As the Non-Admitted and Reinsurance Reform Act of 2006 (HR 5637) makes its way to full committee of the U.S. House of Representatives Financial Services, the American Association of Managing General Agents sent a call to all 70 members urging the passage of the reform legislation. The bill is scheduled for Mark-Up on Wednesday, July 26, 2006 at 2:00pm.
“This bill is vital to the needed modernization of the regulatory complexities existing in the surplus lines insurance marketplace, and we respectfully request the full Committee’s passage of the legislation,” AAMGA Executive Director Bernd G. Heinze wrote.
Citing testimony presented June 21, 2006, before the House Subcommittee on Capitol Markets, Insurance and Government Sponsored Enterprises, chaired by Rep. Richard Baker (R. LA), the AAMGA noted the measures in the bill are aimed at streamlining the inconsistent, burdensome and costly licensing, taxation and compliance regulations of the individual states by creating a consistent standard. “This is a common sense solution that is urgently needed by industry and consumers; and we request your favorable consideration and approval of HR 5637 so as to facilitate its movement to the House Floor for a formal vote,” Heinze said.
The bi-partisan reform legislation was introduced June 19, 2006, by Rep. Ginny Brown-Waite (R. FL) and Rep. Dennis Moore (D. KS). It was passed unanimously by the House Subcommittee on Capitol Markets, Insurance and Government Sponsored Enterprises on July 19.
“We must remove the anchors of inconsistent, anti-growth regulations that prevent the surplus lines market to adapt and respond quickly to market changes and consumer needs with specialized coverages, while maintaining the state based system of insurance regulation and the surplus lines market’s fundamental precept of freedom from rate and form to benefit the consumer in the protection of its risk exposures,” the AAMGA’s letter concluded.
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