Posted On: June 6, 2007, 1:00 pm CDT

Posted By: Been Around Too Long

50 years ago my Father explained the McCarren Ferguson Act and the special privileges it provided for insurance carriers with State Regulation. It is an understatement to say things have changed since then. With the long list of scandals within the industry in recent days, perhaps it is time for a change to Federal Regulation. All one needs to do is look at the discord and variation of laws and regulations from State to State and the lack of uniformity in regulation of carriers. The recent bid rigging fiasco is a good example of the lack of consistant application of regulations and the complicated and inconsistent negotiated settlements among a number of state regulatory agencies. Maybe the time has come for uniform laws and regulation to apply for all states. Couched in the arguments advanced by individual State Insurance Commissioner's arguments is "self protection" of their individual "kingdoms" and the desire to preserve their own hides and futures. During my career I also witnessed the breakdown of State Laws that prohibited outside ownership of Insurance Agencies by non-residents. Progress will happen regardless of those that would oppose it. In this writer's opinion, it's time to move on and introduce consistency in regulatory laws and their enforcement by eliminating individual State Regulations in favor of Federal Regulation.