NU Online News Service

Creation of an optional federal charter for insurers will be on Congress' 2011 agenda because it has strong bipartisan support, Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, has told state insurance legislators.

Coincidentally, the National Association of Professional Insurance Agents this week said that it is asking its members to lobby their congressmen during this month's congressional recess to be steadfastly opposed to federal regulation of insurance in any form.

"PIA members will remind members of Congress and congressional candidates during August that America's Main Street insurance agents expect them to vote 'no' on the so-called optional federal charter--no excuses and no compromises," PIA president Jon D. Spalding said in a statement.

Rep. Frank made his comments to the National Conference of Insurance Legislators (NCOIL) during their summer meeting late last month.

NCOIL provided a summary of his remarks in its monthly newsletter.

Rep. Frank said he would remain neutral during the debate, and that he personally "saw no need for federal oversight of auto insurance."

He also said the coming debate was a "not-surprising" follow-up to the massive financial services reform legislation just enacted by Congress, H.R. 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act.

He said that in his view, "the bill recognized the importance of state oversight."

Rep. Frank's comments are consistent with prior statements. He has repeatedly said that his experience as a Massachusetts state legislator "taught him long ago the tough realities of regulating auto insurance

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