Turning point: elections 2006: the outcome of November's U.S. elections should shape the course of insurance for years.

From the corridors of Congress to state capitals, from the judiciary to the bureaucracy, the 2006 election holds rare potential to make a profound and lasting impact on the statutory and regulatory environment for insurers.

Unprecedented scrutiny has fallen on how and where insurance is regulated. The winners of congressional, state legislative, gubernatorial, regulatory and judicial races will face decisions that could alter the landscape for insurers, agents, brokers and other participants in this critical sector of the U.S. economy.

The questions are fundamental: Will insurance remain principally state regulated, or will the federal government dramatically expand its role? Will state regulators--if their primacy is affirmed--tighten their grip or give greater sway to market forces? Which way will the tide of tort reform flow?

Voters' decisions on key state ballot questions also could have powerful effects in such areas as credit-based insurance scoring and the accountability of judges.

What follows is a comprehensive look at the races that will make Nov. 7 a late night for industry insiders.

State Elections

Alabama

Office: Governor

Candidate: Lucy Baxley, Democrat

Background: Baxley was elected state treasurer in 1994, serving until 1998. In 2002, she was elected lieutenant governor.

Issues: Increasing the number of Alabamans who have health insurance; creating a state Military Bill of Rights, which would include a state death benefit to the survivors of soldiers who die in the line of duty; improving education by raising the standards of discipline in the classroom.

Candidate: Bob Riley, Republican-Incumbent

Background: Since becoming governor in 2003, Riley has cut funding to non-state agencies and approved spending cuts of $500 million, turning the state's record $1 billion deficit into a record $750 million budget surplus. From 1996 to 2002, Riley represented the state's third district in Congress.

Issues: Continue working to improve the economy by recruiting new businesses to the state and nurturing those already in place; step up the state's stance on illegal immigration; continue to advocate for increased education funding.

Alaska

Office: Governor

Candidate: Tony Knowles, Democrat

Background: Knowles was Alaska's governor for two terms. He's seeking a third term due to pending issues facing the state, such as the negotiation of a gas pipeline agreement.

Issues: Pipeline negotiations; dedicate a portion of the state budget surplus to fully fund K-12 education and to establish an education trust fund; the state's cruise ship tax initiative; campaign finance reform.

Candidate: Sarah Palin, Republican

Background: Former mayor of Wasilla; ran for lieutenant governor in 2002

Issues: Fight efforts to use Alaska's Permanent Fund without a vote of the people; foster the growth of small business and advocate for a gas pipeline that would benefit residents and businesses while reducing the state's energy costs.

Arizona

Office: Governor

Candidate: Len Munsil, Republican

Background: Munsil is founding president and general counsel for the Center for Arizona Policy, one of the largest and most influential state-based groups in the United States. He's been a licensed attorney for 17 years and was appointed by former Gov. Fife Symington to the Arizona Juvenile Justice Advisory Council. He has experience in all three branches of government.

Issues: Securing the border and proposes to stop illegal immigration by building new fences and using radar technology to identify and deter attempts to cross before they happen. Also strong on limiting the size and scope of state government and lowering taxes.

Candidate: Janet Napolitano, Democrat-Incumbent

Background: Prior to her election in 2002, Napolitano served one term as Arizona attorney general and four years as U.S. attorney for the district of Arizona.

Issues: Strong public education system; a safe homeland; a secure border; sensible economic development; affordable and accessible health care, and a government that is run efficiently and responsibly.

Arkansas

Office: Governor

Candidate: Mike Beebe, Democrat

Background: Elected to the state Senate in 1982, he worked for 20 years in that role, he says, to reach across party lines to achieve fiscal conservatism and went on to become the state's 51st attorney general. In his first two years in office, the Consumer Protection Division's enforcement efforts resulted in judgments and settlements totaling more than $13.5 million.

Issues: Boosting jobs and economic development by aggressively recruiting industry to the state; expanding affordable health insurance options for small businesses; developing universal pre-kindergarten education.

Candidate: Asa Hutchinson, Republican

Background: Hutchinson was born and raised in the state. His first appointment to public service came in 1982 when President Reagan picked him to serve as U.S. attorney for Western Arkansas. He went on to serve Arkansas in Congress and in 2001 was named by President Bush to head the U.S. Drug Enforcement Administration. Following Sept. 11, 2001, Bush called upon Hutchinson to help create the U.S. Department of Homeland Security, for which he served as undersecretary.

