Mr. Frank said life insurance “has increasingly become a financial product, with no geographical issues.”

However, he described p-c insurance as a different matter, saying he is “very skeptical” about an OFC for that sector. “I don't know any legislator who looks fondly on dealing with auto insurance,” he said, calling p-c issues “more regional” in nature.

Under questioning later, however, he declined to differentiate between commercial and personal lines insurance, saying he has not dealt with the issues “in detail.”

Asked to respond to speculation within the insurance industry that the price for an OFC would be compliance with the Community Reinvestment Act–which gives federal bank regulators some oversight over the activities of banks, particularly in poorer areas–Mr. Frank dismissed the notion. “There are no deals in the works,” he said.

“That all lies ahead,” he explained, at the same time declining to give a timeline on either hearings or action on issues relating to insurance regulation.

Still, groups in the industry supportive of an OFC are plowing ahead. They have created an Optional Federal Charter Coalition to lobby the incoming Congress for an OFC next year.

Sen. Chris Dodd, D-Conn., presumptive chairman of the Senate Banking Committee, has been more circumspect in his comments about support for the OFC in any form.

In their statement on Dec. 1, the leaders of trade associations representing insurers and banks as well as insurance agents and brokers stressed the “urgent” need for national insurance regulatory reform.

“The past two Congresses have held a series of hearings about the problems with the current, state-based insurance regulatory regime,” the statement said. “Conversations began in earnest last year about implementing a meaningful new system that would include an optional federal charter.”

Messrs. Racicot, Keating and Yingling noted in their statement a recent speech on U.S. international competitiveness by Treasury Secretary Henry Paulson, during which he discussed insurance, lamenting that the “consequence of our regulatory structure is an ever-expanding rulebook in which multiple regulators impose rule upon rule upon rule.”

“The Coalition agrees that insurance regulatory reform is integral to maintaining America's leading role in the international financial services marketplace,” the statement said. “The current antiquated, state-by-state regulatory system reduces U.S. competitiveness in the global insurance arena, when competing head-to-head with more efficient and modernized foreign markets.”

The statement noted that consumers are also “harmed because they ultimately pay the costs for a regulatory system riddled with redundancies and red tape that ultimately deprives consumers of the best possible services and product innovations.”