NCOIL Says Keep Insurance From Any U.S. Consumer Unit Control

NU Online News Service, July 15, 3:38 p.m. EDT

The National Conference of Insurance Legislators (NCOIL) has approved a resolution declaring that any federal consumer protection unit that is created should not regulate insurance.

NCOIL's reiteration of its support for state-based regulation came during its Summer Meeting in Philadelphia.

In its July 12 Resolution Favoring Continued State-Based Insurance Consumer Protection, the organization said, "NCOIL believes that the protection of insurance consumers should continue to be based exclusively at the state level" and further resolves that "any Financial Product Safety Commission, Consumer Financial Protection Agency, or similar new or existing federal agency should not have direct or indirect jurisdiction over insurance products–including credit, mortgage and title insurance–and/or insurance-related matters."

State-Federal Relations Committee chairman and resolution sponsor, Rep. Greg Wren, R-Ala., said in a statement, "The NCOIL resolution does not oppose the president's or Congress' effort to create an independent entity to protect consumers of certain financial products. It does, however, argue that the authority of any such agency should be limited to the extent that it must exclude insurance products and matters."

NCOIL president, New York State Sen. James Seward, R-Milford, said: "While state legislators recognize the need for targeted financial services reform, we believe that any reform should avoid preempting successful state insurance oversight. State insurance regulation is one of the bright spots in the current, otherwise bleak regulatory landscape and should be advanced, not pared back. NCOIL looks forward to working toward a regulatory system that will close existing gaps and ensure consumer protections without inhibiting a state's right to regulate its unique insurance market."