1983 1007 - Senator Daniel Inouye (Delivered by Alvey Wright) - Speech to Honolulu Association of Life Underwriters - 16p
Although I would have preferred to discuss other matters of concern to us all, your invitation has requested that I discuss important Life Insurance issues that are pending before The Congress:
1) Taxation of Life Insurance Companies;
2) Fair Insurance Practices Act, S.372; And
3) The Sale of Insurance by Banks.
(p5) - As you are well aware, the administration has vocally supported the deregulation of financial institutions, which would enable them to enter new lines of businesses such as insurance, real estate, and travel.
Even though I am a director of a bank, I have been on record that I am opposed to banks selling insurance.
They have enough to do in their regular activities without engaging in non-bank business.
The federal reserve board, which recognized the crucial and special role of banks in our economy, is correct in seeking gradual, measured deregulation.
By the same token, non-bank firms should not be allowed to engage in bank activities.
(p15) - Since the early 1950's, the insurance industry has been regulated at the state level.
That structure, however, has broken down as the issues of concern to your firms have assumed national rather than state dimensions.
(p16) - From minimal involvement a few years ago, the Senate Commerce Committee, of which I am a member, has witnessed the emergence of insurance issues as one of the most controversial areas.
While not all of these issues involve life insurance, your industry should be attentive to Washington developments as well as those in the state capitols.