State legislators from around the country have roundly criticized the National Association of Insurance Commissioners for giving its endorsement to H.R. 5840, the Insurance Information Act of 2008. The criticisms came during a discussion session between legislators and regulators held July 14 by the National Conference of Insurance Legislators (NCOIL).

NCOIL President and Rhode Island State Rep. Brian Kennedy said that he was “baffled” by the conditional support of a bill that could preempt state insurance regulation.

During the session, North Dakota State Rep. George Keiser, R-Bismarck (R) said, “I felt sold out. I’m not looking for a ‘seat at the table.’” He said that if state legislators and regulators are going to oppose federal oversight, then a clear position has to be taken.

New York State Sen. William J. Larkin (R) added his disappointment in the NAIC’s conditional position, noting that “we’re the representatives of the people.” He suggested that the NAIC was acting like a federally recognized charitable organization that is being run by its staff, rather than state insurance commissioners. Larkin also criticized pending federal legislation that would create an optional federal charter for insurers. If a federal charter is put in place, he said New York stands to lose $3.3 billion in revenue.

During an earlier state-federal relations committee session, NAIC President and Kansas Commissioner Sandy Praeger said she had heard about the argument that support for H.R. 5840 is letting the “camel’s nose under the tent,” but countered that conditional support is really preventing the camel’s nose from becoming larger.

PIA Lauds NCOIL Warning to State Officials on H.R. 5840

July 22, 2008