Elections & PAC: What's at Stake for Insurance Agents This November?

By John Savant

These days many people, IA&B members included, are tired of hearing about politics. It’s hard to blame them, especially in today’s highly polarized political environment. Whether by television, social media, or that one family member during holiday get-togethers, we are all inundated with political messaging on a regular basis. However, despite our exhaustion, agents cannot afford to sit on the sidelines. Insurance is one of the most heavily regulated industries in the world, and the laws that are passed in our state legislatures have a direct impact on our members’ livelihoods. This is why IA&B’s lobbyists and volunteers work tirelessly to influence lawmakers and pass legislation that supports our industry.

There’s a fundamental truth when it comes to elections: Winners make policy. Losers stay home.

This reality underscores the importance of Political Action Committees (PACs) such as IA&B’s AgentPAC. Winning elections matters. If agent-friendly candidates don’t win office, all the lobbying in the world cannot convince someone who is unwilling to listen. For better or worse, campaigns cost money, and political action committees have become a ubiquitous part of American elections at every level of government.

HOW AND WHY PACS WORK

While IA&B membership dues help pay for advocacy efforts, campaign finance law prohibits the use of membership dues for direct contributions to political campaigns. Only AgentPAC funds, which are collected exclusively from voluntary contributions by IA&B members, can be used to support candidates directly. Much like insurance spreading risk among many individuals, AgentPAC allows agents to pool their resources, thereby amplifying their influence within the political process.

AGENT PAC SUCCESS STORIES

In the past few years, AgentPAC funds have not only been used to elect agent-friendly lawmakers, but have also supported several independent agents, who are themselves IA&B members, in winning public office. Legislators are expected to vote on hundreds, if not thousands, of bills during each session and can’t possibly be knowledgeable on every issue. The handful of legislators who are experts on insurance issues are vital allies in educating their colleagues when an insuranc-erelated bill comes up.

Beyond supporting the election of agent-friendly candidates, a well-funded AgentPAC can serve as a powerful motivator once lawmakers are in office. Legislators who are on the fence when it comes to issues that are important to independent agents are more likely to consider our perspective when they know AgentPAC exists – and might consider backing a challenger who aligns better on our issues. This is how AgentPAC and our lobbying efforts work hand in hand to advance the interests of independent agents. AgentPAC provides the financial resources necessary to support sympathetic candidates, while our lobbyists work to ensure that all legislators are informed about specific insurance bills once they are in office. One cannot function without the other.

WHAT’S AT STAKE

As the 2024 election season enters its final months, please consider contributing to AgentPAC today. Waiting until a problematic bill is introduced to contribute to AgentPAC is like waiting until a loss happens to purchase an insurance policy. Proactive contributions to AgentPAC provide a safeguard against unfavorable developments and help to ensure that your interests are considered from the outset.

At the same time, we must be ready to defend against proposals that would be damaging to the insurance industry. Earlier this year, a co-sponsorship memo in the Pennsylvania House called for a ban on credit scoring as an insurance rating factor because “insurance is not a loan or any variety of credit, so [the use of credit score] is wholly illogical.” Recent similar proposals in Delaware would have banned the use of zip code and gender as auto-insurance rating factors, raising rates for many drivers across the state.

In Maryland’s latest legislative session, IA&B successfully opposed a bill that would have applied the state sales tax to services, including insurance agents’ commissions. This proposal arises periodically in all three states, and we expect taxation to become more of an issue in the coming years as state budgets tighten.

The results of the 2024 state elections in Pennsylvania, Maryland, and Delaware will determine who holds office and who votes on these critical issues the next time they come up. Contribute to AgentPAC before this November, so we can make sure the people who support us win their elections and send those who don’t support us home.

Reach IA&B Government Affairs Director John Savant at JohnS@IABforME.com or 717-918-9214.

SUPPORT AGENTPAC

AgentPAC is the state-based, bi-partisan political action committee which enhances IA&B’s advocacy efforts. AgentPAC pools the voluntary contributions of IA&B members and uses those funds to support the election of candidates and legislators who understand the issues important to the independent agent and broker community.

Learn how to contribute by check or online: IABforME.online/AgentPAC or contact Government Affairs Director John Savant, 800-998-9644, ext. 607 or JohnS@IABforME.com.

In addition to personal contributions, Maryland and Delaware law permits corporate contributions to AgentPAC, made directly by the agency. Pennsylvania prohibits corporate contributions; however, personal, LLC, and partnership contributions are permitted.