State vs Federal Regulation

While insurance should remain state regulated, there is certainly a role for the Federal Government to play in concert with the State insurance departments and the NAIC.

  • The NAIC proposed this statute because the Federal Government has unequaled clout, reach, and investigatory and law enforcement resources.
  • The State insurance departments are ready and willing to investigate and prosecute insurance fraud, often in cooperation with Federal law enforcement agencies.

--  EARL POMEROY (North Dakota / NAIC)

1994 0421 - GOV - INSURANCE FRAUD - Congressional Record (Volume 140, Number 45)

3. H.R. 1290

Bob Mackin (NCOIL) expressed concerns about the various industry and related groups that have publicly supported H.R. 1290.

  • Assemblyman Lasher said that NCOIL and NAIC should present a coordinated effort to oppose the legislation for the best interest of insurance consumers.
  • Director McCartney noted that consumer groups generally agree that H.R. 1290 does not offer any consumer protection.
  • The members agreed to continue to coordinate their efforts to defeat the federal legislation that would preempt state regulation of insurance.

1993-2, NAIC Proceedings

H.R.1290 - Federal Insurance Solvency Act of 1993103rd Congress (1993-1994) - https://www.congress.gov/bill/103rd-congress/house-bill/1290?s=1&r=34

  • On state vs. federal regulation in the U.S., I have no position.
  • I am an insurance professor, not a political scientist.
  • State regulation has serious shortcomings, but I do not know if federal regulation would be any better.

--  Joseph Belth

1981 - THE LIFE INSURANCE BUSINESS---THE VIEW OF CONSUMERISTS, Society of Actuaries (rsa81v7n38)