N A M E S I N T H E N E W S : A M E R I C A N I N S U R A N C E A S S O C I A T I O N

By R A C H E L W E I S S J U N E 1 6 , 2 0 0 5

833 NORTH LAST CHANCE GULCH, SECOND FLOOR • HELENA, MT • 59601 PHONE 406-449-2480 • FAX 406-457-2091 • E-MAIL [email protected] www.followthemoney.org The American Insurance Association (AIA), the leading trade group of property-casualty insurance companies and a powerful lobby in Washington, D.C., is also a political force on the state-level.

The association has given more than $2 million to state-level political candidates and party committees since the 2000 election cycle. In 2004, AIA also gave $455,000 to a pair of organizations committed to limiting the liability of businesses in lawsuits. Both groups ran television ads in Supreme Court races that drew national attention for the unusual amounts of money raised and spent by groups unaffiliated with the candidates.

AIA announced in early June that Marc Racicot — former Montana governor, a former Republican National Committee chairman and chairman of the Bush-Cheney re-election campaign —would take over as president of the organization.1 Undoubtedly, the AIA with Racicot at the helm will continue its long-standing practice of giving at the state level to further the goals of its over 435 member insurers.

Although the American Insurance Association has been an active political donor for years, this report looks at only the $2 million given in the past three election cycles, when the Institute began collecting contribution data from all 50 states. The period includes state elections held in 1999 through 2004.

AIA contributed slightly more than $504,000 to state-level politics in 1999-2000 and more than $785,000 in 2001-2002. Although final 2004 contribution data is still being collected, Institute records show that AIA contributed more than $746,000 in the last election cycle, not including its independent expenditure contributions.

During this six-year period, AIA has given in 35 states, with most of the money going to candidates and committees in the country’s most populated states. The chart below details the association's giving by state, excluding its contributions to independent expenditure committees.

G I V I N G B Y T H E A M E R I C A N I N S U R A N C E A S S O C I A T I O N , 1 9 9 9 - 2 0 0 4 *

S T A T E A M O U N T California $431,662 New York $257,632 Illinois $255,693 Florida $143,534 Georgia $139,250 Texas $120,125 Mississippi $98,300 Washington $67,650 Virginia $65,761 Oregon $62,288 Indiana $50,450 Ohio $34,050 Colorado $32,375 Kansas $30,400 Pennsylvania $28,810

1 Press Release, “Former Montana Governor Marc Racicot Selected as New American Insurance Association President,” American Insurance Association, June 13, 2005.

The Institute on Money in State Politics  2005 2 S T A T E A M O U N T Alabama $23,500 Nevada $22,000 Idaho $20,900 Louisiana $20,050 New Mexico $19,500 Missouri $17,200 Tennessee $12,100 Kentucky $11,000 Vermont $10,650 Connecticut $10,625 Maryland $9,235 South Carolina $8,000 Delaware $7,180 Arkansas $7,050 Iowa $6,900 Maine $6,000 Hawaii $3,500 Utah $2,050 Nebraska $600 North Dakota $500 T O T A L $ 2 , 0 3 6 , 5 2 0 * Contribution data for the 2004 election cycle is not yet complete; totals may increase.

W H E R E T H E M O N E Y W E N T

Republicans received nearly $1.2 million in AIA contributions; Democrats were not far behind, receiving more than $818,000. Non-partisan candidates, mostly Nebraska Senate and Mississippi state Supreme Court candidates, received $32,600.

Contributions to Candidates During the past three election cycles, the American Insurance Association contributed more than $1.5 million to state-level candidates. House and Assembly candidates were the big winners, drawing in nearly $692,000 in AIA money. State Senate candidates received $480,320, while gubernatorial candidates received just $136,911.

In keeping with its promise to fight by itself and in cooperation with others to change the court system2, AIA was also active in judicial races. It gave state Supreme Court candidates in 2004 almost double what it had given similar candidates in 2002: $31,000 in 2004 compared to $16,000. Both totals increase greatly upon the $8,500 given in 2000. The group gave directly to seven judicial candidates in both 2000 and 2002, but supported 19 candidates in four states — Alabama, Ohio, Louisiana and Mississippi — in 2004.