Issues: Creating more and better jobs, including embracing advances in technology and telecommunications to create higher-paying jobs; strengthening education; fighting illegal immigration and casino gambling.

California

Office: Insurance Commissioner

Candidate: Cruz Bustamante, Democrat

Background: Former State Assembly Speaker.

Issues: Protect consumers from fraud and abuse; foster healthy environment where free market system can thrive; educate consumers about earthquake and other catastrophe insurance coverage.

Candidate: Steve Poizner, Republican

Background: Former White House Fellow, who served as Director of Critical Infrastructure Protection in the National Security Council in the days following the Sept. 11 terrorist attacks. Poizner ran for State Assembly.

Issues: Increasing rate competition; fighting insurance fraud; will not accept contributions from the industry or its employees.

Colorado

Office: Governor

Candidate: Bob Beauprez, Republican

Candidate: A third-generation Coloradan, Beauprez grew up on a dairy farm, married his high school sweetheart and became a successful banker after selling the family business. He is serving his second term as representative for Colorado's 7th Congressional District and served for two terms as the state's GOP chairman.

Issues: Taxes/budget; illegal immigration; protecting marriage; education; the Second Amendment.

Candidate: Bill Ritter, Democrat

Background: Was a deputy district attorney in Denver before switching gears in 1987, when he and wife, Jeanne, went to Zambia, Africa, to expand nutrition centers. In 1990 worked as a federal prosecutor with the U.S. Attorney's Office. In May, 1992, returned to the DA's office. He was appointed Denver's district attorney in 1993, was elected to the post in 1994 and re-elected in 1996 and 2000.

Issues: Children; education; health care; natural resources; jobs and economy; fiscal responsibility.

Connecticut

Office: Governor

Candidate: John DeStefano, Democrat

Background: DeStefano has been re-elected to the New Haven mayor's seat six times. Prior to his election, he served in city government as a deputy controller, chief administrative officer and development administrator.

Issues: Providing universal health care to each family in the state; placing an inflation-sensitive index on the minimum wage; streamlining homeland security issues in a state which is not defined by county lines.

Candidate: Jodi Rell, Republican-incumbent

Background: In 20 years of state government, Rell has served as a state House representative and was lieutenant governor for nine years.

Issues: Economy, including job creation and job growth; education, with focus on early childhood learning; preserving Connecticut's unique quality of life.

Florida

Office: Chief Financial Officer

Candidate: Tom Lee, Republican

Candidate: Alex Sink, Democrat

Georgia

Office: Insurance Commissioner

Candidate: Guy Drexinger, Democrat

Background: Earned economics degree from University of Florida's College of Business Administration. At Georgia State University studied accounting and went on to earn a certified public accountant designation. In 1992 earned his law degree from Mercer University and went on to open a solo practice with a concentration on small business law.

Issues: Cracking down on insurance fraud; allowing HMO policyholders to choose their own doctors; increasing penalties for uninsured motorists.

Candidate: John Oxendine, Republican-Incumbent

Background: Prior to taking this office, he was with the law firm of Oxendine and Associates. He also served as chairman of the State Personnel Board. Commissioner Oxendine received a law degree from the Walter F. George School of Law of Mercer University and a bachelor's degree from Mercer University.

Issues: Lowering Georgia's premium tax; improving rural health care through telemedicine; creating more competition in the medical malpractice liability insurance market; fighting fake insurance.

Hawaii

Office: Governor

At press time, there were 12 candidates running for the governor's office with a primary scheduled for Sept. 23.

Idaho

Office: Governor

Candidate: Jerry Brady, Democrat

Background: Began his professional career as a legislative assistant in 1963 and founded several grass roots organizations in his career. After a stint in Washington, D.C., where he'd established a law practice, Brady returned to Idaho in the 1980s to take over his family's independent news and information companies. He was the 2002 Democratic candidate for governor of Idaho.

Issues: Ending price gouging at the gasoline pumps; promoting preschool education; increasing the minimum wage to $7 an hour.

Candidate: C.L. Otter, Republican

Background: A three-term U.S. representative, Otter has served on various committees, including the House committees on energy and commerce, transportation and infrastructure, and government reform. In 2001, he stepped down from the office of lieutenant governor after serving four terms.

Issues: Endangered Species Act; fiscal responsibility; gun rights; prison overcrowding.

