While the prospects for an optional federal charter remain unclear, it appears increasingly likely that such a charter would not be limited to life products, according to members of Congress, speaking at an event in Washington.
“A year ago, I would have said that property and casualty is not likely to be included [in an OFC],” said Rep. Barney Frank, D-Mass., the chairman of the House Financial Services Committee.
However, he said, property-casualty lines have become more central to the discussion because of lawmakers in states affected by the hurricanes of 2005 and the disputes with insurers that took place over the handling of claims.
The lawmakers who introduced OFC legislation in the last Congress also spoke about the issue, arguing that limiting the OFC proposal solely to life products could ultimately hurt the bill’s chances.