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Big "I" Agent to Testify Before Congress on Federal Crop Insurance Program

RMA language weakens program and will hurt America's farmers, local insurance agencies, small businesses and rural communities.

WASHINGTON, D.C., July 15, 2010 — The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) today announced that John F. Dalton, president of Midwest Insurance Associates LLC and the Agri-Land Insurance Agency in Council Bluffs, Iowa and Big “I” Crop Insurance Task Force member, has been invited to testify before Congress in a hearing “to review the state of crop insurance industry.”

WHO:            John F. Dalton, Midwest Insurance Associates LLC & Agri-Land Insurance Agency president, Council Bluffs, Iowa
WHAT:          To testify before the U.S. House of Representatives Committee on Agriculture Subcommittee on General Farm Commodities and Risk Management
WHEN:          Thursday, July 22, 2010
TIME:            Starts at 10:00 a.m. Eastern
WHERE:        1300 Longworth House Office Building
Washington, D.C.
WEB:              The hearing will be webcast live. Click HERE for link or go to for more information.

Recently, the Obama administration released the Risk Management Agency’s (RMA) final version of the Standard Reinsurance Agreement (SRA) which determines the terms and conditions for the Administrative and Operating (A&O) reimbursements and underwriting gains for crop insurance companies.

The Big “I” was deeply disappointed with the final version of the SRA where the RMA unfairly restricted agents’ earning ability through arbitrary commission caps in an agreement in which the agents have no voice or ability to represent themselves. The association believes the agent commission cap provision in the SRA is misguided and dangerous to the farm safety net. Additionally, the Big “I” points to research that shows that the average commission rate has declined from 2008 to 2009 proving the fact that allowing the marketplace to determine commission rates works. The agent cap does not impact the crop insurance budget, doesn’t save the federal taxpayer any money, and has no policy merit.

Founded in 1896, the Big “I” is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of more than 300,000 agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance—property, casualty, life, health, employee benefit plans and retirement products. Web address:


​127 South Peyton Street
Alexandria VA 22314
​phone: 800.221.7917
fax: 703.683.7556

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