Illinois

Office: Governor

Candidate: Rod Blagojevich, Democrat-Incumbent

Background: Before becoming governor, Rod served in the U.S. Congress, representing Illinois' 5th district, from 1997 to 2002. He served in the Illinois House of Representatives from 1992 to 1996. Prior to running for office, Rod was a Cook County assistant state's attorney, prosecuting domestic abuse cases and felony weapons charges. As governor, he helped to usher in affordable health care for children and increased education spending by $2.3 billion.

Issues: Creating new jobs in construction and manufacturing; advocating for the "Preschool for All" initiative; creating a $1,000 tax credit for every freshman and sophomore who attends a college or university in Illinois.

Candidate: Judy Barr-Topinka, Republican

Background: Served as state treasurer for 12 years; former state senator and representative.

Issues: Tackling the state's pension problem; capital needs and growing health-care obligations.

Iowa

Office: Governor

Candidate: Chet Culver, Democrat

Background: Culver, at 33, was elected as Iowa's Secretary of State on Nov. 3, 1998, becoming the youngest person in the nation to earn the distinction. Culver began his four-year term on Jan. 1, 1999. Prior to his election, Secretary Culver worked for more than 10 years in public service in Iowa as an educator. Issues: To build on the state's traditional strengths in agriculture, manufacturing, and education and to create good jobs, with good benefits.

Candidate: Jim Nussle, Republican

Background: Nussle began public service as the Delaware County attorney in 1986. In 1991, he was sworn in as the youngest member of the U.S. House of Representatives. He's since been re-elected seven times.

Issues: Education, jobs, making Iowa the "renewable energy capital of the world."

Kansas

Office: Insurance Commissioner

Candidate: Sandy Praeger, Republican-Incumbent

Background: At the National Association of Insurance Commissioners, Praeger serves on several key committees, including those concerning internal administration, health insurance and managed care, and life insurance and annuities. Served three terms in the Kansas Senate and one term in the Kansas House. Also served as mayor of Lawrence, Kan.

Issues: Advocating for anti-fraud legislation; finding solutions to the rising cost of health care; working to bring balance to the insurance marketplace.

Candidate: Bonnie Sharp, Democrat

Background: Sharp is the ranking Democrat on the Kansas House of Representatives Insurance Committee; elected to the House in 1996 and currently serving her fourth term.

Issues: Vows not to take campaign contributions from insurance companies; advocating for industry fairness and transparency; focusing on preventive care to combat rising healthcare costs.

Louisiana

Office: Insurance Commissioner

Candidate: James Cain, Republican

Background: Cain is a former teacher and basketball coach whose foray into public service began in 1971 when he was elected to the Louisiana House. In 1991, he was elected to the state Senate representing District 30.

Issues: Cain's "Five Point Insurance Plan" for the state includes creating the insurance inspector general's office to examine and investigate mismanagement and fraud in the department. He also would create the positions of complaint resolution officer and insurance consumer protection advocate.

Candidate: Jim Donelon, Republican-Incumbent

Background: Prior to becoming the Commissioner of the Louisiana Department of Insurance, Jim Donelon served the department in leadership positions as chief deputy commissioner and executive counsel.

Issues: To preserve the competitive insurance marketplace in Louisiana; to preserve the hurricane-ravaged state's homeowners market, and to strengthen Louisiana's health insurance market.

Maine

Office: Governor

Candidate: John Baldacci, Democrat-Incumbent

Background: Baldacci served as a city councilman in Bangor and was elected to the Maine State Senate in 1982. He then represented the 2nd District of Maine in the U.S. Congress before being elected governor in 2002.

Issues: Building the economy by attracting more and better businesses into the state; addressing availability and affordability of home heating needs.

Candidate: Chandler Woodcock, Republican

Background: Woodcock enlisted in the U.S. Army right out of high school to serve in Vietnam. His public service career began at the local level, and includes five years on the Board of Selectmen in Farmington. He is currently serving his third term in the Maine Senate. He served more than 25 years as a public high school teacher.

Issues: Reduce taxes; improve economy by encouraging job creation; health-care reform.

Maryland

Office: Governor

Candidate: Bob Ehrlich, Republican-Incumbent

Background: Prior to his election in 2002, Ehrlich served as a member of the House of Delegates from 1987 to 1995 and of the U.S. House of Representatives from 1995 to 2003.

