Gov. Rick Perry recently signed a joint Senate and House resolution passed during the 80th Texas Legislature affirming support for continued state regulation of the insurance industry, the Independent Insurance Agents of Texas (IIAT) announced. Currently several measures are pending before Congress that seek federal regulation.
Texas State Sen. Kip Averitt and State Rep. Craig Eiland sponsored the concurrent resolution, which was drafted by the IIAT. The measure clearly acknowledges the advantages of state regulation which emphasize consumer protections that exist in state law.
IIAT President-Elect Frank Swingle pointed to the rapid and unanimous approval of the resolution as proof that a majority of those regulated prefer state regulation.
“Independent agents understand the need for efficient and effective regulation of our business, but we don’t believe that that can be achieved in Washington, and neither do Texas lawmakers,” Swingle said. “This industry succeeds largely because it meets the needs of consumers in communities where they live and work. We believe that targeted federal regulation setting reasonable standards for state performance is preferable to federal control.”
The resolution underscores the responsiveness of state regulation to insurance issues, the financial strength provided by the industry to the state and the recent enactment of laws designed to streamline Texas regulation. With more than 100 years of experience gained through state regulation, the evidence is clear that local insurance regulation works best for consumers and that the state system ensures a level of responsiveness to consumers that could not be matched at the federal level.
The resolution (SCR 60) comes at a time when the 110th Congress is considering bills in both houses that would establish an optional federal charter for insurance companies, effectively taking those companies out of control of state regulators. The resolution is being distributed to President George Bush plus U. S. representatives and senators, and selected senior officials.
Source: IIAT, http://iiat.org.
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