Rejecting criticism from an agents group, insurance regulators said they are actively engaged in the debate over Congress' efforts to limit state authority over insurance and are opposed to those efforts.
Illinois Insurance Director Michael T. McRaith, speaking for the National Association of Insurance Commissioners, called comments by the Professional Insurance Agents of the Western Alliance's Clark Sitzes, executive vice president of the association, "misleading."
Mr. McRaith told National Underwriter that he and other commissioners have testified before Congress and met with Congressional leaders voicing their opposition to proposed legislation eliminating insurers' antitrust exemption that they believe would undermine the state's authority over insurance.
NAIC members, he said, have also met with associations, law groups, industry groups, and the staff of leading Congressional members and members of Congress directly.
"The NAIC does not, and could not support the present bill (Insurance Industry Competition Act S618) as it has been drafted," he said.
He added, "We are not inclined to send out press releases that contain dramatic but inaccurate statements. The fact is we are inclined to be involved in substantive and important issues, and to inform and educate the people who are interested in those issues."
National Underwriter reported Monday on a letter sent by PIA West to Congressional leaders and the NAIC asking why the association was not involved in the Congressional debate over the antitrust legislation.
The letter also pointed to the inevitability of federal involvement in insurance regulation unless there were more concrete proposals put forth by the NAIC.
While the NAIC would consider supporting legislation that would coordinate state regulators with federal prosecution of antitrust violations, Mr. McRaith said that state regulation of insurance must remain preeminent in any Congressional action.
The primary purpose of state regulators is consumer protection that ranges from ensuring solvency to claims payment. The current legislation in the Senate, he said, would appear to allow for federal prosecution of antitrust violations and reduce state regulation over the industry.
"The position of the NAIC and state regulators is not in any way an indication that we would cede any regulatory authority to any federal agency," said Mr. McRaith.
"The effort to deregulate the industry through a so-called federal charter will fail because it provides protection for the industry at the expense of the consumer," he added, referring to attempts by some to create a federal insurance regulator that would be an alternative to the states.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.