It’s an argument that’s raged for 150 years; and here it comes again. Two members of the House of Representatives plan to introduce legislation today to establish a system of federal regulation for insurers, according to Business Insurance.
An early outline of the bill, the magazine writes, calls for a national insurance office to set guidelines for national insurers and oversee their financial and market conduct. The bill would also set up a national guaranty corporation for insurers if a state guaranty association does not provide policyholders a level of protection equivalent to the model standards of the National Association of Insurance Commissioners.
Leigh Ann Pusey, president of the American Insurance Association issued a statement earlier today regarding the proposal:
“We have long supported the availability of a market-based federal charter for insurers and believe it is the best model for modernizing our insurance regulatory structure,” she said. “Any federal regulatory system should focus on true consumer protections like strong financial regulation and market conduct oversight, and we are encouraged to see those protections as the cornerstone of this legislation.”
She had some concerns that the bill doesn’t do enough to provide cohesive industry oversight:
“However, we think that consumers would be best protected under a single guaranty fund system, and are concerned with the approach taken by the bill on this issue,” she added.