Should Life Insurance Carriers be Federally Regulated

By | March 7, 2009
I am not a huge fan of Barney Frank but on this one I think he is actually right. Let’s break down this old system of State Insurance Departments. As brokers and producers this would make our life so much easier and for the Life Companies also to transact business. Check out the rest of the article…
clipped from
Federal Regulator For Insurance Firms? Barney Frank says Yes.

House Financial Services Committee Chairman Barney Frank, D-Mass., gave insurance lobbying groups something to argue about yesterday. In a press conference about financial regulatory reform, Frank said he wants lawmakers to create an optional federal charter (OFC) for insurance companies. Such an OFC would allow all insurance companies to opt to be regulated by a federal authority—creating an SEC-like overseer for insurance firms. Currently, insurance companies are regulated by individual state regulators in the states where they operate.

In general, large insurance firms prefer federal charters while smaller ones prefer the current state-regulated system. For larger companies, a federal regulator would create more uniformity in the rules, making compliance easier and less costly, says Jack Dolan, a spokesperson for the ACLI.
  blog it

Leave a Reply

Your email address will not be published. Required fields are marked *