NAIC Group Trying To Get NAIFA To Back Off Stance On Federal Role

However, Woods says, he is concerned about regulators attempting to influence those they regulate. He adds that many of the statements made in the resolution are incorrect. For example, Woods says, the very first line of NAIFAs policy re-emphasizes its strong support for state regulation.

The commissioners resolution says NAIFAs policy represents a “significant reversal” of its full support of state insurance regulation and a significant departure from the position of other national associations of professional insurance producers who fully support state regulation and are strongly opposed to creation of a federal insurance regulator or optional federal charter.

NAIFAs policy, the resolution adds, may have the effect of undermining the support and implementation of the NAICs Action Plan for Regulatory Modernization.

NAIFA adopted its policy at its January 2004 board meeting, citing changing dynamics in the life insurance industry as the reason it is now considering a federal role in insurance regulation.

If properly enacted, NAIFA says, federal legislation could create a national producers license, a single point-of-entry for insurance products that would increase speed-to-market, and create a federal insurance advocate who could address the needs of consumers and the industry on a national level.

Reproduced from National Underwriter Life & Health/Financial Services Edition, February 27, 2004. Copyright 2004 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.