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PIA Expresses Qualified Support for Draft of Financial Services Act

15 October 1999

PIA Expresses Qualified Support for Draft of Financial Services Act; Sackett Says Agents 'Poised for a Win' if Key Provisions Remain Intact

    WASHINGTON, Oct. 14 -- A draft of financial services
modernization legislation set for committee markup today contains the
strongest agent provisions from both the House and Senate versions, according
to the National Association of Professional Insurance Agents.
    The consensus bill, unveiled by Senate Banking Committee Chairman Phil
Gramm (R-Texas), House Commerce Committee Chairman Tom Bliley (R-Virginia) and
House Banking Committee Chairman Jim Leach (R-Iowa), will be taken up by a
House-Senate Conference Committee today.  Gramm aims to complete committee
markup today.
    "If the insurance sales provisions in the current version of S. 900 stand,
PIA will support it," declared Dean Sackett, PIA Vice President of Government
Affairs. "It represents an improvement over either the House or Senate bills
to ensure that professional insurance agents will compete in the next
millennium on a level playing field."
    Sackett said agents were able to work successfully with the Conference
Committee to ensure the best agent language made it into the conference
report.
    "The new draft includes language ensuring that the states will regulate
banks' existing sales powers, as well as the new sales powers granted banks in
the bill." Sackett said. "The bill also includes numerous safe harbors modeled
after legislation agents backed in various states and a new 'no unequal
deference' review standard for court challenges that further solidifies state
power to regulate bank insurance sales, and consequently ensures fair
competition," Sackett said.
    "Agents are poised for a win if these key provisions remain intact,"
Sackett he said.

    Founded in 1931, PIA is a national trade association which represents more
than 180,000 member insurance agents and their employees who sell and service
all kinds of insurance, but specialize in coverage of automobiles, homes and
businesses.