IIABA Reports It’s Time for Regulatory Reform

January 21, 2004

Independent Insurance Agents & Brokers of America (IIABA) CEO Robert Rusbuldt released a statement on Tuesday on recent developments in the debate over state insurance oversight:

“IIABA does not dispute that the current state-based insurance regulatory system needs to be modernized and streamlined. In fact, IIABA supports federal legislation to bring about uniformity and efficiency in the state regulatory system. Instead of creating a new federal bureaucracy, independent insurance agents and brokers believe that a combination of limited preemption and national standards can address the inefficiencies of the regulatory system in areas such as speed-to-market, agent and company licensing, and market conduct.

“If history is a guide, we know that any federal regulatory regime considered by Congress will end up being radically different than the various proposals being considered within the industry. Virtually everyone in the industry supports the same goals—more efficiency, more uniformity, and less regulatory intrusion—although we may have different paths we believe should be taken to attain these goals.

“When the federal government had authority and oversight capabilities for the insurance industry, we saw studies and oversight on life insurance agent commissions, anti-rebating laws, suitability requirements, and more onerous incursions into the life insurance business. Independent agents will continue to oppose this type of oversight, let alone regulatory structures that inevitably will lead to results that are even more onerous.

“Independent agents and brokers will strongly support legislation that will bring about true regulatory reform without the baggage of a new layer of regulation and bureaucracy.”

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