Life Insurance-Only Federal Charter Option Seen As A Possibility
A comprehensive optional federal chartering bill is seen as a long shot in Congress next year, but a life insurance-only proposal could draw broader support, some industry representatives say.
“I dont believe that any legislation, whether OFC or federal minimum standards, has much of a chance next year,” says David Farmer, senior vice president of federal affairs for the Downers Grove, Ill.-based Alliance of American Insurers, a major property-casualty group.
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“If anything has a chance of moving, it is a life insurance-only OFC proposal,” Farmer says.
Julie Gackenbach, assistant vice president of government relations with the Des Plaines, Ill.-based National Association of Independent Insurers, another p-c association, agrees. “People on Capitol Hill understand the differences between life and p-c, and there is a lot of sympathy for the plight of life insurers,” she says.
Allen Caskie, chief counsel for federal relations with the American Council of Life Insurers, says ACLI is not pushing for a life insurance-only bill.
ACLI is working in a coalition with the American Insurance Association, a p-c group, the American Bankers Association and the Securities Industry Association, for a comprehensive OFC bill.