Issues: Education; environment; fiscal responsibility; transportation; jobs and economy.

Candidate: Martin O'Malley, Democrat

Background: O'Malley was an assistant state's attorney when, in 1991, he ran for a vacant Baltimore City Council seat and won. Won the mayor's seat in 1999.

Issues: Keeping energy prices low; ending the state's traffic gridlock; striving to achieve affordable health care for all Maryland residents.

Massachusettes

Office: Governor

At press time, seven candidates were in the race for governor in Massachusetts. The race was set to narrow on Sept. 19, as three Democrats faced off in a primary election.

Michigan

Office: Governor

Candidate: Richard DeVos Jr., Republican

Background: DeVos is former owner and current governing board member of the National Basketball Association's Orlando Magic franchise; his wife, Betsy DeVos, is the former chairman of the Michigan Republican Party; member of various boards of business and nonprofit organizations.

Issues: Jobs; health care; education; family values; environment.

Candidate: Jennifer Granholm, Democrat-Incumbent

Background: Granholm began her career as a clerk for the 6th Circuit Court of Appeals and in 1990 became a federal prosecutor in Detroit, maintaining a 98% conviction rate. In 1998 Granholm was elected as the state's first female attorney general.

Issues: Growing Michigan's economy; maintaining the state's high quality of life.

Minnesota

Office: Governor

Candidate: Mike Hatch, Democratic-Farmer-Labor

Candidate: Tim Pawlenty, Republican-Incumbent

Nebraska

Office: Governor

Candidate: David Hahn, Democrat

Background: A fifth-generation Nebraskan, Hahn is the CEO of New Digital Group, an Internet development company based in Lincoln.

Issues: Hahn said he would use his experience in business and the law to promote a "forward-thinking" model for economic growth in the state.

Candidate: Dave Heineman, Republican-Incumbent

Background: Heineman was sworn in on Jan. 21, 2005, when Gov. Mike Johanns became the United States Secretary of Agriculture. Prior to becoming governor, Heineman served more than three years as lieutenant governor.

Issues: Heineman said he will keep focus on job creation, such as with the legislation he signed into law that he says will create 57,000 jobs over the next eight years. Would also seek to ease the tax burden on Nebraska's families and businesses.

Nevada

Office: Governor

Candidate: Jim Gibbons, Republican-Incumbent

Background: Gibbons served three terms on the Nevada Legislature before getting elected to the U.S. House of Representatives in 1996. He was re-elected for his fifth term in November, 2004.

Issues: Strive for fair regulatory treatment of businesses including tightening tort laws, keep taxes low and maintain Nevada's health-care program that provides optional prescription drug program for seniors.

Candidate: Dina Titus, Democrat

Background: Titus has taught American and Nevada government at the University of Nevada, Las Vegas, for nearly 30 years. She was first elected to the state senate in 1988 and has served as Democratic Minority Leader since 1992.

Issues: Protecting the environment; attracting new businesses to the state; bettering education, and putting ethics back into government.

New Hampshire

Office: Governor

Candidate: Jim Coburn, Republican

Candidate: John Lynch, Democrat-Incumbent

New York

Office: Governor

Candidate: John Faso, Republican

Candidate: Eliot Spitzer, Democrat

Ohio

Office: Governor

Candidate: Ken Blackwell, Republican

Background: Former state treasurer; former Cincinnati mayor; former U.S. Ambassador.

Issues: Creating jobs by controlling government spending and reducing the state's tax burden; keeping a rein on state spending; reform education system by making schools prove they spend at least 65% of their budgets on classroom instruction.

Candidate: Ted Strickland, Democrat

Background: A psychologist, former minister and former college professor, Strickland has served five years in the U.S. Congress following his election in 1992.

Issues: Creating and keeping jobs in Ohio by investing in the state's strengths, such as energy production; increasing the number of people who have access to affordable health care and; strengthening the education system.

Oklahoma

Office: Insurance Commissioner

Candidate: Bill Case, Republican

Background: Involved in local politics since 1990; elected to the Oklahoma House in 1994.

Issues: Consumer outreach; decreasing the cost of health care; increasing competition among insurers.

Candidate: Kim Holland, Democrat-Incumbent

Background: The second woman to serve as insurance commissioner for Oklahoma. Widely regarded as one of the top employee-benefits specialists in the state. Appointed by Gov. Brad Henry in January, 2005, replacing Carroll Fisher, who was convicted of embezzlement and perjury.

