Two recent news stories–dealing with banking and the airlines–makeme wonder more than ever about the wisdom of letting Uncle Samregulate the insurance industry outright. State oversight has itsfaults, but I fear consumers could be worse off if states arestripped entirely of their authority to hold insurers accountablefor poor market conduct.

On Dec. 4, the U.S. 2nd Circuit Court of Appeals in Manhattanupheld a lower court ruling that the Comptroller of the Currencyhas exclusive authority over federally-chartered banks.

Washington initiated the legal challenge when then New YorkAttorney General (now governor) Eliot Spitzer launched a probe intothe lending practices of three national banks, and indicated he hadevidence they had violated state civil rights laws. The proberevolved around whether the banks were charging higher interestrates on mortgages to minorities.

Continue Reading for Free

Register and gain access to:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.