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February 29, 2008 at 11:38 AM
State insurance legislators and regulators are talking here about the need to unite against the possibility that Congress might try to create a federal insurance regulatory system.
The lawmakers and regulators have gathered here for the spring meeting of the National Conference of Insurance Legislators, Troy, N.Y.
In the past, some NCOIL officers have objected to closed meetings at the National Association of Insurance Commissioners, Kansas City, Mo., and a sense that state insurance regulators may, in some cases, have failed to show the proper respect to state legislators.
But lawmakers and regulators here agreed during several sessions that they need to unite to prove that state regulation serves consumers better than a federal regulator could.
NCOIL, which has traditionally opposed efforts to create an “optional federal charter” for insurers, is considering a new resolution opposing OFC proposals, and NCOIL members could adopt the resolution Saturday.
The American Council of Life Insurers, Washington, and other insurance trade groups say creating a national regulation option could help U.S. insurers face global competition and, at the same time, make the U.S. insurance market more open to international competitors.
The ACLI has just released a study by Martin Grace and Robert Klein of Georgia State University that implies that insurance regulatory expenses appear to be rising faster than inflation and general employment growth.
Rep. Brian Kennedy, D-Hopkinton, R.I., the new president of NCOIL, and Sandy Praeger, Kansas insurance commissioner and the new president of the NAIC, said here at the meeting that they have not read the report and cannot yet comment on it.
But Praeger said during a panel discussion that state insurance regulators are unified in efforts to promote their ability to protect consumers in their states.
“Do you want to call someone in your state who understands the issues or a 1-800 federal number?” Praeger asked.
Kennedy questioned whether a federal regulatory would really cut costs and how well a federal regulatory system would serve his constituents.
