tel. (603) 224-3965
WATS 1-800-852-3373
FAX (603) 224-0550
EXECUTIVE VICE PRESIDENT
Anthony I Juliano CPCU
February 2, 1989
DIRECTOR OF MEMBERSHIP SERVICES
Stanley R Burbank
The Honorable John Sununu
Chief of Staff
The White House
1600 Pennsylvania Avenue, NW
ASSOCIATION OFFICERS
1988-1989
Washington, DC 20500
LEGIS. CONF.
PRESIDENT
Henry A. Bechard Ir CIC
Dear John:
Nashua
On behalf of the Independent Insurance Agents of New
PRESIDENT-ELECT
Hampshire and our national association, the Independent
Donald T. Bragg. CIC
Lancaster
Insurance Agents of America, I would like to request
assistance in scheduling President Bush to speak in
VICE PRESIDENT
Charles F. Worcester
your before our Annual National Legislative Conference
Milford
Washington, DC on March 14 and 15.
STATE NATIONAL
DIRECTOR
As can see from the attached letter of invitation to
Peter 1. McArdie CIC. ARM
Nashua
the you President, we are the largest insurance association
EXECUTIVE COMMITTEE
the country and one of the largest small business
associations. .n Attending our conference at the Capitol
1989
Allan R. Arkweil
Hilton Hotel, only a few blocks from the White House,
Dover
will be approximately 800 small business people from all
Peter P Fresco
50 states, including a large contingent from New
Conway
Hampshire.
Philip " Reed AAI
In the past, President Reagan, President Ford and other
1990
Republican luminaries have addressed our group, and we
Rosemane Godden
would be honored to have President Bush discuss any
Greenwood
salient issues or topics at our conference.
The Independent Insurance Agents of New Hampshire is
Donad
proud to have you serving in one of the most prestigious not
position in the nation, and we trust you will
hesitate to call us if we can be of assistance to you in
the future.
Thank you for your consideration of this matter.
Sincerely,
Anthony Jany J. Juliano, CPCU
Executive vice President
AJJ/gj
Independent
Insurance
enc. CC: David Carney, Deputy Director, Office of
Agent.
Political Affairs
Henry A. Bechard, Jr., President, IIANH
Independent Insurance Agents of America
INCORPORATED
ROBERT RUSBULDT
DIRECTOR OF FEDERAL AFFAIRS
600 PENNSYLVANIA AVENUE, S.E.
WASHINGTON, D.C. 20003
(202) 544-5833
OLD DRAFT
cm" WORD)
Davis/Dooley
March 8, 1989
6 p.m.
INDEPENDENT INSURANCE AGENTS OF AMERICA
ANNUAL NATIONAL LEGISLATIVE CONFERENCE
CAPITOL HILTON, MARCH 14, 1989
Thank you.
It is truly an honor to appear before this group. In this
city, the currency of status is measured in titles and honorifics
-- senator, ambassador, secretary. But in my book, you hold one
of the most impressive titles of all -- that of entrepreneur.
I know the hunger you feel to own a firm of your own, to
start from scratch, to build it and watch it grow. I know the
satisfaction of matching resources to needs, of meeting deadlines
and of meeting payrolls.
A few years after World War Two, I started my own business.
It was a small business, but not too small to teach me the facts
of economic life. I got my start by taking a risk; and I got my
education by making that company grow.
Our company, Zapata Off-shore, did take some risks. There
was a new technology, unproven, full of half-starts and failures,
called off-shore drilling. We took a gamble, we invested in that
technology and we succeeded in pioneering a new way to find
America's energy. In 12 years, Zapata grew from a few employees
to 425, from assets of $1.5 million to $15.8 million. It was
always easy, even in the years we did well. I recall our despair
when a hurricane hit our brand new rig on its first location --
and it disappeared.
But I learned some very important lessons. When that rig
went down, people lost their jobs. When we rebuilt, people went
back to work. I saw the strain on families, and I saw the joy.
So Washington may not always understand or appreciate the
role of small business in creating jobs, or keeping America
competitive. But rest assured that there is one person in
Washington who does, and he is your President.
I have heard that your industry is under fire. I have also
heard that you are looking into ways to voluntarily tighten your
standards, and I salute you for that. But I do not understand
how some can be so utterly blind to the vital social role of our
nation's insurance industry.
Without insurance, the loss of a spouse could mean the loss
of a home. Without insurance, the loss of a parent could keep a
child from attending college. We cannot offer total protection
against the inevitable. But we can prevent the compounding of a
tragedy, so that a death or an illness doesn't leave a bitter
legacy of poverty and despair for a whole family.
You prevent that kind of double tragedy. You add a little
bit of comfort to the grieving, a little predictability for those
who are victims of the unpredictable.
This is your service to society. It is as vital a service
as that of any social welfare agency. And you cannot continue to
do it if your industry is hamstrung by excessive regulation; or
bled white to fund the cause of the week.
Since we turned this economy around, two-thirds of the job
creation has come from small business. In fact, we have created
more new jobs in the last six years than Japan and Western Europe
combined.
I take considerable pride in the job I did as Vice
President, heading the Task Force on
I
believe this effort did a lot to spur the creative energies of
America. And I am committed to keeping you free from excessive
regulation.
And when it comes to necessary regulation, I am committed to
letting the states take the lead -- not the federal government.
I am also committed to cutting the capital gains tax. The
capital gains tax is a uniquely American tax. Japan doesn't have
one. West Germany doesn't either. We are unnecessarily hurting
our competitive position by drying up the formation of new
capital, new businesses and new jobs. In 1978, when Congress cut
the maximum tax rate on capital gains, the result was an
explosion of new companies and new revenues. Why would anyone be
opposed to doing that again?
Small businesses -- those with less than 500 employees --
employ more than half of U.S. workers. So any onerous new burden
on small business will also throw workers out of their jobs.
It is for this reason that I am committed to resisting a
form of creeping socialism called mandated benefits
...
In an
era of tight budgets, there is always the temptation to drop the
burden of social programs on the backs of employers.
Well, Western Europe has gone down this road. And Western
Europe has grappled with chronic high unemployment ever since
These are my stands on these issues of greatest concern to
you and your colleagues. My stands are not the result of a
policy paper I read or a briefing from an advisor. They are the
result of a lifetime of experience, a knowledge of business and
an deep and sincere appreciation for the vitality of the private
sector.
I want to speak to you in more general terms, about my
presidency, the challenges I hope to meet, the accomplishments I
hope to make.
There are times in American history, spaced apart by
decades, when we as a nation right an imbalance. I don't mean
budget or a trade imbalance -- although these can be very serious
problems. I mean an imbalance in our basic system of government,
or our social and economic institutions.
In the last century, this nation resolved a fundamental
Constiutional question of the independence of states, and of
human liberty, in the Civil War.
In the 1930s, we reformed and transformed the economic role
of business and government to meet social needs. In the 1960s,
our society embarked on a wholesale change of almost all our
public and private institutions to end discrimination. And I
believe in the 1980s, Ronald Reagan and I came to Washington to
again right basic imbalances between the public and the private
sector. And by doing so, we allowed the longest economic
expansion in this history of America to take place.
But today, we do not face a need to alter the basic fabric
of our society. There is no burning national crusade to either
reduce government, or to rediscover the New Deal. But we do face
a stiff challenge that is just as dauting -- change. Change as
swift and fast as a torrent. Change in the American family, in
our work habits. Change in technology. Change in the world
economy. And the rate of change is rising exponentially.
