Washington — Seeking to blunt H.R. 5840, the Insurance Information Act of 2008, the National Conference of Insurance Legislators (NCOIL) wrote letters to state governors and attorneys general, urging their involvement in a dialogue with federal lawmakers. The letters follow in the wake of a U.S. House Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises hearing. NCOIL says passage of the act would preempt state insurance laws and endanger consumer protections.
“As strong advocates of states rights, we transmitted these letters to caution our state-level government colleagues about this impending federal threat,” NCOIL President Brian Kennedy wrote. “As state officials, we cannot shy away from a dialogue with federal leaders about a proposal that could undo much of our hard work. State statutes and regulations—not federal intervention—have fostered the vibrant insurance marketplace that exists today. We owe it to our constituents—who have never asked for a federal insurance regulator—to protect what we have done well, and that is regulate the insurance market.”    
Kennedy echoed concerns expressed by state legislators and other officials that H.R. 5840 could potentially lead to optional federal chartering. “How can the bill’s sponsors say that H.R. 5840 is not the first step towards an OFC when members of the Subcommittee—proponents of an OFC—are claiming bragging rights to that very fact?”

Source: NCOIL

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