Posted on 18 Jun 2009
The National Association of Insurance Commissioners (NAIC) commends President Obama and the Treasury for proposing a plan to help improve stability and supervision of the financial sector, while preserving the role of states as regulators of insurance.
“While no one proposal is completely perfect, our initial read of the Administration’s financial overhaul plan seems to reflect what is most important to us: preserving the consumer protections and financial solvency oversight of the historically strong and solid system of state-based insurance regulation,” said Therese (Terri) M. Vaughan, Ph.D., NAIC Chief Executive Officer.
“State regulation’s strong solvency system and consumer protections have served consumers well, as evidenced by the relative stability in the insurance markets. The proposal appropriately focuses on the problems that need fixing, by addressing systemic risk and other regulatory gaps. We are pleased that a council of regulators with functional expertise is included in the proposal, but urge inclusion of state insurance regulators to offer expertise and information on the insurance markets.
"We will continue to work with Congress and the Administration to underscore the benefits of the current insurance regulatory system. Consumer protection has been, is and will remain priority one for state insurance officials. We advocate for insurance consumers and objectively regulate the U.S. insurance market, relying upon the strength of local, accountable oversight and national collaboration.”