Contact:
| Clarence Mills
(202) 543-1440
c.mills@att.net |
For Release:
| Immediate
News Bulletin PR-32
April 8, 2009
|
Bill Would Establish Federal Insurance Regulatory System
Plan Includes Property and Casualty Insurance
WASHINGTON, D.C., April 8, 2009 - House Bill 1880, the National Insurance Consumer Protection Act, has been introduced in the U.S. House of Representatives. Reps. Melissa Bean, D-Ill., and Ed Royce, R-Calif., co-wrote the bill to create a uniform, modernized federal insurance system.
The purposes of this Act are:
• to ensure the financial stability and integrity of national insurers, national insurance agencies and national insurance producers through a comprehensive system of national supervision and regulation; and
• to ensure the fair and equitable treatment of policyholders, claimants and other consumers served by national insurers, national insurance agencies and national insurance producers.
Fundamentally, H.B. 1880 would establish a national system of regulation and supervision for insurers, insurance agencies, and agents and brokers. Insurers, agencies, agents and brokers would be able to elect national or state regulation, charters and licenses. An independent Office of National Insurance would be created within the Department of the Treasury, and a commissioner would be appointed by the president.
The national insurance commissioner would issue charters for national insurers for life insurance, property and casualty and reinsurance. The underwriting of life insurance and property and casualty would become separate, though holding companies would be allowed to own both types of insurers.
All state and national insurance commissioners would be required to share information with a systemic risk regulator. The systemic risk regulator would make corrective action recommendations to the commissioner or state commissioner to take action to mitigate or avoid actions taken by an insurer or affiliate that would have adverse effects on economic conditions and financial stability. The national insurance commissioner would be able to require that an insurer is nationally chartered.
"This is one of the more aggressive insurance reform bills introduced in the Congress," said Bob Redding, the Automotive Service Association's (ASA's) Washington, D.C., representative. "This bill continues to push insurers to be regulated at the federal level. The Automotive Service Association supports the federal regulation of the insurance industry. ASA will continue to work with the House Financial Services Committee toward a federal insurance regulatory system that includes property and casualty insurance."
Bean said, "The complexity of the modern financial system of insurance conglomerates and holding companies cannot be adequately overseen by the state-based system, as shown by recent events. Insurance regulation reform that protects consumers and investors must be included as Congress moves ahead on comprehensive regulation reform of the financial services sector."
To view the legislation, visit ASA's legislative Web site at www.TakingTheHill.com.
The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair 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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