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Regulation and Compliance > Federal Regulation

Want some regulation?

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Do you want to keep power in the hands of the states, move to a more centralized federal oversight, or leave it as is?
Well, if you want regulation, you’ve got it. Or, at least, you’ve got it coming.

According to an incendiary editorial column published in the Madison, Wisc.-based The Capital Times, change could be on the way.

“There’s a bill edging its way through the House that would allow the nation’s big insurance corporations to actually choose who would regulate them–state governments that have regulated them for a century or a new federal insurance regulator that the legislation would create,” the editorial states.

“Most states, Wisconsin among them, long ago adopted tough and effective regulations that govern how insurance companies operate within their borders and contain safeguards for the insurance consumer,” writes the paper. “California, for example, strengthened its law in 1988 to provide oversight on the premiums auto insurers charge. It is estimated that has saved motorists an average of $133 per year.”

Fouling up
Weighing in on the subject, advisor Scott Neher says: “It gets tricky if you do business in multiple states. However, I would rather deal with that problem than have the federal government foul it up worse. I am not sure why Americans want more government control when most government programs do not work properly already. The SEC and IRS have already proven they cannot handle their regulatory obligations now, let alone if we add more to their plates. We are slowly sliding into a socialist state. Americans have got to wake up and then stand up and fight for the principles and morals our founding fathers built this country on.”

Jumping hurdles
Another advisor, Lloyd Lofton, looks at the issue a different way: “I have a concern about the federal government taking over anything that directly affects consumers. On the other hand, having every state enact their own laws adds to the cost for carriers and makes it difficult as a producer… Perhaps the question is what would the hurdles and concerns be that would have to be addressed to make it work for the federal government to regulate the insurance industry and what would happen to the state agencies?”

What are your thoughts on the looming regulation? Is change the way to go? Or should this bill go the way of the dodo?

As if 151A wasn’t enough to chew on …


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