WIN - Spring 2011 - (Page 44)
2011 WHOLESALE INSURANCE
WHITE PAPER WINNERS
HE AAMGA EDUCATION FOUNDATION issues a call for white papers each spring, inviting college and university students across the United States who are engaged in risk management and insurance programs to submit research papers on topical issues impacting the industry. Two winning papers were selected this year based on the soundness of industry knowledge, usefulness to other members of the wholesale industry, innovation and creativity by a panel of insurance professionals comprised of Mark Rothert, Ron Rothert Insurance Services, Portland, Ore.; Wayne Forest, Forest Insurance Facilities, Metairie, La.; Rosemarie Marshall, AmWINS Program Underwriters, Dallas, Texas; and Joseph Hutelmyer, AmWINS Transportation, Burlington, N.C. Abstracts of the winning papers are presented here. Complete copies of both papers are available on the AAMGA University website - www.aamga.org/node/3543.
The Insurance Industry: Past, Present, and Future
BY LISA BLAIR, APPALACHIAN STATE UNIVERSITY • email@example.com
Insurance is a dynamic industry that changes in response to state, national, and international events. Throughout the history of the United States, two main issues in insurance have existed and have been examined multiple times through Congressional legislation and Supreme Court rulings. These two issues are that of state versus federal regulation and the appropriate scope of insurance companies: whether companies should be strictly limited to engaging in only insurance matters or if it is appropriate for a company to engage in a combination of insurance, investment banking, and commercial banking activities. Examining past legislation and understanding current legislation can help one to comprehend the insurance industry. Paul v. Virginia, the United States v. Southeastern Underwriters Association, and the McCarran Ferguson Act are the three main events that have impacted the issue of state regulation versus federal regulation of the insurance industry. The United States began with states being solely in charge 4 4 | vi ew t his iss ue at | www.naylornetwork.com/amg-nxt of regulation, then that broad power was given to the federal government, and lastly the broad power was given back to the states with opportunities for the federal government to intervene when seen fit. The second major issue that affects the insurance industry is deciding the correct scope of insurance companies. The first piece of legislation affecting this issue was the Glass Steagall Act in 1933. This act separated commercial banking, investment banking, and insurance. This meant that a commercial bank could not own an insurance company, something that had previously been relatively common. As can be determined by examining the year of this act, the Glass Steagall Act was passed soon after the Depression as part of Roosevelt’s “New Deal.” The purpose was to restore confidence in the banking system, which was arguably accomplished. It is debated by historians as to whether or not the actions taken in this act actually did anything to improve the economy in and of themselves, or if it was little more than a placebo effect that caused confidence to be returned to the banking industry. Either way, it seems that the Glass Steagall Act served its purpose in restoring confidence to banking after an unfortunate economic time, but
Table of Contents for the Digital Edition of WIN - Spring 2011
WIN - Spring 2011
Table of Contents
Welcome to “WIN”
Hold, Fold or Double Down
Underwriting the Customer Relationship
Report From Capitol Hill: Fasten Your Seatbelts
Interview With La Insurance Commissioner James Donelon
Regulatory Reform: Incremental Improvements or Exercise in Frustration?
Are You Swimming Naked
In the Winner’s Circle: Patricia Roberts, General Star Management Group
2011 Wholesale Insurance White Paper Winners
Sustaining the Wholesale Insurance Industry
Index to Advertisers/ Advertisers.com
WIN - Spring 2011
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