NAIFA Throws Support Behind OFC

Under the resolution, NAIFA will support the “concept of an OFC for insurance, provided it meets several conditions, including the ability of agents to remain state-licensed if they desire, enhanced consumer protections, preservation of state regulation and the establishment of a single federal entity with expertise in insurance matters.

At the same time, NAIFA officials said they will continue to work with state commissioners and legislators to craft and, when possible, enact meaningful reforms to the regulatory system.

Incoming NAIFA President Cliff Wilson cited such initiatives as working with the NAIC to create and, when possible, implement the Producer Licensing Model Act, the National Insurance Producer Registry, the Suitability in Annuity Transactions Model Act and the Interstate Compact.

“We have no plans to abandon our support for these important initiatives. The vote today allows NAIFA to pursue a dual state and federal track approach to achieving regulatory reform,” Wilson said.

“As insurance regulatory reform discussions are taking place at the state level, the halls of Congress, and the Administration, NAIFA must be there to provide the critical insight of our members,” he said.

NAIFA’s National Council is made up of the presidents and national committee members of local and state associations.

In his statement, Keating offered reassurances that state regulators would still play a key role in overseeing insurance companies if an OFC is created. “OFC will not supplant state regulation; rather, it will offer an alternative,” he said.

“Companies and producers will choose which system best suits their business models and, more importantly, their customers,” he said. “The ideal situation will be to have two strong and professional regulatory options that emphasize consumer protection and efficiency.”

Clearly realizing that the NAIFA action was a strong step forward in the effort to create an OFC, Keating added that, “As I look back over the years, I am gratified at the tremendous consensus that has developed around the OFC concept.

“OFC has the support of life insurance agents, brokers, companies large and small, members of Congress from both parties and financial analysts who say OFC is vital to maintaining America’s global leadership in financial services.”

He also noted that, earlier this year, “the United States Treasury Department added its voice of support. We hope the new 111th Congress will move forward with OFC legislation as early as possible next year.”