Reps. Melissa Bean and Ed Royce have introduced a bill that could give insurers, agents and brokers the option to choose between state regulation and federal regulation.
Bean, D-Ill, and Royce-R-Calif., say the leaders of the House Financial Services Committee have agreed to hold hearings on the bill soon.
The bill, the National Insurance Act of 2007, does not yet have a bill number.
Members of the Senate introduced a similar optional federal charter bill in the Senate in May.
Bean and Royce say they hope creating an OFC system will help U.S. insurers overcome the current trade deficit in the insurance services market.
In 2006, the United States paid $24 billion more to international insurers than international customers paid to U.S. insurers, Bean and Royce note.
Both at home and abroad, “regulatory obstacles currently discourage insurance innovation and nimble product development to capitalize on emerging growth markets,” Bean says.
The Bean-Royce bill would:
- Create a federal system of regulation and supervision for insurers as well as for agents and brokers.