There is a report in this week’s National Underwriter that reports that House Financial Services Committee Chairman Barney Frank (D-Mass.) has said passing an optional federal charter will be his top legislative priority in 2009. However, the only source for this story is several unnamed ACLI lobbyists who met with Rep. Frank. Significantly, a staff official from Rep. Frank’s office, when asked by the Underwriter to comment, confirmed that Frank met with ACLI lobbyists, but would not comment further.

This story got folded into a larger article with the headline, “Momentum Growing for Shift to OFC in Near Term.,” and includes an update on Rep. Paul Kanjorski’s bill (H.R. 5840) the Insurance Information Act of 2008. In addition, the potential move of NAIC CEO Catherine Weatherford to Washington was noted, with the opening phrase, “Also reflecting the growing momentum to centralize insurance oversight in Washington…”

What It Means to Agents:  We wonder if this came as a surprise to Rep. Frank, a completely transparent legislator who always speaks for himself (sometimes at great length), especially when it comes to announcing his own top legislative priorities. Are ACLI lobbyists out on a limb on this, trying to manufacture a perception that the OFC train is about the leave the station and everybody is clamoring to get on board? At this point, this story is thin on confirmation directly from Rep. Frank, and heavy on spin.

Article in Question (National Underwriter 6/9/08)

June 10, 2008