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Federal Chartering ProposalsPut Chaos Theory To The Test

The headline on this week’s cover asks whether federal chartering is the answer. The question is what is the best system to regulate insurance? The industry is split in its response.

At least two major carrier groups and one big broker association favor giving players a choice between state and federal oversight. These people feel that state regulators have had more than a fair chance to get their act together, and now is the time to offer a federal alternative. However, other company and agent groups believe that state regulation has best served the insurance industry and their consumers, and will continue to do so.

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