The American Insurance Association has called comments about federal legislation dealing with optional national insurance regulation made on behalf of the Consumer Federation of America “misleading.”
Further, the AIA said that CFA’s comments reflect an “uninformed viewpoint about the legislation and how consumers are best served and protected in the financial services marketplace.”
“Unfortunately, but not surprisingly, CFA’s director of insurance, Bob Hunter, continues to defend dysfunctional, heavy-handed government price and product controls that distort and wreak havoc on insurance markets. Clearly, he does not appreciate – or perhaps simply chooses to ignore – the many strong consumer protections at the center of the National Insurance Act,” Stef Zielezienski, AIA senior vice president and general counsel said.
“Consumer protection would be ensured because the proposed national regulatory structure would focus strongly on both insurer solvency, to make sure consumer claims can be paid, and market conduct, to identify and quickly deal with bad actors.
“These are the most meaningful forms of consumer protection. Equally important, for those insurers that choose to be nationally chartered, state rate regulation is exchanged for a real consumer protection – application of the federal antitrust laws,” Zielezienski stated. “Finally, this legislation would create a regulatory system akin to the dual banking system which has been a successful model for more than 140 years.”
Source: AIA
Topics Legislation
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