Contact:	Caroline Fuller (202) 543-1440 c.fuller@att.net
For Release:	Immediate News Bulletin PR-34 Oct. 4, 2006

U.S. Rep. Ed Royce Introduces Federal Insurance Regulation Legislation

WASHINGTON, D.C., Oct. 4, 2006 - U.S. Rep. Ed Royce, R-Calif., has introduced The National Insurance Act of 2006. If passed, H.R. 6225 will provide an "optional federal charter" to insurers of life, property and casualty insurance, allowing insurers to choose between federal and state charters.

"I applaud the efforts and leadership of Senators Sununu and Johnson. I believe the time has come for both Houses of Congress to address the inefficiencies in the insurance marketplace. The National Insurance Act would create a federal regulatory agency within the Treasury Department; however, it would leave the current state regulatory system in place. An insurance provider could choose to be regulated by the 50 states or by the Office of National Insurance. This concept is not new - the banking system has lived under such a framework for much of our nation's history," said Royce.

Royce's legislation is a companion bill to S. 2509, legislation introduced by Sen. Tim Johnson, D-S.D., and Sen. John E. Sununu, R-N.H. Additionally, Royce's bill aims to create a Prompt Corrective Action (PCA) provision. A PCA was previously instituted by Congress for the banking system to augment safety in the industry.

Please visit ASA's legislative Web site, www.TakingTheHill.com, to view the text of both H.R. 6225 and S. 2509.

The Automotive Service Association is the largest not-for-profit trade association of its kind serving an international membership base that includes numerous affiliate, state and chapter groups from all segments of the automotive service industry. ASA's headquarters is in Bedford, Texas.

ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. For additional information about ASA, including past news releases, go to www.asashop.org, or visit ASA's legislative Web site at www.TakingTheHill.com.

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