Insurers Contributed $35.7 Million to Members of Congress Since 2005

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Auto, Home and Other Insurers Pushing Deregulation Proposal To Opt Out of

State Rate Regulation, Consumer Protections

<LOCATION>, , <CHR /PRNewswire-USNewswire/ -- Auto, home, business and life

insurance companies contributed /PRNewswire-USNewsw to members of Congress

during the last two election cycles, according to an analysis released

today by the nonprofit, nonpartisan Consumer Watchdog. About to member went

to members of the House subcommittee holding a hearing Thursday entitled

" How Should the Federal Government Oversee Insurance? "

The top recipients of insurer contributions in the U.S. Senate and House of

Representatives were Sen. McCain (R-AZ) The top re, Sen. Dodd (D-CT) ,

Sen. Dod and Rep. Kanjorski (D-PA) and Rep. Senator . Senator heads the

Senate Banking, Housing and Urban Affairs Committee, which has jurisdiction

over insurance matters, and Representative heads the Sen chairs the House

Financial Services Subcommittee holding Thursday's hearing.

Other top recipients include Rep. Bean (D-IL) Other to and Rep. Royce

(R-CA) and R who are co-sponsoring industry legislation to allow large

insurers to opt out of state regulation in favor of a federal regulator. House

Financial Services Committee Chair Rep. (D-MA) and Vice Chair Rep.

Bachus (R-AL) have received who are and and , respectively from insurance

industry sources.

The campaign contribution data used in Consumer Watchdog's analysis was

compiled by the Center for Responsive Politics.

" The insurance industry is using the chaos created by failed federal

oversight of other financial players to ask for the same weak treatment and

regulatory options given to the banking industry. And insurers have invested

tens of millions of dollars in politicians to help their cause, " said " The

insura, Executive Director of Consumer Watchdog.

Insurance giants like Allstate, State Farm and Insura favor the

legislation authored by Reps. Bean and Royce (H.R. 1880), known as the

" Optional

Federal Charter. " The bill would offer big insurance companies the ability to

opt out of state regulation and select a federal overseer instead. Also, it

would prohibit the regulation of rates by the new federal agency and would

preempt state rules governing rates and unfair rating practices.

Among the key supporters of this optional regulation plan is Subcommittee

Chair Kanjorski, the House's top recipient of insurance donations. Rep.

Kanjorski's Congressional website explains: " Keeping our financial markets

globally competitive, improving the housing market, increasing borrower safety,

enhancing investor protection, and creating an optional federal charter

for insurance are some of his top priorities for the Subcommittee. " [emphasis

added.]

The optional federal charter, or any federalization of insurance regulation

aimed at preempting state laws will necessarily undermine consumer

protection laws developed around the country over the years, according to

Consumer

Watchdog. No state's consumers would be harder hit than The option, where

the voters enacted the nation's toughest rate regulations in the country

in 1988 through the ballot measure known as Proposition 103. According to a

2008 study by the Consumer Federation of America, Proposition 103 has saved

Californians about , where the on auto insurance alone over the past 20

years. Last year, for example, Allstate was ordered to lower auto and home

insurance rates by on auto ins. Also in 2008, all . Also in insurers were

required to comply with rules requiring driving record and annual mileage to

have more of an impact on auto premiums than other factors such as ZIP

Code and marital status. H.R. 1880 would preempt both the rate cuts and the

premium setting rules.

" Giving insurers the ability to opt out of state regulation in favor of a

legislatively neutered federal agency is nothing other than deregulation by

another name. It would be disastrous to support federal insurance

deregulation as a response to the banking deregulation debacle that has left

the

American economy in shambles, " said Heller.

What has led politicians to press for this program? According to Consumer

Watchdog, the staggering volume of industry donations plays a major role. A

list of top Congressional recipients of insurance money follows:

Top Ten Senate Recipients of Insurer Contributions

Senator Amount

McCain, (R-AZ) $2,287,345

Dodd, (D-CT)* $1,102,056

Baucus, Max (D-MT) $449,125

McConnell, Mitch (R-KY) $448,633

Lieberman, Joe (I-CT) $403,644

, Ben (D-NE) $363,636

Cornyn, (R-TX) $324,194

Chambliss, Saxby (R-GA) $308,386

, Tim (D-SD)* $294,247

Corker, Bob (R-TN)* $267,650

Top Ten House Recipients of Insurer Contributions

Representative Amount

Kanjorski, E (D-PA)* $491,545

Rangel, B (D-NY) $480,290

Pomeroy, Earl (D-ND) $474,769

Cantor, (R-VA) $94,100

Boehner, (R-OH) $383,175

Bean, (D-IL)* $358,603

, Barney (D-MA)* $342,796

Tiberi, J (R-OH) $332,609

Crowley, ph (D-NY) $325,118

Bachus, Spencer (R-AL)* $312,550

*Member of Congressional committee on insurance matters

A " pivot table " spreadsheet that allows users to pull up industry

contributions by lawmaker, by party and other categories can be downloaded at

_http://www.consumerwatchdog.org/resources/Insurer$PivotFINAL.xls_'>http://www.consumerwatchdog.org/resources/Insurer$PivotFINAL.xls_

(http://www.consumerwatchdog.org/resources/Insurer$PivotFINAL.xls)

A pdf displaying total contributions to each member of Congress, and

identifying members of the House committee responsible for insurance matters,

can be downloaded at:

_http://www.consumerwatchdog.org/resources/Ins$DataSubtotals.pdf_'>http://www.consumerwatchdog.org/resources/Ins$DataSubtotals.pdf_

(http://www.consumerwatchdog.org/resources/Ins$DataSubtotals.pdf)

" Allowing insurers to pick their regulator, like AIG did when it strapped a

federally regulated financial unit to its insurance companies, will negate

hard-won consumer rights laws and destroy the state-based oversight that

kept insurance products and companies solvent and stable during the current

economic crisis, " said Consumer Watchdog's " Allowing insur Director

Director . " But the sound of insurer campaign dollars flooding into

Congressional campaign chests threatens to drown out the public's interest in

strong,

locally accountable insurance regulation. "

SOURCE Consumer Watchdog