I am a man of this century. I fought in the century's
greatest war, and raised a family and built a business during the
mid-century of American greatness.
But I want to be President who is remembered for preparing
America for the next century. This is my definition of
leadership, to see the shape of things to come, and to prepare
for that 21st Century world -- only eleven years away.
This remarkable nation of ours is complex, even enigmatic.
But there is one American quality that is timeless. We as a
people are never truly ourselves, at least not our best selves,
when we are complacent.
No. We are at our best when we are challenged, when we
boldly face the future, welcoming change, not shrinking from it.
Only then do we draw from our wellsprings of resilience and
inventiveness. Take this away from us, and we are no longer
Americans. We are merely a nation of consumers.
My agenda is this: to solve the problems of the future. A
complacent society is doomed to comfortable decline. A restless
society is dynamic, changing as fast as the times we live in. So
call it that, the Restless Society.
A complacent society can take comfort that America is free
and the world is at peace. But the events are moving too swiftly
for us to relax in set ways, to cling to smug assumptions. The
bipolar world of the last 45 years is evolving into a multi-polar
world.
The balance of power in Europe, the rise of regional
superpowers in Asia, the increasingly interdependent world
economy, the proliferation of offensive technology, and the much-
debated nature of the changes in the Soviet Union -- these are
the areas that will irrevocably change in the next decade. And
these are not minor matters. Will American foriegn policy be
flexible enough to meet these challenges?
With this question in mind, I have asked all the appropriate
agencies to reassess our foreign policy and defense strategies.
This report will set the basis of my future policies, and quide
American foreign policy into the next decade, and the next
century.
On economic policy, I have submitted the first budget in
many years that was not declared Dead-On-Arrival by Congress. I
have also submitted a proposal to solve a festering problem that
threatens the prosperity of us all -- how to restore the
integrity of our nation's Savings and Loans. of course, we could
allow the deficit to grow and insolvent S&Ls to continue doing
business without paying a cost today. But that is not my
approach. I want to work with Congress to work with me to start
action on these matters this year, the sooner the better.
The changing nature of the American family, to one-parent
families or to two parents who work, is putting pressure on our
most basic social instiution. How will we respond to this
change? We must devise a child-care system that combines a
public/private sector approach.
The environment, once the domain of activists, is becoming
the top priority of diplomats. We must devise a global approach
to the problems of ozone depletion and deforestation.
Homelessness involves a very small percent of our citizens.
But for any American to have to sleep on a steam grate is an
affront to the American Dream. We must explore the many causes,
and seek practical solutions, to homeless Americans.
Ethics -- national service -- the danger that we, as a
nation, could lose our precious connection to the past -- our
sense of honor, decency and fair play. This is a matter for the
corporation, the university and government at every level.
Finally, we are challenged to protect our educational
system.
Stuff from NEH
If we can do that, we are the link between the past and the
future. Can continue and carry on -- an America at work, a
prosperous nation.
And our children can follow
the traditional Foreign Policy and Defense -- world a changing.
Debt, CIA-China, NICS -- what does this mean? That's why I
ordered report.
A whole host of other problems --
The environment -- ozone, world action.
child care -- changing society
Homelessness -- an affront to the American Dream
EDUCATION
REMARKS: INDEPENDENT INSURANCE AGENTS OF AMERICA
ANNUAL NATIONAL LEGISLATIVE CONFERENCE
CAPITAL HILTON
MARCH 14, 1989
THANK YOU.
IT IS TRULY AN HONOR TO APPEAR BEFORE THIS GROUP.
IN THIS CITY, THE CURRENCY OF STATUS IS MEASURED IN
- 2 -
TITLES AND HONORIFICS -- SENATOR, AMBASSADOR,
SECRETARY. BUT IN MY BOOK, YOU HOLD ONE OF THE MOST
IMPRESSIVE TITLES OF ALL -- THAT OF ENTREPRENEUR.
I KNOW THE HUNGER YOU FEEL TO OWN A FIRM OF YOUR
OWN, TO START FROM SCRATCH, TO BUILD IT AND WATCH IT
GROW. I KNOW THE SATISFACTION OF MATCHING RESOURCES TO
NEEDS, OF MEETING DEADLINES AND MEETING PAYROLLS.
A FEW YEARS AFTER WORLD WAR Two, I STARTED MY OWN
BUSINESS.
- 3 -
IT WAS A SMALL FIRM AT FIRST, BUT NOT TOO SMALL TO
TEACH ME THE FACTS OF ECONOMIC LIFE. I GOT MY START BY
TAKING A RISK; AND I GOT MY BUSINESS EDUCATION BY
HELPING MAKE THAT COMPANY GROW.
OUR COMPANY WAS A HIGH-RISK VENTURE. THERE WAS A
NEW TECHNOLOGY, UNPROVEN, FULL OF HALF-STARTS AND
FAILURES, CALLED OFF-SHORE DRILLING. WE TOOK A GAMBLE;
WE INVESTED IN THAT TECHNOLOGY; AND WE SUCCEEDED IN
PIONEERING A NEW WAY TO FIND AMERICA'S ENERGY.
- 4 -
IT WASN'T ALWAYS EASY, EVEN IN THE YEARS WE DID WELL.
I RECALL OUR DESPAIR WHEN A HURRICANE HIT OUR BRAND NEW
RIG ON ITS FIRST LOCATION - -- AND IT DISAPPEARED.
BUT I LEARNED SOME VERY IMPORTANT LESSONS. WHEN
THAT RIG WENT DOWN, PEOPLE LOST THEIR JOBS. WHEN WE
REBUILT, PEOPLE WENT BACK TO WORK. I SAW THE STRAIN ON
THE FACES OF FAMILY BREADWINNERS, AND I SAW THE JOY.
- 5 -
So WASHINGTON MAY NOT ALWAYS APPRECIATE THE ROLE OF
SMALL BUSINESS IN CREATING JOBS AND KEEPING AMERICA
COMPETITIVE. BUT REST ASSURED, THERE IS AT LEAST ONE
PERSON IN WASHINGTON WHO DOES, AND HE IS YOUR PRESIDENT
I ALSO APPRECIATE YOUR INDUSTRY'S ROLE IN SOCIETY.
WITHOUT INSURANCE, THE LOSS OF A SPOUSE COULD MEAN THE
LOSS OF A HOME. WITHOUT INSURANCE, THE LOSS OF A
PARENT COULD KEEP A CHILD FROM ATTENDING COLLEGE.
- 6 -
WE CANNOT OFFER PROTECTION AGAINST FATE. BUT WE CAN
PREVENT THE COMPOUNDING OF A TRAGEDY, so THAT A DEATH
OR AN ILLNESS DOESN'T LEAVE A BITTER LEGACY OF POVERTY
AND DESPAIR FOR A WHOLE FAMILY.
You PREVENT THAT KIND OF DOUBLE TRAGEDY. You ADD A
LITTLE BIT OF COMFORT TO THE GRIEVING, AND
PREDICTABILITY FOR THOSE WHO ARE VICTIMS OF THE
UNPREDICTABLE.
- 7 -
THIS IS YOUR SERVICE TO SOCIETY. IT IS AS CRUCIAL
A SERVICE AS THAT OF ANY SOCIAL WELFARE AGENCY. AND
YOU CANNOT CONTINUE TO PERFORM IT IF YOUR INDUSTRY IS
HAMSTRUNG BY EXCESSIVE REGULATION.
