Washington – The heads of two insurance industry associations have issued a joint letter urging the National Governor’s Association to drop their opposition to the National Insurance Act.

In the letter, Frank Keating, president and CEO of the American Council of Life Insurers, and Marc Racicot, president of the American Insurance Association, former governors of Oklahoma and Montana, respectively, argued for passage of the legislation. The National Insurance Act has been introduced in both the Senate and the House to create an optional federal chartering system for the insurance industry.

“The insurance industry must compete in an interstate and international marketplace against financial service providers that can bring innovative products to market much more quickly than insurance companies and at lower costs,” the letter states. “The resulting competitive disadvantage borne by insurers has been cited by several highly regarded studies which have recommended that an optional federal charter be enacted in order to improve financial services competitiveness."

Earlier this month, INN reported on organizations lining up on the opposite side of this issue such as The National Association of Professional Insurance Agents.

Sources: American Insurance Association, INN Archives

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