Also in last year's elections, the association gave another $80,000 to the Illinois Civil Justice League’s JUSTPAC, a committee dedicated to changing the civil justice system and an active participant in that state’s expensive and hotly contested 2004 Supreme Court race. And in Ohio, AIA contributed $375,000 to Citizens for a Strong Ohio, an advocacy group formed by the Ohio

2 “The Year Ahead: Priority Issues Agenda for 2004.” The AIA Advocate, 31 December 2003, p. 3.

The Institute on Money in State Politics  2005 3 Chamber of Commerce. Both groups ran television ads on behalf of court candidates they felt would support limits in civil lawsuits.

The American Insurance Association gave heavily to eventual winners, with almost $1.2 million, or 76 percent of the candidate total, going to these candidates. Another $128,000 went to candidates who did not run but were incumbents raising money for future races. In all, nearly $1.3 million was given to people who were or would be in positions to make decisions on legislation favorable or distasteful to the association.

G I V I N G B Y C A N D I D A T E S T A T U S , 1 9 9 9 - 2 0 0 4

S T A T U S A M O U N T Winner $1,171,266 Did Not Run $132,879 General Election Loser $111,925 Primary Election Loser $110,500 T O T A L $ 1 , 5 2 6 , 5 7 0

Similarly, AIA favored candidates who were already in office. These incumbents typically have a high success rate because of the name recognition they have gained by holding office. The association gave nearly $1.2 million to incumbents, and a mere $44,600 to the candidates challenging them. Most of the remainder went to candidates who were running for open seats.

Candidates for governor and lieutenant governor received $189,176 from AIA. No one party was favored heavily over the other: The group gave $88,026 to Democratic candidates and $101,150 to Republican candidates. Again, AIA favored those candidates they thought would win, with almost 58 percent, or $108,876, going to eventual winners. Another $50,750 went to sitting officeholders not on the ballot during that election cycle. Only $29,550 was given to candidates who were unsuccessful in their bids for office.

Contributions to Party Committees The American Insurance Association was also generous to state-level party committees. From 1999 through 2004, it gave slightly more than $509,000, favoring Republican committees heavily over their Democratic counterparts. Republican committees received $347,000, more than double the $162,300 given to Democratic committees.

Money was spread around the country, with 71 committees in 27 states receiving some level of support. Not surprisingly, committees in the most populated states received the most money. Nine of the top 10 recipient committees were in California, New York, Florida and Illinois. In fact, committees in just two states — New York and California — received more than half of the American Insurance Association’s total contributions to party committees. Adding in contributions to committees in Illinois and Florida results in almost 78 percent of contributions going to just four states.

The table on the following page shows the candidates and committees that received the largest amount of AIA contributions over the study period.

The Institute on Money in State Politics  2005 4 T O P R E C I P I E N T S O F A I A F U N D S , 1 9 9 9 - 2 0 0 4 *

S T A T E R E C I P E N T P A R T Y O F F I C E S T A T U S A M O U N T California California Republican Party R Party Committee $90,000 New York Senate Republican Campaign Cmte R Party Committee $82,400 Florida Florida Republican Party R Party Committee $60,500 Assembly/Insurance California Calderon, Thomas M. R Commissioner Won $52,500 California Davis, Gray D Governor Won $40,412 Illinois Republican Senate Campaign Cmte R Party Committee $39,300 New York Democratic Assembly Campaign Cmte D Party Committee $37,750 California California Democratic Party D Party Committee $34,000 Illinois Madigan, Michael J. D House Won $27,500 Mississippi Tuck, Amy R Lt. Governor Won $26,000 Illinois Jones Jr., Emil D Senate Won $25,000 New York Pataki, George E. R Governor Did Not Run $18,750 Illinois Illinois Democratic Party D Party Committee $16,000 Georgia Senate Democratic Campaign Cmte D Party Committee $15,000 Texas Perry, Rick R Governor Did Not Run $14,250 New York New York State Republican Party R Party Committee $13,500 California Lockyer, Bill D Attorney General Won $12,095 New York Bruno, Joseph L. R Senate Won $11,000 California William J. Campbell R Assembly Won $11,000 Georgia Mark Taylor D Lt. Governor Won $11,000 * Contribution data for the 2004 election cycle is not yet complete; totals may increase.

The Institute on Money in State Politics  2005 5