A group opposed to creation of an optional federal charter forinsurers says it opposes legislation creating an OFC introducedthis week in the Senate but does support “targeted” federallegislation to “modernize and reform” the current system.

The group, the Coalition Opposed to a Federal InsuranceRegulator (COFIR), made its comments in response to theintroduction yesterday in the Senate of S. 40, the “NationalInsurance Act of 2007.”

The bill was introduced by Sen. John Sununu, R-N.H., and Sen.Tim Johnson, D-S.D.

“COFIR believes that establishing a new federal bureaucracy inWashington will not benefit consumers,” said Greg Wren, COFIRexecutive director. “COFIR has conducted surveys of tens ofthousands of consumers, and the overwhelming consensus is thatcentralizing insurance in our nation's capital is not the answer toissues confronting the insurance marketplace.”

COFIR is a coalition composed of property and casualtycompanies, life and health insurance companies, insurance tradeassociations, agents and brokers which oppose federal efforts tocreate a dual, bifurcated system of state and federal insurancelaws and regulations.

The organization is based in Montgomery, Ala., and its membersinclude the National Association of Mutual Insurance Companies andthe Independent Insurance Agents and Brokers of America. Itsprimary financial supporter is AFLAC, based in Columbus, Ga.

In his comments, Mr. Wren said that while COFIR does not supportthe creation of a federal insurance regulator, the kind oflegislation it does support is exemplified by the Nonadmitted andReinsurance Reform Act of 2007.

This legislation was introduced in February by Sen. Bill Nelson,D, and Mel Martinez, R, both of Florida. An updated version isexpected to be introduced soon in both the House and Senate.

“This bill has overwhelming congressional and industry support,”Mr. Wren said. “COFIR maintains that targeted legislation such asthis can bring about uniformity and improve efficiencies in thestate-based insurance regulatory system without taking the drasticstep of creating a massive new federal bureaucracy.”