You are here:HomeIssuesProtecting State Insurance Regulation 2009Consumer Groups Continue Their Opposition to Federal Insurance Regulation

Consumer Groups Continue Their Opposition to Federal Insurance Regulation

Consumer groups are among the most vocal supporters of state insurance regulation and opponents of federal regulation. The nonprofit, nonpartisan group Consumer Watchdog issued a...
April 28, 2009

Consumer groups are among the most vocal supporters of state insurance regulation and opponents of federal regulation. The nonprofit, nonpartisan group Consumer Watchdog issued a statement on April 22 that stated state insurance regulation kept the insurance industry safe while federal regulators failed to protect financial markets.

"The insurance industry's effort to replace state oversight with federal regulation is a bait-and-switch to weaken regulation under the guise of embracing a new regulator. The plan should be rejected out of hand in the wake of the federal financial regulatory failures," said Carmen Balber, spokesperson for the group. "Allowing insurers to pick their regulator, just like AIG did, will negate hard-won consumer rights laws and destroy state-based oversight. That web of state insurance laws, which the insurance industry has long decried as complicated and anti-competitive, withstood the test of fire by keeping insurance products and companies stable throughout this financial crisis."

The group said it was strongly opposed to H.R. 1880, the National Insurance Consumer Protection Act, introduced in the House by Reps. Ed Royce (R-Calif.) and Melissa Bean (D-Ill.). It said Rep. Bean is one of the top recipients of insurance industry campaign contributions in the current Congress and has received $358,603 in industry donations during the past two election cycles, according to data obtained from the Center for Responsive Politics.