Issues: Consumer education; fighting insurance fraud; and employee benefits.

Oregon

Office: Governor

Candidate: Ted Kulongoski, Democrat-incumbent

Background: With a law firm that became known as the state's largest labor-law practice, Kulongoski went on to serve in the Oregon House and Senate. He served as Oregon insurance commissioner from 1987 to 1991. In 1992, he was elected Oregon attorney general. In 1997 he was elected to serve as an associate justice to the state Supreme Court and served until 2001.

Issues: Kulongoski says he would continue the trend of creating new jobs and attracting business to the state. He also would work to increase the state's financial commitment to education and work with all sides in navigating the complex debate over land use in the state.

Candidate: Ron Saxton, Republican

Background: Saxton is a former member and chairman of the Portland school board and founder of a foundation that has raised more than $30 million in private contributions to improve education in the state's largest school district. Saxton is the cofounder of a law firm where he specialized in complex business transactions involving the energy, manufacturing and natural resource industries. He also has owned a commercial cherry farm.

Issues: Leading education reform; holding schools accountable for results and work to increase higher education funding; advocating for increased government accountability.

Pennsylvania

Office: Governor

Candidate: Ed Rendell, Democrat-Incumbent

Background: From 1992 through 1999, Rendell was mayor of Philadelphia, during which time he eliminated a $250 million deficit and generated budget surpluses. Rendell was the Philadelphia district attorney from 1978 through 1985.

Issues: Strengthening the economy, including job growth; education and; property tax relief.

Candidate: Lynn Swann, Republican

Background: A former professional football player and sports broadcaster, Swann has used his celebrity status to raise funds for the Pittsburgh Ballet and to act as national spokesman for Big Brothers and Big Sisters of America. He serves as chairman of the President's Council on Physical Fitness and Sports.

Issues: Swann says he would boost the economy by "ending regulatory abuse" and creating a tradable net operating loss initiative. He also would advocate for comprehensive tort reform and bring transparency to state government.

Rhode Island

Office: Governor

Candidate: Don Carcieri, Republican-Incumbent

Candidate: Charlie Fogarty, Democrat

South Carolina

Office: Governor

Candidate: Tommy Moore, Democrat

Background: Moore is the owner/founder of Boiler Efficiency Inc., a company that caters to the steam energy needs of small and medium-size businesses. He has served in the South Carolina Senate continuously since 1980.

Issues: Supports the South Carolina Council on Competitiveness and its efforts to develop a long-term strategic plan for economic growth and progress.

Candidate: Mark Sanford, Republican-Incumbent

Background: Prior to becoming governor, Sanford served three terms in the U.S. House of Representatives.

Issues: Keeping South Carolina competitive; bringing fiscal responsibility to state government; promoting an "ownership society" and improving the state's quality of life.

South Dakota

Office: Governor

Candidate: Jack Billion, Democrat

Background: Billion practiced as a board certified orthopedic surgeon from 1971 through 1997. He represented District 13 in the state House of Representatives from 1993 through 1996.

Issues: Opening up access to health care by creating the State Healthcare Comprehensive Plan, patterned in part after the Maine State Healthcare Plan. Seeking to boost small business and to increase education funding.

Candidate: Mike Rounds, RepubricanIncumbent Background: Out of corlege, Rounds landed a job at a small insurance agency. He later went on to become a partner at a larger firm, Fischer, Rounds & Associates Inc., which, today, employs more than 75 people. In 1990, Rounds was elected to the state Senate, where he served five terms.

Issues: Balancing the state's budget and reducing the state's structural deficit.

Tennessee

Office: Governor

Candidate: Phil Bredesen, Democrat-Incumbent

Background: Bredesen was elected governor in 2002. While mayor of Nashville from 1991 to 1999, he oversaw $500 million in school construction and downtown redevelopment. Prior to taking public office, in 1980 Bredesen created HealthAmerica Corp., a Nashville-based health-care management company that eventually grew to more than 6,000 employees and traded on the New York Stock Exchange. The company was sold in 1986.

Issues: To continue working to provide affordable, portable health insurance to working Tennesseans; insure children and the uninsurable and; crack down on civil and criminal fraud.

