Legislation was introduced in the U.S. Senate last week to create a parallel federal option for regulation and supervision of 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 National Insurance Act of 2007 makes clear that insurers and producers would both be free to elect federal or state regulation. Under the bill, states would maintain responsibility of regulating state-licensed insurers and producers. (For more details, see the accompanying infographic.)

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