It is unlikely that the House Financial Services Committee will consider optional federal charters for insurance companies this year, according to a senior member of that committee. The National Underwriter reports that Rep. Richard Baker (R-Louisiana), who chairs the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, told an industry group that while there will be more hearings on insurance regulation this year, he doesn't expect the committee to present a discussion draft of legislation until near the end of the year. He hissubcommittee would hold the first of these hearings sometime in March with the intent of addressing uniformity of regulation with a focus on agent and company licensing and speed-to-market issues.Baker reaffirmed his view that state insurance commissioners should continue to regulate insurance, not the federal government.
 
What It Means to Agents: Even though a "discussion draft" of legislation may not materialize until the end of this year, this does not mean the pressure for federalization is diminished. PIA will continue to advocate our position against a federalized insurance oversight system. PIA supports state-based functional regulation of insurance that balances the need for national uniformity in standards and the demands of emerging multi-state markets within the framework of functional state regulation.