Johnson And Sununu Continue OFC Fight

- Permit federally licensed insurance producers to sell health insurance offered by state health insurers.

- Exempt federally chartered insurers and agencies and federally licensed producers from Federal Trade Commission antitrust and unfair trade practices oversight.

The American Council of Life Insurers, Washington, has put out a statement welcoming the effort to reduce inconsistencies in insurance laws and regulations and calling for the creation of strong, national consumer protection rules.

“Why should policyholders facing similar risks and needs living in neighboring states not have the same policy choices and benefits?” asks ACLI President Frank Keating.

The National Association of Insurance and Financial Advisors, Falls Church, Va., says its policy is to support efforts at the state or federal levels that will improve the insurance regulatory system.

“Regulatory reforms are needed in areas such as agent licensing and speed to market of insurance products,” NAIFA says in a statement. “NAIFA will study this legislation and continue to work with its industry partners as well as state regulators and Congress to ensure a regulatory environment that allows agents and advisors to meet the needs of consumers.”

Robert Poli, chairman of Agents for Change, Washington, a group of life and property-casualty agents who support OFC efforts, says creating an optional federal charter will help producers offer better customer service.

“Consumers are frustrated with the lack of choice among insurance products and coverage in the current system,” Poli says. “They don’t understand why I cannot continue to serve them – many of my customers view me as a trusted financial advisor – if they move to a state where I am not licensed. Similarly, they do not understand why I can sell a product in one state but not another.”

Ken Cohen, associate general counsel at Massachusetts Mutual Life Insurance Company, Springfield, Mass., also says an OFC system could help consumers as well as the insurance industry.

“Insurance companies and agents would enjoy streamlined licensing procedures and save significant costs on related administrative issues,” Cohen says. “In turn, consumers would have greater and more timely access to a wider range of products, and would receive uniform consumer protection regardless of where they live.”