Insurance Agents Say There Is No Consensus on Insurance Information

Act;



    Bill as Currently Drafted is a Broad Assault on the Authority of All

States



    WASHINGTON, Aug. 11 /EMWNews/ -- The National Association

of Professional Insurance Agents has sent letters to all of the nation's

state commissioners of insurance and to Members of Congress, warning

against the unintended consequences of the Insurance Information Act of

2008 (H.R. 5840).



    "Some in Congress may be tempted to think that there is consensus

within the insurance industry regarding H.R. 5840. This is not the case,"

said PIA Executive Vice President & CEO Leonard C. Brevik. "Our letter to

Congress along with our letter to all of the state insurance commissioners

point out that there is no consensus on this bill."



    What started out as a bill to create an insurance information office

and deal with insurance issues in international agreements has become

legislation that would enable federal regulation of insurance. Under H.R.

5840, Congress grants new powers to the Secretary of the Treasury, making

the Secretary the principal federal authority for domestic and

international insurance issues of national interest with the power to

determine which state laws, regulations and industry practices will be

preempted.



    H.R. 5840 effectively guts the McCarran-Ferguson Act of 1945 and the

Gramm-Leach-Bliley Act of 1999, which establish and affirm that the states

are the regulators of the business of insurance.



    "PIA is concerned that Congress is trying to ride roughshod over our

state departments of insurance," Brevik said. "This bill has been quietly

transformed into enabling legislation for federal insurance regulation."



    PIA believes that consumers are best served by the current system under

which the business of insurance is regulated by the states. PIA opposes

federal regulation of insurance, and also opposes proposals which would

create a dual regulatory system through an optional federal charter for

insurers, which would essentially allow them to decide whether to be

regulated by the states or the federal government.



    "Supporters of H.R. 5840 are now attempting to convince members of

Congress that these powers are not new, will only be exercised under very

limited circumstances, and only as a last resort," said the PIA letter to

the state commissioners of insurance. "Unfortunately, the actual language

of the bill does not track with the narrowness of these comments, and press

comments do not mitigate that problem. Hence, those that desire to transfer

insurance regulation from the states to the federal government may do so

under this current language."



    "PIA believes that the current version of H.R. 5840, the Insurance

Information Act of 2008, effects a broad assault on the authority of all

states and the Departments of Insurance that regulate the business of

insurance," the letter goes on. "We respectfully suggest that you contact

your federal elected officials to express your concerns about this flawed

legislation."



    A separate letter has been sent to Members of Congress detailing the

flaws in H.R. 5840 and its potential for creating unintended consequences.



    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 http://www.pianet.com.



    PIA's Letter to State Insurance Commissioners:



    http://www.pianet.com/doc/Issues/5840Memo073108.pdf



    PIA's Letter to Members of Congress:



    http://www.pianet.com/doc/Issues/5840Letter073108.pdf