The resolution, "Continued State-Based Insurance Consumer Protection," says that insurance consumer protection should remain with the states; and declares that neither the Financial Product Safety Commission Act of 2009, which would be established by companion bills S. 566 and H.R. 1705, nor the Consumer Financial Protection Agency Act, H.R. 3126, should have direct or indirect jurisdiction over insurance-related products.
“Property casualty insurance has a proven track record of protecting consumers through its state-based system, and that creating an inefficient system of dual regulation will result in confusion, as well as higher and unnecessary costs for consumers,” said Deirdre Manna, vice president for vice president of industry, regulatory and political affairs for PCI. “NCSL’s action adds another strong voice for continuing the current system of insurance regulation under McCarran, which has worked well. Insurance is a complex and comprehensive system with consumer protections that have evolved over many years, addressing solvency, availability and other elements.”
There are already extensive, comprehensive protections already in place to protect insurance consumers, including:
·Requirements that must be met before insurers are permitted to sell products, such as being financially sound, having a qualified management team, and employing staff with suitable credentials;
·Product regulations, such as restrictions on the kinds of insurance that can be sold, readability standards, cancellation and nonrenewal restrictions, consistency of products, and availability of buyers guides; and
·Post-sale safeguards for protecting consumers’ premium dollars, such as rules regarding grounds for cancellation and consumer notification, financial regulations to ensure the insurer’