The National Association of Mutual Insurance Companies (NAMIC) issued a statement in response to legislation introduced by Rep. John LaFalce (D-N.Y.), the ranking Democrat on the House Financial Services Committee. His bill, the Insurance Industry Modernization and Consumer Protection Act, was introduced in the House of Representatives Feb. 14.
“NAMIC members believe promoting a Federal Charter will undermine the efforts already taking place to reform the state-based system,” Monte Ward, NAMIC’s Federal Affairs Vice President, said. “Besides undermining reform efforts, Representative LaFalce’s introduction of the Insurance Industry Modernization and Consumer Protection Act will significantly intensify the debate over the future of insurance regulation.
“NAMIC will continue its strong commitment to reforming the state-based regulatory system to provide for competition among companies and choices for consumers. Any new regulatory framework to support more uniform standards must leave the final authority in each state with the insurance commissioner, who is in the best position to protect the interests of consumers in his or her jurisdiction.”
Ward added that NAMIC will actively participate in the debate on Representative LaFalce’s legislation as well as the House Financial Services Committee’s continuing review of insurance regulation. State regulation is good for our industry because it allows for free trade and open competition among all insurers. Above all, it will continue to provide consumers with the best products and services available.
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