Senators Offer Bill To Create National Insurance Regulator

Sens. Tim Johnson, D-S.D., and John Sununu, R-N.H., introduced a bill Thursday that would create a federal charter for life and property and casualty insurers.
Lawmakers have tried to create such a charter before as an alternative to the existing state-chartered framework. Previous attempts to establish a federal charter, despite industry support, have always failed, though.

The bill would create an Office of National Insurance, which would be a division of the Treasury Department, modeled after the national bank and thrift regulatory structure that exists.

Now, insurers must be licensed by each state in which they do business. Some industry groups have argued that a federal charter would make operations much easier.
“This legislation provides a choice for insurers if they wish to become chartered at the national level, enabling them to work under a uniform set of regulations and an effective federal regulator,” Sununu said in a press release. “Some institutions may choose not to do so, and this bill does not weaken or undermine the current
state system for these firms.”
Johnson and Sununu introduced similar legislation during the last Congress.
By Damian Paletta, Dow Jones Newswires; (202) 862-9241; .(JavaScript must be enabled to view this email address)