THAT'S WHY WE WORKED TO REMOVE EXCESSIVE
REGULATIONS, TO FREE THE CREATIVE ENERGIES OF SMALL
FIRMS. BY ORDERING A REVIEW OF MORE THAN 100
GOVERNMENT REGULATIONS, THE TASK FORCE ON REGULATORY
RELIEF, WHICH I CHAIRED AS VICE PRESIDENT,
- 8 -
SAVED THE PRIVATE SECTOR MORE THAN 600 MILLION MAN
HOURS OF PAPERWORK AND BILLIONS OF DOLLARS IN
GOVERNMENT COMPLIANCE COST. I WILL CONTINUE TO WORK TO
KEEP YOU FREE FROM EXCESSIVE REGULATION.
AND WHEN IT COMES TO NECESSARY REGULATION OF YOUR
BUSINESS, I AM COMMITTED TO LETTING THE STATES TAKE THE
LEAD -- NOT THE FEDERAL GOVERNMENT.
- 9 -
REDUCING THE REGULATORY BURDEN IS IMPORTANT, BUT WE
MUST TAKE ACTION ON OTHER FRONTS AS WELL IF WE ARE TO
KEEP AMERICAN SMALL BUSINESS STRONG.
THIS IS WHY I HAVE ALSO PROPOSED A CUT IN THE
CAPITAL GAINS TAX RATE. MOST OF OUR MAJOR TRADING
PARTNERS DO NOT TAX LONG-TERM CAPITAL GAINS. THEY
UNDERSTAND THAT A HIGH CAPITAL GAINS TAX UNNECESSARILY
HURTS OUR COMPETITIVE POSITION BY DRYING UP THE
FORMATION OF CAPITAL, BUSINESSES AND JOBS.
- 10 - -
IN 1978, WHEN CONGRESS CUT THE MAXIMUM TAX RATE ON
CAPITAL GAINS, THE RESULT WAS AN EXPLOSION OF NEW
COMPANIES AND NEW REVENUES. THE TREASURY ESTIMATES
THAT THIS CUT WILL ADD $4.8 BILLION TO THE REVENUE SIDE
OF THE LEDGER IN FISCAL YEAR 1990.
SMALL BUSINESSES WITH LESS THAN 500 EMPLOYEES
EMPLOY MORE THAN HALF OF U.S. WORKERS. So ANY ONEROUS
NEW BURDEN ON SMALL BUSINESS WILL ALSO THROW WORKERS
OUT OF THEIR JOBS.
- 11 -
IT IS FOR THIS REASON THAT I OPPOSE THE MOVEMENT
TOWARD MANDATED EMPLOYEE BENEFITS
IN AN ERA OF
TIGHT BUDGETS, THERE IS ALWAYS THE TEMPTATION TO DROP
THE BURDEN OF SOCIAL PROGRAMS ON THE BACKS OF
EMPLOYERS. BUT THESE POLICIES, BORN OF THE BEST
INTENTIONS, CAN HAVE UNINTENDED AND COUNTERPRODUCTIVE
CONSEQUENCES.
IT IS UP TO BUSINESS AND LABOR TO NEGOTIATE THEIR
DIFFERENCES.
- 12 -
AND MAKE NO MISTAKE, I SUPPORT THE RIGHT OF LABOR TO
NEGOTIATE AS AN EQUAL. BUT BURDENSOME MANDATED
BENEFITS SERVE NEITHER BUSINESS NOR LABOR. WE HAVE
SEEN WHAT HAPPENS IN OTHER COUNTRIES WHERE MANDATED
BENEFIT PROGRAMS CREATE OBSTACLES TO PRODUCTIVITY AND
GROWTH. WE CANNOT BUILD A BETTER AMERICA IF WE WEIGH
DOWN OUR PRODUCTION SECTOR WITH NEW BURDENS.
AND LET ME ADDRESS ONE OTHER AREA THAT CONCERNS
YOUR BUSINESS -- TORT REFORM.
- 13 -
OF COURSE, THERE ARE MANY LITIGANTS WHO DESERVE A
JURY'S SYMPATHY. BUT WHEN LOCAL GOVERNMENTS CANNOT
INSTALL PLAYGROUNDS, WHEN BUSINESSES ARE BANKRUPTED,
WHEN MOTHERS STRUGGLE TO FIND AN OBSTETRICIAN, WHEN
VOLUNTEER ORGANIZATIONS HAVE TO PULL BACK, THEN IT IS
TIME TO CONSIDER LIMITING DAMAGES. TORT REFORM IS
CRITICAL TO THE HEALTH OF BUSINESSES AND VOLUNTEER
ORGANIZATIONS ALIKE.
- 14 -
ALL OF MY POLICIES ARE DIRECTED TOWARD A SINGLE
GOAL: BUILDING A BETTER AMERICA. To ACHIEVE THIS GOAL,
MY PLAN HAS FOUR BROAD OBJECTIVES -- ATTENTION TO
URGENT PRIORITIES, AN ATTACK ON THE DEFICIT, NO NEW
TAXES, AND AN INVESTMENT IN THE FUTURE.
WITHOUT A STRONG PRIVATE SECTOR, OUR NATION WOULD
BE MIRED IN THE PAST, DOOMED TO FAIL.
THE
ENTREPRENEUR IS THE MAN OR THE WOMAN WHO IS NOT ONLY
READY FOR CHANGE, BUT WHO RELISHES THE THOUGHT OF IT.
- 15 -
AND THIS THOUGHT LEADS ME To SPEAK TO YOU IN MORE
GENERAL TERMS, ABOUT MY PRESIDENCY, THE CHALLENGES I
HOPE TO MEET, THE ACCOMPLISHMENTS I HOPE TO MAKE.
I AM A MAN OF THIS CENTURY. I FOUGHT IN THIS
CENTURY'S GREATEST WAR, AND RAISED A FAMILY AND BUILT A
BUSINESS DURING THE MID-CENTURY OF AMERICAN GREATNESS.
BUT I WANT To BE A PRESIDENT WHO IS REMEMBERED FOR
PREPARING AMERICA FOR THE NEXT CENTURY.
- 16 -
THIS IS MY ENTREPRENEURIAL DEFINITION OF LEADERSHIP, TO
SEE THE SHAPE OF THINGS TO COME, AND TO PREPARE FOR
THAT 21st CENTURY WORLD -- ONLY ELEVEN YEARS AWAY.
BY THE YEAR 2000, WE WILL HAVE EXPERIENCED CHANGE
AS SWIFT AND FAST AS A TORRENT. CHANGE IN THE AMERICAN
FAMILY, AND IN OUR WORK HABITS. CHANGE IN TECHNOLOGY.
CHANGE IN THE WORLD ECONOMY. CHANGE IN THE RATE OF
CHANGE ITSELF.
- 17 -
THE MAKEUP OF OUR REMARKABLE NATION HAS BEEN
EVOLVING CONSTANTLY. BUT THE QUALITIES ON WHICH IT WAS
FOUNDED ARE TIMELESS AND TRUE. ONE OF THOSE CONSTANTS
IS THAT WE ARE AN ENTREPRENEURIAL PEOPLE, AT OUR BEST
WHEN WE ARE CHALLENGED, AND WHEN WE BOLDLY FACE THE
FUTURE.
