The Council Wins Industry Changing Countersignature Decision

WASHINGTON, DC, Apr 10 (MARKET WIRE) --
The Council of Insurance Agents & Brokers won a major victory Thursday when the
9th Circuit Court of Appeals struck down Nevada's countersignature laws as
unconstitutional barriers to competition, affirming an earlier ruling by a
U.S. district court judge. Nevada is the last battleground in The Council's
efforts to eliminate countersignature requirements in U.S. states and
territories.

Although the state can still seek a review of the decision with the 9th
Circuit Court of Appeals or the U.S. Supreme Court during the next 90
days,the countersignature fight now is nearly over, according to Council
President Ken
A. Crerar.

"We have challenged these countersignature laws across the country, and at
every turn, we have run into resistance from local agent groups who are
trying to protect themselves from competition and have used every tool
theycould to try to stop us," said Crerar. "This Nevada decision makes it clear
there is no room for offensive, protectionist barriers to competition in this
country."

A countersignature statute requires an agent/broker in one state who
writesa policy in another state to pay a percentage of premium to a resident
agent in
order to put that policy into effect even if little or no work was required.
The resident agent's "stamp" does not come cheaply: In Nevada, the payment
requirement was 5 percent of premium regardless of the fee or commission
earned by the agent who actually wrote the policy.

"We have saved our members millions of dollars with earlier rulings in
Florida, South Dakota and Puerto Rico, as well as West Virginia where the
legislature repealed the countersignature law rather than fight," Crerar said.
"Once the Nevada ruling is final, our members will enjoy even more savings
because that statute was the most egregious of all."

The countersignature battle has been going on for decades. Nevada was one
of
two suits filed initially by The Council in June 2002 to challenge the arcane
countersignature laws then in effect in a number of states, Puerto Rico and the
Virgin Islands. Since then, The Council has prevailed in every state and
territory where it filed a challenge.

The only holdouts to final victory have been Nevada, where a federal judge
initially threw the statute out as unconstitutional nearly four years ago but
where the law has remained on the books while the state appealed, and the
Virgin Islands, where the U.S. District Court has ruled in The Council's
favor but a federal judge is still considering a technical change to the written
ruling.

"We fight competitive battles with local protectionist groups on multiple
fronts
-- surplus lines regulations, agent/broker licensure and anti-rebating
statutes, to name a few," Crerar said. "But the most naked expression of
anachronistic protectionism has been the countersignature regime that once was
pervasive
across the country. Nevada was the most stubborn resister to change, giving a
bonus 5 percent of premium to resident agents who added no value whatsoever
to the transaction. This harms the consumer and serves only to protect agents
who can't compete on their own."

The Council's long legal battle to end countersignature requirements dates
back
to June 11, 2002, when it filed federal court suits against the insurance
commissioners in both Florida and Nevada alleging that countersignature laws
were an unconstitutional barrier to interstate commerce.

The first victory came in Florida on Oct. 3, 2003, and was followed by
similar victories in South Dakota, Nevada, Puerto Rico and the Virgin Islands.
After the Florida ruling, the West Virginia legislature repealed that state's
countersignature law to avoid a court battle with The Council.

The original Nevada decision holding the countersignature law
unconstitutional came down in 2004, and the Virgin Islands case was
decidedon June 23, 2006, in a ruling from the bench by U.S. District Court Judge
Curtis Gomez.

Until the time that the Nevada and Virgin Islands rulings are final,
however,
agents and brokers need to abide by the countersignature laws, The Council
said.

Founded in 1913, The Council is the premier association for commercial
insurance and
employee benefits intermediaries. The Council represents the leading
commercial brokers and agents in the United States and abroad. Council members
annually place 80 percent of all commercial property/casualty premiums in the
United
States and administer billions of dollars in employee benefits accounts.
www.ciab.com

Contact:
Cheryl Arvidson
Assistant Director, Strategic Communications
202-662-4426
Email Contact

Maura Nelson
Vice President, Marketing & Communications
202-662-4432
Email Contact

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