The National Association of Insurance Commissioners (NAIC) is expressing satisfaction with the latest incarnation of H.R. 2609, the Federal Insurance Office Act.The bill was originally introduced in May by Rep. Paul Kanjorski, (D-Pa.) and has been heavily amended since.
In a letter to the House Financial Services Committee, NAIC says the latest changes have made the bill palatable to state insurance regulators, who previously expressed concerns over the powers granted to a new Federal Insurance Office (FIO) in previous versions of the legislation.
Specifically, the new ammendments ensure that international agreements negotiated by the FIO do not preempt state prudential regulation of U.S. insurers and calls for close coordination between the states and the FIO on narrow international agreements.
“The recent amendments strike an appropriate balance among the needs of consumers, state regulators and federal negotiators by preserving important state and market regulation while allowing for agreements with equivalent regulatory systems,” NAIC President and New Hampshire Insurance Commissioner Roger Sevigny said in a statement. “While the NAIC continues to oppose a federal functional regulator for insurance or misguided attempts to further empower the FIO, the bill as currently drafted is an appropriately narrow and targeted improvement to our system of supervision.”
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