So MY AGENDA IS THIS: TO CONFRONT THE EMERGING
PROBLEMS OF THE FUTURE, TODAY. A COMPLACENT SOCIETY IS
DOOMED TO COMFORTABLE DECLINE.
- 18 -
A DYNAMIC SOCIETY IS ONE THAT KEEPS PACE WITH THE
TIMES. So CALL IT THAT, IF YOU WILL -- A DYNAMIC
AMERICA. BUT RECOGNIZE IN THE RESTLESS DRIVE AND
VISION OF THE AMERICAN ENTREPRENEUR OUR BEST QUALITIES
AS A NATION.
A COMPLACENT NATION WOULD TAKE COMFORT THAT AMERICA
IS FREE AND THE WORLD IS AT PEACE. BUT WORLD EVENTS
ARE MOVING TOO SWIFTLY FOR US TO RELAX IN SET WAYS, To
CLING TO SMUG ASSUMPTIONS.
- 19 -
THE QUESTION WE MUST ANSWER IS: WILL AMERICAN FOREIGN
POLICY BE FLEXIBLE ENOUGH TO MEET THE EMERGING, AND
POTENTIALLY DRAMATIC, NEW WORLD DEVELOPMENTS?
WITH THIS QUESTION IN MIND, I HAVE ASKED ALL THE
APPROPRIATE AGENCIES To REASSESS OUR FOREIGN POLICY AND
DEFENSE STRATEGY. THIS COMPREHENSIVE REVIEW WILL SET
THE BASIS OF MY FUTURE ACTIONS, AND GUIDE AMERICA INTO
THE NEXT DECADE, AND TOWARD THE NEXT CENTURY.
- 20 -
ON ECONOMIC POLICY, I HAVE SUBMITTED TO THE
CONGRESS A BUDGET THAT IS FISCALLY RESPONSIBLE. THIS
BUDGET DOES FOUR THINGS: IT SUBSTANTIALLY REDUCES THE
DEFICIT, IT INCLUDES NO NEW TAXES, IT ADDRESSES KEY
PRIORITIES, AND IT STILL PROVIDES FOR IMPORTANT
INVESTMENTS WHICH WILL HELP MAKE US MORE COMPETITIVE IN
THE FUTURE. MY SPEECH TO CONGRESS WAS ACCOMPANIED BY
193 PAGES OF SPECIFIC RECOMMENDATIONS FOR THE BUDGET.
- 21 -
LOOKING BACK IN THE HISTORY BOOKS, WE FOUND THAT NO
OTHER PRESIDENT IN RECENT HISTORY HAD PRESENTED QUITE
so MUCH INFORMATION TO CONGRESS AT SUCH AN EARLY DATE.
I HAVE ALSO SUBMITTED A PROPOSAL TO SOLVE A
FESTERING PROBLEM THAT THREATENS OUR FUTURE
PROSPERITY -- A PLAN TO RESTORE THE INTEGRITY OF OUR
NATION'S SAVINGS AND LOAN INSTITUTIONS. I HAVE ASKED
THE CONGRESS To TAKE ACTION WITHIN 45 DAYS. THIS
PROBLEM REQUIRES PROMPT, PRUDENT ACTION.
- 22 -
THE CHANGING NATURE OF AMERICAN SOCIETY -- TO MORE
WORKING PARENTS -- IS PUTTING PRESSURE ON OUR MOST
BASIC SOCIAL INSTITUTION -- THE FAMILY. How WILL WE
RESPOND TO THIS CHANGE? WE SIMPLY CANNOT AFFORD TO
CREATE ANOTHER ENTITLEMENT PROGRAM. THAT IS WHY I AM
PROPOSING A CHILD-CARE PLAN THAT COMBINES TAX CREDITS
AND PRIVATE-SECTOR RESOURCES TO OFFER PARENTS A CHOICE.
I WANT TO EMPOWER PARENTS, NOT GOVERNMENT, TO SEEK THE
BEST AND THE SAFEST ENVIRONMENT FOR THEIR CHILDREN.
- 23 -
THERE ARE MANY OTHER AREAS OF CHANGE. HOMELESSNESS
AFFECTS A SMALL PROPORTION OF AMERICANS, BUT CONCERNS
ALL OF US. BUT WHEN I LOOK OUT A WHITE HOUSE WINDOW
AND SEE THE RAGGED PATHETIC FIGURES HUDDLED OVER THE
STEAM GRATES OF THE ELLIPSE, I ALSO SEE AN AFFRONT TO
THE AMERICAN DREAM. WE MUST SEEK THE ROOT CAUSES OF,
AND DEVISE THE MOST PRACTICAL SOLUTIONS FOR,
HOMELESSNESS.
24 I I
THE ENVIRONMENT -- ONCE THE CONCERN OF A FARSIGHTED
FEW, IS NOW A TOP PRIORITY OF MY ADMINISTRATION AT HOME
AND ABROAD. WE MUST DEVISE A GLOBAL APPROACH TO THE
PROBLEMS OF OZONE DEPLETION AND GLOBAL WARMING. WE
INTEND TO MAKE RAPID PROGRESS ON ACID RAIN AND SEE THAT
A NEW CLEAN AIR BILL IS PRODUCED. AND WE HAVE ALREADY
BROKEN GROUND IN JOINING WITH OTHER NATIONS TO CALL FOR
THE ELIMINATION OF CFCs AND IN ADOPTING A TOUGH NEW
POLICY ON THE EXPORT OF HAZARDOUS WASTE.
- 25 -
DRUGS -- THE SCOURGE OF DRUG ABUSE WILL TEST OUR
RESOLVE AND OUR METTLE AS A PEOPLE. I AM ASKING THE
CONGRESS FOR $6 BILLION FOR OUR ANTI-DRUG PROGRAM IN
1990 TO BEEF-UP DRUG EDUCATION, REHABILITATION, LAW
ENFORCEMENT AND INTERDICTION. I AM ALSO PLEASED TO
HAVE BILL BENNETT NOW AT MY SIDE TO GUIDE AND
COORDINATE THIS ALL-OUT EFFORT AGAINST DRUGS.
FINALLY, I WANT To SINGLE OUT ONE AREA WHICH, IN so
MANY WAYS, IS PRE-EMINENTLY IMPORTANT TO OUR NATION.
- 26 -
I AM SURE IT IS OF PARTICULAR IMPORTANCE TO YOUR
FAMILY. WE MUST PROTECT, AND STRENGTHEN, OUR SCHOOLS.
You AND I KNOW THAT EDUCATION IS OUR MOST ENDURING
LEGACY. You AND I KNOW THAT EDUCATION IS NOTHING LESS
THAN THE VERY HEART AND SOUL OF OUR CIVILIZATION.
As WE FACE A NEW DECADE AND A NEW CENTURY BEYOND,
WE ALSO FACE A NEW CHALLENGE -- TO REVITALIZE AND
RESTORE THE SYSTEM OUR FOREBEARS BEQUEATHED TO US; TO
ENSURE AMERICAN EDUCATION IS SECOND TO NONE.
- 27 -
I HAVE MADE A NUMBER OF PROPOSALS TO WORK TOWARD
THIS GOAL. AMONG THEM IS MY REQUEST TO REWARD THOSE
SCHOOLS WHOSE STUDENTS SHOW MEASURABLE PROGRESS IN
EDUCATIONAL ACHIEVEMENT, WHILE MAINTAINING A SAFE AND
DRUG-FREE ENVIRONMENT.