Candidate: Jim Bryson, Republican

Background: Founder of his own research consulting firm, Bryson served three terms as president of the Qualitative Research Consultant's Association and currently serves on the group's board. As chair of public policy for the Williamson County GOP, he authored the first county resolution opposing a state income tax. The measure spurred a grass-roots movement in 1999 that defeated the push for a state income tax and was used as a model by other Tennessee counties.

Issues: Greater controls on illegal immigration; make health care accessible to the uninsured; ensure a greater high school graduation rate.

Texas

Office: Governor

Candidate: Chris Bell, Democrat

Background: Bell began his career in public service after being elected to the Houston City Council in 1997, where he served for five years. In 2002, Bell was elected to the United States Congress.

Issues: Rebuilding public education; reducing barriers to higher education; protecting the environment and; fighting the Trans-Texas Corridor, which would carve a path between Nacogdoches and Angelina counties.

Candidate: Rick Perry, Republican-Incumbent

Background: Perry took over as governor in 2000, after George W. Bush became president of the United States. Perry retained the office when he was elected in 2002. Prior to being elected lieutenant governor in 1998, Perry served two terms as Texas commissioner of agriculture. From 1985 to 1991, Perry served in the Texas House of Representatives, representing a rural West Texas district.

Issues: Border security; education; jobs and the economy.

Vermont

Office: Governor

Candidate: Jim Douglas, Republican-incumbent

Candidate: Scudder Parker, Democrat

Washington, D.C.

Office: Mayor

Candidate: Adrian Fenty, Democrat

Candidate: Dave Kranich, Republican

Wisconsin

Office: Governor

Candidate: Jim Doyle, Democrat-Incumbent

Candidate: Mark Green, Republican

Wyoming

Office: Governor

Candidate: David Freudenthal, Democrat-Incumbent

Background: Began his career as an economist for the Wyoming Department of Economic Planning and Development and later went on to become planning coordinator for the state. While working for the state, earned his law degree and then opened a law office in Cheyenne. In 1994, he was appointed U.S. attorney for Wyoming, a position he held until 2001.

Issues: Preserving the state's wildlife and natural resource trust; protecting Wyoming's range; investing in intellectual jobs and; creating tougher sex offender laws.

Candidate: Ray Hunkins, Republican

Background: Former U.S. Marine and former visiting instructor at the Wyoming Law Enforcement Academy, Hunkins served as president of the University of Wyoming Alumni Association.

Issues: Preserving the quality of life in Wyoming; limiting the growth of state agencies and; working on creating a leaner, more efficient and effective state government.

--Eleanor Barrett

Ballot Issues on Tap

A selection of insurance-related ballot issues that will be voted upon this year in five states:

* California: Proposition 89 would impact how corporations could contribute to political campaigns.

* Florida: Ballot question No. 3 would amend the state constitution to require a 60% voter majority, rather than a "simple majority," in determining the success of a proposed amendment or revision of the state constitution.

* Montana: Constitutional Amendment No. 43 would change the name of the state auditor to the insurance commissioner.

* Oregon: Measure 42 would prohibit insurance companies from using credit scores or creditworthiness in calculating rates or premiums.

* South Dakota: Constitutional Amendment E would allow citizens to sue judges and other judicial decision makers after exhausting the traditional appeals process. The proposed amendment would be retroactive and allow a 13-member grand jury of volunteers to subject coverage cancellation and the taking of as much as one-half of their retirement benefits.

Source: Secretaries of state Web sites

State Judicial Races

Insurers are paying close attention to state Supreme Court elections across the United States, as the makeup of the courts often affects the business climate. Of the 16 states that have contestable races, five states will elect majorities of their Supreme Courts this year.

Federal Elections

Democrats must pick up 15 U.S. House seats and six U.S. Senate seats to gain control of each chamber in the Nov. 7 general election. For Republicans to earn a filibuster-proof 60-vote majority in the Senate, they would need to pick up five seats.

All 435 members of the House are up for re-election. Of the 33 Senate seats up for election, 17 currently are held by Democrats, 14 are held by Republicans, and one is held by an Independent.

Insurers and other industry participants are keeping an eye on how the elections impact developments in some of the following key committees:

Senate Committee on Banking, Housing and Urban Affairs

Chairman: Richard Shelby, R-Ala.

Ranking Member: Paul Sarbanes, D-Md.

