State legislators are asking U.S. senators to explain why they are rushing to pass legislation that would create a federal Office of Insurance Information.

The National Conference of Insurance Legislators, Troy, N.Y., in an Aug. 1 letter sent to every U.S. senator urged the lawmakers to slow down the legislative process so more discussion and debate can take place.

The letter followed a July 29 hearing of the U.S. Senate Committee on Banking, Housing and Urban Affairs during which Sen. Christopher Dodd, D-Conn., indicated that the Senate could consider a legislative package that may include parts of H.R. 5840, the Insurance Information Act of 2008, before adjourning in September.

The NCOIL letter was signed by state representatives and senators including the group's president, Rhode Island Sen. Brian Kennedy, D-Hopkinton; New York Sen. James Seward, R/C Oneonta; Kentucky Rep. Robert Damron, D-Jessamine; North Dakota Rep. George Keiser, R-Bismarck; and New Mexico Sen. Carroll Leavell, R-Jal.

The letter makes several points including the fact that H.R. 5840 "has not been vetted in the Senate or debated by any previous Congress."

It continues, "The measure was reported out of the House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises after a markup in which less than 15 of the almost 50-member subcommittee voted."

NCOIL wrote that, "Even more troubling, the House Committee on Financial Services has yet to debate H.R. 5840. NCOIL would urge you not to pursue an even faster track in the Senate on such a controversial piece of legislation."

And, according to the letter, "H.R. 5840--painted in such broad strokes--does not specifically detail the powers of the proposed OII and leaves open many questions. We as fellow lawmakers know that when it comes to legislation, the "devil" is always in the "details."

NCOIL has also contacted state governors, attorneys general and insurance supervisors regarding H.R. 5840.

Michael Humphreys, NCOIL's director of state-federal relations in Washington, said that NCOIL has not received any responses yet, because Congress is out of session this week.

NCOIL members are concerned that an OII within the U.S. Treasury Department, as described in the Treasury Blueprint, will be an interim step to an Optional Federal Charter, he continued.

Two co-sponsors of OFC legislation introduced by Rep. Paul Kanjorski, D-Pa.--Reps. Melissa Bean, D-Ill., and Ed Royce, R-Calif.--are proponents of an OFC, he noted.

Mr. Humphreys did not quantify what a more reasonable pace would be but emphasized that more time is needed because this is a new proposal before the Senate.

Special Reports /

State Legislators To U.S. Senate: Slow Action On OII Bill

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