State lawmakers and regulators are ratcheting up their opposition to federal legislation calling for “optional” federal charters for insurers. The National Conference of Insurance Legislators (NCOIL) is poised to pass a resolution reaffirming their opposition to OFC during its spring meeting in Washington on February 28-March 1. NCOIL’s effort has the support of the National Association of Insurance Commissioners (NAIC). NAIC President Sandy Praeger released a letter sent to the president of the American Insurance Association reiterating her opposition to an OFC. Praeger’s letter came after the American Insurance Association (AIA) wrote to Ms. Praeger to criticize her article, “Federal Bill Unnecessary,” published February 7 on the Kansas Insurance Department Web site.

NCOIL President Rep. Brian Kennedy of Rhode Island said that through their national organizations, state officials have “collectively agreed” to oppose OFC legislation. These organizations include NCOIL, the NAIC, the National Governors Association and the National Conference of State Legislatures, Rep. Kennedy said. They have agreed to accept the NCOIL draft resolution as a model template for states “to reiterate to their congressional delegations the harmful effects of OFC legislation currently active in both chambers of Congress,” he said.

Regulators, Lawmakers Increase OFC Opposition (National Underwriter 2/15/08)

February 21, 2008