Thursday, July 22, 2021

Financial Services Coalition Warns "Significant Disruption" From PRO Act Would Harm Consumers

WASHINGTON – A coalition of trade associations told Congressional leaders today that the Protecting the Right to Organize (PRO) Act “would cause significant disruption” that would affect consumers’ access to insurance, investment and retirement security solutions. Collectively, the coalition represent more than 100,000 individual small business owners, broker-dealers and insurance companies providing financial services to more than 112 million American families. 

 

Their concerns are detailed in a letter sent to U.S. Senate HELP Committee Chairwoman Patty Murray and Ranking Member Richard Burr for today’s committee hearing on the PRO Act. The letter reads in part: 

“By effectively reclassifying independent contractors as employees, the PRO Act would create unintended consequences for the industry, and specifically insurance producers and independent financial advisors. These individuals are vital to ensuring that Main Street Americans have access to the important advice, products and services necessary to achieve their financial goals and protect their homes, families and businesses. In times of catastrophe, insurers engage independent contractors to provide a faster response for consumers experiencing loss. The PRO Act’s ‘ABC test’ could eliminate the choice a majority of practitioners have made to serve clients independently. In turn that could drastically reduce clients’ ability to access high quality advice for their insurance, investment and retirement security needs.”

Read the coalition’s letter here.

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Date Posted: July 22, 2021
Document ID: NR21-040
Contact:

Whit Cornman, ACLI, 202-624-2442
Matt Brady, NAMIC, 202-379-6490
Allison Kuehner Mutschler, FSI, 202-803-6002
Eileen Gilligan, APCIA, 703-864-6417
Ted Besespari, PIA, 703-518-1352
Adam Rice, ASA, 214-632-8663
Maggie Seidel, FINSECA, 202-718-7774
Lindsay Gilbride, SIFMA, 202-962-7390
Mark Briscoe, NAIFA, 703-220-0232
Bailey Sorensen, NAFA, 920-277-5878