WASHINGTON–Legislation was introduced in the Senate today to create a parallel, federal system of regulation and supervision for insurers as well as agents and brokers that is similar to the dual banking system.

The bill was introduced by Sen. Tim Johnson, D-S.D., and Sen. John Sununu, R-N.H., and is based on legislation introduced by the two in the last session of Congress. The reaction from insurers' groups was mixed.

“The National Insurance Act of 2007″ (S40) makes clear that insurers and producers would both be free to elect federal or state regulation, charters and licenses. Under the bill, states would maintain responsibility of regulating state-licensed insurers and producers.

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