Representatives of NAPSLO are encouraged that the initial draft of the financial services reform package outlined by the Treasury Department proposes the continued use of state regulation of the insurance industry.
The Treasury Department proposal is consistent with the outline of regulatory reform NAPSLO presented to the administration after it, along with other national groups, met with representatives of the White House and Treasury Department officials earlier this month.
"During our discussions, the Treasury asked for additional information on surplus lines and how it is regulated and NAPSLO’s views toward financial services regulation reform. We submitted the information and we are delighted that the report is in line with the views we presented, particularly in regard to insurance regulation,” said Maria Berthoud, NAPSLO's Washington Representative with B & D Consulting.
"We believe state regulation offers consumers better protections and stronger regulation and are encouraged that the Treasury Department proposal incorporates the continuation of state insurance regulation,” stated NAPSLO President John Wood. “We agree that adding enhancements to state regulation is the best approach and are pleased that the Treasury took into consideration our recent comments," Wood added.
"While the structure of the regulation of the financial services industry will be altered under the Treasury proposal, insurance regulation will remain the responsibility of the states, as it is now," Richard Bouhan Executive Director of NAPSLO stated. "We are further encouraged that with the report’s emphasis on regulatory reform, the passage of HR 2571 ---- the Nonadmitted and Reinsurance Reform Act (NRRA) ---- is even more critical. When enacted, the NRRA will facilitate the efficient placement and taxation of surplus lines insurance and would work well with the Treasury Department’s proposals,” Mr. Bouhan added.