State Insurance Regulators Lend Conditional Support to Federal Office
National News • June 13, 2008
State insurance commissioners told Congress that they could live with a proposed federal office of insurance information, particularly to target international issues, provided it does not preempt ...
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Subject: Fed oversight
Posted On: June 13, 2008, 2:10 pm CDT
Posted By: DL
Comment:
The federal government has enough on its plate that it cannot handle. Sure, state regulation is not perfect but it's been around for a long time and the National Association of Insurance Commissioners does a good job of promoting uniformity among our states.
The federal government oversees the National Flood Insurance Program and look where that is - broke because either the govt lacks understanding of insurance pricing or is too afraid to tell people that they need to pay a higher premium to cover their flood exposures. The govt has not been charging rates that match up to the overall flood loss exposure. In addition, they've been subsidizing rates for certain properties which further reduces the level of funds needed to pay flood claims. I don't understand why any property should have subsidized flood insurance rates. If one can't afford to live in a flood zone, move. Because who ends up paying the bill...taxpayers. As a result, most taxpayers end up paying insurance premiums to cover their own loss exposures in addition to paying part of the losses of the National Flood Program in the form of debt forgiveness.
Federal oversight of insurance is a bad idea. Contrary to what the media reports, our insurance industry is not broken; it just needs a little tweaking. We would be moving back to square one if we allowed federal oversight in place of state. The insurance industry would need to school the feds to help them get up to speed.
Subject: Fed oversight
The federal government oversees the National Flood Insurance Program and look where that is - broke because either the govt lacks understanding of insurance pricing or is too afraid to tell people that they need to pay a higher premium to cover their flood exposures. The govt has not been charging rates that match up to the overall flood loss exposure. In addition, they've been subsidizing rates for certain properties which further reduces the level of funds needed to pay flood claims. I don't understand why any property should have subsidized flood insurance rates. If one can't afford to live in a flood zone, move. Because who ends up paying the bill...taxpayers. As a result, most taxpayers end up paying insurance premiums to cover their own loss exposures in addition to paying part of the losses of the National Flood Program in the form of debt forgiveness.
Federal oversight of insurance is a bad idea. Contrary to what the media reports, our insurance industry is not broken; it just needs a little tweaking. We would be moving back to square one if we allowed federal oversight in place of state. The insurance industry would need to school the feds to help them get up to speed.