The National Conference of Insurance Legislators (NCOIL) has issued a letter urging the National Governors Association (NGA) to continuing opposing optional federal charter (OFC) legislation. The NCOIL letter lays out the costs of a federal insurance bureaucracy—which would be established under S. 40/H.R. 3200, the National Insurance Act of 2007.  NCOIL argues that “an OFC would set-up a bifurcated regulatory system for insurance, put at risk important state revenue, nullify critical state-initiated consumer safeguards, and delay and deny important consumer access and recourse in problem times.”

The August 24 letter states that NCOIL leadership looks forward to discussing the issue further with the NGA, as the two groups share a common goal, that of “protecting insurance consumers and encouraging a thriving marketplace in our states.”

NCOIL Letter to National Governors Association (Word file, 8/24/07)

NCOIL to Govs: Don’t Back Federal Charter (National Underwriter 8/24/07)

August 29, 2007