I HAVE ALSO ASKED FOR AN ANNUAL FUND OF $100
MILLION IN NEW APPROPRIATIONS TO HELP CREATE MAGNET
SCHOOLS TO BROADEN THE EDUCATIONAL CHOICES OF PARENTS
AND STUDENTS.
- 28 -
AND I HAVE MADE MANY OTHER PROPOSALS, INCLUDING
PROGRAMS TO STRENGTHEN HISTORICALLY BLACK COLLEGES AND
UNIVERSITIES, AND TO REWARD OUR BEST TEACHERS.
I APPEAL TO YOU TO GET ACTIVE IN YOUR SCHOOLS, TO
SHARE YOUR KNOWLEDGE, EXPERTISE AND RESOURCES WHERE IT
IS MOST NEEDED.
I'VE LAID OUT MY AGENDA FOR BUILDING A BETTER
AMERICA. TRUE, IT IS AN AMBITIOUS ONE.
- 29 -
BUT IT IS NO LESS AMBITIOUS, NO LESS DYNAMIC, THAN THE
AMERICAN PEOPLE. As BUSINESSMEN AND WOMEN, YOU CAN
HELP ME TO FULFILL THIS AGENDA, TO MEET THE CHALLENGES
THAT FACE OUR COUNTRY. BY WORKING TOGETHER, WE CAN
ACHIEVE ANYTHING.
THANK YOU.
###
Independent Insurance Agents of America
Independent
Insurance
INCORPORATED
Agent
January 27, 1989
CAPITOL HILL OFFICE
SUITE 200
6CO PENNSYLVANIA AVE., S.E.
WASHINGTON, D.C. 20003
The President
202/544-5833
FAX 202/544-8712
The White House
1600 Pennsylvania Avenue, NW
Washington, DC 20501
Dear Mr. President:
The Independent Insurance Agents of America, Inc. (IIAA), the
nation's largest insurance agent association representing more than
220,000 agents and their employees and one of the nation's largest
small business associations -- will hold its Annual National
Legislative Conference on March 14 and 15 at the Capital Hilton Hotel
in Washington, DC. On behalf of our national membership, I would like
to extend to you an invitation to address approximately 800 small
business people from all 50 states at our conference.
In the past, President Reagan, President Ford, Bob Dole,
Jack Kemp, Alan Simpson, Guy Vander Jagt and other distinguished
Republicans have addressed our group. We would be honored to have you
join us this year to talk about salient issues of the day.
The people attending the convention are typically the most
politically active and astute agents from all 50 of IIAA's state
associations. These agents are often involved in local and community
activities, state and federal politics, and frequently serve as
campaign and finance committee operatives for federal candidates. In
fact, many of them were active in your presidential campaign last
year. Our Independent Insurance Agents of America Political Action
Committee (InsurPac) is among the top ten business PACs in the
country.
Our conference would provide you with an excellent opportunity to
address a large crowd of small businessmen and women who are
predominately conservative Republicans. Moreover, the close proximity
to the White House makes the speech site convenient.
I will be in touch with your office shortly, and I appreciate
your consideration of this matter.
Sincerely,
Robert A. Rusbuldt
Director of Federal Affairs
NEWS
Independent
Insurance
Agent®
Independent Insurance Agents of America INCORPORATED
100 CHURCH STREET
NEW YORK, N.Y. 10007
600 PENNSYLVANIA AVE., S.E., STE. 200 WASHINGTON, DC 20003
FOR FURTHER INFORMATION CONTACT:
Rebecca J. Newman
R-4-89
(703) 922-2707
SUBJECT: IIAA PROPOSES SWEEPING CHANGES
IN-INSURANCE INDUSTRY
RELEASE: IMMEDIATE
WASHINGTON D.C., January 15 - In an unprecedented move within the insurance
industry, the Independent Insurance Agents of America (IIAA) have adopted a policy statement
that proposes sweeping changes in the fundamental way in which the insurance industry does
business. Changes in policies, policyholder services, communications and rating organizations
are being recommended along with suggestions to re-examine the current auto insurance
classification system and to intensify efforts to reduce underlying auto insurance costs.
R. C. Riley, CPCU, the IIAA executive committee member who chaired the
subcommittee that drafted the policy statement, introduced the report saying that "over the last
several years the insurance industry has suffered an erosion in the public's confidence. We
believe this perception results from the failure of our industry, in many instances, to provide the
public with reasonably stable markets, affordable prices, responsive service, and regular
communications explaining the reasons for price increases, cancellations, nonrenewal, and other
major policy changes," he said.
(more)
- 2
R-4-89
"We also believe that the industry will not improve its standing with the public
unless individual insurance companies and agents find ways to reduce these problems and
change day-to-day business practices that are currently creating stress with the public," Mr.
Riley stated.
Developed during the past year, the IIAA statement acknowledges the growing trend
in Congress and in other bodies to inaccurately blame the McCarran Ferguson Act for perceived
problems within the industry, according to ПАА President Lawrence E. Hite, AAI. "We felt that
as agents and consumer advocates, our association should provide a framework for debating
solutions to real problems, as well as to deal with the storms brewing on the state level. The
problems facing our agents, such as California's Proposition 103, can begin to be resolved once
these principles are adopted," Mr. Hite said.
With regard to the territorial rating systems, the report states that the industry should
work with insurance regulators, legislators, and consumers to re-examine current automobile
insurance classification and territorial rating systems. "Existing systems clearly have produced
extreme differences in some areas with the result that rates appear to have become unfair to
certain classes of insureds," the report says.
While the policy statement strengthens IIAA's commitment to the McCarran
Ferguson Act and state regulation, it also calls for rating organizations not to produce final
advisory rates, leaving it up to the individual insurance company to file those final rates with the
insurance department. The statement also suggests that policyholders, regulators and insurance
agents/brokers be added as voting members to the form development committees and the boards
of directors of rating organizations. The fundamental data and form service that rating
organizations provide are deemed "extremely important" by the authors of the report and should,
therefore, remain intact.
(more)
- 3 -
R-4-89
Since one of the most visible insurance consumer issues today is auto insurance
rates, Mr. Riley said that it is important to educate consumers about the three economic issues
that drive auto rate increases -- theft, replacement parts, medical costs. "But it is most important
that we also work towards stronger well-written no fault laws, such as in New York and Florida,
which go a long way to control cost," he added.
Finally, the report asserts that while the insurance industry has actively sponsored
various loss control programs like mandatory seat belt laws and auto theft prevention, the
industry needs to increase overall loss control efforts and communicate these efforts to the
public. The underlying message appears to be that the insurance industry is as concerned as the
public about escalating auto insurance premiums.
Some of the other business changes IIAA is recommending include a broader
pursuit of market assistance programs and multiple-year policies for better stability in rates and
availability
"IIAA pledges to use this statement as a starting point for discussions with
legislators, regulators, consumers and business groups. We hope the industry leaders will join
us to make these changes a reality," Mr. Hite concluded.
(Note: Attached is full text of IIAA's policy statement)
###
Independent Insurance Agents of America
Independent
Insurance
INCORPORATED
Agent
CAPITOL HILL OFFICE
SUITE 200
600 PENNSYLVANIA AVE., S.E.
WASHINGTON, D.C. 20003
202/544-5833
FAX 202/544-8712
March 8, 1989
Mr. Mark Davis
The White House
Old Executive Office Building
Room 122
Washington, D.C. 20500
Dear Mark:
Enclosed is a copy of Where We Stand, which contains several of
our legislative concerns and some background on the Independent
Insurance Agents of America (IIAA). I have also enclosed the original
letter of invitation to the President for your information.