Pending Legislation: The 110th Congress is likely to see extended debate of optional federal insurance charter legislation brought by members John Sununu, R-N.H., and Tim Johnson, D-S.D. Reforms to the flood insurance program and a decision on when the federal terrorism backstop expires also fall squarely in the committee's lap.

Outlook: Ranking member Sarbanes is retiring, leaving Johnson and Christopher Dodd--ranking members of the Financial Institutions and Securities and Investment subcommittees, respectively--as leading contenders to become the panel's top Democrat. Should control of the Senate change hands, this could prove a major boost to OFC supporters. Johnson is cosponsoring a comprehensive bill; Dodd has indicated support for a life-only OFC concept. Rick Santorum, R-Pa., Debbie Stabenow, D-Mich., and Bob Menendez, D-N.J., are expected to face credible election challenges.

Senate Finance Committee

Chairman: Charles Grassley, R-Iowa

Ranking Member: Max Baucus, D-Mont.

Pending Legislation: Will continue to debate legislation related to issues such as the proposed U.S.-Korea Free Trade Agreement, Medicare prescription-drug plans, tax reform and the solvency of the Social Security Trust Fund.

Outlook: The committee will lose Senate Majority Leader Bill Frist, R-Tenn., who is retiring, as is member Jim Jeffords of Vermont, the Senate's lone Independent. Republican Rick Santorum, who chairs the Social Security subcommittee and has sponsored a number of initiatives related to long-term care, is expected to face a tight race in Pennsylvania. Proposals for direct negotiation of drug prices by Medicare, and to unwind recent changes in the tax treatment of dividends, estates and capital gains, could gain ground should Republicans lose the Senate.

Senate Judiciary Committee

Chairman: Arlen Specter, R-Pa.

Ranking Member: Patrick Leahy, D-Vt.

Pending Legislation: Host committee for contentious measures on medical-malpractice caps, asbestos litigation and lawsuit abuse reform. Specter recently has called for hearings to review the insurance industry's 60-year-old limited exemption from federal antitrust law.

Outlook: Republican Mike DeWine, who chairs the antitrust subcommittee, is expected to face a tight race in Ohio, as is member Jon Kyl, R-Ariz., who chairs the homeland security subcommittee. A partisan change may not affect the proposed asbestos trust fund bill, which is cosponsored by both Specter and Leahy, but the committee again could prove a major political battleground should the next term see another Supreme Court vacancy.

Senate Health, Education, Labor, and Pensions Committee

Chairman: Mike Enzi, R-Wyo.

Ranking Member: Edward M. Kennedy, D-Mass.

Pending Legislation: Enzi has pledged to revisit his proposed reforms to the small-group health insurance market, which were filibustered earlier this year.

Outlook: A Democratic takeover could boost Kennedy's plan to open Medicare to all uninsured Americans. Majority Leader Bill Frist, R-Tenn.--a frequent sponsor of health-care legislation--is retiring, as is fellow member Jim Jeffords, I-Vt. Republican Mike DeWine, who chairs the key subcommittee on retirement security and aging, is expected to face a tough race against Rep. Sherrod Brown in the battleground "swing" state of Ohio. Fellow member John Ensign, R-Nev., also is expected to face a tough race against Jack Carter, son of former President Jimmy Carter.

House Financial Services Committee

Chairman: Michael Oxley, R-Ohio

Ranking Member: Barney Frank, D-Mass.

Pending Legislation: The SMART Act, which proposes a "standards-based" approach to insurance regulatory reform. Committee also may take up bills focusing on natural catastrophes; the use of travel in life insurance underwriting; and possible changes to the four-year-old Sarbanes-Oxley Act. Paul Kanjorski, D-Pa., ranking member of the insurance subcommittee, plans to bring life-only optional federal charter legislation in the next session.

Outlook: Chairman Oxley is retiring after 25 years in Congress, with Richard Baker, R-La., and Spencer Bachus, R-Ala.--chairmen of the subcommittees on insurance and financial institutions, respectively--seen as the most likely successors among Republicans. A change in partisan leadership could boost Frank's proposal to require greater disclosure of executive compensation to shareholders. Bob Ney, R-Ohio, chairman of the housing subcommittee, faces public questions about his ties to lobbyist Jack Abramoff.

House Energy and Commerce Committee

Chairman: Joe Barton, R-Texas

Ranking Member: John Dingell, D-Mich.

