To The Editor:
In the Oct. 7 National Underwriter, David Snyder of the American Insurance Association published an opinion piece headlined: “Insurers Beware: Juries Are Being Turned Into National Insurance Regulators.”
While most in the insurance industry would certainly agree with Mr. Snyders heed for concern, I find it most ironic that AIAs assistant general counsel would bolster his argument by pointing out how runaway juries “undercut one of the foundations of state regulation of insurance.” Isnt that precisely the goal of AIAs federal chartering bill?
Mr. Snyder warns that “this kind of freelance insurance regulation across state lines erodes the credibility and value of state insurance regulation.” In Florida, we couldnt agree more.
Federal insurance regulation proposals similar to that of AIAs serve to only intensify this problem, and ultimately lead to a system ignorant of state sovereignty and the need for localized regulation of unique market conditions.
Most in Floridas agent community acknowledge that continued improvements in state regulation are necessary for the insurance industry to effectively compete in todays financial services marketplace. We simply do not believe a federal scheme represents the best way to overcome these deficiencies. Apparently, AIA concurs with this view when it becomes convenient to their argument.
Jeffrey W. Grady
Florida Association of Insurance Agents
Reproduced from National Underwriter Life & Health/Financial Services Edition, November 25, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.