Close Close

Regulation and Compliance > Federal Regulation

NAIC May Ask NAIFA To Reconsider New Position

Your article was successfully shared with the contacts you provided.

NU Online News Service, March 9, 2004, 12:45 p.m. EST – A key agent group says it will continue to support consideration of federal insurance regulation options.[@@]

The National Association of Insurance and Financial Advisors, Falls Church, Va., says it will repeat its recently adopted board position on the issue even if the National Association of Insurance Commissioners, Kansas City, Mo., passes a resolution calling for it to reconsider the position.

Commissioners from the NAIC’s southeast zone approved a resolution on the NAIFA position Feb. 20.

The southeast zone resolution calls for NAIFA leaders to “amend their newly adopted policy to clarify their longstanding support for state insurance regulation and their strong opposition to the creation of a federal insurance regulator or a so-called ?optional or dual federal charter’ for insurers and producers.”

Commissioners will discuss the resolution during their Commissioners Roundtable this week at their spring meeting, and the resolution could advance to the executive and plenary levels, according to NAIC spokesman Matt Brisch.

NAIFA intends to reiterate its position, according to Bill Anderson, a NAIFA senior vice president.

NAIFA supports the principles of state regulation, but it also is open to looking at options that include federal insurance regulation, an optional federal charter and a national producer’s license as well as other federal regulation proposals, Anderson says.

“A very vocal number” of NAIFA members, or about 50 of NAIFA’s 70,000 members, have talked to commissioners about the issue, but NAIFA members overwhelmingly support the board’s willingness to look at federal insurance regulatory options, Anderson says.

NAIFA’s board of trustees began reviewing the issue in 2002 and was clear about having broad member support when it adopted its current position Jan. 16, Anderson says.