As we discussed, our Annual National Legislative Conference is
held each year in Washington, D.C. in order for our members to
personally lobby on Capitol Hill and to hear invited senators and
congresssmen speak to our agents on salient issues of the day. This
year, Senator Lloyd Bentsen will be addressing our group on Tuesday,
March 14, prior to the President's speech, and Senator
Trent Lott will address IIAA on Wednesday morning. We expect
approximately 750 agents from all 50 states, with a sizeable
contingent from Texas. These agents are the most politically astute
and active members of our association with many of them serving in
elected office (ie. Senator Wendell Ford and Congressmen John Rowland,
Dan Burton, Jim Quillen and Norm Mineta are members of IIAA), while
others serve as campaign finance chairmen, county councilmen, etc.
IIAA has the 12th largest business political action committee
(InsurPac) in the nation that supports candidates attuned to our
interests and small business concerns in general.
As you know, IIAA's Board of Directors adopted a policy statement
calling for fundamental, voluntary reforms within the insurance
industry. These reforms, which have received strong bipartisan
support from Capitol Hill, would enhance the availability and
affordability of insurance. Enclosed is a copy of our press release
on the policy statement. The policy statement is in sync with the
President's position that voluntary reforms are preferential to
federally mandated changes and regulation, and his reference to our
statement would be beneficial for the Administration both politically
and substantively. IIAA also supports the McCarran-Ferguson Act and
the state regulation of the insurance industry.
Please feel free to call me if you have any additional questions
or comments.
With kind regards,
Bob
Robert A. Rusbuldt
Director of Federal Affairs
RAR:dh
Enclosures
who
we are
The Independent Insurance Agents of America
is 220,000 small business owners and their em-
ployees who sell all types of insurance.
Unlike company-employed agents, IIAA mem-
bers represent more than one firm, so they can
offer clients a wider choice of auto, home, busi-
ness, life and health insurance products.
IIAA members not only advise clients about in-
surance, they recommend loss prevention ideas
that can cut costs. If a loss occurs, the indepen-
dent agent stands with the client until the claim
is settled.
IIAA was founded in 1896 as the National Local
Association of Fire Insurance Agents. With the
expansion of property/casualty business and cov-
erages, the name became too limiting and was
changed to the National Association of Insur-
ance Agents in 1913. To emphasize the inde-
pendence of its members, the organization be-
came the Independent Insurance Agents of
America in 1975.
IIAA is a voluntary federation of state associa-
tions and local boards. Its members are politi-
cally astute and are involved both locally and
nationally. They keep track of progress on
agents' issues in Washington through the work
of an active professional staff in the IIAA Capi-
tol Hill office. Their willing support has made
the IIAA's Political Action Committee (Insur-
Pac) one of the largest federal trade association
PACs in the nation.
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CONTENTS
FEDERAL ISSUES
Financial Institutions Deregulation
page 6
Regulator's Loopholes
page 7
McCarran-Ferguson Act
page 8
Taxes
page 9
Federally Mandated Benefits
page 10
Farm Agri-Business
page 11
Product Liability Reform
page 12
STATE ISSUES
State Banks in Insurance
page 14
Insurance Company Insolvency
page 15
Auto Insurance Reform
page 16
Anti-Rebate Statutes
page 17
INSURPAC.
page 19
IIAA GOVERNMENT
AFFAIRS STAFF
page 20
ANTI-REBATE STATUTES
BACKGROUND
Anti-rebate statutes were enacted around the turn of the century
to bring stability and fair business practices to a tumultuous
insurance market and to prevent discrimination in price for
insurance purchasers within the same class.
In its generic form, anti-rebate laws prohibit agents from reduc-
ing the amount of commission fixed by the company, or offering
other inducements to buyers. All states (except Florida and Cali-
fornia) have anti-rebate laws of some kind.
Opponents of anti-rebate statutes say they are anti-competitive.
Proponents believe rebating would among other things, seri-
ously corrupt current market practices by:
(a) Discriminating against insureds among the same
class;
(b) Emphasizing the cost consideration to the exclu-
sion of product quality and agent counseling and
service;
(c) Encouraging the concentration of agency forces,
thereby limiting competition;
(d) Fostering discrimination against consumers with-
out economic leverage (i.e. those purchasing small
amounts of coverage).
IIAA POSITION
IIAA supports retention of anti-rebate statutes as being in the
consumer's best interest.
17
AUTO INSURANCE REFORM
BACKGROUND
The public's frustration with high automobile insurance rates
has led to extreme measures such as the passage of California's
Proposition 103. Mandatory rate roll backs, a central feature of
Proposition 103, is not in the public's best interest. It may have
the unintended effect of reducing the safety of protection pur-
chased by increasing the likelihood of company insolvency.
The public should expect the insurance industry to provide
reasonably stable markets, affordable prices and responsive
service. Meaningful reform must address the underlying costs
which greatly contribute to escalating premiums. One solution
would be to adopt strong well written no-fault laws with effec-
tive thresholds. This is a proven method to reducing costs
through greater efficiency, timely payments and fairness in
compensation levels.
FEDERAL
The industry's commitment to the enhancement of auto safety
efforts has been longstanding. Continued progress must be made
for better highway safety, stronger bumpers, mandatory seat belt
ISSUES
laws, required airbags, auto theft prevention, fraud detection and
other loss prevention efforts.
The spiraling cost of replacement car parts must be addressed.
The potential for significant savings to the public can be achieved
by fostering a competitive market in replacement car parts.
Territorial rating and other classification systems have caused
disparity in some locations to the extent where rates become
unfair for certain insureds. The industry, insurance regulators,
legislators, and consumer groups need to reexamine the systems
employed in those cases.
IIAA POSITION
IIAA has adopted a comprehensive policy statement which in
part calls for: 1) Increased responsiveness to consumer prob-
lems; 2) Adoption of a state no-fault system with strong
thresholds; 3) Reexamination of rate classification systems; 4)
Renewed commitment to auto safety measures; 5) A competi-
tive market in replacement car parts.
16
FINANCIAL INSTITUTIONS
INSURANCE COMPANY
DEREGULATION
INSOLVENCY
BACKGROUND
BACKGROUND
Since Congress reaffirmed the traditional separation of banking
The legal responsibilities of insurance agents toward their clients
and insurance in the 1982 Garn-St Germain Act, pressure has
and the companies they represent, in the event of a company
built for dramatic revision of bank law and regulation. Bills are
insolvency, involve an ambiguous and evolving set of standards.
introduced every year in Congress to expand the powers of bank
The IIAA Committee on Insolvency and Guaranty Fund Laws
holding companies (BHCs) to permit insurance, real estate, and
was created to develop an improved system for preventing
securities activities, but legislation has not been adopted.
insolvencies and determining agent liability. The Committee
has developed a set of recommendations to improve both NAIC
In order to give Congress the time to study the issue of expanded
Model Insolvency and Guaranty Fund Laws and to make the
bank powers and craft a comprehensive bank reform bill, Con-
system more equitable and less burdensome on consumers and
gress enacted the Competitive Equality Banking Act of 1987,
agents.
which contained a one-year moratorium on the ability of regula-
tors to expand banking powers. Unfortunately, the moratorium
The IIAA recommendations include provisions to clarify an
deadline expired without Congress fulfilling its promise of
agent's responsibility to a liquidator in cases of insolvency by
enacting legislation.
