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NCOIL Says It "Cannot Support" SMART Act

The National Conference of Insurance Legislators (NCOIL) has sent a letter to two key members of the U.S. House of Representatives, stating that the group...
September 17, 2004

The National Conference of Insurance Legislators (NCOIL) has sent a letter to two key members of the U.S. House of Representatives, stating that the group cannot support a draft of legislation to modernize insurance regulation because "it could undermine the role of state legislatures in the development of insurance public policy and undermine the authority of state insurance commissioners."

NCOIL was reacting to the discussion draft of the State Modernization and Regulatory Transparency (SMART) Act, which is scheduled to be introduced this month. The letter was sent to House Financial Services Committee Chairman Michael Oxley (R-Ohio) and Rep. Richard Baker (R-Louisiana) chairman of the Capital Markets Subcommittee. Baker played a key role in drafting the bill. The letter states the role of the federal government in insurance regulation should be limited to national issues, such as terrorism and catastrophe insurance.

What It Means to Agents: PIA is firmly committed to regulatory modernization that preserves functional state regulation of insurance. Despite being pleased with many of the provisions included in the discussion draft of the SMART Act, PIA announced on August 27 that it will not issue a blanket endorsement at this time, because any concerns expressed by state insurance commissioners should be afforded full and complete consideration as the process continues.

PIA Press Release on Draft of Insurance Regulatory "Roadmap" Bill (8/27/04)

PIA Supports SMART Bill, Voices Concerns About Federal Board (BestWire 8/31/04)