“Within every organization, including CIAB and IIABA, there will be times when some members disagree with the positions taken by the organization,” Mr. Ahart wrote. “But this has not, nor will it, halt legislative, regulatory and marketplace improvements we seek for independent agents and brokers.”

Mr. Aharts comments, in a private letter that was obtained by National Underwriter, were in response to a statement from the Council following the decision by the Alexandria, Va.-based IIABA to include the term “brokers” in the associations title.

IIABA described itself as the only national trade group that represents the legislative concerns of agents and brokers at both the federal level and on a permanent basis in state legislatures and insurance departments.

In a statement by Mr. Van Osdall, the Council responded that “stark differences” exist on major issues between IIABA and the Council, which says it represents the top 1 percent of brokers who place more than 80 percent of commercial lines premiums.

For example, Mr. Van Osdall noted that the associations differ on the issue of optional federal chartering, which the Council supports and IIABA opposes.

In addition, he said, IIABA affiliates have blocked efforts in many states on commercial lines deregulation and agent/broker licensing reform.

Mr. Van Osdall also noted that the Council welcomes bank members and does not support continued battles against the U.S. Office of the Comptroller of the Currency and national banks over regulation of insurance sales via banks.

But Mr. Ahart responded that IIABA has been a strong champion of legislative and regulatory reform for agencies and brokerages of all sizes. For example, he said, without the hard work of IIABA and its state affiliates, the reforms of the Producer Licensing Model Act, now in place in more than 40 states, would not have occurred.

As for the OCC, Mr. Ahart said IIABAs challenges are intended to assure a fair competitive structure. “As recognized by other respected organizations, permutations of the Office of the Comptroller of the Currencys arbitrary actions could negatively impact agencies of all sizes if left unchecked,” he said.

Mr. Ahart also said IIABA will continue to work on a federal standards/national treatment regulatory proposal that would bring immediate reforms for large agencies as well as insurance companies.

“This pragmatic approach would provide regulatory relief now, rather than waiting years for the possibility of federal regulation, which, as you know, has many detractors on both the Republican and Democratic sides of the aisle,” Mr. Ahart said.

Mr. Ahart said IIABA had applauded the Council when it changed its name from the National Association of Casualty and Surety Agents. “I hope you will come to accept our name change, advocacy and programs for large agents and brokers over time,” he said.

NACSA changed its name after its merger with the National Association of Insurance Brokers, thereby adding members from the largest commercial brokerages in the country, such as Marsh and Aon. The Council said it had no comment on the letter from IIABA.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, April 29, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.