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Senator Says Supporters of Federal Regulation Have Not Made Their Case

Those who would like to see federal regulation of insurance have not made their case, according to U.S. Senator Ben Nelson (D-NE). Speaking to members...
March 4, 2003

Those who would like to see federal regulation of insurance have not made their case, according to U.S. Senator Ben Nelson (D-NE). Speaking to members of the National Association of Insurance Commissioners (NAIC), Nelson -- a former Nebraska Insurance Commissioner -- said he continues to support state regulation of insurance in the Senate, and though he strove for uniformity while commissioner, he also favored preserving regulation that was unique to individual states.

"I don't think those that want federal regulation have made their case," said Nelson, noting that if states had resisted instead of supported modernization, that argument would be strengthened.

Nelson said some federal-state partnerships are good, such as with the federal terrorism backstop that creates a new relationship between the two, but "it's not a federal grab." He added Congressional attention to an issue such as rising medical-malpractice insurance premiums doesn't mean a federal solution is necessary in that case, telling the regulators not to allow the federal government to solve the problem unless its "absolutely necessary."