Pending Legislation: Committee currently involved in jurisdictional dispute with Financial Services Committee over data-security legislation. Member John Shadegg, R-Ariz., has proposed "regulatory federalism" to allow interstate sale of health insurance policies. Ed Whitfield, R-Ky., has led investigations subcommittee in probes of fraud in asbestos and silica litigation, and insurance practices of the horse racing industry.

Outlook: Sherrod Brown, D-Ohio, ranking member on the health subcommittee, is leaving to run for Mike DeWine's Senate seat. Change in partisan control of the House could return longtime insurance industry critic Dingell to the chairman's seat. In early 1990s, he led investigations of industry solvency and proposed removing antitrust exemption.

House Ways and Means Committee

Chairman: Bill Thomas, R-Calif.

Ranking Member: Charles Rangel, D-N.Y.

Pending Legislation: Nancy Johnson, R-Conn., and Earl Pomeroy, D-N.D., long have pushed for an above-the-line tax credit for purchasers of long-term-care insurance. Mark Foley, R-Fla., has proposed allowing insurers to amass tax-free reserves to protect against natural catastrophes or major terrorist events.

Outlook: Chairman Thomas is retiring after more than 25 years in Congress, leaving Johnson and Clay Shaw, R-Fla., as leading candidates to succeed him. However, both Johnson and Shaw could face tough races as Republicans who represent Democratic-leaning districts. Pomeroy, a former state insurance commissioner, likewise has been targeted by GOP leadership as a Democrat representing a Republican-leaning district. Should Democrats take the House, the committee could look to unwind recent changes in the tax treatment of dividends, estates and capital gains.

House Judiciary Committee

Chairman: F. James Sensenbrenner, R-Wis.

Ranking Member: John Conyers, D-Mich.

Pending Legislation: Lamar Smith, R-Texas, is sponsoring the Lawsuit Abuse Reduction Act, which would increase civil penalties for attorneys who bring suits deemed "frivolous." Chris Cannon, R-Utah, has proposed nationwide medical criteria for asbestos cases. Committee has successfully moved legislation in several recent sessions capping noneconomic damages in medical-malpractice cases, but all have failed to pass the Senate.

Outlook: Under Republican control of the House, the committee has served as the primary originator of "tort reform" bills, including measures passed by Congress earlier this session addressing class-action jurisdiction and suits against producers of firearms and fast food. That tendency would be expected to change significantly should control of the House change hands.

--R.J. Lehmann

State Attorney General Races

The insurance industry is keeping a close watch on elections for state attorneys general. During the past several years, some state attorneys general "have become much more activist in their approach," said Mark Racicot, a former Republican governor, and one-time state attorney general. It's "an unfortunate trend," Racicot, president of the American Insurance Association, said.

Racicot said officials such as Mississippi Attorney General Jim Hood have overstepped their duties. He singled out Hood, whose Hurricane Katrina-related lawsuit against insurers, was "one of the most recent and egregious examples of this approach."

Hood's lawsuit calls for insurers to cover water damage from Katrina. It also claims that flood exclusions contradict Mississippi law, which mandates full coverage if the cause of damage is a covered loss--even if other, noncovered causes, such as floods, contributed to the damage.

Most state attorneys general are popularly elected.

Of the 43 elected attorneys general in the United States, 29 are on the ballot this year. The AIA's strongest endorsement in those races is in the Florida race, where former Rep. Bill McCollum, R-Fla., is expected to prevail in a four-way GOP primary to face off against the presumptive Democratic nominee, state Sen. Walter G. "Skip" Campbell, a noted trial lawyer, and a member of the state Senate Banking and Insurance Committee.

The trade group also is urging the defeat of former California Gov. Jerry Brown, for that state's attorney general, quoting Brown as comparing himself to outgoing New York state Attorney General Eliot Spitzer, who famously alleged "widespread corruption" across the entire insurance industry beginning in 2004 and wrested more than $3 billion in restitution and penalties from the industry. The trade group instead is urging the support of Republican state Sen. Chuck Poochigian, who authored an industry-friendly workers' compensation reform package.

--Chris Grier

                     States with contestable races that are
                      electing majorities of their Supreme
Contestable races              Courts this year

WA                                   TX
OR                                   KY
ID                                   AL
ND                                   GA
NE                                   NC
MN
WI
MI
OH
AR
LA

Sources: justicestael.org, Partnership for Commonsense Justice