After some delays, this morning Representatives Melissa Bean (D-Ill.) and Ed Royce (R-Calif.) introduced the National Insurance Consumer Protection Act (NICPA) at a press conference at the Rayburn House Office Building in Washington D.C.
NICPA, if signed into law, would create a robust federal regulator for insurance to act as an alternative to the antiquated, non-uniform system of state insurance regulators currently in operation, according to a press advisory released by Bean and Royce. "The meltdown of insurance giant AIG and the broad crisis in the nation's financial system serve as proof of the vital need for regulatory reform of the insurance sector," the statement continued. "Numerous bipartisan reports on the nation's capital markets have noted that insurance remains the only major segment of the capital markets not subject to federal regulation and reform is needed."
For Insurance & Technology's ongoing coverage of federal insurance regulation, see the following articles:
Rep. Melissa Bean Says Federal Insurance Bill Imminent, March 6, 2009
Federal Insurance Regulatory Proposal Draws Fire, Support, Feb. 19, 2009
ACLI Statement: Federal Insurance Regulation "Vital", Feb. 19, 2009
The Wrong Argument for OFC, Sept. 30, 2008
Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio