A California lawmaker has introduced the House version of an “optional federal charter” bill that is already in play in the Senate.
Rep. Ed Royce, R-Calif., has dubbed the bill, H.R. 6225, the National Insurance Act of 2006. The bill would give insurers a chance to choose between regulation by state agencies and regulation by a new federal insurance agency.
“I believe the time has come for both houses of Congress to address the inefficiencies in the insurance marketplace,” Royce says in introducing the bill.
The National Insurance Act would create a federal regulatory agency within the U.S. Treasury Department, but it would leave the current state regulatory system in place, Royce said.
Royce praised the work of Sens. John Sununu, R-N.H., and Tim Johnson, D-S.D., who have introduced S. 2509, the Senate OFC bill, in the Senate.
Insurance industry officials say H.R. 6225 is similar to S. 2509 but includes some technical corrections.
The American Council of Life Insurers, Washington, and the National Association of Insurance and Financial Advisors, Falls Church, Va., have welcomed the introduction of H.R. 6225.