WASHINGTON (July 21, 2010) - The National Association of Mutual Insurance Companies (NAMIC) responded to today’s signing of the Dodd-Frank Act by President Obama.
“The signing of the Dodd-Frank Act into law represents the end of one challenge and the beginning of another,” said Charles M. Chamness, NAMIC president and chief executive officer. “For the past 20 months, we’ve worked to educate lawmakers about the unique position of property/casualty insurance in the financial services arena. While the state-based regulatory system is not perfect, adding a federal bureaucracy on top of that, as had been proposed, would have only compounded the costs and problems within the system without benefitting consumers. For the most part, our arguments were accepted and the legislation rightly respects the role of state insurance regulators.”
Among the more significant provisions for insurers in the bill is a provision that would establish a Federal Insurance Office within the Treasury. Under the legislation, this office will serve solely to provide information on the insurance industry to federal policymakers and will have no regulatory authority over the insurance industry.
“The FIO will play an important role in helping guide federal policy and trade negotiations with regard to property/casualty insurance,” Chamness said. “However, we must remain vigilant to ensure that it is not allowed to expand beyond its intent. The FIO was designed to, and should, work in concert with the state regulatory system, not duplicate it.”
The Dodd-Frank Act also includes language clarifying the regulation of non-admitted or surplus lines insurance that clarifies the home state of the insured as the primary regulator for multi-state risks.
“This common sense reform has been a long time coming,” Chamness said. “NAMIC, along with others in the insurance and business communities, has for years sought for a more streamlined regulatory system for multi-state surplus lines risks, and we are pleased that Congress finally enacted this provision. It will help reduce costs and allow businesses to focus on growth and job creation.”
The Dodd-Frank Wall Street Reform and Consumer Protection Act, also known as HR 4173, was passed by the House prior to the Independence Day recess. The Senate approved the measure on Thursday, July 15. “As the enactment of Dodd-Frank and the rulemaking process gets underway, we will work even harder to ensure that the new law will continue to respect the role of property/casualty insurance in our nation’s economy,” Chamness said.
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Posted: Wednesday, July 21, 2010 12:34:30 PM. Modified: Wednesday, September 08, 2010 12:40:23 PM.
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