Congressional plans for insurance industry oversight are focused on creating a federal-state partnership structure rather than assuming total control, state regulators said after meeting in a closed session here with an influential lawmaker.
Rep. Michael Oxley, R-Ohio, who chairs the House Financial Services Committee, contemplates a “full federal-state partnership,” according to members of the National Association of Insurance Commissioners who met with him in private.
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Oxley briefed a Commissioners Roundtable session at the NAICs spring meeting. Afterwards, regulators who attended said Oxley suggested his committee does not contemplate legislation that would create a federal charter, a federal regulator or a dual system. The committee is scheduled to hold a hearing on federal oversight on March 31.
Those interviewed said Oxley indicated any action would focus on a federal tools approach building on work already being done by the NAIC.
According to those interviewed, a federal coordinating council and federal appointee over that body could be named, but such an appointee would have no regulatory authority and state regulators still would be considered the experts on insurance regulation.