WASHINGTON–Sen. Tim Johnson, D-S.D., who will become the second-ranking Democrat on the Senate Banking Committee, said yesterday he will re-introduce bi-partisan legislation to establish an optional federal charter for property-casualty and life insurers.

Sen. Johnson, who will gain his rank with the new Congress, said he is putting the measure forward with Sen. John Sununu, R-N.H. The two introduced the legislation this year but it did not gain passage.

In a statement to National Underwriter, Sen. Johnson said: “The need for insurance industry modernization is not going away. Sen. Sununu and I will reintroduce the National Insurance Act that would move us toward a regulatory system that gives insurance companies, agents, brokers and the customers they serve the benefits that come from a regulatory system that fosters competition, protects consumers, and allows consumers to select from the widest possible variety of insurance products.

“I was very encouraged that the Senate Banking Committee hearings on insurance industry modernization in July resulted in positive responses to an optional federal charter,” Sen. Johnson added. “The introduction of S. 2509 generated much discussion within the insurance industry, and I look forward to continuing that discussion with the insurance industry and my colleagues into the 110th Congress.”

He continued, “I also believe the Banking Committee will resume efforts to examine the insurance industry and proposals for industry modernization.” Lobbyists pointed out that Sen. Johnson will have full authority to do just that in the new Congress.

Late Tuesday, the Senate Democratic Leadership said that new Democratic appointees to the Banking Committee will include Sen. Daniel Akaka, D-Hawaii; Senator-elect Sherrod Brown, D-Ohio; Senator-elect Bob Casey, D-Pa.; and Senator-elect Jon Tester, D-Mont.

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