The House of
Representatives took a step forward today in reforming state insurance
regulation by passing H.R. 5637, the Nonadmitted and Reinsurance Reform
Act of 2006.
The Independent Insurance Agents
& Brokers of America (the Big "I") supports the bill, sponsored by Rep.
Ginny Brown-Waite (R-Fla.) and Rep. Dennis Moore (D-Kan.), and today
thanked the House for moving forward.
"This bill’s common-sense,
pragmatic approach is just what we need to get the ball rolling on real
reform of insurance regulation," says Big "I" CEO Robert A. Rusbuldt.
"We believe it not only eliminates duplication in surplus lines
regulation, but that it can also serve as a shining example of how
responsible insurance reform can occur - by using targeted federal
legislation to address areas of concern while retaining the strengths of
the current regulatory system."
The Big "I" testified last week
before a Judiciary Committee subcommittee in support of the bill, which
singles out two areas - surplus lines regulation and reinsurance
supervision - where there is general consensus for early action, and
that independent insurance agents and brokers play a crucial role in
surplus lines (or nonadmitted) insurance, which provides coverage for
unique or hard-to-place property/casualty risks. It streamlines surplus
lines regulation by making the insured’s home state the source of
regulation for individual surplus lines transactions. Additionally, the
bill’s second title would seek to reduce overlapping, multiple-state
regulation of both reinsurer financial condition and
credit-for-reinsurance. This is important to the Big "I" due to its
reaffirmation of state-based regulation, which the Big "I" supports, but
also recognizes is in need of reform.
