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NAIC Tells House Panel it Shares the Same Regulatory Modernization Goals

In testimony before the House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, NAIC President Ernst Csiszar said state regulators intended to participate in...
April 7, 2004

In testimony before the House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, NAIC President Ernst Csiszar said state regulators intended to participate in any discussions that deal with insurance consumers and the marketplace. Csiszar, New York Superintendent Greg Serio, and Washington State Commissioner Mike Kreidler testified at the March 31 hearing chaired by Subcommittee Chairman Richard Baker (R-Louisiana). "We are very encouraged by Chairman Oxley's recent statements that show his commitment to state regulation and to keeping the states - not some federal regulator - in charge of regulating the industry," said Csiszar, who also is the Director of Insurance for the state of South Carolina. "Certainly we are not here today to oppose anything, but neither are we here to support any specific proposal, since we have not yet seen one."

The hearing took place against a backdrop of increasing pressure to speed efforts to achieve regulatory modernization. On March 14, Financial Services Committee Chairman Michael G. Oxley (R-Ohio) spoke to the NAIC, presenting the outline of a proposal on comprehensive insurance regulatory reform. The proposal lays out the next steps Congress could take to modernize the current state-based regulatory system through enactment of federal standards and other federal tools, while preserving state-based regulation.

Significantly, the approach presented by Chairman Oxley rejects the creation both of a federal regulator and an optional federal charter approach - two things PIA has and continues to strongly oppose - and reaffirms state regulation. That's why PIA applauds this outline. We also note that the approach is in line with the NAIC strategy, which PIA supports. 

What It Means to Agents: Development of reform legislation is now getting underway. PIA will work to ensure that the outline of what appears to be an excellent road map presented by Chairman Oxley does not get redrawn in the legislative process in a manner that PIA opposes.

However, this also means that PIA must move its reform plans through The Several States as well, because both bases must still be covered and changed in order for PIA members to enjoy the full benefit of modernized insurance regulation.

NAIC Shares Reform Goals (NAIC press release 3/31/04)