Senior Vp-Federal Government Relations

Property Casualty Insurers Assn. of America

Washington

Q: What key 2010 federal-level legislative efforts are likely to be?

In respect to the regulatory reform, it's more of the same and, quite frankly, in respect to the National Flood Insurance Program, it's more of the same—we'll have to extend that again. Then it will be fending off attacks on underwriting in general. I suspect that going into an election year, some of those issues are sort of juicy for headlines. An example would be credit scoring, which seems remarkable given that the lack of underwriting is what led to the collapse, but there are still members of Congress who are trying to restrict underwriting.

Q: What state efforts are you watching?

The key ones for us are going to be, broadly speaking, the auto repair and glass issues, which involve labor rates, steering and estimating systems. We've identified about 16 states where we think those would be issues. We're watching New York carefully because their no-fault automobile system is spiraling towards crisis. And the coastal issues are of concern.

Q: What were the most important federal legislative achievements in 2009?

Keeping insurance out of most of the regulatory reform. Preventing the repeal of McCarran-Ferguson, although there is a sort of a collateral attack on its protections in the insurance industry.

Q: What about at the state level?

We have significant coastal victories involving the Texas Windstorm Insurance Assn. and North Carolina beach plan. And regarding the accident tax, where every time the police or fire departments respond, local governments want to put a tax on that, we had victories in Arkansas, Louisiana, Florida and Oklahoma. And defeating credit scoring all over the country.

Q: What will the outcome of the midterm elections be?

It's going to be dramatic. Historically, midterm elections are dramatic: twenty- to 40-seat switch in the House and two to six in the Senate.