"Although the need for greater efficiency and uniformity in state regulation is clear, federal regulation goes too far--equivalent to throwing the baby out with the bathwater," said Thomas Ahart, president of the Alexandria, Va.-based IIAA.

Among the federal initiatives IIAA might pursue are federal minimum standards, national reciprocity or multi-state uniformity, federal incentives for states to harmonize their laws, and preemption of certain state laws.

In an interview with National Underwriter, Robert A. Rusbuldt, IIAA's chief executive officer, cited two reasons for the board's decision.

? First, he said, with the introduction of legislation by U.S. Sen. Charles Schumer, D-N.Y., and the expected introduction of legislation by Rep. John LaFalce, D-N.Y., there is strong momentum behind federal regulation of insurance, which is something that IIAA strongly opposes.

? Second, he said, despite IIAA's opposition to federal regulation, the board recognizes that agents and insurers have legitimate problems with how they are regulated today. "The status quo is not acceptable for those doing business across state lines," he said.

For Mr. Brostoff's full report see page 5 of the Jan. 28 print edition of National Underwriter.