PIA Praises National Governors Association for Its Strong Defense of State-Based Insurance Regulation

WASHINGTON, April 4, 2014 /PRNewswire-USNewswire/ -- The National Association of Professional Insurance Agents (PIA) praised the National Governors Association (NGA) for speaking out forcefully in support of the state-based system of insurance regulation.

The bipartisan NGA expressed its concern in an April 1, 2014, letter to Treasury Secretary Jacob Lew about December's Federal Insurance Office's (FIO's) regulatory modernization report, which attempted to recast the state vs. federal debate, calling for a hybrid system in which both state and federal regulators assume roles.

"Governors are concerned by the FIO report's suggestion of a greater federal role that could invite a dual regulatory system," the NGA letter signed by Governors Robert Bentley (R-Ala.) and Earl Ray Tomblin (D-W.Va.) states. "It is our position that federal laws and regulations must not preempt or undermine the strong state-based insurance regulatory system that for more than 140 years has protected consumers and safeguarded the capital adequacy and solvency of insurers. Governors stand ready to protect state-based insurance regulation."

The NGA said its letter restates a longstanding policy view held by the governors. PIA said that the policy view by the governors is fully in accord with its own position.

"Our nation's governors are correct: The current state-based system of insurance regulation, created and reaffirmed by Congress, is best at protecting the interests of insurance consumers, the insurance industry and our nation's economy," said PIA National Executive Vice President & CEO Mike Becker. "The state system is effective and efficient. It also serves to safeguard the insurance industry against the kind of abuses by the banking and securities sectors that led to the 2007-2009 financial crisis." 

"The FIO's role, as defined by Congress, is to monitor the insurance industry," Becker said. "Regulatory modernization is already accomplished through state-based organizations like the National Association of Insurance Commissioners (NAIC) and the National Conference of Insurance Legislators (NCOIL). Frankly, there is no need for federal intervention. The system is not broken, and therefore it does not need to be 'fixed.'"  

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America ^SM. PIA's web address is www.pianet.com.

This press release is online at:
http://pianet.com/news/press-releases/2014/piapraisesngafordefenseofstatebasedregulation040314

NGA letter:
http://www.nga.org/cms/home/federal-relations/nga-letters/economic-development--commerce-c/col2-content/main-content-list/federal-insurance-office-fio.html

SOURCE National Association of Professional Insurance Agents