P O L I T I C A L L Y S P E A K I N G

2004 Election – A Decisive Victory and a Mandate

The worst fears surrounding the election turned out to be unwarranted. Before the election, the American public was bombarded on a daily basis with news stories about the legions of attorneys dispatched by both parties to polling places to challenge election results. Supposedly, the election was so close that the results of the presidential race would not be known for weeks following the election. To throw even more uncertainty into the mix, during the weekend prior to the election, the media played the videotaped warnings of Osama Bin Laden. Even the exit poll results reported on Election Day turned out to be completely inaccurate predictors of the outcome.

When the votes were all counted, President Bush won a decisive victory – winning both the popular and electoral vote. Surprising to many pundits, the Republicans increased their majorities in both the House and Senate. The media shifted gears following the election and started to describe the Republican victory as a “mandate.” If President Bush and the Republican leadership in Congress did, in fact, receive a mandate on Election Day, the question is what will they do with it? How will they spend their political capital? During the second presidential term, it is conventional wisdom that the incumbent will focus on his place in history and seek to leave a legacy. Due to the uncertain results of mid-term elections, generally where the congressional election often goes against the party in power, the President has essentially two years to accomplish his legislative agenda. This means that 2005 should be a very busy year on Capitol Hill.

While a three-seat pickup for the Republicans in the House is noteworthy, it pales by comparison to the significance of the four-seat increase in the Republican majority in the Senate. With a new 55-44-1 majority, the Republicans are numerically only five votes away from obtaining a filibuster-proof majority (60 votes). Assuming that all Republicans are united on a particular bill, only five Democratic votes will be required to shut off debate and allow a bill to proceed to a vote on the Senate floor. This is a major development and could have great implications for legislation that has been stymied for years due to an inability to get the required 60 votes

For NAMIC members, the election offers new hope on several critical issues:

Class Action Reform
TRIA Extension
Asbestos Litigation Reform
Insurance Regulatory Reform
Small Property/Casualty Company Taxation

On most of these issues, NAMIC is in a better position today than it was before the election. None of this will be easy to accomplish. There are two potential wild cards to consider. First, the Republicans are not united on every issue – nor is the insurance industry – and lack of unity makes it more difficult to achieve legislative success. Secondly, the recent allegations and investigations surrounding the broker-agent issues are beginning to receive attention on Capitol Hill and it is unknown what their impact will be in terms of the industry’s legislative agenda.

What can you do to help NAMIC achieve success on these issues? First, volunteer to serve as a legislative contact for your representative in the U.S. House of Representatives and two Senators. Second, come to Washington, D.C. as part of your State’s delegation in NAMIC’s Congressional Contact Program. For more information, please contact Georgiann Howell at ghowell@namic.org. A third way is to take an active role in NAMIC PAC by giving NAMIC your company’s prior approval. If your company has given NAMIC PAC prior approval, you can contribute to the NAMIC PAC and join hundreds of others who have decided to make a difference. Please contact Christy Kendall for further information ckendall@namic.org.

David A. Winston
Senior Vice President – Federal Affairs

Posted: Friday, January 14, 2005 12:00:00 AM. Modified: Wednesday, September 07, 2005 3:25:50 PM.

Salary Survey: Reports updated and available online 24/7/365.

(317) 875-5250 - Indianapolis | (202) 628-1558 - Washington, D.C.

Contact NAMIC | Press | Advertise | Sponsor

We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.