An academic specializing in insurance and risk management has voiced a concern that once an insurer elects U.S. regulation they will find it cost prohibitive to go back to the state.

Newly proposed House legislation to end the insurance industry's anti-trust exemption has been attacked by two insurer trade group who call it a "punitive bill hinging on a false premise."

The House voted today to impose a 90 percent tax on bonuses paid to employees with family incomes above $250,000 at companies that have received at least $5 billion in government bailout money.

Two Democrats in the House introduced legislation today that would repeal the antitrust exemption afforded the insurance industry by the McCarran-Ferguson Act, but would retain the authority of states to regulate insurance.

AIG Chairman and Chief Executive Officer Edward Liddy said today he agreed to pay bonuses to employees at its troubled Financial Products unit only because "I am trying to prevent an uncontrolled collapse of that business."

Treasury Secretary Tim Geithner said late yesterday that his agency is working with the Department of Justice to determine "what avenues" can be used to recoup taxpayer dollars used to pay AIG executive bonuses.

According to the letter, the top recipient received more than $6.4 million; 22 individuals received bonuses of $2 million or more, and combined they received more than $72 million; 73 individuals

Supporters and opponents of a federal role for insurers used their appearances at a congressional hearing on American International Group's bonus payments to reiterate their views today on a proposed optional federal insurance charter.