You are here:HomeIssuesProtecting State Insurance Regulation 2009NCOIL to Congress: States & Feds Should Work Together on Systemic Risk

NCOIL to Congress: States & Feds Should Work Together on Systemic Risk

The National Conference of Insurance Legislators (NCOIL) has sent a letter to U.S. Senate Banking and House Financial Services Committee leaders cautioning against consolidating systemic...
May 12, 2009

The National Conference of Insurance Legislators (NCOIL) has sent a letter to U.S. Senate Banking and House Financial Services Committee leaders cautioning against consolidating systemic risk authority in a single federal body. It also stressed the successful track record of state regulation and outlined the need for an equal partnership between and among state and federal regulators to oversee systemic risk.

The legislative leaders wrote, "…the value of state regulation must be recognized in the reform process."  Stressing a need for state expertise in systemic oversight, they said, "It is frankly difficult to trace our current financial crisis to lapses in state regulation. Indeed, some of the problems our markets now face might have been mitigated had the states' consumer protection authority not been curtailed or preempted in certain areas."  

While committing to work with Congress to address systemic risk, NCOIL leaders said that:

NCOIL is opposed to any proposed overhaul that fails to recognize and take full advantage of the enormous contribution that state regulators make in the area of insurance regulation and financial services generally - especially at a time when state consumer protections are more important than ever. 

The statement added, "NCOIL recognizes that reform of financial services is in order, but we firmly believe that reform based on state successes is the avenue to choose." 

NCOIL Letter to Congressional Leaders (NCOIL 5/11/09)