The new CEO of the National Association of Insurance Commissioners (NAIC) says there is a limited role for the federal government in insurance in partnership with state regulators, but he believes there is “no need for dual regulation.” Former U.S. Senator Ben Nelson is a staunch advocate for state insurance regulation. He promised to work at improving the state-based system, rather than weakening or replacing it. The NAIC represents appointed and elected insurance regulators in all states, the District of Columbia and territories.
Nelson believes state regulators should form a partnership with federal and even international officials but that state regulation itself should be preserved. He said any partnerships must recognize the “importance and value of state regulation.” The NAIC’s focus, according to Nelson, will be on “how we make the insurance industry responsive to the needs back home” in the states. He said NAIC will soon be issuing a report on recommended improvements to state regulation.
There are some segments within the insurance industry and consumer circles that support giving insurers a choice of federal over state regulation, arguing that state-based regulation is not effective or efficient in dealing with large national and global insurers and issues. The Dodd-Frank Wall Street Reform Act created the Federal Insurance Office (FIO) within the Treasury, but Nelson said the law does not give a regulatory role to the FIO or to the federal government. He said further that there should not be “a regulatory role” for the federal government. NAIC President-Elect Adam Hamm, who is the North Dakota insurance commissioner, believes Nelson is the right person for the NAIC’s top staff job, saying he has the “perfect resume” for the CEO position.
Source: Insurance Journal
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