You are here:HomeIssuesProtecting State Insurance Regulation 2009Another Attempt to Enact Federal Insurance Regulation Begins

Another Attempt to Enact Federal Insurance Regulation Begins

The supporters of federal regulation of insurance are getting ready to mount yet another assault on state regulation. The good news is that the supporters...
May 5, 2009

The supporters of federal regulation of insurance are getting ready to mount yet another assault on state regulation. The good news is that the supporters of state regulation are better organized than in previous years.

The focus of this latest push is the National Insurance Consumer Protection Act (H.R. 1880) by Reps. Ed Royce (R-Calif.) and Melissa Bean (D-Ill.). This bill, introduced April 2 in the House, can best be described as an optional federal charter bill on steroids. It goes further than previous versions did in an attempt to supplant state regulation with federal regulation.

House Financial Services Committee Chairman Barney Frank (D-Mass.) has given the green light for hearings on H.R. 1880, which would be held by Capital Markets Subcommittee Chairman Paul Kanjorski (D-Pa.). Although a hearing is yet to be announced, PIA's sources on Capitol Hill tell us one could be held as early as May 14.

Rep. Frank has not endorsed H.R. 1880, but Rep. Kanjorski is on record supporting federal regulation of insurance for both life and p/c. Rep. Frank is planning to introduce his own bill later this year addressing systemic regulation for all financial services, which he says will have an insurance component. As to OFC legislation generally, Frank has consistently stated that if an OFC is considered - and he always says "if" - it should be for life insurance only, not p/c.