Federal charter supporters willing to pay the price.Insurers that favor optional federal charter legislation are willing to bear the cost of two separate layers of taxes, assessments and fees if it brings about regulatory uniformity, representatives of both life and property/casualty trade associations said. As proposed under S. 2509, the National Insurance Act of 2006, an independent federal Office of National Insurance would he created within the U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. Department. Appointed by the president, a national insurance commissioner would lead the office, which would include divisions devoted to insurance fraud and consumer affairs, an ombudsman, and a National Insurance Guaranty Corp. Funding for the federal regulator would come from filing fees, user fees, examination fees and direct assessments on insurance companies, producers and agencies that choose to be federally regulated. But the bill, introduced by Sens. John Sununu John Sununu is the name of two U.S. politicians:
Frank Keating, president and chief executive officer of the American Council of Life Insurers The American Council of Life Insurers (ACLI) is a Washington-based lobbying and trade group for the life insurance industry. ACLI represents 373 insurance companies that account for 93 percent of the U.S. life insurance industry's total assets. , said insurers that opt for federal regulation would be made to pay for it themselves, even as they continue to pay the premium taxes they have contributed all along. That the proposal enjoys widespread support among the vast majority of ACLI ACLI American Council of Life Insurers ACLI Associazioni Cristiane Lavoratori Italiani (Italy) ACLI American Council of Life Insurance ACLI Ada Command Language Interpretation members underscores how onerous they believe the current state-based regulatory model to be, he added. But fears about a premium tax grab remain a core part of objections to the plan raised by some state legislators. In response to the April 5 introduction of the bill, the National Conference of Insurance Legislators issued a statement declaring that "any experienced observer can foresee that Congress will eventually reach out for state premium tax dollars to fund what will likely be enormous operational costs." Opposition to the measure also has come from the National Association of Insurance Commissioners The National Association of Insurance Commissioners (NAIC) is an Internal Revenue Code Section 501(c)(3) non-profit organization which seeks to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States. , the National Association of Mutual Insurance Companies and the Independent Insurance Agents & Brokers of America. Optional Federal Charter Coalition Members include the following trade associations: * American Council of Life Insurers * American Insurance Association * Council of Insurance Agents & Brokers * Agents for Change * American Bankers Association The American Bankers Association (ABA) is comprised of banks and other financial institutions. It seeks to promote the strength and profitability of the banking industry by Lobbying federal and state governments, building industry consensus on key issues, and providing products and * American Bankers Insurance Association * Financial Services Forum The Financial Services Forum is a non-partisan financial and economic policy organization comprised of the CEOs of 20 of the largest and most diversified financial services institutions doing business in the United States. * Financial Services Roundtable |
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