WASHINGTON, D.C.-- The American Council of Life Insurers (ACLI) applauds the National Association of Insurance and Financial Advisors (NAIFA) for strengthening its position on insurance regulatory reform.
While affirming its support for state regulation, NAIFA this week also embraced the optional federal charter initiative. Under this approach, insurance companies and insurance agents would have the ability to choose a regulatory environment that best suits their needs and circumstances.
"This marks a very important step in the march toward a better regulatory structure for consumers, agents and companies," said ACLI President & CEO Frank Keating. "NAIFA's action puts virtually the entire life insurance industry in support of an optional federal charter."
ACLI and NAIFA also are committed to improving the current regulatory system. Life insurance companies and agents alike are working to reform state laws hampering the speedy introduction of products to the market, to improve the market conduct examination process, and to streamline the process of agent licensing.
At the same time, both groups are advocating an optional federal role in insurance regulation to address the new financial services environment.
"NAIFA's support of an optional federal charter illustrates strong leadership in the agent community, and a keen ability to tailor policy positions to effectively address the rapidly changing issues that can confront our business," Keating said.
"Exclusive state regulation of an industry as large and diverse as ours is an anomaly. In this era where companies compete not only against each other, but against banks and securities firms - as well as international financial firms - the state-based system does not work for everyone," Keating said.
"That said, both ACLI and NAIFA expect the state to maintain a very significant role in insurance regulation. Companies and agents can and will choose to remain state regulated," he said.
Source: American Council of Life Insurers
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