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July 23, 2004 at 08:00 PM
The U.S. House Financial Services Committee has put off an effort to show its insurance regulation “roadmap” bill to insurance industry representatives.[@@]
Sources say the committee was going to show the bill to insurance industry representatives today, but they report that the unveiling was delayed because some Democrats and industry representatives are objecting to language that would effectively end rate regulation for property-casualty companies.
Sources say the current version of the bill includes the following:
- An interstate compact that would create a single point of entry for filing new life products. If the compact approved a product, the approval would be good in every state.
- A “Federal Partnership Office” that would have authority to preempt state regulation. If a state joined an interstate product filing compact, then filed to comply with compact provisions, the FPO or an insurer might be able to sue the state in federal court.
- Deference to the agent licensing procedures in an agent’s state of domicile or an insurance company’s state of domicile. Although at least 32 states already recognize the licensing authority of other states, “the remainder have add-on requirements that are redundant, duplicative, unnecessary and have nothing to do with standards of professionalism,” says Joel Wood, chief lobbyist for the Council of Insurance Agents and Brokers, Washington.