holding the agent liable to the extent determined by the laws of
his domiciliary state. One of the major provisions calls for an end
In the states, large aggressive BHCs have sought ways around
to agent liability for unearned premiums which an agent is
congressionally imposed insurance restrictions by encouraging
unable to collect from the policyholder.
enactment of laws and regulatory changes broadening powers
for state-chartered banks. By acquiring these banks, BHCs hope
The recommendations also include changes to guaranty fund
to gain powers denied them at the federal level.
laws which include provisions extending insurance policies of
insolvent companies to 60 days from the date of insolvency. The
At the federal regulatory level, the Federal Reserve Board (Fed)
guaranty fund laws also call for the addition of an agent to the
and the Comptroller of the Currency (OCC) have continued to
guaranty fund board of directors so that consumer and agent
"discover" and promote loopholes and regulatory glitches in the
interests will be adequately represented.
system which provide banks a route to insurance and other
expanded powers otherwise limited by federal law. Banks are
On Capitol Hill, Congress is increasingly using company in-
using the "international competitiveness" argument to buttress
solvencies to justify federal regulation of insurance, although
their push for expanded powers, but the insolvent Federal
this is not a workable solution. A combined effort in the state
Savings and Loan Insurance Corporation (FSLIC) crisis, coupled
legislatures and in the courts will bring about the changes
with the impending taxpayer bailout of the fund, has slowed their
necessary to alleviate undue hardships to agents and their clients.
drive for new powers. The ability of banks to use Federal
Deposit Insurance Corporation (FDIC) insured funds for com-
IIAA POSITION
mercial ventures (i.e. insurance) is a sobering thought for Con-
gress, especially since deregulation was a major contributor to
IIAA is working with the NAIC to change model laws to
the downfall of the savings and loan industry.
conform with the IIAA Committee recommendations and is
urging the states to introduce bills in their own legislatures to
improve their insolvency and guaranty fund laws.
IIAA POSITION
IIAA supports separation of banking and insurance and opposes
legislation to empower BHCs to enter the business of insurance.
IIAA urges reexamination of banking law in light of traditional
features of banking and public policy: safety and soundness,
separation of banking and commerce, and the special powers
associated with banks' control of credit (credit tie-ins).
6
15
STATE BANKS IN
REGULATOR'S LOOPHOLES
INSURANCE
BACKGROUND
BACKGROUND
Following enactment of the Title VI insurance limits in 1982,
bank holding companies (BHCs) began looking for ways around
For over 100 years the United States has required the separation
this federal barrier to insurance activities. In addition to advo-
of banks and insurance. The National Bank Act of 1864
cating congressional initiatives and probing the federal regula-
prohibited national banks from engaging in insurance and was
tory agencies, the BHCs turned to the states to see if the door to
later reinforced by the Bank Holding Company Act of 1956 and
expanded powers could be unlocked at the state level.
the Garn-St Germain Act of 1982. The bankers, unable to prove
their case to Congress, are now turning their sights on state
Over the past several years the regulators have attempted to
legislatures where they perceive the road might be easier.
contravene federal law and intent by issuing rules, regulations
and orders to increase insurance powers for banks. The "South
The combination of allocation of credit and the offering of
Dakota" loophole, most recently embodied in the Merchants
insurance is potentially a very destructive one. Insurance in-
National ruling attempts to provide a way for federally regulated
volves risk - a risk most banks depositors do not want to back up
BHCs to enter through the states into activities prohibited by
with their federally insured deposits. In addition to the risk
Congress. The "comptrollers loophole" allows national banks to
factor, banks' power over credit gives them great potential to
use towns of less than 5,000 as launching pads for nationwide
unfairly influence consumers' decisions as to their purchase of
insurance sales, and the "Exemption D" loophole allows a BHC
insurance. Consumers should not be subjected to this type of
to acquire the grandfathered insurance rights of another bank. A
coercion.
regulatory change in Exemption C now allows BHCs to sell
insurance in small towns if they have a lending office located
The quest by banks for expanded powers to create a "level
there, rather than their "principle place of business," which was
playing field" and attain "competitive equality" is an illusion.
the requirement prior to the modification. All of these and other
Banks' funds are secured by FDIC insurance. In addition, banks
have access to the Federal Reserve Discount Window for low-
backdoor loopholes have produced extensive litigation.
cost money. Neither of these advantages are available to
In 1987, Congress enacted the Competitive Equality Banking
insurers or insurance agents. This is anything but a level playing
Act, which contained a moratorium on the expansion of insur-
field.
ance powers to banks. However, the regulators disregarded
congressional intent and proceeded to expand insurance powers
According to a 1986 report by the House Energy and Commerce
during the moratorium, which resulted in litigation that temp-
Committee, "ten bank holding companies hold assets equal
orarily vindicated the agent's position. The 100th Congress
to the total assets of all life insurers, and almost three times the
assets of all property-casualty insurers." Allowing banks to
attempted to step in and clarify permissible bank/insurance
activities (S.1886 and H.R.5094), but a jurisdictional dispute
acquire community-based independent insurance agencies to
between the House Banking Committee and the Energy and
reduce industry concentration is not in the public's best interest.
Commerce Committee produced a stalemate that effectively
killed any legislation.
IIAA POSITION
IIAA calls for the continued separation between banking and
IIAA POSITION
insurance on the state level.
IIAA supports immediate congressional action to foreclose
circumvention of Title VI and close all insurance loopholes
created by the regulators. IIAA believes that Congress, and not
the regulators or the courts, should determine the banking policy
of the United States.
14
7
McCARRAN-FERGUSON ACT
BACKGROUND
Enacted to offset a Supreme Court opinion declaring the busi-
ness of insurance to be interstate commerce subject to federal
antitrust laws, the McCarran-Ferguson Act has stood since 1945
as the insurance industry's Magna Carta, asserting as a matter of
public policy the state regulation of insurance and the industry's
limited exemption from antitrust laws.
While Congress retains the ability under the McCarran-Ferguson
Act to explicitly legislate federal jurisdiction over particular
areas of insurance and antitrust should a need arise (i.e. Risk
Retention Act of 1986), instances of direct congressional inter-
vention in the business of insurance have been rare. The
McCarran-Ferguson Act has endured, with both Congress and
the courts repeatedly reaffirming the public benefit of the Act's
fundamental policy prescriptions.
STATE
Past events in the marketplace, principally the capacity shortage
in commercial liability insurance and the problems associated
with automobile insurance in certain states, have led some
ISSUES
members to re-examine the McCarran Act - and it is clear the Act
has become a target for both political and economic reasons.
Congress has produced proposals to repeal, modify or study the
McCarran Act, highlighted by Senator Metzenbaum's (D-OH)
and Representative Edwards' (D-CA) bills to repeal the limited
antitrust exemption. For the first time, a subcommittee of the
100th Congress reported a bill to significantly modify the
McCarran Act, and it appears political pressure against the Act
will not subside. While purporting to promote competition, such
measures could harm availability and price competition, under-
mine the effectiveness of state regulation, and prevent insurers
from engaging in certain activities which are actually in the
public interest.
