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PIA Praises National Governors Association for Defending State Regulation

PIA National has issued a press release praising the National Governors Association for speaking out forcefully in support of the state-based system of insurance regulation...
April 9, 2014

PIA National has issued a press release praising the National Governors Association (NGA) for speaking out forcefully in support of the state-based system of insurance regulation.

The bipartisan NGA expressed its concern in an April 1, 2014, letter to Treasury Secretary Jacob Lew that the Federal Insurance Office (FIO), through its report on regulatory modernization, is attempting to create “a greater federal role that could invite a dual regulatory system.” In the letter, signed by Governors Robert Bentley (R-Ala.) and Earl Ray Tomblin (D-W.Va.), the NGA affirmed that, “It is our position that federal laws and regulations must not preempt or undermine the strong state-based insurance regulatory system that for more than 140 years has protected consumers and safeguarded the capital adequacy and solvency of insurers. Governors stand ready to protect state-based insurance regulation.”

“Our nation’s governors are correct: The current state-based system of insurance regulation, created and reaffirmed by Congress, is best at protecting the interests of insurance consumers, the insurance industry and our nation’s economy,” said PIA National Executive Vice President & CEO Mike Becker. “The state system is effective and efficient. It also serves to safeguard the insurance industry against the kind of abuses by the banking and securities sectors that led to the 2007-2009 financial crisis.”

“The FIO’s role, as defined by Congress, is to monitor the insurance industry,” Becker said. “Regulatory modernization is already accomplished through state-based organizations like the National Association of Insurance Commissioners (NAIC) and the National Conference of Insurance Legislators (NCOIL). Frankly, there is no need for federal intervention. The system is not broken, and therefore it does not need to be ‘fixed.’”

Governors Express Concern About FIO Report (National Underwriter 4/2/14)
PIA Praises NGA for Defending State Regulation (PIA 4/3/14)
PIA Responds to FIO Report (National Underwriter 12/13/13)

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