The Idaho state legislature has just passed a resolution stating its strong opposition to any attempt at bringing about federal regulation of insurance. The resolution notes that proposals for optional federal charters “have the potential to destroy the state system of insurance regulation and create an unwieldy and inaccessible federal bureaucracy, all without consumer and constituent demand.”  It also notes that the National Insurance Act (S.40/H.R. 3200) “does not fully guarantee state premium tax revenues for a long-term period of time and has the potential to draw premium tax revenues from the states.”

In Ohio, House Insurance Committee Chairman, Rep. Bill Batchelder (R-Medina) recently introduced a resolution to express the commitment of the General Assembly to maintain the states as the sole regulators of insurance and to express their opposition to any proposed law that would establish a federal insurance regulatory system, such as an optional federal charter. Rep. Batchelder stated that Ohio is blessed with a capable regulatory system and added that some congressional proposals would bring other states’ problems into the Ohio marketplace. PIA of Ohio, in an update to members, said it will be supporting this resolution.

Idaho Joint Resolution No. 114 (PDF file)

April 8, 2008