NU Online News Service, May 7, 2004, 6:17 p.m. EDT – A former president of the National Association of Insurance Commissioners and the head of the National Association of Insurance and Financial Advisors clashed today over proposals to create an optional federal insurance company charter.[@@]
Iowa Insurance Commissioner Terri Vaughan and NAIFA President Randy Kilgore talked about regulatory reform at a forum organized by NAIFA’s Iowa chapter.
The NAIC, Kansas City, Mo., has been defending the current state-run insurance regulatory system.
NAIFA, Falls Church, Va., has been supporting the idea of creating an optional federal charter while maintaining support for a state regulatory system.
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Kilgore described some of the reasons for NAIFA’s position, citing the need to be “proactive” and the ongoing threat that Congress might tax the growth of assets inside life insurance policies.
NAIFA was advised to broaden its legislative focus and be part of discussions at the federal level while maintaining its support for state insurance regulation, Kilgore said.
Vaughan argued that an optional federal charter would not work for the insurance industry in the same way that the optional federal charter system has worked for banks.