The National Association of Independent Life Brokerage Agencies says it supports the creation of an optional federal charter.
NAILBA, Fairfax, Va., has sent a letter endorsing the concept to Sens. John Sununu, R-N.H., and Tim Johnson, D-S.D., members of the Senate Banking Committee who introduced S. 2509, an OFC bill, in April.
The OFC bill would let life insurers choose between keeping their state charters and being regulated by state agencies, or adopting federal charters and being regulated by a new federal agency.
Creating a federal charter option for the life industry “will improve the procedures that enable insurance carriers and agents to provide competitive and efficient products to consumers throughout the U.S. in a timely fashion,” NAILBA officials write in the letter.
A federal charter option “will also provide uniform and equal opportunities to every citizen in all states to access similar products and protections,” NAILBA officials write.
Members of NAILBA’s governing body have been debating whether to support the OFC concept since May, according to NAILBA spokesman Joe Normandy.
The decision to support the OFC concept was recommended by NAILBA’s public affairs committee and approved unanimously by the group’s board, Normandy says.
“Both NAILBA’s members and their customer agents would benefit from S. 2509,” NAILBA Chairman Matthew McAvoy says of his group’s decision to support the OFC concept. “Single-point product filing, single-point licensing, conformity of licensed agent continuing education requirements and standards, and consistency in application forms and product design in all 50 states are provisions which would make the industry more efficient.”
The American Council of Life Insurers, Washington, and the Association for Advanced Life Underwriting, Falls Church, Va., also have expressed support for the OFC concept.