WASHINGTON (Aug. 19, 2007) –In a letter sent to the members of the Senate Banking Committee, President/CEO Chuck Chamness of the National Association of Mutual Insurance Companies (NAMIC) says Congress can play an important but limited role in reforming the system of insurance regulation of the property/casualty industry at the state level.
“Testimony at the recent hearing could convey the impression that the industry is unified in support of a comprehensive federal role including establishment of an optional federal charter,” Chamness wrote. “In fact, the vast majority of property/casualty insurance companies and agents oppose the creation of an OFC; instead, they support a reformed system of insurance regulation at the state level.”
The committee held a hearing on insurance regulatory reform shortly before recessing for the August break. Chamness urged the panel to look for ways to improve the system without replacing the state-based regulatory structure.
“While we are opposed to an optional federal charter, NAMIC believes that by adopting a ‘national targeted uniformity’ approach Congress could play an important albeit limited role in achieving certain targeted reforms that the states have not yet undertaken,” Chamness said. “As the committee looks toward legislative initiatives, NAMIC supports several measures that reflect this approach.”
Among the legislative proposals NAMIC supports:
“NAMIC believes that significant regulatory reforms are necessary to meet the needs of a dynamic, competitive, modern insurance marketplace,” Chamness said. “The package of targeted reforms outlined above is an immediate, effective, and appropriate means of advancing insurance regulatory reform.”
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