Another powerful lobbying group, comprised of the biggest insurance companies in the nation, urged Congress last week to establish a federal regulatory scheme.
The group of 135 insurers, including CUNA Mutual Group, sent a letter to top members of the Senate Banking Committee urging the Congress to give insurers the option of dealing with a single federal regulator-just like banks and credit unions-instead of the archaic system of state regulation. Such a system, the group said, is costly and burdensome and "provides no advantage to the consumer."
The proposal would not eliminate the state system of regulation, established under the 1940s McCarron-Ferguson Act, but would give insurers the option of a federal charter, like the dual chartering system offered other financial service providers, the letter said.
In addition to CUNA Mutual, other insurers in the group are: American International Group, Allstate, Prudential Financial and New York Life.
Ed Roberts can be reached at eroberts
