In his monthly letter to PIA members, PIA National President Robert Page points out that the reason supporters of federal regulation of insurance are using the Office of Insurance Information Act of 2008 (H.R. 5840) as a “cover” for their strategy is that their position would not survive an up-or-down vote in Congress.

“The supporters of federal regulation of insurance know that they cannot win a straightforward, up-or-down vote in Congress,” writes Page. “So, they have decided to try to circumvent the opposition through stealth. First, they break up their proposals into small pieces that, when viewed separately, do not federalize insurance regulation. But when passed and then connected, presto, federalization takes place, the state DOIs are out of business and the state premium taxes go to Washington, D.C.”

“And to smooth the way, they cut side deals that effectively neutralize groups whose members oppose all of this, with promises of ‘a seat at the table,’” Page said.

Fortunately, the National Conference of Insurance Legislators (NCOIL) did not succumb to the “seat at the table” routine. It has remained firm in its opposition, despite the offer of a seat on the commission that would advise the new OII.

PIA President’s Letter (August 2008)

August 19, 2008