House Financial Services Committee Chairman Barney Frank (D-Mass.) will speak on July 8 to the National Conference of Insurance Legislators (NCOIL). Among other topics, Rep. Frank is expected to address the impact on the insurance industry of financial regulatory reforms, specifically the creation of a Federal Insurance Office (FIO), which the state legislators of NCOIL adamantly oppose.

“Chairman Frank has been a driving force on financial reform throughout our nation’s financial crisis,” said NCOIL President Rep. Robert Damron of Kentucky. “We appreciate his willingness to engage state legislators and welcome his insights regarding insurance regulation and the future role of the states … NCOIL legislators look forward to his views on how several controversial insurance provisions may play out."

On June 25, the House approved the Wall Street Reform and Consumer Protection Act (H.R. 4173), now known as the Dodd-Frank bill, by a 237-192 vote. The bill is now before the Senate.

PIA National has been active on Capitol Hill to give the legislators our perspective on the legislation. We have been particularly focused on the Federal Insurance Office (FIO), to make sure that it does not interfere with state authority to regulate insurance. The effort to restrict the authority of the FIO and preserve state regulation was largely successful when preemption provisions were watered down (see previous item).

NCOIL/NAIC Joint Healthcare Dialogue: Also at the NCOIL meeting, state regulators representing the National Association of Insurance Commissioners (NAIC) will participate in a “joint dialogue” on healthcare reform. With much of the implementation of the new healthcare law left to the states, NCOIL will have several other special sessions about the timeline for upcoming changes.

July 7, 2010