NAIFA's national council is made up of the presidents and national committee members of local and state associations.

"Today we have seen democracy in action," says Elaine Fremling, chairman of the NAIFA policy formation subcommittee. "This is the first time in our history that a NAIFA policy position has been sent to the national council for their ratification."

Under the resolution, NAIFA will support the insurance OFC concept, and it may support an OFC proposal if the proposal meets several conditions.

The list of conditions includes requirements that an OFC proposal supported by NAIFA must offer agents the option of remaining state-licensed, improve consumer protection, preserve state regulation, and establish a single federal entity with expertise in insurance matters.

NAIFA officials say they will continue to work with state commissioners and lawmakers to craft and, when possible, enact meaningful regulatory system reforms.

Incoming NAIFA President Cliff Wilson says he wants to work with the National Association of Insurance Commissioners, Kansas City, Mo., to support measures and program such as the Producer Licensing Model Act, the National Insurance Producer Registry, the Suitability in Annuity Transactions Model Act and the Interstate Compact.

"We have no plans to abandon our support for these important initiatives," Mr. Wilson said. "The vote today allows NAIFA to pursue a dual state and federal track approach to achieving regulatory reform. As insurance regulatory reform discussions are taking place at the state level, the halls of Congress, and the administration, NAIFA must be there to provide the critical insight of our members."