WASHINGTON--Members of the National Association of Insurance andFinancial Advisors' national council agreed today to support theconcept of letting insurance industry players choose between stateregulation and federal regulation.

NAIFA, Falls Church, Va., completed the process of expressingsupport for optional federal charter bills that meet certainconditions when the council members approved an OFC resolutionprepared by NAIFA leaders by a voice vote.

NAIFA held the vote in San Diego, at its annual meeting.

About 80 percent of the national council members whoparticipated in the vote supported the resolution, according to oneattendee.

NAIFA's national council is made up of the presidents andnational committee members of local and state associations.

"Today we have seen democracy in action," says Elaine Fremling,chairman of the NAIFA policy formation subcommittee. "This is thefirst time in our history that a NAIFA policy position has beensent to the national council for their ratification."

Under the resolution, NAIFA will support the insurance OFCconcept, and it may support an OFC proposal if the proposal meetsseveral conditions.

The list of conditions includes requirements that an OFCproposal supported by NAIFA must offer agents the option ofremaining state-licensed, improve consumer protection, preservestate regulation, and establish a single federal entity withexpertise in insurance matters.

NAIFA officials say they will continue to work with statecommissioners and lawmakers to craft and, when possible, enactmeaningful regulatory system reforms.

Incoming NAIFA President Cliff Wilson says he wants to work withthe National Association of Insurance Commissioners, Kansas City,Mo., to support measures and program such as the Producer LicensingModel Act, the National Insurance Producer Registry, theSuitability in Annuity Transactions Model Act and the InterstateCompact.

"We have no plans to abandon our support for these importantinitiatives," Mr. Wilson said. "The vote today allows NAIFA topursue a dual state and federal track approach to achievingregulatory reform. As insurance regulatory reform discussions aretaking place at the state level, the halls of Congress, and theadministration, NAIFA must be there to provide the critical insightof our members."