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x1cIcandoallkindsofthingsonthestatelevelbutonthefederallevelIx19mnothing.IneedthatkindofrepresentationandNAMICjusthappenstobeverygoodatit.Ix19veseenhowgoodandeffectivetheyare.x1dStuartHendersonPresidentandCEOWesternNationalInsuranceGroupMinn.CommentssubmittedtotheFSOChaveguidedthecriteriaitusestohelpdetermineSystemicallySignix1cantFinancialInstitutionsx13thosecriteriaseemdesignedtoexcludeallpropertycasualtyinsurers.SimilarlycommentssubmittedtotheFSOCandotheragenciesonpotentialrestrictionsonproprietarytradingbyx1nancialinstitutionshaveguidedtheFSOCtorecognizethedix1ex1eerencebetweeninsuranceandothersinthex1nancialservicesindustry.Muchox1etheagencyinteractionhasbeenx13andwillcontinuetobex13preventiveinnature.Oneox1etheFIOx19sx1rstassignmentswastoconductastudyonthemodernizationandimprovementox1etheinsuranceregulatorysystemintheUnitedStatestheresultsox1ewhichareduetoCongressonJanuary212012.AlthoughtheFIOislegallybarredx1eromdevelopingaregulatorycapacityweareconcernedthatbecausemissioncreepoccursnaturallywithanybureaucracytheFIOmayseekmoreauthoritytooverseeourbusiness.InDecemberNAMICsubmittedcommentstotheTreasuryDepartmentstatingourviewsonhowthestate-basedregulatorysystemwhilenotperx1eectensuredstabilityandhelpedprotectconsumersduringthe2008x1nancialcrisis.Wealsocautionedagainstaddingburdensomeandduplicativeregulationsthatwouldinevitablyleadtoexcessivecostsx1eorinsurersandtheirpolicyholders.Weremainengagedontheissueox1einsuranceregulationonthelegislativex1erontaswell.NAMIChasandwillcontinuetoexploiteveryavenueavailable.InadditiontokeepinglawmakersonCapitolHillinx1eormedaboutwhattheexecutiveagenciesaredoingwehavealsobeenadvocatingx1eorlegislativeremediestopotentialproblemsthatcouldarisex1eromDodd-Frankimplementation.InNovembertheHouseFinancialServicesSubcommitteeonInsuranceHousingandCommunityOpportunityconsideredinsurance-specix1cx1ccorrectionsx1dmeasuresx1eortheDodd-FrankActwithax1eocusonareaswhereNAMICandothersintheindustryhadraisedconcerns.Wewereinstrumentalinhelpingcommitteestax1ex1ecrax1etthislegislationandpushingx1eoritseventualpassageoutox1ethesubcommitteeinDecember.Weremainvigilantandwillworktoensurethenewx1eederalagenciesx13inparticulartheFIOx13createdbyDodd-Frankdonotbecomesourcesox1econfictingnewregulations.Additionallywewillremainx1eullycommittedtomaintainingourseatatthetablewhenitcomestimetodiscussappropriatewaysinwhichWashingtoncanhelpimprovetheinsuranceregulatorysystemintheUnitedStates.Webelievethatx1eulx1llingitsproperlylimitedroletheFIOdoeshaveapotentialtobeavaluableresourceinex1ex1eortstocontinuemodernizingandstreamliningthestate-basedregulatorystructure.FormerNAMICChairmanJohnT.HillIIwithFIODirectorMichaelMcRaith.NAMIC2011TheYearinReview11