NU Online News Service, March 20, 11:02 a.m. — Reno, Nev.
The National Association of Insurance Commissioners, Kansas City, Mo., will file a supporting brief in a court case challenging the right of the U.S. Office of the Comptroller of the Currency to preempt state laws regulating bank sales of insurance.
The decision to submit an NAIC amicus brief in support of the West Virginia suit in U.S. District Court in Washington was made during the NAIC’s spring meeting here, after the OCC moved against another state, Massachusetts, for regulating bank insurance sales.
A March 18 OCC bulletin preempting Massachusetts state law found that provisions in the statute “frustrate the ability of national banks to solicit and cross-market products.
The West Virginia suit was filed by the Independent Insurance Agents of America and the National Association of Professional Insurance Agents, both based in Alexandria, Va.
The amicus brief, which must be filed by April 3, will address the issue of preemption standards and not specific provisions in the law, according to Nat Shapo, NAIC secretary-treasurer and Illinois insurance commissioner.
The discussion was held during a meeting of the NAIC’s Functional Regulation Working Group.
The differing interpretationof the preemption standards is just “a cordial professional disagreement,” Shapo said.