The Alliance of American Insurers (AAI) is applauding state commissioners attending the National Association of Insurance Commissioners’ (NAIC) spring meeting in Atlanta for initiating a project aimed at increasing awareness of the role of state insurance regulation.
“The concept of state-based insurance regulation is being challenged by those who think federal regulation is a better option,” Lenore Marema, the Alliance’s vice president of legal and regulatory affairs, said. “We cannot permit the state versus federal regulation debate to be carried out only in Congress. Rather, it must be carried out in the states as well – and the ASSURE project is an excellent vehicle for state and local interests to make their voices heard.”
The Alliance for Sound State Uniform Regulatory Efficiency (ASSURE) program is a grassroots campaign of the NAIC aimed at modernizing the state regulatory system and defending it against calls for federal regulation. So far, 26 states have signed on for the program, but the Alliance of American Insurers expects the NAIC leadership to secure 100 percent state participation to ensure a united voice among the states.
“The battle over federal versus state regulation has been heating up in Washington, where some believe the states have not been responsive enough to calls for more efficient and uniform processes across all state insurance regulatory systems,” Marema said. “While the Alliance certainly maintains that there is room for improvement in state regulatory processes, we do not feel a federal charter, or an optional federal charter, would benefit our members at this time. The ASSURE project will educate both state and federal lawmakers about the importance of maintaining state regulation and will guarantee that the debate takes place not just in inside the Beltway, but also at the state and local level across the nation.
“Our member companies are prepared to support this program in any state that makes a genuine commitment to modernizing state regulation and that has shown demonstrable progress toward that end.”
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