Join | Renew

On April 11, 2008 the NAIFA Board of Trustees recommended to NAIFA’s National Council, for its consideration and approval, to conditionally support the concept of an Optional Federal Charter (OFC) for insurance while continuing to support state-based regulation of insurance. On September 10, 2008 the National Council nearly unanimously voted to support the concept of an OFC provided that it meets several conditions. The conditions include true agent choice, enhanced consumer protections, the preservation of state regulation and the establishment of a single federal entity with expertise in insurance matters. NAIFA will endorse legislation that meets those conditions of support.

Read about NAIFA's conditional support for Optional Federal Charter

Read about NAIFA’s position on all aspects of insurance regulatory reform

Listen to NAIFA President Jeffrey Taggart Discuss the Optional Federal Charter

Listen to the NAIFA GovPod on Optional Federal Charter

The National Insurance Act In 2006, members of the U.S. Senate and House of Representatives introduced federal legislation that would give insurance producers and agents the option of choosing whether to being regulated by one federal entity or remain within the current state system – a concept known as an “optional federal charter.”  The bill—entitled the National Insurance Act—was re-introduced in 2007 for consideration by the 110th Congress.  In the Senate, S. 40 was introduced by Senators John Sununu (R – NH) and Tim Johnson (D – SD), and a similar bill—H.R. 3200—was introduced in the House of Representatives by Reps. Ed Royce (R – CA) and Melissa Bean (D – IL). Read more about the National Insurance Act

The Treasury Department Blueprint In addition, on March 31, 2008 the U.S. Department of the Treasury, as part of its “Blueprint for a Modernized Financial Regulatory Structure,” recommended that Congress adopt an OFC for insurance as a necessary step to achieve the Blueprint’s vision of comprehensive regulatory reform of all U.S. financial institutions  Furthermore, as a first step toward the creation of an OFC, the Blueprint calls for the establishment of a federal Office of Insurance Oversight (OIO),to advise the Secretary of the Treasury on domestic and international insurance policy matters. Read the Treasury Blueprint Fact Sheet

The Insurance Information Act Building on years of Congressional hearings on insurance regulatory reform and the Treasury Department’s recommendation to create an OIO, on April 17, 2008 Chairman Paul Kanjorski (D-PA) of the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises introduced the Insurance Information Act of 2008.  The proposal calls for the creation of an Office of Insurance Information (OII) that would be housed within the Treasury Department. The OII would collect and analyze information on the insurance industry and would advise the Secretary of the Treasury on domestic and international insurance policy issues. The bill was approved by the U.S. House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises on July 9, 2008. In September 2008, NAIFA sent a letter to the leadership of the House of Representatives that urged the passage of the Insurance Information Act. Due to pressing legislative priorities associated with the market crisis, the bill was not taken up. NAIFA maintains that the market situation highlights the need for an Office of Insurance expertise and many Members of Congress have expressed interest in the concept. It is likely this legislation will be re-introduced in the 111th Congress, which begins in January 2009, and will see further movement. Read more about the Insurance Information Act

Read NAIFA’s letter to House Leadership that Urges Passage of the Insurance Information Act

Read NAIFA's Letter of Support for the Insurance Information Act

• CRS Report for Congress: “Insurance Regulation: Optional Federal Charter Legislation”
• New York Senator Schumer and New York Mayor Bloomberg Report: “Sustaining New York’s and the U.S.’s Global Financial Leadership”
• U.S. Treasury Department Blueprint for a Modernized Financial Regulatory Structure
• ACLI Study: “The Optional Federal Charter: Implications for Life Insurance Producers”
• ACLI Study: “The Effects of an Optional Federal Charter for Life Insurers on State Economies”
• ACLI Study: “Economic Impact of an Optional Federal Charter on the Life Insurance Industry”
• ACLI Study: “State Regulation of Life Insurers: Implications for Economic Efficiency and Financial Strength”
• ACLI Study: Consumer Ramifications of an Optional Federal Charter

Read the FAQs on Insurance Regulatory Reform and Modernization

Start of page