The National Association of Professional Insurance Agents, which represents independent professional insurance agents in all 50 states, Puerto Rico and the District of Columbia, US, has opposed the insurance-related proposals outlined in a report by the Treasury Department.
The national board of directors of The National Association of Professional Insurance Agents (PIA National) in March have passed a resolution reaffirming the association’s opposition to all proposals calling for optional federal charters and the creation of a federal insurance regulator – the two recommendations made by Treasury Secretary Henry Paulson in the report.
Robert Page, president of PIA National, has said that federal involvement is being proposed as a way of making insurance regulation more efficient but the subprime mortgage meltdown occurred under federal regulation.
Mr Page added: The proposals unveiled by Treasury Secretary Paulson are being billed as a strengthening of financial services regulation but in the case of the recommendations regarding insurance, the opposite is true.
In reality, what is being proposed for insurance is more deregulation under the guise of strengthened regulation, along with a transfer of regulatory authority from the states to the federal government.