IIAA POSITION
Retain McCarran-Ferguson intact because state regulation serves
the public well, has stood the test of time, and provides consumer
protection. IIAA supports enhancement of state regulation,
where necessary. In addition, IIAA has adopted a policy state-
ment calling for fundamental changes in the way the insurance
industry conducts its business (i.e. rating organizations should
not produce final advisory rates; each insurance company
should be responsible for filing its rates with the insurance
department where required; and rating organizations should
include policyholder, regulator, and insurance agent/broker
interests as voting members of their boards of directors).
8
PRODUCT LIABILITY
TAXES
REFORM
BACKGROUND
BACKGROUND
Both the House and Senate budget reconciliation bills of 1987
contained a provision to deny the amortization of intangible
Skyrocketing costs and greatly reduced availability in the early
assets, including insurance expirations. The provision would
1970's set the stage for federal scrutiny of product liability
have prohibited the taxpayer from demonstrating that the ac-
insurance. A mid-decade review by a Commerce Department
quired asset has a determinable useful life, despite the rulings of
task force of the problems in this type of insurance led to
the IRS and courts which have found that assets such as insur-
recommendations for model state tort laws, and passage of the
ance expirations and other intangibles can be wasting assets with
Product Liability Risk Retention Act of 1981, permitting manu-
a determinable useful life, and that taxpayers should be allowed
facturers to form self-insurance and insurance purchasing groups.
to depreciate them. This provision, which was eventually
This cosmetic reform failed to address the underlying legal
deleted in a conference committee after intense opposition by
problems in the tort litigation system resulting from conflicting
state law.
agents, would have significantly reduced the value of agencies
at a time when acquisitions of independent agencies are rising.
According to one report, disallowing the depreciation of expira-
Legislation introduced in past Congresses would have set uni-
tions would reduce the borrowing power of agencies since loans
form federal standards for product liability suits while still
are based on the value of renewals, and reduce the value of
allowing state courts to retain jurisdiction. During the 100th
independent agencies by 20 to 30 percent.
Congress, a compromise measure by Representatives Bill
Richardson (D-NM), Jim Florio (D-NJ), Norm Lent (R-NY) and
In 1982, Congress enacted legislation that indefinitely extended
Chairman John Dingell (D-MI) was reported out of the House
the moratorium protecting the independent contractor status and
Energy and Commerce Committee, but was never considered by
banned Treasury regulations on independent contractors. How-
the full House. During the debate, it became apparent that many
ever, Congress has periodically shown renewed interest in ideas
members favored the collection of insurance data by a federal
such as imposing withholding on payments to independent
entity as a way to gain insight into the true cost of insurance, as
contractors, which was listed as a proposal in a 1987 Ways and
well as the "mysterious" ebb and flow of the insurance cycle.
Means Committee report titled "Description of Possible Options
to Increase Revenues." The report stated it is difficult to distin-
The insurance industry shares Congress' concern over the failure
guish the employment status of many independent contractors
of a state-by-state approach in addressing the unique interstate
from that of employees, and that withholding would increase
concerns associated with a product liability law. Such a law is
compliance with the tax laws. When the report was released, the
necessary for consumers and manufacturers to know their re-
Committee estimated that 10 percent withholding on independ-
spective rights and responsibilities, and to provide the requisite
ent contractors would raise $2 billion for the government over a
predictability for accurate insurance rates.
three-year period.
To that end, the insurance industry supports the push for a
As long as pressure continues to build to reduce the federal
uniform national product liability law which incorporates incen-
tives to settle sanctions for frivolous suits, elimination or modi-
budget deficit, these important tax provisions will come under
fication of the application of joint and several liability and a
congressional scrutiny.
liability system based on fault.
IIAA POSITION
IIAA POSITION
The ability of the IRS and the courts to address individual
situations, taking into account relevant facts and circumstances
IIAA supports a national uniform product liability law in order
concerning specific taxpayers, demonstrates the sensitivity and
to provide for a predictable, marketable product liability insur-
fairness of the present law concerning intangibles. Withholding
ance policy.
on independent contractors would impose a substantial admin-
istrative burden on those required to do the withholding, and the
withholding on payments to independent contractors would not
approximate ultimate tax liability, which depends on net income
after expenses. IIAA opposes changes in the treatment of
intangible assets and independent contractors.
12
9
FEDERALLY MANDATED
FARM AGRI-BUSINESS
BENEFITS
BACKGROUND
BACKGROUND
The federal crop insurance program enacted in 1980 replaced the
The Family and Medical Leave Act proposes a federally man-
government's program of disaster relief payments. However, as
dated unpaid leave policy upon the birth or adoption of a child,
the program has grown, problems have arisen. Allegations of
or in the case of serious illness of the employee. This proposal
fraud, abuse and mismanagement continue to grow while little
guarantees employees of businesses employing 50 or more
increase in farmer participation has many worried about its
people the opportunity to take unpaid leave and be reinstated in
future. To restore congressional confidence and increase farmer
the same or comparable position upon return. The proposals in
participation, the Federal Crop Insurance Commission (FCIC) was
established.
both the House and the Senate call for 10 weeks parental leave,
over a two-year period. There are other differing provisions in
the House and Senate versions, including calling for a two-year
The duties of the Commission are to investigate shortcomings
study of the proposed program, and requiring employees taking
within the program and formulate solutions. Representation on
such leave to sign a contract agreeing to return to the company
the Commission consists of reinsured companies, independent
at the end of the leave.
agents (Bob Fulwider is the IIAA representative to the Commis-
sion), master marketers, producer groups, farm bureaus, the
FCIC and Congress. In accordance with the law, the Commis-
The mandated health benefits legislation would require health
insurance for all workers, while at the same time setting out the
sion will release periodic reports throughout its existence, end-
parameters of the types of insurance which could be offered and
ing December 31, 1990.
how much the premiums could be. There could be no premium
adjustment for age, gender or other factors relating to usage. The
The major objective of the Commission is to increase voluntary
employer would be required to pay at least 80 percent of the
farmer participation in the program, while turning a greater
premium for most employees, and all of the premium for any
percentage of the program and its risks over to the private sector.
employee earning under minimum wage.
However, it is important to remember that any privatization plan
be fair and equitable to ensure the integrity of the program while
properly protecting the farmer.
The health legislation would cause two major problems for
agents, setting aside the issue of the federal government mandat-
ing benefit programs. First, it calls for all agents interested in
The passage of legislation two years ago to bail out the finan-
offering this insurance to be certified by the Secretary of Health
cially troubled Farm Credit System created a program where the
farmer is presented with a variety of insurance choices at the time
and Human Services, in addition to state licensing. Second, it
allows the agent no flexibility in setting premium rates or in
of his loan. There was also a provision instituting uniform public
paying those rates to cover his or her own employees.
standards of criteria for any company wanting to offer insurance
to the member/borrower through the Production Credit Associa-
tions (PCAs). These changes in the law were enacted due to
IIAA POSITION
concerns about competition, the economic welfare of the farmer,
and the integrity of the system itself.
IIAA urges the establishment of voluntary guidelines between
employers and employees. IIAA remains opposed to any feder-
ally mandated benefits package which would prove onerous for
IIAA POSITION
small businesses.
IIAA supports the maximum qualified private sector participa-
tion in the federal crop insurance program. As a member of the
Commission, IIAA will work with others on the Commission to
address shortcomings in the program and to devise solutions.
IIAA actively opposes any attempt to limit the farmer's choice
of competitive insurance policies through a circumvention of
congressional intent. IIAA is also strongly opposed to any
attempt by the PCAs to become more actively involved in the
insurance business beyond the current regulatory parameters.
10
11