Supporters of optional federal charter legislation calling for U.S. Senate hearings on the bill as soon as possible may be getting their wish.

Indeed, the insurance industry has reportedly pinned down Sen. Richard Shelby, R-Ala., who chairs the Senate Banking Committee, on his commitment to explore insurance regulatory reform options by securing a July 11 hearing date.

Sen. Shelby was described by industry lobbyists as a reluctant warrior on insurance regulatory reform, but has agreed to allow the industry to "cover the gauntlet" on legislative options. Sen. Shelby's office did not respond to requests for confirmation.

Besides the general concern about uniform regulation, the industry wants the committee to become more aggressive about its priorities, including legislation creating an optional federal charter and uniformity in regulation of surplus lines and reinsurance, lobbyists report.

The bipartisan legislation--known as S. 2509, the National Insurance Act of 2006, introduced by Sens. John Sununu, R-N.H., and Tim Johnson, D-S.D.--would establish an alternate federal insurance regulatory system based on the one used for the banking industry.

In a letter to Sen. Shelby, American Insurance Association President Marc Racicot, a former governor, and Frank Keating, president and chief executive officer of the American Council of Life Insurers, had called for the committee to take up the Sununu/Johnson bill as quickly as possible.

"Insurers--and more importantly, insurance consumers--need a more efficient regulatory system," the two said in the joint letter. "S. 2509's optional national system of insurance regulation would provide for a uniform, focused insurance regulatory system that eliminates state-by-state inconsistencies in regulatory requirements and removes barriers to product innovation."

An optional federal system, the two said, would provide consumers with standard protections nationwide, while also giving insurance companies increased ability to develop new products and respond to the changing needs of the market.

"In short," they wrote, "all stakeholders would benefit from enactment of an optional federal charter."

Mr. Keating and Mr. Racicot noted that between the two groups, AIA and ACLI members have invested $5.6 trillion in the U.S. economy, adding that their business stretches across state lines and international borders.

"We strongly believe that the Sununu/Johnson bill would bring insurance regulation into the 21st century by extending to insurers the same regulatory option as national and state-chartered banks," they wrote, calling it "a highly successful model."

"More importantly, it would establish strong and consistent consumer protections," they added. "Creating an optional national charter is essential to maintaining a healthy and competitive insurance marketplace across our great nation."