DATE: NOVEMBER 6, 2008
TO: NCOIL LEGISLATORS
FROM:MIKE HUMPHREYS
NCOIL DIRECTOR OF STATE-FEDERAL RELATIONS
RE: ELECTION EFFECT ON CONGRESSIONAL INSURANCE COMMITTEES
Attached is a November 5 National Underwriter article entitled “Dems Make Gains, Miss Mark in Senate.”
The Democratic Party has significantly increased its numbers in Congress. In the Senate,
· Democrats will pick up at least 6 seats.
· There will be at least 55 Democrats, 40 Republicans, and 2 Independents (CT, VT)—who have caucused and voted with the Democrats.
· Independent Joe Lieberman (CT)—who supported Sen. John McCain for President— will meet today with Senate Majority Leader Harry Reid (NV) to discuss his future with the Democratic Party.
· Three (3) Republican-held seats in Alaska, Georgia, and Minnesota remain too close to call.
In the House,
· Democrats will pick up at least 21 seats.
· There will be at least 254 Democrats and 173 Republicans.
· Eight (8) seats remain up-for-grabs.
Congress will discuss Committee and leadership assignments for 2009 when it convenes in two (2) weeks for a lame duck session. Final assignments will be made before the 111th Congress convenes in January.
Below is an overview of how the Elections may affect the Congressional Committees that have jurisdiction over insurance.
U.S. SENATE COMMITTEE ON BANKING
DEMOCRATS
· Only two (2) Committee Democrats—Sen. Tim Johnson (SD) and Sen. Jack Reed (RI)— were up for reelection and each won his respective race.
REPUBLICANS
· Two (2) Republicans were up for reelection and two (2) Members are retiring.
· Sen. Elizabeth Dole (NC) lost and Sen. Michael Enzi (WY) won.
· Sen. John Sununu (R-NH), a former Committee Member and a cosponsor of S. 40, the National Insurance Act—legislation to create an optional federal charter (OFC) for insurance—also lost.
· Sen. Chuck Hagel (NE) and Sen. Wayne Allard (CO) are retiring.
· Sen. Allard was the Ranking Member of the Subcommittee on Securities, Insurance, and Investment.
OUTLOOK
The Committee may be in for a major shakeup in 2009 as rumors have pegged Chairman Chris Dodd (D-CT) as a possible replacement for Vice President-Elect Sen. Joe Biden (D-DE) as the Chair of the Committee on Foreign Relations. If Sen. Dodd leaves, Sen. Tim Johnson (D-SD), the cosponsor of S. 40, would be his most likely replacement. However, given the current financial crisis, and the Banking Committee’s jurisdiction over financial services regulation, Sen. Dodd may chose to remain in his current role.
On the Republican side, Senate leadership will appoint three (3) new members to the Committee to replace Sens. Allard, Dole, and Hagel.
U.S. HOUSE COMMITTEE ON FINANCIAL SERVICES
DEMOCRATS
· 35 of the 37 Committee Democrats—including all leadership—were reelected.
· Rep. Paul Kanjorski (D-PA), Chair of the House Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, won a tight race and will return to his post.
· Rep. Tim Mahoney (D-FL), who had sponsored H.R. 3355, the Homeowners Defense Act—that passed the House late last year—was defeated.
· Rep. Don Cazayoux (D-LA) was also defeated.
REPUBLICANS
· The Republicans lost two (2) Members in electoral defeats and (2) Members to retirement.
· Reps. Christopher Shays (CT) and Rep. Tom Feeney (FL) lost their respective races.
· NCOIL Executive Committee Member Sen. Steve Stivers (R-OH) won a race to replace outgoing Rep. Deborah Pryce (R-OH), Ranking Member of the Capital Markets Subcommittee.
· Rep. Steven Pearce (R-NM) had to relinquish his seat to run for the U.S. Senate. Rep. Pearce was defeated and a Democrat was elected to replace him.
OUTLOOK
The Committee should not see dramatic leadership changes in 2009. Rep. Michael Castle (R-DE) or Rep. Peter King (R-NY) would be among the front runners, based on seniority, to replace Rep. Pryce as the Ranking Member of the Capital Markets Subcommittee.
Feel free to contact me by reply e-mail or at 202-220-3014 should you have any questions.