The nation’s state insurance legislators are steadfast in opposing the Insurance Information Act of 2008 (H.R. 5840). The National Conference of Insurance Legislators (NCOIL) has been leading their effort.

In an August 1 letter to Senate Committee on Banking, Housing, and Urban Affairs Chairman Sen. Chris Dodd (D-Conn.), NCOIL leaders spoke out against Congressional efforts to fast-track legislation to create a federal Office of Insurance Information (OII)—recommending that their federal colleagues slow down the legislative process for further debate and discussion.  The letter followed in the wake of a July 29 hearing during which Sen. Dodd signaled that the Senate could consider a legislative package that may include parts of H.R. 5840, the Insurance Information Act of 2008, before adjourning in September.

The list of NCOIL members who signed the letter includes Rep. Brian Kennedy (D-R.I.), NCOIL’s president; Sen. James Seward (R-N.Y.), the group’s president-elect; Rep. Robert Damron (D-Ky.), the group’s vice president; Rep. George Keiser, (R-N.D.), the group’s secretary; and Sen. Carroll Leavell (R-N.M.), the group’s treasurer.

“We do not understand the impetus behind moving legislation in such an expeditious manner that would substantially affect the governance of insurance regulation,” said NCOIL President Brian Kennedy in the letter. “There is no crisis in the insurance industry that would justify such swift Congressional action—as evidenced by the industry’s record profits.  The insurance marketplace, unlike federally regulated banking institutions and markets, is well-regulated at the State level to protect consumers while providing a competitive environment for companies and investors.”

The letter—which was distributed to every U.S. Senator—urged members not to pursue an even faster track on such a controversial piece of legislation than the path pursued in the House and stated:

“H.R. 5840 is a new proposal in the Senate—though introduced and advanced in the United States House of Representatives in 2008—and has not been vetted in the Senate or debated by any previous Congress.  The measure was reported out of the House Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises after a markup in which less than 15 of the almost-50 member Subcommittee voted.  Even more troubling, the House Committee on Financial Services has yet to debate H.R. 5840.”

August 19, 2008