In early April, Senators John Sununu (R-N.H.) and Sen. Tim Johnson (D-S.D.) introduced a bill that would establish a federal program of insurance regulation that would operate in conjunction with the current state-based system.

Specifically, the act seeks to create a system of federal chartering, licensing, regulation, and supervision for insurers and insurance producers that is independent of the existing state system of insurance licensing, regulation, and supervision. Also, it would create a new government agency called the Office of National Insurance that would be funded by assessments imposed upon the insurance industry and would be led by a commissioner of national insurance.

The bill's introduction caused a stir in the industry. The Independent Insurance Agents and Brokers of America opposed the bill, claiming that the state system is more responsive and additional regulatory measures would overburden their members and unnecessarily impinge upon states' rights. Instead, the group is backing the State Modernization and Regulatory Transparency (SMART) Act, which they say would improve and modernize the existing system without creating another bureaucracy.

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