Feds likely to keep the heat on industry: lame duck senate hearing may be opening salvo in a larger D.C. oversight role.(Mr. Spitzer Goes To Washington)

National Underwriter Property & Casualty-Risk & Benefits Management, November, 2004 by Postal, Arthur D.

A U.S. SENATE HEARING last week on the brokerage fee and bid-rigging scandal during a lame duck Congress is unlikely to be the last federal word on the growing investigation into insurance industry practices, industry lobbyists say. Indeed, during the hearing, several state officials suggested that some federal muscle would be helpful in policing insurers and brokers, although they stopped short of suggesting a federal takeover of industry oversight.

"There will be additional congressional hearings in the future," said Robert Rusbuldt, chief executive officer of the Independent Insurance Agents and Brokers of America in Alexandria, Va. "The question is when, and who will hold them. That will become clear in January or February." He predicted that "Congress...

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